HAVANA, Sept 11 (Reuters) - Cuba's private sector, which grew out of a communist experiment with some capitalist ways, has shrunk to 143,406 people, figures showed on Friday.
While government sources trace the decline to natural trends, current and former members of the private sector blame the falloff on excessive state controls and taxes imposed after the introduction of some market-oriented features in 1993.
At its height, private sector participation in Cuba rose to 208,000 people in 1996, according to state tax figures.
The government's decision to open up and expand the self- employed sector in late 1993 was initially interpreted as a sign that Fidel Castro's government was moving toward a more market-oriented economy.
But since, many foreign analysts have expressed disappointment at the barrage of regulations and taxes imposed by authorities on the sector.
For instance, the Cuban government in July outlined tougher rules for self-employed workers, including an effective tax increase for those earning hard currency. Stricter regulations also were imposed for registration in 157 categories of trades, crafts and services.
The government, citing Cuba's constitutional identity as a socialist state, said there is a need to order and regulate the self-employed private sector and to prevent the illegal use and diversion of state-owned resources.
Authorities said private workers earn much more than the average state worker and argue they should be taxed more heavily.
17:47 09-11-98
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