The Cuban Prime Minister, Manuel Marrero Cruz, took to social media platform X on Thursday to announce that the government's approved transformations, aimed at "revolutionizing state enterprises" and enhancing private sector engagement, require the participation of "bold entrepreneurs." This call, however, has sparked a wave of skepticism and criticism among Cubans.
His message, accompanied by an official government image, is part of a broader communication campaign regarding the 176 economic and social measures approved by the National Assembly of People's Power on June 18 and 19. The government describes these as the most comprehensive structural reforms since the Special Period.
Public Response: Criticism and Skepticism
"Numerous opportunities are available for talent and creativity," Marrero wrote, having led public communication of these reforms both in Parliament and on social media.
Yet, the public's reaction to Marrero's tweet was predominantly critical. One user remarked, "They denied it but eventually had to accept it," adding that "the high cost of socialism for the Cuban people is a result of the whims of one family and their accomplices."
Another commenter was blunt about investment prospects: "There are no legal guarantees to protect investments. You do not respect international laws."
A third comment captured the structural skepticism: "State enterprises and the private sector in Cuba will never be able to cooperate. Investing in Cuba is economic suicide."
The Reality Behind Economic Reforms
Marrero himself acknowledged before the National Assembly that Cuba is facing "the most complex situation since the Special Period," although he emphasized that these reforms are "not a capitulation, but a sovereign adaptation of development tools to the country's specific circumstances."
Among the significant changes is the transformation of socialist state enterprises into joint-stock companies or partnerships, paving the way for domestic, foreign, and individual private capital.
Out of approximately 2,800 Cuban enterprises, only about 300 currently operate under this new model.
The reforms also allow state companies to set their own wages and prices without higher authorization, autonomously create subsidiaries and micro, small, and medium-sized enterprises (MSMEs), and manage imports directly.
For the private sector, the cap of 100 workers for MSMEs is removed, private banks are permitted, and the progressive elimination of the ration book is outlined.
Economic Challenges and Government Control
However, the official call is at odds with a devastating economic reality. The informal exchange rate for the dollar soared from 435 pesos in December 2025 to 670 pesos by July 7. The minimum pension is around 4,000 pesos monthly—less than 10 dollars at the informal exchange rate—and power outages exceed 20 hours daily in several provinces.
Moreover, the government established the National Institute of State Enterprise Assets (INAEES) through Decree 144/2026, a body overseeing over 2,000 state enterprises. Economist Pedro Monreal described it as the potential "grave digger" of Cuba's enterprise system, while the organization Cubalex labeled it as a recentralization mechanism.
Understanding Cuba's Economic Reform Challenges
What are the main reforms introduced by the Cuban government?
The reforms include transforming state enterprises into joint-stock companies, allowing private sector growth, permitting private banks, and gradually eliminating the ration book.
Why are Cubans skeptical about these economic reforms?
Cubans are skeptical due to a lack of legal guarantees for investment, past economic failures, and ongoing harsh economic conditions, such as high inflation and frequent power outages.
What role does the National Institute of State Enterprise Assets play?
The INAEES, established by Decree 144/2026, has control over more than 2,000 state enterprises and is seen as a mechanism for recentralizing economic control in Cuba.