CubaHeadlines

Cuban President Urges "Hard Work" as Solution to Economic Crisis

Saturday, April 26, 2025 by Richard Morales

Cuban leader Miguel Díaz-Canel emphasized the importance of "working hard" and strengthening ties with the public as a strategy to tackle the economic and social crisis suffocating the island. However, during his closing remarks following visits to the municipalities of Jobabo and Colombia in Las Tunas, he once again avoided discussing the deep structural reforms demanded by many citizens.

In a country burdened by inflation, shortages of essential goods like food, medicine, and fuel, and increasing social unrest, Díaz-Canel continues to rely on administrative solutions and calls for discipline. He reiterated the government's push for mandatory banking of economic transactions, asserting that "all state and private services must be banked and offer payment options through magnetic cards," according to a report from the state-run Tunas Visión. This measure has faced widespread criticism due to frequent banking service failures, limited cash availability, and general distrust in state institutions.

The president acknowledged that the agricultural sector, critical to the economy, should be among the first to adapt to this system, urging entities like Gelma and other agricultural service providers to offer electronic payment options. However, he overlooked the real challenges producers face, such as inadequate infrastructure and shortages of essential supplies.

Appointed by Raúl Castro to lead the nation, Díaz-Canel stressed the importance of maintaining a direct connection with the public. "It's not the same when the people are unaware of what's happening as when we have the opportunity to explain it to them directly," he said, highlighting a strategy to gain popular support through direct communication.

During his speech, Díaz-Canel also warned of the dangers of drug use, stating, "Drugs destroy families, destroy a society," and urged decisive action against public concerns.

While the population calls for urgent measures to boost production, facilitate investment, and unleash economic forces, the government seems focused on more control, restrictions, and propaganda, a strategy that has yet to reverse the severe national crisis. The call to "work hard" contrasts with the lack of concrete solutions for structural problems like the energy crisis. Just in March, Díaz-Canel denied his government's responsibility for the blackouts, blaming financial constraints and asserting that "there is no money" to resolve them.

Meanwhile, the Ministry of Energy and Mines admitted that Cuba's national oil production covers only a third of the demand, with more than half of the available fuel allocated to maintaining a crumbling National Electric System. The prioritization of hotel and tourism infrastructure over strategic investments has deepened the energy crisis, halting production, disrupting basic services, and fueling popular protests.

Economists like Pedro Monreal have warned that the energy collapse is not solely a consequence of the U.S. embargo but also of internal political decisions that have delayed the modernization of the electrical sector for years.

Understanding Cuba's Economic Challenges

What are the main economic challenges facing Cuba?

Cuba faces significant economic challenges, including severe inflation, shortages of food, medicine, and fuel, and a struggling energy sector. These issues are compounded by a lack of structural reforms and reliance on outdated economic policies.

How is the Cuban government responding to the energy crisis?

The Cuban government has blamed the energy crisis on financial constraints and external factors like the U.S. embargo. However, critics argue that internal policy decisions and a failure to invest in modernizing the energy sector have exacerbated the situation.

What is the public's reaction to the government's economic measures?

The public has expressed frustration and dissatisfaction with the government's economic measures, which many view as inadequate or overly restrictive. There is a call for more comprehensive reforms to address the underlying issues.

© CubaHeadlines 2025