In one of his most candid statements in recent years, Cuban leader Miguel Díaz-Canel acknowledged on Monday that the country's current revenue is insufficient even to purchase the most basic raw materials needed for national production. "We're just redistributing scarcity," he remarked before the Economic Affairs Commission of Parliament, convened at the Palace of Conventions. This admission highlights the structural collapse of the Cuban economy and the lack of a clear direction to address the deepening crisis.
Despite employing a technocratic tone and calling for a "transformation in economic management," Díaz-Canel conceded that Cuba lacks the necessary foreign currency to maintain even a domestic market in national currency or a functional exchange market. "The core issue is wealth generation," he emphasized, as official data reveals a widespread decline across all sectors.
In the face of these dire statements, the government continues to rely on repetitive rhetoric and ineffective measures that fail to reverse the economic downturn. Díaz-Canel himself admitted that the government's strategy so far has been to distribute the meager resources available without generating wealth or stabilizing the economy: "We often try to solve problems by redistributing the existing scarce resources," he stated.
The leader once again turned to future proposals: a government program to be presented by the Prime Minister at the Fifth Ordinary Session of the Tenth Legislature of Parliament, scheduled for Wednesday, July 16; self-financing schemes for selected sectors, and promises of productive linkages. However, none of these initiatives have managed to change course or ease shortages, inflation, or the erosion of purchasing power.
Current Economic Realities and Future Proposals
While high-ranking officials stress the importance of "integrating into international markets" and attracting foreign investments, the daily reality for ordinary Cubans involves survival in a country with insufficient food, constant blackouts, and prices that do not align with wages.
Díaz-Canel suggested redefining imports and exports, improving foreign trade management, and "taking advantage of opportunities" in blocs such as the BRICS or the Eurasian Economic Union. Yet beyond the diplomatic gestures and reformist intentions, his words reveal an acknowledgment that the current economic model in Cuba is unsustainable.
"We must increase national production and ensure our products are competitive," he declared. However, without inputs, energy, liquidity, and with a bureaucratic and centralized structure that has proven ineffective, the question remains: with what means will they achieve this?
Acknowledging Past Mistakes
This is not the first time Díaz-Canel has recognized government errors and admitted the country's revenue shortfalls. Back in December 2023, during a similar session of the Economic Affairs Commission of Parliament, he asserted that "if the blockade is lifted, there are plenty of solutions," attributing much of the crisis to the U.S. embargo, while also acknowledging "errors committed" that have caused internal distortions.
On that occasion, he avoided discussing the need for self-production and instead justified the hardships by citing a decline in remittances, loss of credit, and reduced fuel shipments. Meanwhile, his then-Minister of Economy, Alejandro Gil, warned that inflation would close 2023 with an increase close to 30%, and Parliament acknowledged the failure of the "Task Ordering," one of the Cuban government's biggest economic experiments that ended in failure in recent years.
Understanding Cuba's Economic Challenges
Why did Díaz-Canel say Cuba is only redistributing scarcity?
Díaz-Canel acknowledged that Cuba's revenue is insufficient to purchase basic raw materials needed for production, highlighting the structural collapse of the economy. The government is forced to redistribute the limited resources it has, rather than generating new wealth.
What future proposals did Díaz-Canel mention?
Díaz-Canel mentioned a government program to be presented at the next Parliament session, self-financing schemes for selected sectors, and promises of productive linkages. However, these have not yet led to significant economic improvements.
What are the main challenges facing Cubans today?
Cubans face daily struggles with insufficient food, constant blackouts, and prices that do not match wages. These challenges are compounded by the government's ineffective economic strategies.