Miguel Díaz-Canel fervently defended a sweeping set of economic reforms approved by the National Assembly of People's Power on Thursday, dismissing any notion that these changes are a result of pressure from the United States. These reforms come amid Cuba's most severe economic crisis in decades.
"We are not doing this because of Yankee pressure," declared the Cuban leader during his address to the lawmakers gathered in Havana to support the 176 economic and social transformation measures introduced by Prime Minister Manuel Marrero Cruz.
Díaz-Canel emphasized that these reforms stem from an internal reflection within the regime regarding the necessity to alter aspects of the economic model while retaining the current political system.
"We are doing this sovereignly, as we have reached a point of maturity and reflection unique to the debates we've held over the years, which signal that we must continue defending socialism, but with some transformations," he stated.
The president further claimed that these changes would have been essential even if Cuba were facing a more favorable economic environment.
"Even if we were in a less unfavorable situation, we would still need to pursue transformations. We would be in a more comfortable position to implement them," he assured.
Wide-Ranging Economic Reforms
The regime's approval of one of the most extensive reform packages in recent years includes measures such as allowing private banking, creating private exchange houses, eliminating the 100-worker limit for micro, small, and medium enterprises (MSMEs), enabling individuals to own multiple businesses, and opening up more to private and foreign investment.
Additionally, plans include eliminating mandatory state mediation in certain import and export operations, allowing Cuban residents abroad to participate in new economic projects, and gradually reducing the universal subsidy system.
Internal Critique and Admission of Faults
During his speech, Díaz-Canel made some of the most direct self-criticisms by a Cuban leader in recent years, acknowledging that part of the crisis is due to internal issues.
"What depends on us, we must change ourselves, and we must change now," he asserted.
The leader admitted that some obstacles cannot be blamed on external factors.
"There are hurdles that do not come from outside or from the blockade," he pointed out, referencing bureaucracy, administrative sluggishness, and decisions that, according to him, have been delayed for too long.
He also acknowledged the failure of some recently implemented government policies, including price controls, whose effectiveness was questioned during the pre-reform debates.
Challenges and Skepticism
The approval process for these measures moved swiftly. Díaz-Canel publicly announced them on June 12; five days later, they received backing from the Communist Party's Central Committee in an extraordinary plenary attended by Raúl Castro; and on Thursday, they were debated and approved by the National Assembly.
The reforms are introduced during a time marked by a deep economic crisis. Various international organizations forecast a further contraction of the Gross Domestic Product by 2026, while the country grapples with prolonged blackouts, fuel shortages, persistent inflation, and difficulties in securing basic goods.
Independent analysts have reacted cautiously to the announcements. Economist Pedro Monreal characterized the process as a case of "belated pragmatism" and pointed out that many measures are arriving after years of economic deterioration. Meanwhile, economist Elías Amor criticized the package for not including clear solutions to issues such as inflation and fiscal deficit.
Aware of the doubts surrounding the reforms, Díaz-Canel warned that the main challenge will not be approving them, but implementing them effectively.
"Equally or more important than the approval of these transformations is their proper and timely implementation," he stated.
This remark encapsulates one of the biggest questions surrounding the new economic package: whether the announced measures will translate into real changes for a population facing one of the most challenging periods in Cuba's recent history.
Key Aspects of Cuba's Economic Reforms
What are the main components of the new economic reforms in Cuba?
The reforms include the authorization of private banking, the creation of private exchange houses, removal of the 100-worker limit for MSMEs, allowing multiple business ownership, and increased openness to private and foreign investment.
Why does Díaz-Canel claim these reforms are necessary?
Díaz-Canel argues that the reforms are the result of internal reflection and maturity, emphasizing that changes are essential even if Cuba were in a more favorable economic situation.
How has the international community reacted to the reforms?
International analysts have reacted with caution, noting that many measures come after years of economic decline and criticizing the lack of clear solutions to inflation and fiscal issues.