Tourism
Banking system
Currency market
Miguel Díaz-Canel and Manuel Marrero presented a package of 176 economic reforms that open unprecedented spaces for the private sector, foreign investment, and market competition after years of economic crisis, scarcity, and isolation
Tourism
Banking system
Currency market
Foreign investment
Foreign trade
The government also promised to relax access to land, facilitate the acquisition of inputs, and grant more freedom to producers to market their harvests.
Díaz-Canel acknowledged that the design of the program took as a reference the experiences of China and Vietnam, two communist regimes that incorporated market mechanisms without abandoning the political control of the Communist Party.
The mention reflects Havana's intention to partially replicate models that allowed those countries to experience decades of economic growth without renouncing political monopoly.
For numerous analysts, the announcement also constitutes an implicit recognition of the limitations of the Cuban economic model.
Daniel Torralbas, a Cuban economist based in London, stated that this is “the deepest economic reform program announced in the last 70 years of the country’s economic history”.
The measures come after years of inflation, massive blackouts, a decline in agricultural production, fuel shortages, and a growing emigration of Cuban citizens.
Although the concrete implementation of the reforms is still to be known, the announcement marks a turning point for an economy that for decades remained closed to much of the market dynamics that the regime now considers necessary for survival.
In the midst of the worst economic and energy crisis Cuba has faced in decades, the regime of Miguel Díaz-Canel announced an ambitious package of 176 economic reforms aimed at introducing market mechanisms within the socialist system.
The initiative was presented by Prime Minister Manuel Marrero to the National Assembly and represents the most profound economic change driven by Havana since the triumph of the Revolution in 1959.
“Reality imposes urgent and necessary changes on us”, Díaz-Canel stated while defending the reform program.
The leader maintained that when the living conditions of the population deteriorate severely, the government's duty is not to explain the crisis but to modify what does not work.
Among the most relevant measures is the authorization for private companies to exceed the current limit of 100 employees, a restriction that has limited the growth of the entrepreneurial sector for years.
Additionally, the regime will allow for the first time that foreign capital invests directly in Cuban private companies, a possibility that until now was reserved exclusively for mixed companies controlled by the State.
It will also be made possible for the same person to own more than one private company, and the conditions for salary negotiations within companies will be relaxed.
Another of the most significant changes will be the conversion of numerous state-owned enterprises into joint-stock companies, a structure closer to the models used by China and Vietnam during their economic opening processes.
The measure aims to provide these companies with greater management autonomy and improve their operational efficiency in a context where a large part of the state productive apparatus accumulates chronic losses.
The reforms will reach some of the sectors most affected by the crisis.
Among the areas that will receive higher levels of opening are:
Agriculture