The Cuban government announced on Wednesday that it has "refined" its economic strategy in an effort to turn around the ongoing crisis plaguing the nation. This announcement, however, lacked specific details on new measures or timelines for implementation. The information emerged from official media following a meeting of the Council of State, led by its head, Esteban Lazo Hernández, and attended by President Miguel Díaz-Canel Bermúdez and Prime Minister Manuel Marrero Cruz.
State television reported that during the meeting, officials assessed the impact and progress of the government's program aimed at "correcting distortions and revitalizing the economy," a notion introduced by the government at the beginning of 2024 and pursued throughout the current year.
The Prime Minister highlighted advancements in macroeconomic stabilization, increasing and diversifying foreign currency revenues, and bolstering national production, particularly in food sectors. Yet, the reality faced by the Cuban populace remains starkly different from the official narrative: inflation is rampant, shortages of basic goods are worsening, and the partial dollarization of the economy continues to affect the majority of Cubans who lack access to foreign currency.
Furthermore, the plan was said to have been refined with a "scientific approach," incorporating a structured system with schedules, objectives, projections, actions, indicators, and concrete goals. Regular meetings with governors have also been systematized to strengthen territorial development, the government claimed.
Despite these assurances, there is no concrete evidence that these strategies will positively impact the quality of life for the population. Promises of territorial development and strengthening the productive sector contrast sharply with the lack of resources, challenges faced by the private sector, and the collapse of state infrastructure.
This program, initially announced in 2023 and adjusted multiple times, has faced severe criticism from experts who view it as a failed strategy to delay the essential structural reforms the country desperately needs.
In 2024, adjustments were made amid social uncertainty and widespread negative public opinion due to a package of measures that led to increased prices and taxes on essential services such as water, gas, transportation, and energy, among others.
For its initial phase this year, objectives included updating electricity tariffs to encourage energy savings, setting maximum retail prices for basic national products like rice and beans, and implementing prepaid cards for fuel purchases by legal entities.
Meanwhile, the Cuban people continue to face an escalating crisis, with a future that appears increasingly uncertain. Persistent power outages, shortages, and inadequate wages that fail to cover basic needs leave these announcements appearing as yet another attempt to prolong a failing economic model that continues to suffocate the country.
Understanding Cuba's Economic Challenges
What are the main economic challenges faced by Cuba?
Cuba faces several economic challenges, including rampant inflation, shortages of basic goods, partial dollarization of the economy, and a lack of access to foreign currency for most citizens.
How has the Cuban government responded to the economic crisis?
The Cuban government claims to have refined its economic strategy with a focus on macroeconomic stabilization, diversifying foreign currency revenues, and strengthening national production. However, critics argue that these efforts lack concrete details and impact.
What criticisms have been made about the Cuban government's economic strategies?
Experts have criticized the government's strategies as being insufficient and delaying necessary structural reforms. The measures have been viewed as attempts to prolong a failing economic model rather than addressing fundamental issues.