Cuban leader Miguel Díaz-Canel recently acknowledged that legalizing the dollar during the Special Period in the 1990s sparked social inequalities in Cuba. He reflected on these past decisions while defending the current economic changes being implemented by the regime.
In an interview with the Russian state media outlet RT en Español, hosted by Cuban journalist Oliver Zamora, Díaz-Canel discussed the ramifications of previous economic measures.
Zamora questioned him about the emotional weight of making decisions that might exacerbate social inequality, reminiscent of the challenges faced by Fidel Castro when he had to adopt exceptional economic measures during the 1990s crisis.
"Of course, it pains me because it goes against the concepts in which one has been shaped and educated," Díaz-Canel confessed.
To rationalize the current transformations, Díaz-Canel referenced Castro, who had to embrace changes during the Special Period when Cuba lost Soviet economic support and had to open up to foreign capital, tourism, and currency exchanges.
Economic Reforms and Social Disparities
Díaz-Canel highlighted that Castro openly acknowledged the pain of accepting what he termed "capitalist practices," but emphasized the priority of "saving the revolution."
One of the pivotal decisions was to re-allow the circulation of foreign currency. "At that time, the legalization of currency began to create social inequalities," Díaz-Canel admitted.
He listed the adverse effects that accompanied the economic opening of the 1990s: widening gaps between those receiving remittances and those who did not, an increase in drug-related issues with the growth of tourism, and a rise in prostitution.
This latter issue, he noted, was particularly painful for the regime due to the revolutionary emphasis on women's emancipation.
Addressing New Challenges
Díaz-Canel also acknowledged that some individuals started to differentiate themselves economically not through their work contributions but due to access to remittances or other income sources.
"There were groups of people who began to stand out not because of what they contributed with their work to society, but because they had the advantage of receiving remittances or other benefits," he observed.
In light of potential new measures deepening social divides, Díaz-Canel asserted that "the art of politics" lies in finding "compensatory mechanisms to prevent widening inequality gaps and maintain the fair principles of socialism."
Energy Crisis and Future Prospects
Elsewhere in the interview, Díaz-Canel described the severity of the current energy crisis, noting that for six months, no fuel shipments had arrived, except for one Russian ship sent as humanitarian aid.
Drawing parallels with the Special Period to justify present actions, Díaz-Canel framed those past reforms as a precedent for what he considers painful yet necessary decisions to safeguard the system.
"This is a creation, a creative process of resistance. In that sense, I am confident we will succeed," he concluded.
The statements come after the regime endorsed a package of 176 economic and social reforms in June 2026, approved by the National Assembly on June 19.
The new measures include allowing private capital in banking, establishing private currency exchange houses, and increasing openness to foreign investment, even in small and medium-sized enterprises.
The government maintains that these changes do not signify a shift towards capitalism, although they break with historical prohibitions of the Cuban economic model and revive mechanisms similar to those applied during the Special Period.
Understanding Cuba's Economic Reforms
What led to social inequality in Cuba during the 1990s?
The legalization of the dollar during the Special Period in the 1990s is acknowledged by Díaz-Canel as a catalyst for social inequality in Cuba.
What are the main components of the recent economic reforms?
The recent reforms include allowing private capital in banking, creating private currency exchange houses, and opening up to foreign investment in small and medium-sized enterprises.
How does Díaz-Canel view the relationship between politics and social inequality?
Díaz-Canel believes that the essence of politics is finding compensatory mechanisms to prevent inequality from growing and to uphold the principles of socialism.