Díaz-Canel Claims Economic Reforms Could Improve Cuban Lives, But Only With Proper Execution

On Thursday, Miguel Díaz-Canel concluded the parliamentary session of the National Assembly of People's Power (ANPP) by assuring Cubans that they might experience enhancements in their daily lives, provided that the 176 capitalist reforms approved by the regime are effectively implemented.

The VII Ordinary Period of Sessions of the X Legislature, held on July 29 and 30 at the Palace of Conventions in Havana, served as the first formal parliamentary evaluation of these reforms. These measures were ratified in an extraordinary session on June 18, described as an "emergency economic and social agenda."

The Cuban government reported that 110 out of the 121 measures scheduled for June and July have been sanctioned, indicating a 90.9% completion rate. These reforms are acknowledged to incorporate more elements of private ownership, private production, capitalism, and market dynamics.

Despite the market-oriented nature of the reforms, Díaz-Canel emphasized that they are not a response to external pressures: "These are not implemented to appease the United States," he stated, describing them as "a sovereign decision of Cuba."

The contrast between the official rhetoric and the actual content of the measures was highlighted during the parliamentary debate itself, when a deputy openly admitted that "although it might seem" like capitalism, "it is what we are doing."

Key Elements of the Reform Package

The package of 176 measures, divided into 23 thematic areas, includes the introduction of private banks and currency exchange houses, the transformation of state-owned enterprises into joint-stock companies, the removal of the 100-worker cap for small and medium-sized enterprises (SMEs), allowing individuals to own multiple private businesses, and opening the private sector to direct foreign investment.

It also includes the lifting of price caps and an increase in the minimum wage for the budgeted sector from 2,100 to 3,210 pesos per month, a figure that, in practice, translates to just a few dollars in the informal exchange market.

Legislative Changes and Broader Context

During Thursday's session, the ANPP passed four key structural laws: the Law on the Organization of the Central State Administration, which reduces the number of agencies from 27 to 21—comprising 20 ministries and the Central Bank; the Housing Law, which acknowledges the right to own up to two properties and expands the role of the private sector in construction; the Labor Code, which introduces concepts such as telework, digital disconnection, and multiple employment; and the Law on the Identity and Domicile System.

Additionally, the ANPP repealed Law No. 183 from December 2025, reverting the term of municipal delegates to five years as stipulated by the Constitution.

These reforms occur amidst Cuba's worst economic crisis in decades, exacerbated by the capture of Nicolás Maduro by U.S. forces on January 3, 2026, depriving the regime of its main ally in Venezuela.

In July, Díaz-Canel acknowledged that the regime turned to capitalism as a tool to confront the crisis, although the official narrative maintains that the goal is to "perfect" socialism, not abandon it.

Promises of improvement come to a population enduring prolonged power outages, widespread shortages of food and medicine, and an unprecedented exodus, while the regime asks for patience and ties any benefits to the successful execution of measures that, according to its own deputies, have all the hallmarks of the capitalism they have criticized for decades.