Are Small and Medium Enterprises Really the Issue in Cuba? Elías Amor Blames the Regime Instead

Economist Elías Amor offers a straightforward rebuttal to those blaming Cuba's private small and medium-sized enterprises (SMEs) for the nation's high prices and shortages. He insists that the real issue lies with the oppressive communist regime choking these businesses.

In a recent conversation with Tania Costa, Amor systematically dismantled the official narrative that seeks to scapegoat the private sector for Cuba's price crisis. This narrative is often propagated by the state apparatus to distract from the true causes of the problem.

"SMEs are not evil, they're not demons, nor are they bad people," the economist declared. "They set prices in a way that allows them to cover costs and make a profit."

Amor elaborated that these prices aren't random or driven by greed; they're dictated by basic market principles. To drive the point home, he cited a relevant example: the more than 15% increase in gasoline and diesel prices in Spain during the summer of 2026, due to conflict in the Gulf and reduced Venezuelan oil supply. He emphasized that such phenomena are temporary and self-correcting in a market economy.

"If demand is high, the price will seem low; if demand is lacking and products don't sell, the SME owner will have to lower it," he explained. "That's how the market economy works."

The problem, Amor argued, arises when a local communist official decides to step in. In response to complaints about oil prices, this official doesn't wait for the market to self-regulate. Instead, they impose price caps or enforce centralized pricing through what they call a "cost bulletin."

"What does that do?" Amor warned. "It ruins the SME, forcing them to withhold goods from distribution, leaving you without the oil or product you need."

For Amor, this cycle of destruction epitomizes Cuba's economic failure. "It's a natural, spontaneous process that self-regulates, but the communist regime intervenes and ruins it. That's the worst part of what's happening in Cuba."

This pattern isn't just theoretical. In August 2026, several municipal governments reinstated local price caps on oil in provinces like Guantánamo, Pinar del Río, Villa Clara, and Matanzas. The result? Exactly the shortages Amor predicted. Oil prices soared between 2,500 and 7,000 pesos per liter, amid an official inflation rate of 20.70% year-on-year in July 2026, with Amor projecting a rise to 30% by year-end.

Against this backdrop, Amor envisions a different future. "I want Cuban consumers to have abundant, reasonably priced goods and services so they can freely choose what they prefer," he said. Butter, yogurt of various qualities, powdered milk—all purchased with national currency. "But the communist regime doesn't allow that. They force these operations that seem malicious, seem sneaky, as if they're trying to ruin people. That's not the case."

This interview coincided with a meeting on August 26, 2026, between the Communist Party leadership and private sector representatives—an event acknowledged by Díaz-Canel as plagued by "bias and hurdles" against private entrepreneurs within state structures.

Amor described this meeting as a historic milestone. "It's just the first round," he said, "because this boxing match will continue, and eventually, one boxer will be knocked out."