On Thursday, Miguel Díaz-Canel concluded the July parliamentary session with a speech defending recently approved economic and social changes, dismissing any notion that they were a response to U.S. negotiations.
Speaking at the close of the VII Ordinary Session of the X Legislature of the National Assembly of People's Power, held at the Palace of Conventions in Havana, Díaz-Canel stated firmly, "The transformations we are implementing are not for more capitalism, but to defend and advance the construction of socialism. A socialism that places the human being at the center of its efforts."
Economic Reforms as a Sovereign Decision
Díaz-Canel described the reforms as a "sovereign decision" by Cuba and emphasized that economic efficiency should support social justice. He asserted that these changes would be guided by the Communist Party without compromising national independence, sovereignty, or the regime's social achievements.
Addressing Concerns About Economic Inequality
The president acknowledged concerns about the rise of private capital, wealth concentration, property rights, potential privatization of state enterprises, increasing inequalities, removal of essential subsidies, transparency in bidding processes, market roles, and corruption risks. "We must pay close attention to these issues to avoid distortions," he said. Díaz-Canel also guaranteed that "there will be no privatization of healthcare, education, science, culture, or strategic national services."
Ensuring Public Participation and Control
He assured that mechanisms for public participation and oversight would remain active during the implementation of these measures. "Participation and popular control are not relics of the past but are ongoing and should not remain mere slogans," he emphasized.
According to Díaz-Canel, 120 out of 176 planned transformations are ready for implementation. These will focus on unleashing productive forces, strengthening both state and non-state enterprise systems, enhancing economic interactions, and expanding municipal and state enterprise autonomy.
Gradual Implementation with an Emphasis on Social Recovery
He admitted that the process would be gradual, acknowledging potential mistakes and corrections along the way. "Some things might not work perfectly at first, but everything can be resolved if we are willing to rectify, amend, and adjust swiftly and without bureaucratic delays," Díaz-Canel stated.
He also stressed that economic recovery must lead to social improvements, particularly benefiting the most vulnerable: "A gradual economic recovery must correspondingly lead to social recovery, prioritizing the most vulnerable."
Key Legislative Changes and Administrative Cuts
The package of 176 transformations, organized under 23 thematic axes, was approved by the Extraordinary Plenary of the Communist Party's Central Committee on June 17 and endorsed by the National Assembly the following day.
This includes measures such as the allowance for private banks and exchange houses, foreign investment in the non-state sector, removal of the 100-worker limit for small and medium-sized enterprises, conversion of state enterprises into joint-stock companies, and the gradual introduction of a value-added tax (VAT).
The regime maintains that the Communist Party will oversee these transformations, organizing meetings with workers to explain the measures, gather feedback, and address potential issues.
Díaz-Canel highlighted that during the two-day parliamentary session, five legal norms were approved to support over 20 transformations: the Labor Code, the Housing Law, the Agricultural and Forestry Land Law, the Law on the Organization of the Central State Administration, and the Personal and Residential Identity System Law.
The Law on the Organization of the Central State Administration reduces its structure from 27 to 21 bodies: 20 ministries and the Central Bank of Cuba.
Meanwhile, Prime Minister Manuel Marrero announced the elimination of over 92,000 positions within the ministries of Public Health, Education, Culture, and Sports, primarily vacant administrative posts, according to the regime.
The session also repealed Law 183, which had reduced the term of municipal delegates to four years. This decision postpones municipal delegate elections until 2027.
Understanding Cuba's Economic Transformations
What are the main goals of Cuba's recent economic transformations?
The main goals are to defend and advance socialism by improving economic efficiency to support social justice, while maintaining national independence and sovereignty.
How does the Cuban government plan to implement these changes?
The government plans a gradual implementation with public participation and control, adjusting as necessary to ensure the changes benefit the most vulnerable.
What concerns have been raised about these reforms?
Concerns include the rise of private capital, wealth concentration, potential privatization of state enterprises, and the risks of increased inequality and corruption.