On Monday, Cuban Representative Carlos Miguel Pérez Reyes delivered a statement encapsulating the regime’s new approach to economic reforms: "We cannot distribute poverty; what we need to distribute is wealth."
This remark was made during his appearance on the program Cuadrando la Caja, which focused on discussing the impact of the 176 economic and social transformation measures ratified by the National Assembly on June 18 and 19.
Pérez Reyes, who founded the tech micro-enterprise Dofleini S.R.L. and represents the Playa municipality in Havana, emphasized that these reforms should not be viewed merely as an emergency response to the crisis but as necessary changes that Cuba "had to undertake regardless."
“We should have taken these steps a while ago. We’re finally doing it, although reaching consensus was tough. The current situation forced us to move faster than we would have liked,” the representative admitted.
The Role of the Socialist State in Wealth Redistribution
At the heart of his argument is that the socialist state should act as a distributor of wealth generated by all economic players: the citizens, entrepreneurs, and the Cuban diaspora.
“We must equip our people, our entrepreneurs, and our migrants with the tools to create wealth, which the State—not private companies—will then be able to distribute more fairly and equitably, though not equally,” he clarified.
Comprehensive Economic Overhaul: Challenges and Opportunities
The approved package, the most significant since the Special Period of the 1990s, includes the authorization of private banking under the supervision of the Central Bank, the creation of private exchange houses, the transformation of state enterprises into joint-stock companies, the removal of the 100-worker limit for micro-enterprises, opening up to foreign investment in the Cuban private sector, and the gradual introduction of VAT.
Pérez Reyes warned that implementing these changes will be a formidable challenge, involving over 5,000 economic actors and the transformation of more than 81 higher-ranked regulations, all under the economic pressure from the United States.
Economic Realities and Political Implications
Economist Yan Pedro Carbonell, head of macroeconomic policy at the Central Bank, outlined the context in which these measures are being introduced: a drop in external currency income, restricted international credit, a high fiscal deficit, a non-convertible national currency, and multiple exchange rates coexisting. The Economic Commission for Latin America and the Caribbean (ECLAC) projects "quite negative" figures for Cuba's GDP in 2026.
Rafael Montejo from the University of Havana’s Center for Management Techniques Studies stated that the primary risk lies not in the design of the reforms but in their execution: “There are no magic wands in economics, and implementing these changes will require a tremendous effort. The limits will be our own capacity to implement these deep transformations.”
Opposition and Critique: A Call for Political Opening
Meanwhile, Cuban activists and opposition figures dismissed the 176 measures as insufficient without political openness, while analyst Miguel Alejandro Hayes argued that the reforms aim more to reconstruct the political pact sustaining the regime than to generate genuine development.
Even Prime Minister Manuel Marrero acknowledged before the Assembly that the measures will create "contradictions" that the regime must resolve "on the fly," a candid admission contrasting with the optimism with which Pérez Reyes concluded: "The greatest risk is not transforming too much, but doing so halfway."
Understanding Cuba's Economic Reforms
What are the main goals of Cuba's recent economic reforms?
The primary goal is to shift from distributing poverty to distributing generated wealth, involving all economic actors in wealth creation and facilitating a fair redistribution by the socialist state.
What challenges do the new reforms in Cuba face?
Implementing the reforms is challenging due to the need to involve over 5,000 economic actors and transform numerous regulations amid external economic pressures and the complex domestic economic landscape.
How have Cuban activists and opposition figures reacted to the reforms?
They have criticized the reforms as insufficient without accompanying political changes, viewing them as a means to maintain the existing political structure rather than fostering real economic development.