The Cuban government is pushing forward with economic reforms that Deputy Foreign Minister Carlos Fernández de Cossío described as the most significant since the 1960s. However, he acknowledged that the authorities are uncertain about the eventual outcome.
"We don't know what the result will be, but we have to do something to change the current reality," Fernández de Cossío stated during an interview with the U.S. program Breaking Points.
The Shift Towards a Market-Oriented Economy
The diplomat outlined a shift involving a greater role for the market and a broader opening to the private sector, acknowledging that these changes are causing concern within Cuba.
"Right now, Cuba is undergoing a profound social and economic transformation, deeper than at any time since the 1960s," he affirmed.
The process has not been improvised. The government has been discussing such transformations for at least 15 years, delaying implementation while waiting for more favorable conditions. According to Fernández de Cossío, that wait is over.
"We've realized that a better moment won't come. We have to do it now," he declared.
Revamping the Economic Framework
The reference to 15 years aligns with the extensive reform process initiated under Raúl Castro. In 2011, the VI Congress of the Communist Party of Cuba (PCC) approved guidelines for economic and social policy, which included more space for non-state management and certain market mechanisms, while retaining socialist planning as the system's core.
These guidelines were presented as an "update" to the model rather than an abandonment of socialism. However, many announced changes progressed slowly, were later modified, or remained unimplemented.
Fifteen years later, Havana is accelerating the process. In June 2026, the regime approved a package of 176 economic transformations, significantly expanding the private sector's scope and incorporating measures such as private financial institutions, foreign investment linked to the non-state sector, greater flexibility for micro, small, and medium enterprises (MSMEs), and new market mechanisms.
The extent of the measures has compelled the ruling leadership to repeatedly emphasize the political and ideological boundaries of the process.
Resistance and Criticism from Within
President Miguel Díaz-Canel has denied that Cuba is implementing "capitalist reforms," asserting that the changes are aimed at "defending and advancing socialist construction." He has also made it clear that the process will remain under the PCC's leadership, which the authorities present as a guarantee that economic openness won't lead to a systemic change.
Despite these assurances, the economic shift has caused unease even among sectors aligned with the system. Communist militants, youth leaders, and intellectuals connected to the officialdom have questioned changes that expand the market's role, private property, and capital accumulation, while the government insists the goal is to strengthen socialism.
Some critics have described certain measures as a move toward "pure capitalism," warning about increasing inequalities and wealth concentration.
A Dramatic Economic Shift Amid Crisis
The reforms are unfolding amid a severe economic and energy crisis, soaring inflation, deteriorating public services, and a migratory exodus that has significantly reduced the island's population.
Fernández de Cossío portrayed the expansion of the market and private sector as a way to address these challenges. He emphasized that legislation is already in place to support the process, with additional regulations in preparation. He characterized the transformation as "a dramatic change in Cuba."
He also highlighted efforts to move toward a "more transparent" and "more predictable" business environment, acknowledging limitations and a lack of experience in the process.
Fernández de Cossío attributed some difficulties to U.S. policy, claiming that Washington has historically hindered Havana's economic reform attempts. He rejected the notion that current changes are a response to U.S. demands for greater economic openness.
"These are transformations we're making for the Cuban people, to improve Cuba," he stated.
The deputy minister's remarks underscore the magnitude the government itself assigns to the ongoing economic shifts. After more than a decade of partial reforms and postponements since the 2011 guidelines, Havana now speaks of a greater market presence and considerable private sector expansion, yet insists on maintaining political control and denies a move toward capitalism.
Fernández de Cossío summarized the urgency with a rare admission from a high-ranking Cuban official: the authorities concluded that "a better moment won't come" and they must implement changes now. However, the outcome of this transformation remains an open question.
"We don't know what the result will be," he admitted.
Understanding Cuba's Economic Reforms
What are the key components of Cuba's economic reforms?
The reforms include expanding the role of the market, increasing private sector opportunities, allowing private financial institutions, and inviting foreign investment into the non-state sector.
Why is the Cuban government implementing these changes now?
The government believes that waiting for more favorable conditions is no longer feasible, as they have concluded that a better moment will not come, necessitating immediate action.
How has the public reacted to these reforms?
There is concern and criticism even among those aligned with the government, as some view these changes as a shift towards capitalism, potentially increasing inequality and wealth concentration.