On Wednesday, Miguel Díaz-Canel introduced an "emergency economic and social agenda" to the Extraordinary Plenum of the Central Committee of the Communist Party of Cuba. This ambitious reform package, the most extensive announced by the regime in recent years, includes lifting price controls and opening the door for direct foreign investment in the national private sector.
The announcement comes amid Cuba's most severe economic downturn since the Special Period, with forecasts from CEPAL predicting a 6.5% decrease in Cuba's GDP by 2026 and an accumulated contraction of nearly 26% since 2020.
"We aim to implement an emergency economic and social agenda featuring measures from our government program and policies approved by the party, along with decisions that can no longer wait. Some may lack unanimous consensus, yet they are unavoidable. Each measure will have an assigned individual responsible, a set deadline, a performance indicator, and will be publicly accountable to the nation," stated Díaz-Canel.
One of the most noteworthy announcements was the end of widespread price controls, a policy the leader himself admitted had failed. "In practice, price caps didn't curb inflation. Often, they resulted in product shortages, illegal market shifts, higher prices, reduced tax revenue, and a relentless race between real prices and administrative decisions that were always too late," he acknowledged.
Regarding economic openness, Díaz-Canel revealed that the regime will permit direct foreign investment in the private sector, including small and medium-sized enterprises (MIPYMES), "with clear rules on ownership, repatriation, reinvestment, and dispute resolution."
The reform package also includes removing mandatory intermediaries in foreign trade, allowing private and foreign financial institutions, revisiting the list of prohibited activities for the private sector, and reducing the ministerial cabinet from 27 to between 20 and 21 ministries.
In the agricultural sector, the leader was unequivocal: "The Cuban people's food is a matter of national security, and idle lands must be utilized." He also pledged to expand the allocation of land for usufruct and enable producers to import supplies directly.
Díaz-Canel also admitted that part of the economic stagnation is the government's own doing: "Some obstacles don't come from outside or from blockades. There's sluggishness, bureaucracy, norms that hinder those who want to produce, and decisions we've postponed. What depends on us, we must change ourselves, and we must change it now."
The PCC approved the reform package on that same Wednesday, the 17th, with Raúl Castro participating via videoconference and signing the document of support.
Prime Minister Manuel Marrero Cruz presented the technical report, emphasizing that "these transformations do not represent a deviation from our socialist project."
Citizen reaction on social media was largely skeptical and mocking, while economist Pedro Monreal warned that without access to energy, foreign currency, or technology, the reforms are unlikely to succeed.
Within the Plenum, University of Havana Rector Miriam Nicado García cautioned about the risk of the measures exacerbating inequalities and leading to greater wealth concentration.
This Thursday, the National Assembly is holding an extraordinary session to formally endorse the package in an accelerated institutional process that the regime presents as a sign of urgency given the crisis's severity.
Understanding Cuba's Economic Reforms
What does the new economic agenda in Cuba include?
The agenda includes lifting price controls, allowing direct foreign investment in the private sector, removing mandatory intermediaries in foreign trade, and reducing the number of ministries.
Why are these reforms considered urgent?
These reforms are considered urgent due to Cuba's severe economic crisis, with significant GDP contraction and inflation, necessitating immediate action to stabilize the economy.
How have citizens reacted to the announced reforms?
The reaction on social media has been largely skeptical and mocking, reflecting doubt about the effectiveness of the reforms without proper resources like energy and technology.