The Cuban regime unveiled plans on Thursday for an overhaul of the Central State Administration, aiming to cut down the number of ministries, budgeted entities, and workforce as part of the 176 economic and social changes presented by Prime Minister Manuel Marrero Cruz to the National Assembly of People's Power.
This represents one of the most extensive reforms of the Cuban state apparatus in decades, encompassing reductions in ministries, budgeted organizations, and administrative structures at all levels of government.
The initiative is a component of what is known as Axis 4, which focuses on transforming and resizing the budgeted sector, as reported by the official newspaper Granma.
Marrero outlined that the plan involves a comprehensive restructuring of the Central State Administration, which would include a significant decrease in the number of ministries and state-funded entities.
The leader confirmed that a legislative proposal is already circulating to reorganize state and governmental structures with the stated goal of adapting them to the new economic conditions of the country and enhancing the efficiency of public management.
This restructuring will also extend to provincial and municipal administrations, where a reduction in structures and workforce is anticipated.
The announcement comes amidst the most severe economic crisis Cuba has faced since the Special Period, a situation the government itself has linked to declining revenues, an energy crisis, fuel shortages, and production difficulties affecting nearly all sectors of the economy.
This initiative began to take shape earlier in June when the National Assembly published the draft Law on the Organization of the Central State Administration.
The proposal seeks to reduce the existing ministries from 27 to 20 by merging agencies and creating new super-ministries with extensive powers.
Among the proposed changes is the establishment of the Ministry of Agro-Food, which would consolidate functions currently scattered across various organizations related to agriculture, the food industry, sugar, fishing, and the forestry sector.
Additionally, the plan includes merging the ministries of Economy and Planning and Finance and Prices into a single Ministry of Economy, Finance, and Planning.
The reform also involves creating the Ministry of Environment, Habitat, and Housing and the Ministry of Information and Social Communication, the latter tasked with consolidating functions related to media, advertising, and institutional communication.
The downsizing of the state apparatus is part of a broader package of changes that incorporate measures previously unthinkable within the Cuban economic model, including the authorization of private banking, the establishment of private exchange houses, the expansion of foreign investment, the relaxation of micro, small, and medium enterprises (MIPYMES), and the gradual replacement of universal subsidies with targeted assistance.
Marrero acknowledged before Parliament that these transformations respond to an exceptional context and defended the necessity of adopting measures that would have been previously dismissed by the system.
The administrative reform now aims to extend this adjustment process to the structure of the state, attempting to cut costs and reorganize a governmental apparatus that has been criticized even by the authorities themselves for its sluggishness, excessive paperwork, and bureaucracy.
Key Aspects of Cuba's State Restructuring
What are the main goals of Cuba's government restructuring?
The primary goals of the restructuring are to reduce the number of ministries, streamline state-funded entities, and improve public management efficiency by adapting to new economic conditions.
How will the restructuring affect Cuba's provincial and municipal administrations?
The restructuring will lead to a reduction in administrative structures and workforce at both provincial and municipal levels, aiming to enhance efficiency and reduce costs.
What new ministries are proposed under the reform?
The reform proposes the creation of the Ministry of Agro-Food, the Ministry of Environment, Habitat, and Housing, and the Ministry of Information and Social Communication, each with newly consolidated functions.
Why is the Cuban government implementing these changes now?
The changes are being implemented in response to an exceptional economic crisis, with the aim of improving efficiency and adapting to current economic challenges in the country.