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Small Cuban businesses now legal - 6th September 2021

In the tiny, communist country of Cuba, unusual things are happening. The Cuban government has introduced new laws, which make it much easier to start private businesses.

President Miguel Díaz-Canel announced the changes. He said Cuba was making big changes in government policy on the island, where state-owned companies are normal. In the future, independent companies with up to 100 staff will be allowed.

It's possible that protests by Cuban people, in July, have speeded up these economic changes. Thousands of protesters marched angrily through the streets that month, wanting change. They spoke out about the financial and political crisis. Many people were arrested by police and at least one person died.

In recent times, Cuban people have faced many difficulties. Many locals are angered by the government's attitude to the pandemic, the death rate is now high and hospitals haven't coped well. Medicine, food and other basic essentials are also either expensive or unavailable.

Tourism usually brings huge amounts of money into the country, but now the economy is suffering because of Covid-19 tourist restrictions. And bad weather has also had a very negative effect on the sugar harvest, which is a major export.

The Cuban government blames the US for the protests and for their current situation. But the new business laws are a major step forward. Many Cubans have been waiting for this for years. It could have a huge effect on the national economy.