In a candid admission, Miguel Díaz-Canel acknowledged that the expansion of the private sector in Cuba is a "concession" rather than an ideal of socialism. He assured that both the Communist Party and the Cuban people would prevent any form of "capitalist restoration" on the island. This statement was made during an interview with Folha de S.Paulo in Havana.
This marks the most explicit acknowledgment from the Cuban leader regarding the nature of the ongoing economic reforms, which were approved in June as part of the largest package of measures since the Special Period.
When questioned by Brazilian journalist Mônica Bergamo about whether Cuba is implementing "capitalist reforms to save socialism," Díaz-Canel dismissed the idea, asserting that capitalism is not being restored. Yet, he admitted to the inherent contradiction, stating, "Expanding a private sector is not a socialist ideal. It is a concession. But during the transition period, that exists, along with market relations."
Assurances Against Capitalist Shift
The Cuban leader sought to alleviate fears of a systemic shift with three key assurances: the presence of a Communist Party that "maintains control," the unity of the majority of the people around this Party, and popular participation. "These three elements ensure that there will be no process of capitalist restoration," he declared.
He further emphasized a popular guarantee: "The people would not allow a process of capitalist restoration in Cuba, as they understand the benefits brought by the revolution."
Invoking Fidel Castro's Legacy
To justify these concessions, Díaz-Canel referenced Fidel Castro, who in the 1990s asserted that "principles are not negotiable, principles do not change, but there are times when concessions must be made to protect those principles."
The statements come amid Cuba's worst energy crisis in decades. Díaz-Canel revealed that in the past seven months, only one oil shipment—a Russian humanitarian aid of 100,000 tons—has arrived in the country, whereas Cuba requires seven such shipments monthly.
Economic Measures and Social Unrest
This shortage has incapacitated 1,400 MW of distributed generation capacity, leading to blackouts lasting over 20, 30, and even 40 hours at a time. The generation deficit surpassed 2,411 MW in early August, marking a historic high.
The 176 economic measures approved in June include the establishment of private banks, private currency exchange outlets, the removal of the 100-worker cap for small and medium-sized enterprises, and opening opportunities for investment by Cubans living abroad. The regime maintains that these measures are the result of over a decade of internal debate within the party, not concessions to Washington.
Nevertheless, social unrest is mounting. The Cuban Conflict Observatory recorded 1,415 protests, complaints, and critical expressions in July 2026, the highest monthly record, including 72 in-person protests. Díaz-Canel attributed these demonstrations to U.S. funding, labeling them as "acts of vandalism."
Understanding Cuba's Economic Reforms and Social Unrest
What are the key features of Cuba's recent economic reforms?
The recent economic reforms in Cuba include the establishment of private banks, private currency exchange outlets, the removal of the 100-worker cap for SMEs, and the allowance for investment by Cubans residing abroad.
Why is there growing social unrest in Cuba?
Social unrest in Cuba is growing due to severe economic challenges, including an energy crisis and dissatisfaction with the government's handling of reforms. The Cuban Conflict Observatory recorded a significant number of protests and critical expressions, attributed by the government to U.S. influence.