Observers say it could be a significant change to Cuba’s model of communism. Havana has announced that more Cubans will be allowed to work for themselves and hire their own workers.
The Cuban President said the steps were aimed at creating jobs for one million excess workers, expected to be laid off over the next five years.
Raul Castro said: “The Council of Ministers has agreed to increase the practice of self-employment, as another alternative to jobs for excess workers, eliminating various existing prohibitions.”
Experts say the latest tweak to Cuban communism could be the most important yet if it includes a large number of people and stays in force.
At the moment the state controls 90 percent of the economy, but for the past two years the island has been hit by a financial crisis.
The government maintains it is merely updating and not reforming its economy, and does not plan to copy the market socialism of China or Vietnam.