As the hurricane approaches Cuba, the regime launches its plan to "correct distortions and revive the economy."

The Cuban government announces an extensive economic plan amid Hurricane Melissa, drawing criticism for using the crisis to sidestep public debate. The plan includes measures such as eliminating subsidies, raising prices, partial dollarization, and digital control, without addressing key issues like inflation and energy collapse.

Miguel Díaz-CanelPhoto © Presidency Cuba

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As Cubans closely monitor the path of Hurricane Melissa, which threatens to hit the island, the government of Miguel Díaz-Canel took the opportunity to announce its new "Program to Correct Distortions and Revitalize the National Economy," a plan consisting of over 700 actions, indicators, and goals that, according to the regime, aims to "strengthen macroeconomic stability and socialist development."

The program, published by the Presidency of Cuba amid the meteorological emergency, includes 10 general objectives, 106 specific objectives, 342 actions, and 264 indicators and targets that, in theory, aim to guide the country towards a "sustainable recovery."

The announcement of the document was made at the beginning of October. Its publication this Saturday has raised suspicions among economists and citizens who perceive the timing as a strategy to impose new measures without public debate, while the population is distracted by the imminent threat of the hurricane.

The general objectives of the program

The list of the 10 general objectives is detailed one by one in the official program. These are:

  1. Advance in the implementation of the Macroeconomic Stabilization Program.
  2. Increase and diversify the country's external income.
  3. Increase national production, with an emphasis on food.
  4. Resize and develop the socialist state enterprise and other economic actors in a "complementary" role.
  5. Perfect the strategic management of territorial development.
  6. Improve the management of Government, Defense, and National Security.
  7. Consolidate social policies, focusing on support for vulnerable individuals and communities.
  8. Implement measures to prevent and reduce crime, corruption, and illegal activities.
  9. Recover the National Electroenergetic System, which is immersed in a deep crisis of blackouts.
  10. Managing science, innovation, and digital transformation as tools for governmental development.

According to the official text, these objectives are "interconnected" and complement each other to create the "necessary conditions" that drive the country's development.

However, the document does not provide specific details about the sources of funding, the timelines, or the actual measures to curb inflation, shortages, or the energy collapse that are affecting the population.

This is a list of the main topics in the extensive document:

Gradual elimination of subsidies and undue benefits.

  • Subsidies for products (such as the basic basket) will be discontinued, and subsidies will be directed only to "vulnerable" individuals.
  • Progressive increase in prices for electricity, water, transportation, and food.

Increase in basic rates.

  • Increase in prices for electricity, water, transportation, and fuels (retail and wholesale).
  • Fuel prices will be adjusted "according to the dollar value in the region."

Introduction of the Value Added Tax (VAT).

  • A general VAT is being considered, which would increase the cost of essential products and services.
  • Territorial taxes on individuals engaged in economic activities are also being increased.

Institutionalized partial dollarization.

  • The government formalizes the "partial dollarization" of the economy.
  • It consolidates the dual USD-CUP circuit, widening the social gap between those who have access to foreign currency and those who do not.

Mandatory banking and digital control.

  • Businesses required to accept digital payments.
  • Automatic tax withholding from bank accounts and state control of transactions.

New pricing scheme in USD.

  • Currency shops must set "competitive prices to encourage purchases in Cuba rather than abroad."
  • It involves keeping the sale of basic goods only in hard currency.

Increase in tolls and reduction of state funding for housing.

  • "New toll collection sections will be established."
  • The housing sector will transition from a budgeted scheme to a "self-financed" one.

Tightening of monetary control.

  • "Monetary Regulation Letters" will be issued to absorb circulating money.
  • Objective: reduce inflation, but it may worsen the cash shortage.

Transformation of the exchange market.

  • New state mechanism to control the allocation of foreign currency.
  • Without conditions to unify the exchange rate, the dual system remains in place.

Militarization of civil management.

  • It is ordered to keep defense plans, rapid response brigades, and reserves updated for "unconventional war scenarios."
  • Reinforcement of political and military control in civilian institutions.

This announcement, made during a severe weather crisis, is more of a political maneuver than a genuine economic effort. With independent media focused on the hurricane and the population concerned with surviving the winds and rains, the regime has found the perfect moment to impose a plan that will hardly be scrutinized or discussed by the citizens.

Meanwhile, reality continues to hit hard. Cubans are facing daily blackouts, food shortages, uncontrolled inflation, and meager salaries, while the government insists on its rhetoric about “revitalizing the economy” without acknowledging the structural mistakes of the socialist system that keeps the country in despair.

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CiberCuba Editorial Team

A team of journalists committed to reporting on Cuban current affairs and topics of global interest. At CiberCuba, we work to deliver truthful news and critical analysis.