Cuban economist Mauricio de Miranda, a member of the group Cuba Transformation, highlighted on Wednesday that the set of 176 economic measures unveiled by Miguel Díaz-Canel's regime completely neglects any mention of GAESA, the military-financial conglomerate that exerts significant control over the island's economy.
In a straightforward interview with Tania Costa, De Miranda expressed, "There is absolutely no mention of GAESA in the 176 measures. Not even a hint. There's nothing about transforming GAESA, dismantling it, or abolishing it, which is what I believe should happen."
The economist was unequivocal about the conglomerate's role: "It shouldn't exist at all. GAESA is a military and financial entity. What business do the military have in commerce? Why are they involved in buying and selling? What are the military and state security doing engaged in financial operations with dubious... mechanisms?"
For Mauricio De Miranda, the Armed Forces and state security have a clear boundary. "I believe the Armed Forces and State Security's duties are to defend the country and ensure national security, not the government's. These are institutions accountable to society, the country, and the state, not the government."
De Miranda's argument directly challenges the market logic. "Business should be in the hands of those dedicated to commerce. The Armed Forces should not be engaged in business activities."
His primary concern is not just the military's commercial activity but its lack of transparency. "It makes no sense for a military and financial empire to control a significant portion of the country's economy without being audited by state control entities. That shouldn't happen."
This critique is supported by the regime's legal framework. The 2022 Law 158 effectively shielded GAESA by explicitly removing the General Comptroller's ability to audit military institutions, leaving such oversight solely to Díaz-Canel. Back in 2024, then-Comptroller Gladys Bejerano publicly acknowledged that GAESA was outside her jurisdiction.
The 176 measures were approved on June 19 during an extraordinary session of the National Assembly, spearheaded by Prime Minister Manuel Marrero Cruz. This package includes transforming state companies into joint-stock companies, establishing private banking, lifting the 100-worker cap for small and medium-sized enterprises, and expanding foreign investment opportunities, including for Cubans abroad.
However, Cuba Transformation warns that without addressing GAESA's dominance—controlling between 40% and 70% of Cuba's formal economy—the reforms risk leading to a Russian-style oligarchic state capture, benefiting elites tied to military and political power.
Other analysts share this concern. Economist Miguel Alejandro Hayes cautioned that the measures do not aim for genuine development but rather to reconstruct the political pact sustaining the regime, while the Food Monitor Program warned on Wednesday about the risk of reforms resulting in "crony capitalism."
Cuba Transformation, comprising five Cuban economists including De Miranda, Pedro Monreal González, Pavel Vidal Alejandro, Omar Everleny Pérez Villanueva, and Ricardo Torres Pérez, predicts that the Cuban economy could shrink by at least 15% of GDP by 2026 due to the energy crisis, inflation, and currency shortages.
Key Concerns About GAESA and Cuba's Economic Reforms
What is GAESA and why is it significant in Cuba's economy?
GAESA is a military-financial conglomerate that holds extensive control over Cuba's economy, managing between 40% and 70% of its formal economy. Its significance lies in its influence and lack of transparency.
Why is the omission of GAESA in the 176 economic measures controversial?
The omission is controversial because GAESA's dominance in the economy is a critical issue that the reforms fail to address, potentially leading to a concentration of power and preventing genuine economic development.
What are some of the reforms included in the 176 measures?
The reforms involve transforming state enterprises into joint-stock companies, establishing private banking, removing the worker cap for SMEs, and increasing foreign investment opportunities, including for Cubans abroad.