During an Extraordinary Plenary of the Central Committee of the Communist Party of Cuba, Miguel Díaz-Canel acknowledged that the regime can no longer justify the worsening living conditions without taking decisive action.
"When the people's lives become so challenging, the primary duty of the Communist Party and the Revolutionary Government is not just to explain the crisis, but to change whatever needs to be changed to overcome it," stated Díaz-Canel.
The closing speech of this Plenary, delivered on June 17 at the Palace of the Revolution in Havana, was shared on the official YouTube channel of the Cuban Presidency this Thursday.
The session reviewed and approved a package of over 20 economic and social reforms, formally introduced by Prime Minister Manuel Marrero Cruz.
During his address, Díaz-Canel admitted that some of Cuba's economic challenges are not due to external factors. "There are hurdles that don't come from outside or from blockades. There's bureaucracy, sluggishness, regulations stifling those who want to produce, and delayed decisions," he noted. "What depends on us, we must change ourselves, and we must change it now."
He also acknowledged that the strategy of resistance has reached its limits: "Resistance has given us the homeland, but today, resistance alone is not enough. This time demands transformation, increased production, the removal of obstacles, more listening, better decision-making, and accountability."
Key Economic Reforms Announced
The reforms are structured around five main areas: macroeconomic stabilization, transformation of the economic model, recovery of the agricultural sector, strengthening cost management, and mitigating social costs.
Specific measures include eliminating mandatory intermediaries in imports and exports, opening up to foreign direct investment in the private sector—encompassing small and medium enterprises—granting more autonomy to state-owned companies, and removing general price caps.
The regime also announced the establishment of the National Institute of Business Assets to separate state and business functions, a reduction of ministries from 27 to between 20 and 21, and allowing Cuban expatriates to invest on equal terms with other economic players.
Addressing the Food Crisis
Díaz-Canel also addressed the food crisis, asserting, "There is no sovereignty with empty plates. The food of the Cuban people will be treated as what it is: a matter of national security."
He pledged to expand land grants and remove barriers so producers can directly import agricultural inputs.
Moreover, he admitted these measures aren't new, stating, "These aren't new ideas; they are decisions the country discussed and approved years ago. The mistake wasn't in proposing them, but in delaying them. That period of postponement must end."
The Communist Party of Cuba (PCC) endorsed the reforms with the backing of Raúl Castro, who participated via videoconference and signed the proposal document. His message, read at the plenary, emphasized that "as important as the approval of these reforms is their proper and timely implementation."
Public Skepticism and Economic Outlook
Public skepticism was immediate as Cubans reacted to the approval of the measures on Wednesday. Social media buzzed with comments like "Does anyone believe them?" and "Same dog, different collar."
Economist Pedro Monreal described the reforms as "belated pragmatism," warning that Cuba "missed the train of reforms like those in China and Vietnam."
The surrounding context is one of accumulated collapse: the Economic Commission for Latin America and the Caribbean (CEPAL) projects a 6.5% decline in Cuba's GDP by 2026, with a cumulative contraction of 10.3% over 2025-2026.
Power outages exceed 20 hours daily in some provinces, the sugar harvest has fallen below 150,000 tons—a century-long low—and emigration surpassed 250,000 people in 2024.
The National Assembly has been convened for an extraordinary session to ratify the reforms approved by the PCC, following the regime's usual process: the party decides, the parliament endorses.
Frequently Asked Questions About Cuba’s Economic Reforms
What are the main areas of reform announced by Díaz-Canel?
The reforms focus on macroeconomic stabilization, transforming the economic model, recovering the agricultural sector, strengthening cost management, and mitigating social costs.
How are the announced reforms expected to impact foreign investment?
The reforms aim to open the Cuban private sector to foreign direct investment, including small and medium enterprises, while allowing Cuban expatriates to invest on equal terms with other economic players.
Why is there skepticism about the effectiveness of these reforms?
Public skepticism stems from past delays in implementing similar proposals and the perception that the changes may not sufficiently address the deep-rooted issues affecting Cuba's economy.