In a nation grappling with soaring inflation, daily blackouts lasting up to 20 hours, and restricted internet access, Cuban leader Miguel Díaz-Canel has emphasized the importance of establishing state-run micro, small, and medium-sized enterprises (MSMEs) focused on advanced technology. His goal is to promote a model of "knowledge-intensive economy." This proposal emerged during a session of the National Innovation Council (CNI), where Díaz-Canel and other officials discussed the potential impact of state-owned startups on the Cuban economy.
"What is hindering the creation of these MSMEs is not the approval process times; our limitation is the lack of proposals for state-owned MSMEs with high-tech foundations," Díaz-Canel argued. The initiative faces the stark reality of a country where most citizens lack access to powerful computers, the internet remains a luxury beyond the reach of many young people, and frequent power outages undermine the stability of any tech-based business model.
Nonetheless, Dr. Agustín Lage Dávila asserted that forming these state-run MSMEs is "feasible despite the country's current conditions."
Challenges of Bureaucracy and Inequality
Experts agree that for these enterprises to thrive, agile approval mechanisms must be developed, and they should receive the same opportunities and incentives as private MSMEs—a condition that has yet to be met. Rafael Luis Torralba Ezpeleta, president of the Havana Science and Technology Park, highlighted the necessity of allowing these entities to freely manage revenues generated from exports, a freedom not currently assured by the Cuban government.
Prime Minister Manuel Marrero Cruz acknowledged that the Cuban business system is facing severe problems and challenges, although he did not address the fundamental contradiction of attempting to advance technology in a country where lack of electricity and internet access remain formidable barriers.
While the government pushes for a "knowledge-intensive economy," most Cubans continue to struggle daily to put food on the table and find a way to cook it, amid a deepening crisis. Without access to technology, lacking basic guarantees for the operation of digital businesses, and with an economy on the brink of collapse, the idea of creating state-owned high-tech MSMEs seems, at least in the short term, another strategy detached from Cuba's pressing realities.
Frequently Asked Questions About Cuba's Economic Plans
What are the main challenges facing the establishment of high-tech MSMEs in Cuba?
The major challenges include lack of proposals for state-owned MSMEs with high-tech foundations, limited access to necessary technology and internet, frequent power outages, and bureaucratic hurdles impeding efficient approval processes.
Why is the Cuban government focusing on a "knowledge-intensive economy"?
The Cuban government aims to promote a "knowledge-intensive economy" to invigorate the national economy through technological advancements and innovation, believing it will foster economic growth and sustainability.
How does the lack of technology affect Cuban citizens?
The scarcity of technology and internet access in Cuba limits educational and professional opportunities for citizens, making it challenging to compete in a global economy and hindering the development of tech-based businesses.