Cuban Prime Minister Manuel Marrero Cruz emphasized on Tuesday the necessity for a profound shift in mindset, as he introduced the strategy for enacting the 176 economic and social measures approved by the regime. This acknowledgment points to the fact that the main impediments to reform also lie within the state apparatus itself.
The announcement took place during a Council of Ministers meeting focused on setting the wheels in motion for this package of measures, which is organized into 23 thematic areas and was confirmed by the National Assembly on June 19.
Marrero detailed that the document had been revised based on 673 proposals received during the consultation process, 79% of which were adopted by the government.
During the session, Miguel Díaz-Canel underscored the political aspect of these reforms, clarifying what he perceives as the core objective of this initiative.
“Above all, it is about saving the Revolution,” the leader declared, according to the official website of the Presidency.
Díaz-Canel also noted that several actions within the package are not new but were previously approved decisions that were never executed due to administrative, bureaucratic, and regulatory hurdles.
He reiterated the blame on the U.S. embargo for the ongoing crisis in the country, stating, “We are facing a complex dilemma that we can solve: how to continue the socialist construction process in a small Caribbean island.”
Concrete Changes in State and Private Sectors
The initial measures announced include expanding the powers of state-owned enterprises, decentralizing the authorization of wholesale and retail pricing, and allowing provincial governments to create, merge, or dissolve local state enterprises.
In the private sector, changes are also anticipated. The government will permit small and medium-sized enterprises (SMEs) to hire more than 100 workers, allow an individual to own more than one private business, reduce the list of prohibited activities, and streamline the procedures for establishing new economic entities.
Historical Calls for Transformative Thinking
This is not the first instance where Marrero has called for a shift in the mindset of state leaders. In January, during a visit to Ciego de Ávila, he urged for a “radical change in mentality” and insisted that leaders “should not fear change,” though he made it clear that these transformations would not alter the “foundational roots of the Revolution” or the socialist system.
Experts analyzing the reform package believe these measures represent a loosening of certain economic management mechanisms while keeping the fundamental principles of the state model intact.
Challenges Ahead for the Cuban Economy
The implementation of these 176 transformations is set to begin amid a particularly challenging scenario for the Cuban economy. Poverty, the depreciation of the peso against the dollar in the informal market, prolonged power outages, and declining production continue to affect daily life for the population. International organizations are projecting another GDP contraction by 2026.
Justice Minister Rosabel Gamón Verde stated that applying these measures will require modifying numerous existing regulations and crafting new ones through a more expedited procedure than usual. In the same meeting, National Assembly President Esteban Lazo Hernández assured that the time needed to draft the necessary legal provisions to implement the reforms will be reduced.
As the meeting concluded, Díaz-Canel stressed that the transformations should not only be enacted but must also yield tangible results. “When I talk about defense, it's not just about implementing them; it's about implementing them well and achieving results,” he asserted.
Understanding Cuba's Economic Reforms
What are the 176 economic measures being implemented in Cuba?
The 176 economic measures are a series of reforms aimed at improving Cuba's economic and social conditions, involving changes in both state and private sectors, such as expanding enterprise powers and reducing restrictions on private businesses.
Why is a mindset shift necessary for these reforms in Cuba?
A mindset shift is deemed necessary to overcome internal barriers within the state apparatus that hinder the effective implementation of reforms, as emphasized by Cuban Prime Minister Manuel Marrero Cruz.
How will these reforms affect the private sector in Cuba?
The reforms will allow private sector businesses to expand by hiring more employees, owning multiple enterprises, and facing fewer restrictions, thereby encouraging economic growth and diversification.