Cuban-American entrepreneur Carlos Saladrigas, who chairs the Cuba Study Group, has issued a public warning regarding the risks associated with privatizations in Cuba that could evolve into opaque processes benefiting only a select few, both on the island and among the diaspora abroad. He shared his concerns during an interview with CiberCuba on Monday, where he discussed the economic reforms announced by Díaz-Canel last Friday.
When asked by Tania Costa whether it is time to liquidate state-owned enterprises and sell off what can be sold, Saladrigas acknowledged that privatizing state companies is a "complex process," citing the Russian privatizations of the 1990s as a cautionary example.
"We've witnessed in various transitions how these privatizations, let's take Russia as an example, turned into a 'piñata.' A piñata where only a few benefited greatly, but the country as a whole didn't necessarily gain," he stated.
The businessman went further, expressing concern that similar patterns could emerge in Cuba. "Among the threats we face during these processes, one is whether we will create piñatas both there and here. With my years of experience, I see them starting to take shape—efforts to create piñatas from both shores," he declared.
Transparency: A Non-Negotiable Requirement
Saladrigas emphasized the importance of transparency as a non-negotiable condition for any privatization process in Cuba. "All Cuban privatizations should benefit the country, not individual pockets, and they should aim to benefit the people and the nation," he stressed.
He warned that opaque practices could have lasting consequences: "Under-the-table transactions, dealings in the shadows, will be detrimental to Cuba's future."
According to Saladrigas, if the process begins in a corrupt manner, Cuba will not achieve a healthy market economy but rather "some form of oligopoly formed by oligarchic groups politically favored from one side or the other."
Insufficient Measures Amidst Criticism
This warning comes as analysts have labeled the measures presented by Díaz-Canel on Friday as insufficient, delayed, and lacking a solid legal foundation. Meanwhile, Decree-Law 114/2025—which governs associations between state and private enterprises—has been criticized for maintaining state discretion and allowing room for opaque practices.
In the same discussion, Saladrigas commented on the sanction against CUPET announced by Secretary of State Marco Rubio last Wednesday and the blocking of a shipment of 250,000 barrels of fuel from a Miami-based company to Cuba.
"I was surprised and concerned because I saw an immediate solution to the fuel problem," he said, noting that the shipment would have facilitated the movement of food, job creation, and the growth of small businesses on the island.
The State Department denied having authorized Vanguard Energy, a Coral Gables-based company, to sell fuel to Cuba, and the company's commercial license was revoked.
Saladrigas admitted to not knowing the details of what transpired: "You know there are many speculations about what happened and what went on behind the scenes. Something happened, but we don't know what."
"After 67 years of suffering, I believe Cuba deserves something much better," Saladrigas concluded.
Frequently Asked Questions About Cuban Privatizations
Why does Carlos Saladrigas warn against privatizations in Cuba?
Carlos Saladrigas warns that privatizations in Cuba could become opaque processes that benefit only a select few, risking the creation of 'piñatas' rather than benefiting the country as a whole.
What example does Saladrigas use to caution against privatization processes?
Saladrigas uses the Russian privatization of the 1990s as an example, highlighting how it turned into a process that disproportionately benefited a few, without necessarily aiding the country.
What does Saladrigas suggest is necessary for successful privatizations in Cuba?
He emphasizes that transparency is crucial and that privatizations should benefit the Cuban nation as a whole, not just individual interests.