Cuba Passes Largest Economic Reform in Decades

“Cuba, our beloved Cuba, is currently going through the most difficult hours of this century, and we bear the historic responsibility to save it,” said President Miguel Díaz-Canel after the vote. It remained unclear at first whether the measures would meet the demands of U.S. President Donald Trump’s administration for economic liberalization in Cuba.

The reform plans, supported by former President Raúl Castro and the Communist Party, had previously been presented by Prime Minister Manuel Marrero Cruz during a special session of Parliament. They “do not mean abandoning the construction of socialism, but are a prerequisite for its preservation,” said Marrero Cruz.

Message: Most Comprehensive Reform Since the Collapse of the Eastern Bloc

The Cuban Embassy in Washington called it the “most comprehensive reform package since the 1990s.” At that time, Cuba had lost its most important ally with the collapse of the Soviet Union, plunging the island into a deep economic crisis.

The population of the communist-ruled island has been suffering for years from a severe economic and energy crisis, which has recently worsened significantly due to sanctions imposed by the U.S. government. Through an oil embargo and other pressure tactics, Trump is attempting to force the Caribbean nation to open up economically and politically in line with his agenda.

Cuba remains willing to engage in talks with the U.S., Díaz-Canel said. However, he added, the economic plan is a national decision and is not linked to negotiations. “We send the following message to the government of the United States, without hatred, but also without fear: If you truly want to help the Cuban people, then let us live!” He appealed to the U.S. government to allow free trade with Cuba and not to block the import of medicines and fuel.

Fast-food chains are also welcome

The initiatives pursued by the Cuban government are intended to open the island to foreign and domestic private investors. Investments are to be facilitated in sectors such as real estate, banking, gas stations, and the restaurant industry—and international fast-food chains are also expected to benefit.

The communist government also aims to create new business opportunities in the tourism sector, which has been severely affected by U.S. sanctions. Accordingly, additional investments will be permitted in regions that were previously subject to strict restrictions, such as Old Havana and the Los Cayos archipelago.

Fidel Castro’s legacy is to be preserved

Private investors will be allowed to buy and sell apartments, and both Cubans and foreigners will be able to purchase shares in state-owned companies. The specific state-owned enterprises involved were not initially disclosed.

Marrero Cruz did not speak of economic reforms, but rather of “economic and social changes” of strategic importance. He said the economic model would be transformed without abandoning the principles of the 1959 revolution led by Fidel Castro.