In a recent monthly meeting with governors and the mayor of Isla de la Juventud, Cuban Prime Minister Manuel Marrero Cruz criticized the chaotic state of the non-state sector, the rampant price gouging, and the absence of effective government oversight. During his address, broadcasted by the state-run Canal Caribe, Marrero emphasized the need to "restructure" the relationship with non-state economic actors, arguing that policies aimed at expanding this sector “must not work against the people.”
“We need to scrutinize this relationship: what are we contracting, what are we paying for, and what services do we require from the non-state sector?” Marrero demanded, without providing specific data or reflecting on the government's role in the widespread poverty. He defended the "comprehensive" government program, a regime-promoted initiative designed to address escalating social demands amidst shortages, inflation, and mass emigration. According to official media, this plan encompasses over 200 actions across 11 strategic areas, yet has failed to deliver visible results for the public.
Marrero asserted, “We must progress in resolving these issues to alleviate the problems and challenges our population faces today,” although he did not address the state's inability to control markets, boost production, or ensure basic services.
Crackdown on Private Sector Pricing
One of the most charged moments of his speech was his warning to private vendors and resellers accused of setting exorbitant prices. Marrero highlighted cases where a liter of oil costs up to 1,500 pesos in some areas, issuing a stern threat: “And if they hide the oil, we will go after them, to those home warehouses. In such cases, it’s not a fine, not a forced sale, it’s seizure.”
The prime minister also emphasized that price caps “must be respected” and blamed local governments for not enforcing them more strictly. “These matters should not have to wait for directives from above at the municipal level,” he asserted, in a speech that left little room for legality, transparency, or respect for private workers' rights.
Ignoring Economic Policy Failures
Despite the punitive tone of his address, Marrero avoided acknowledging the shortcomings of centralized policies and the current economic model. Rather than accepting responsibility, he focused on blaming others and offering vague solutions. On the issue of the housing crisis, another topic covered in his remarks, he merely stated that “alternatives need to be found to resolve, confront, or mitigate such a complex problem with such a significant social impact as housing,” without presenting any concrete plans for new construction or funding.
Marrero’s statements come at a time when the Cuban government is ramping up its offensive against the private sector, blaming it for inflation and shortages. In February, a leaked document signed by the prime minister authorized Communist Party officials to inspect major private businesses for “familiarity” with state enterprises and fraud in contracts and payments. This move is viewed as another attack on private enterprises in Cuba.
Additionally, the government has announced new economic measures to “correct distortions” and “revitalize the economy” by 2025. These include updates to electricity tariffs, control of basic food prices, and the use of prepaid cards for fuel. However, these actions have been criticized for lacking detail and recycling old promises without real change, fueling skepticism among the population.
Understanding Cuba's Economic Challenges
What measures has the Cuban government taken against private businesses?
The Cuban government has intensified inspections of private businesses, particularly focusing on their interactions with state enterprises and potential contract fraud, as part of a broader crackdown on the sector.
Why is the Cuban government blaming the private sector for economic issues?
The government attributes inflation and shortages to the private sector, using it as a scapegoat amidst widespread economic challenges, though many argue the root issues lie in systemic inefficiencies and centralized policies.
How does the government plan to control high prices?
The government plans to enforce stricter price caps and has threatened to seize goods from vendors who do not comply, although critics question the effectiveness and fairness of such measures.