On Monday, Miguel Díaz-Canel acknowledged that Cuba's regime has had to embrace certain capitalist strategies to tackle the severe economic crisis gripping the nation. He confessed that this choice conflicts with his personal beliefs, as it contradicts the principles upon which he was raised.
"Of course it pains me, primarily because it goes against the concepts upon which I was educated," he remarked in an interview with Russian state broadcaster RT en Español.
The Dilemma of Economic Adjustments
The admission came after journalist Oliver Zamora questioned him about the emotional toll of implementing measures that exacerbate social inequality, similar to those adopted by Fidel Castro during the 1990s Special Period.
Díaz-Canel referenced the legacy of the historical leader of the Revolution, defending the current economic direction by recalling Castro's acknowledgment of the painful necessity for adopting "capitalist practices" during that period. The ultimate goal, he insisted, was to preserve the Revolution.
"Above all, the Revolution had to be saved," he emphasized, adding that Castro believed this could be achieved "as long as there was unity among the people and guidance from the Party."
Historical Decisions and Their Impact
Reflecting on the 1990s, Díaz-Canel listed decisions that were once seen as "sacrilegious." These included the legalization of foreign currency holdings, which, he admitted, "began to create social inequalities," along with opening up to foreign investment and boosting international tourism.
He also conceded that these measures had social repercussions deemed negative by the regime. "We encountered drug issues that were previously nonexistent, and prostitution proliferated, which is a painful phenomenon for us, given the Revolution's efforts towards women's emancipation," he stated.
Economic Dependency and Self-Sufficiency Goals
During the interview, the Cuban leader also admitted to the country's historical economic dependency on international allies. He cited the former Soviet Union, Venezuela, and China, but stressed the aspiration for Cuba to sustain itself with its own resources.
"We must strive, through our own efforts and talents, to be independent," he expressed.
In this context, Díaz-Canel highlighted the repercussions of the disruption in energy supplies from Venezuela. "For six months, no fuel shipments have arrived; only one Russian ship came as humanitarian aid," he noted.
Economic Reforms Amidst a Crisis
These remarks come just weeks after the National Assembly approved the most significant economic reform package since the Special Period. The 176 measures include, among other changes, the introduction of private banking for the first time since 1959, the removal of the 100-worker limit for small and medium-sized enterprises, and new opportunities for direct foreign investment in the private sector.
Despite the need to incorporate market mechanisms, Díaz-Canel reiterated that the government remains committed to the socialist model. He described the reforms as "a creative process of resistance," asserting that "the art of politics" involves finding "compensatory mechanisms to prevent widening inequality gaps."
However, various economists have expressed skepticism about the reforms' scope. Mauricio de Miranda Parrondo, for instance, warned that they might lead to an "authoritarian patrimonial capitalism" under Communist Party control.
Díaz-Canel had previously addressed these criticisms on July 4th at the Cuban Workers' Central Congress, affirming that "there is no betrayal of socialist construction, neither in principle, conviction, nor action."
According to his interview with RT, the government plans to implement 121 of the 176 approved measures by the end of July, amidst a crisis marked by power outages lasting up to 20 hours a day and a record electricity generation deficit of 2,208 megawatts on June 26th.
Understanding Cuba's Economic Challenges
What capitalist strategies has Cuba adopted?
Cuba has embraced strategies such as legalizing foreign currency holdings, opening up to foreign investment, and boosting international tourism.
Why does Díaz-Canel find these economic measures painful?
Díaz-Canel finds these measures painful because they contradict the socialist principles on which he was raised and educated.
How has Cuba's energy supply been affected by its dependency on other countries?
Cuba has faced significant challenges due to the interruption of energy supplies from Venezuela, relying on occasional humanitarian aid from other countries like Russia.