Cuban Leader Acknowledges Unsustainable External Dependency

On Thursday, Cuban President Miguel Díaz-Canel made a rare admission, acknowledging that Cuba's economic and social model had long been propped up by foreign allies' material support. This marks one of the clearest acknowledgments by a Cuban leader regarding the island's historical reliance on external resources.

During the Third Extraordinary Session of the National Assembly of People's Power, Díaz-Canel defended a package of 176 economic reforms introduced by the regime. He conceded that the maintenance of Cuba's social policies was not solely dependent on internal management.

"We must recognize that, on many occasions, we were able to sustain it not just through political will but because we received a number of resources from other places. At one time, from the socialist bloc; at another time, from relationships we had with friendly countries. However, life has shown us, and we have learned, that this was not sustainable," he stated to the assembly members.

Although he did not specify any countries, the reference clearly points to the economic support that Cuba received over decades from the Soviet Union and subsequently from Venezuela—two key allies that played a crucial role in sustaining the Cuban economy.

Facing the Challenge of Self-Sufficiency

Díaz-Canel emphasized that the primary challenge now is to maintain the regime's political project without relying on such external support.

"The debate is how, without having that external dependency, we can, with our own talent and effort, continue to build socialism in a sustainable way," he asserted.

The statements were made during an extraordinary session convened to analyze and endorse a comprehensive package of economic transformations presented by Prime Minister Manuel Marrero Cruz as a response to the country's deepening crisis.

Internal Obstacles to Economic Progress

The Cuban leader also acknowledged that some obstacles hindering economic development are of internal origin.

"There are barriers that do not come from outside or from the blockade, but rather from internal sluggishness, bureaucracy, regulations that hinder those who wish to produce, and delayed decisions," he noted.

This admission follows other comments made by Díaz-Canel earlier in the week, where he recognized that several of the now-approved reforms had been discussed for years without being implemented.

"The mistake was not in proposing them, but in having postponed them," he remarked during the recent Extraordinary Plenary Session of the Communist Party's Central Committee.

Transformative Economic Reforms

Among the approved measures are the authorization of private financial institutions, the establishment of private exchange houses, increased openness to foreign investment, more flexible rules for micro, small, and medium-sized enterprises (mipymes), the removal of general price caps, and a reform of the subsidy system.

Authorities also announced a reduction in the number of ministries and new mechanisms to capture foreign currency and stimulate economic activity.

The reforms come at a particularly challenging time for the nation. Cuba is grappling with a prolonged crisis characterized by blackouts, fuel shortages, difficulties in providing food and medicine, a sharp depreciation of the peso, and a continued decline in national production.

International organizations forecast another contraction of the Cuban economy in 2026, while independent economists warn of the accumulated deterioration over the recent years.

Economist Pedro Monreal has highlighted that, in an adverse scenario, the decline in economic activity could approach levels seen during the Special Period of the 1990s.

In this context, Díaz-Canel's remarks represent an unusual acknowledgment of a cornerstone that sustained the Cuban economy for decades: the financial and energy support of foreign allies, which is no longer as readily available.