Cuba approves economic reforms to boost private sector, investment: state TV

HAVANA: The Cuban Communist Party on Wednesday approved a package of reforms aimed at opening up more sectors to private investment as the island, under pressure from Washington, undergoes a major economic crisis.

State television reported “the party’s Central Committee approves the new proposals for economic and social transformations,” which include attracting more capital from Cubans abroad and reducing the size of the state, after an extraordinary plenary session wherein around 20 reform proposals were discussed.

Earlier, the government-led reforms won the backing of influential former president Raul Castro.

The Cuban government’s series of reforms are fast-track measures for desperate times, as the country grapples with widespread shortages of basic needs.

President Miguel Diaz-Canel presented the measures as the most substantial in years.

Castro, widely seen as the power behind the throne, backed the proposals in a letter shown to the plenary as being “the most beneficial to the revolution at this time.”

The nonagenarian Castro, who was recently indicted by the United States over the downing of two civilian planes three decades ago, led the country for 15 years after succeeding his brother Fidel in 2006.

It is unclear whether the reforms would satisfy US President Donald Trump, who is pushing for a change in Cuba’s economic model, if not its leaders.

Reviving Cuba

The oil blockade imposed by Trump in January has brought Cuba’s already moribund economy to the brink of collapse, marked by power cuts sometimes lasting over 30 hours and shortages of food, fuel, drinking water and medicine.

“I welcome any change that helps revive the dying patient,” the owner of a small private supermarket in Havana, who declined to be identified, told AFP in a not-so-cryptic reference to Cuba’s economy.

The government, which is in negotiations with Washington, has teased new investment opportunities for Cubans living on the island and abroad in a broad range of sectors.

Prior to the passage, Prime Minister Manuel Marrero was quoted by the government on X as assuring that the reforms “in no way imply relinquishing the social responsibility of the state.”

Private businesses, which can employ up to 100 people, were authorized in 2021 and have become an increasingly important part of the island’s economy.

Diaz-Canel said Cubans will be granted the same conditions as foreign investors, some of whom recently pulled out of Cuba over US sanctions.

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He has also announced plans to cut back the state by reducing the number of ministries and public servants.

Some of the reforms announced were a rehash of earlier proposals, such as granting greater autonomy to state-owned enterprises, which account for roughly 80 percent of economic activity.