Cuba: 'US has no authority to judge our reforms', says Havana

Cuba is undergoing its most significant economic reforms since the revolution of 1959, marking a major shift in its long-standing socialist model. The National Assembly of People’s Power has approved 175 changes proposed by Premier Manuel Marrero, which aim to introduce elements of free-market economics into the country’s economy. These reforms come under intense pressure from U.S. sanctions, which have significantly worsened Cuba’s already fragile economic situation. One of the most notable aspects of these reforms is the privatization of sectors such as businesses, banks, and real estate, areas previously controlled entirely by the state. This includes allowing private banks access to the financial sector and enabling private real estate development on the island. Additionally, the government will permit the sale of state-owned properties to both national and foreign entities. The Assembly passed the reforms unanimously, despite the absence of political parties in the parliament, where members are drawn from local communities. Former President Raúl Castro has publicly supported these changes, signaling a potential shift in the direction of Cuba’s economic policy.

The reforms mark a turning point for Cuba, moving away from its rigidly centralized socialist system toward a more market-oriented approach. However, Cuban President Miguel Díaz-Canel emphasized that these measures are not a rejection of socialism but rather a necessary adaptation to the challenges posed by the longest and most severe economic blockade in history, imposed by the United States. He urged the assembly members to maintain confidence in the socialist framework while acknowledging the need for change. The reforms include allowing foreign investors to operate independently without being tied to state enterprises, permitting large private companies with more than 100 employees, and enabling foreign and overseas Cuban capital to participate on equal terms. Municipalities and companies can now engage directly in imports and exports, and state-owned enterprises are being transformed into public limited companies or open-capital corporations. Restrictions on private sector activities are also being reduced.

The economic crisis in Cuba has been exacerbated by decades of U.S. sanctions, which have intensified under former President Donald Trump. These sanctions have targeted individuals, including members of the Castro family and President Díaz-Canel, as well as the Cuban economy itself. The result has been severe fuel shortages, frequent power outages, and rising inflation, reaching nearly 30 percent annually. The population has also faced chronic scarcity, leading to an exodus of over one million Cubans in recent years—approximately 10 percent of the total population. While the Cuban government attributes these problems primarily to U.S. policies, critics argue that the rigid ideological stance of the Cuban regime, absolute state control, and historical resistance to meaningful change have contributed significantly to the current economic and social disaster. Previous reforms, such as allowing small and medium-sized private businesses starting in 2021, brought some relief but were insufficient to halt the decline due to political constraints.

The Cuban government has accused the United States of having no right to judge its economic reforms, stating that the U.S. lacks political, legal, or ethical authority to criticize the measures taken by Havana. In response to the reforms, the U.S. government described them as a superficial smokescreen for the Cuban regime. The tensions between the two nations have escalated further this year, particularly after the U.S. military intervention in Venezuela, which led to the removal of President Nicolás Maduro and the imposition of a de facto oil embargo on Cuba. Additional sanctions were introduced against Cuban businesses and leaders, and legal proceedings were initiated against Raúl Castro, the former president and brother of Fidel Castro, for alleged involvement in a case dating back to 1996. President Trump has repeatedly warned that Cuba poses an “exceptional threat” to American national security and has even threatened to take control of the island.

The reforms are seen as a last resort by the Cuban leadership to address the deepening economic crisis, driven by both internal factors and external pressures. Despite the government’s insistence on maintaining the socialist model, the practical implications of these changes suggest a move towards greater economic openness. However, the path forward remains uncertain, with numerous challenges and uncertainties still looming over Cuba’s future. The international community, particularly the United Nations, has expressed concern about the impact of U.S. sanctions on the most vulnerable segments of the Cuban population, warning that they could endanger lives. As the reforms take shape, their success will depend on how effectively they can address the complex interplay of domestic and foreign influences shaping Cuba’s destiny.