On Friday, Miguel Díaz-Canel, the leader of Cuba, proclaimed that power in the country is held by the workers, not the wealthy or the bourgeois, during a speech at the XXII Congress of the Cuban Workers' Central held at the Havana Convention Palace. His remarks aimed to justify the introduction of market elements and private ownership in the most significant economic reform package approved since 1959.
"The essence of everything lies in the matter of power. If power is with the people, if it's with the workers, not the rich, not the bourgeois, then policies can be made in favor of the people. This is what we will achieve under socialism. We are a government of workers for the workers, even if capitalists exist within," stated the President, according to a report by the state-run portal Cubadebate.
Simultaneously, Díaz-Canel acknowledged that the economic direction involves an unprecedented opening: "More elements of private ownership, private production, capitalism, and market need to be introduced. It must be done because basic common sense dictates it, but with the strength of the revolution, we should not fear it."
Significant Economic Shifts
The speech came a week after the National Assembly, in an extraordinary session, approved 176 economic and social transformations organized into 23 strategic areas. These include private banking, private exchange houses, a digital currency market, and the removal of the 100-worker limit for small and medium enterprises.
In response to criticism about the delay in implementing these measures, Díaz-Canel pointed out that these transformations were part of the guidelines from the VI Congress of the Communist Party. He listed reforms previously initiated by Raúl Castro, such as the liberalization of travel abroad, the new Constitution, the Family Code, the expansion of the non-state sector, and the granting of idle lands for usufruct.
A Time of Economic Challenges
The head of state described the current period as an "economy of war," establishing five priorities within what he called a "shield for defending sovereignty," with military preparedness as the first and the implementation of the Economic and Social Program for 2026 as the second.
Regarding the currency exchange market, a critical aspect of the reform package, Díaz-Canel sought to alleviate concerns by stating that the informal market currently setting the exchange rate "is illegal," and its legalization will also allow state enterprises to participate. "Ultimately, there will be a currency flow that will better nourish the economy," he assured.
Public Reaction and External Criticism
The congress, held under the slogan of Resistance and Unity Reaffirmation, gathered 759 delegates, with 561 participating via videoconference. While the government presents the reforms as a triumph of socialism, Cubans responded with sarcasm on social media: "Download them and eat and light yourselves with the measures on paper," quipped one netizen, referring to the blackouts and shortages affecting the population.
Mauricio de Miranda, an economist with the Cuba Transformation group, warned that without democratic institutional checks and balances, the economic opening could lead to a "Russian-style transition" benefiting party elites rather than the populace. Meanwhile, the United States Department of State described the reforms as "superficial smoke signals."
The implementation of the 176 measures will require amending more than 148 legal provisions and approving 32 new regulations, a process Díaz-Canel himself acknowledged as complex but, as he stated, "necessary to save the revolution."
Frequently Asked Questions about Cuba's Economic Reforms
What are the main components of Cuba's recent economic reforms?
The reforms include the introduction of private banking, private exchange houses, a digital currency market, and the removal of the 100-worker limit for small and medium enterprises.
How has the Cuban public reacted to these reforms?
Many Cubans have responded with skepticism and irony, particularly on social media, expressing doubts about the practical benefits of the reforms amid ongoing shortages and blackouts.
Why is there concern about a "Russian-style transition" in Cuba?
Without democratic checks and balances, there is concern that economic liberalization could result in a transition that primarily benefits the political elite, similar to what occurred in Russia.