On Thursday, Cuban Prime Minister Manuel Marrero Cruz emphasized that the increased involvement of private businesses in the new economic measures does not imply the state is relinquishing control over the economy. He made it clear that these initiatives will continue under government guidance.
"All the decision-making we're implementing as part of the transformations, where there's greater involvement of all non-state actors—let's call them private—absolutely does not mean that the state or the government is stepping back," stated Marrero during a training seminar on economic reforms promoted by the regime, as reported by Canal Caribe.
The seminar brought together leaders from the Central State Administration, local governments, and business groups to discuss the changes approved in fields such as agriculture and commerce, as well as measures aimed at expanding the powers of municipalities.
Continued Oversight of Private Sector
Marrero reiterated that the opening to non-state actors will have boundaries and will be under scrutiny. "The state's and government's responsibilities towards the people are outlined by the Constitution and laws, and therefore all these measures that free up and expand non-state activities require leadership," he asserted.
This clarification comes as the regime tries to introduce changes to its struggling economy by increasing the participation of micro, small, and medium enterprises (MSMEs) and other private businesses, while still maintaining a state-led economic framework.
Reforms in Commerce and Pending Subsidies
During the seminar, Interior Commerce Minister Betsy Díaz Velázquez unveiled a new policy for the sector, aiming to unify the various existing sales modalities in Cuba under a single regulation.
The policy covers everything from regulated sales to e-commerce, which, as explained by Díaz Velázquez, is now formally defined within a specific legal framework for the first time.
Among the approved measures is the "Neighborhood Market," an initiative designed to sell essential goods through a mixed management model involving both state entities and private actors.
However, Díaz Velázquez acknowledged that one of the most impactful changes for Cuban households remains pending: shifting from subsidizing products to directly subsidizing individuals considered vulnerable.
Increased Land Access for Private Enterprises
Another key topic was the transformation of the agricultural sector. Deputy Agriculture Minister Telce Abdel González Morera highlighted the approval of the new Land Law, which increases opportunities to access state land through usufruct.
This law allows these lands to be granted to both individuals and legal entities, including state and private actors, as well as MSMEs, irrespective of their social objectives.
It also removes predetermined limits on land size, meaning the area granted will depend on the proposed project, and it recognizes rights over certain improvements and homes built on the granted lands.
Empowering Municipalities with Resources
The concept of municipal autonomy was another focal point of the discussion. The Cuban Prime Minister acknowledged that transferring responsibilities from central structures to municipalities cannot simply mean handing over new tasks without support.
"The agency or institution that decentralizes a responsibility to a municipality must not just pass it off and turn away; there needs to be follow-up and support," Marrero Cruz noted.
The government is attempting to implement these measures during one of the most challenging times for the Cuban economy, marked by prolonged blackouts, food and medicine shortages, inflation, and deteriorating public services.
The Economic Commission for Latin America and the Caribbean (ECLAC) projected a 6.5% contraction of Cuba's GDP in 2026, while the new economic measures have been met with skepticism by many citizens due to the failure of previous reforms.
The package consists of 176 so-called "transformations" approved in June. As of Thursday, 155 of these have legal backing for implementation, while another 17 regulations are expected to be finalized before the end of September.
Understanding Cuba's Economic Reforms
What is the purpose of the new economic measures in Cuba?
The new measures aim to increase private sector participation while ensuring state control over the economy, as part of efforts to revitalize Cuba's struggling economy.
How will the new Land Law impact the agricultural sector?
The new Land Law expands access to state land through usufruct, allowing it to be granted to both private individuals and enterprises, thus potentially increasing agricultural productivity.
What are the challenges facing the Cuban economy at present?
Cuba is dealing with prolonged power outages, shortages of basic goods, inflation, and declining public services, all of which present significant challenges to economic recovery.