On Friday, Cuban leader Miguel Díaz-Canel staunchly defended 176 recent economic and social measures at the XXII Congress of the Central de Trabajadores de Cuba (CTC). He insisted these reforms, sanctioned by the Communist Party, the National Assembly of People's Power, and the Council of Ministers, are not indicative of a capitalist shift but are instead integral to Cuba’s socialist model.
Addressing the congress at Havana’s Palace of Conventions, where 759 delegates participated—561 of them via videoconference from various provinces—Díaz-Canel emphasized that these changes are not an attempt at widespread privatization.
“Many people claim these measures are capitalist because they involve privatization. This simplifies the essence of the reforms. Expanding roles beyond state actors is part of our economic and social model. It's not about privatizing for the sake of it,” he stated, as reported by the government-aligned portal Cubadebate.
Reaffirming State Ownership As the Core
Díaz-Canel also addressed those who view the changes as a fundamental ideological shift, reiterating that state ownership will remain central to the economy.
“We are affirming that social ownership of essential production means is the core of our economic and social model. We are talking about popular participation and worker engagement. What is capitalist about that?” he questioned.
Balancing Market Elements and State Control
Despite this, Díaz-Canel acknowledged that the reforms would introduce more elements traditionally associated with market economies, such as private ownership and capitalism.
“It is necessary to incorporate more private property, private production, capitalism, and market elements,” he admitted, but maintained that the state would preserve its political and strategic control over the system.
Foreign Investment as a Strategic Move
To justify attracting foreign investment, Díaz-Canel referenced Fidel Castro (1926-2016) and advocated for external capital to leverage underutilized productive capacities.
“It makes no sense to have productive capacity and underutilize it when there is someone with capital who can come and share it,” he pointed out.
Public Sentiment and the Need for Creativity
The leader acknowledged mixed opinions among Cubans concerning the economic reforms. While some embrace the measures with optimism, others are supportive but skeptical about their efficacy.
“There are people in our population who are hopeful and welcome the changes. Others support them but doubt their effectiveness,” he stated, cautioning that without creativity and a shift in mindset, success would be elusive.
Díaz-Canel concluded by stressing, “Without the active participation of workers, the recently approved economic and social transformations will not achieve the desired results,” highlighting the regime’s reliance on public support while lacking genuine labor union freedom.
International and Domestic Criticism
The declarations underscore the regime's efforts to uphold a reform agenda that expands private enterprise, foreign investment, and market mechanisms while attempting to sustain a socialist narrative amid one of the most severe economic crises in decades.
The speech comes at a time of economic hardship for Cuba. The Economic Commission for Latin America and the Caribbean (ECLAC) forecasts a 6.5% drop in the Cuban GDP by 2026, marking the steepest decline in Latin America for the second consecutive year.
Economist Pedro Monreal described the package as a “monster” lacking true structural reform, while economist Mauricio de Miranda warned that without democratic institutional checks, the reforms could lead to a “Russian-style transition” benefiting only Communist Party elites.
The U.S. Department of State dismissed the 176 measures as “superficial smoke signals” on the day they were approved. Shortly thereafter, on June 23, the Trump administration imposed new sanctions against five entities linked to the military elite conglomerate GAESA.
Frequently Asked Questions about Cuba's Economic Reforms
What are the 176 economic and social measures recently approved in Cuba?
These measures are recent reforms sanctioned by the Communist Party, the National Assembly of People's Power, and the Council of Ministers, aimed at expanding the role of private enterprise and foreign investment while maintaining state control.
How has the U.S. responded to Cuba's new economic measures?
The U.S. Department of State criticized the measures as superficial and subsequently imposed sanctions on entities linked to Cuba's military elite.
What is the economic forecast for Cuba in the near future?
ECLAC predicts a 6.5% decline in Cuba’s GDP by 2026, marking a severe economic downturn for the country.