Miguel Díaz-Canel openly acknowledged on Thursday the growing unease among Cubans regarding the economic reforms pushed by the regime, particularly focusing on the rise of the private sector and increasing inequalities. Despite this, he defended that these changes do not signify a departure from the socialist model.
At the conclusion of the VII Ordinary Period of Sessions of the X Legislature of the National Assembly of the People's Power, the leader recognized the legitimate concerns circulating among the public about the direction of the economic transformations approved in June. These are considered the most extensive reforms implemented in Cuba in decades.
According to the official outlet Cubadebate, Díaz-Canel listed the main concerns voiced by the public, which include: the expansion of private capital, wealth concentration, property rights, potential privatization of state enterprises, growing inequalities, subsidy elimination, transparency in bidding processes, and the effectiveness of control mechanisms to prevent corruption.
"All these issues must be given utmost attention to prevent distortions," he stated.
Commitment to Socialism Amid Reforms
Despite acknowledging these fears, Díaz-Canel assured that the 176 economic measures approved in June 2026 are not intended to alter the socialist nature of the system.
"The transformations we are implementing today are not for more capitalism, but to defend and advance socialist construction—a socialism that places the human being at the heart of its mission," he maintained.
The reforms represent one of the most significant economic shifts initiated by the regime since the "updating" of the model began. Key changes include the removal of the 100-worker limit on micro, small, and medium enterprises (SMEs), allowing individuals to own multiple businesses, authorizing private banking and currency exchange houses, and opening up direct foreign investment in the non-state sector.
Additionally, Decree 160, published on July 22, lifted 46 restrictions on private economic actors and relaxed another 35 activities, broadening the scope for the non-state sector without altering the Communist Party's political control over the economy.
Challenges of Implementation
Díaz-Canel announced that 120 of the 176 measures are ready for implementation and noted that the National Assembly has approved five new legal frameworks—including a Labor Code and a Housing Law—to legally support more than twenty planned transformations.
The leader also revealed that the Communist Party will engage in discussions with workers to explain the reforms and address potential deviations. However, he did not specify timelines or announce independent oversight mechanisms.
"Popular participation and control are not relics of the past but remain a permanent line of work and cannot be mere slogans," he emphasized.
Prime Minister Manuel Marrero Cruz warned that Cuba is now entering the "most important and probably most difficult" phase of the process: implementing the reforms.
In this context, Díaz-Canel admitted that the journey might involve errors and adjustments.
"We might not get everything right from the start, but everything can be resolved if we maintain a constant willingness to rectify, modify, and adjust promptly and without bureaucratic delay," he stated.
Lingering Questions About Reform Beneficiaries
Although the government portrays the reforms as a mechanism to revitalize the economy without abandoning socialism, questions remain about who will ultimately benefit from the opening.
Various analysts argue that, in the absence of institutional checks and independent oversight mechanisms, the primary beneficiaries could be entrepreneurs with ties to power, high-ranking officials, and state executives capable of seizing new business opportunities.
Díaz-Canel's statements come just four days after he remarked, during the national event for July 26, that there are individuals in Cuba who "enrich themselves obscenely," a statement many observers interpreted as an implicit acknowledgment of the growing economic inequalities in the country.
Exploring Cuba's Economic Reforms
What are the main concerns about Cuba's economic reforms?
The main concerns include the expansion of private capital, the concentration of wealth, potential privatization of state enterprises, increasing inequalities, and the effectiveness of control mechanisms to prevent corruption.
How has the Cuban government addressed fears regarding these reforms?
The government has assured that the reforms are not intended to shift away from socialism but to enhance it, placing human beings at the center of their efforts. They also plan to engage with workers to clarify the reforms and address potential issues.
What significant changes do the Cuban economic reforms introduce?
Notable changes include removing the worker limit on SMEs, allowing multiple business ownership, authorizing private banking, and opening direct foreign investment in the non-state sector.