Díaz-Canel on new regulations for Mipymes: "It's time to take action"

"Subsequent controls have shown that many of those businesses did not respond to the state's trust with the honesty and transparency that a minimally organized society demands and requires," analyzed the governor.


"It's time to take action!" With this phrase, the Cuban ruler Miguel Díaz-Canel confirmed the shift of the Cuban regime in its policy of timid economic opening and reaffirmed his intention to subject the activities of the "new economic actors" to state directives and the centralized planning of the economy.

"It is time to move beyond diagnoses and move on to actions," said Díaz-Canel during his closing speech at the third ordinary session of the X Legislature of the National Assembly of People's Power (ANPP).

The process of "debate and exchange" with the owners of micro, small, or medium enterprises (Mipymes) to convince them of the need to cap prices on essential goods that the State cannot sell through the regulated family basket has ended. And the result is yet another example of the repressive and coercive nature of the Cuban totalitarian regime.

Despite insisting that the government has not started a "witch hunt" against Mipymes, the Cuban leader emphasized the desire to rein in the commercial activity of the "new actors" that he himself promoted.

"Regarding our responsibilities in the uncertain and complex realm of the economy, it is essential to recognize that in the effort to comply with the guidelines of the economic and social policy of the VIII Congress of the Party, while unlocking processes and promoting the formation of Mipymes, there was not enough firmness in the demand to create sufficiently robust and comprehensive regulatory frameworks to guide the functioning of this form of management that was already operating in the economy, but without formal recognition," he pointed out.

The lack of regulation for Mypimes, according to the government, has caused chaos in the Cuban economy, driving up inflation and exacerbating inequality in the country.

Therefore, "we must ensure that what has been approved is fulfilled, clearly defining the objectives, better preparing the executors of each measure, providing political, communication, material, and financial assurance, organizing actions with an implementation timeline so that they do not remain just words. And above all, exercising control over the corrections and adjustments with the necessary feedback."

"Subsequent controls have shown that many of those businesses did not respond to the trust of the State with the honesty and transparency demanded by a minimally organized society. Consequently, no violator of the treasury and legality in general can challenge the demands arising from the analysis of the errors and distortions of the process. As has been stated at this time, the law and order must prevail if we want all forms of economic management to succeed and strengthen," he added.

“It's time to take action" is the new slogan of the regime that has been in power for 65 years, but Díaz-Canel doesn’t want to scare off emerging entrepreneurs. “I want to reiterate that there is no and there will be no witch hunt against private Mipymes, as some claim, manipulate, or suggest.”

According to the also first secretary of the Communist Party of Cuba (PCC), "the confrontation will be against the lack of control, illegal activities, tax evasion, speculation, and fraud, regardless of where they come from, whether they are non-state... whether they are non-state or state enterprises."

"This is a battle against illegality and not against forms of ownership and management," concluded the leader appointed by General Raúl Castro to take the reins of "continuity" and implement the economic measures stemming from the VIII Congress of the PCC, which led to the failed "ordering."

The "step into action": A clearly anticipated move by the Cuban regime

"Remember that we are all here to save the Revolution and socialism," Díaz-Canel warned in early July during the meeting of the Council of Ministers, reaffirming once again the centrality of the socialist model in Cuba's economy.

Recently, during his report to the Economic Commission of the ANPP, the Cuban leader announced a "restructuring" plan for the private and state sectors, due to the "irresponsible manner" in which some of these institutions are being managed, he noted.

In that sense, he insisted that this is not a "witch hunt" against a specific form of management or ownership. However, the official discourse has been attacking Mipymes for months, especially those that import finished products or do not comply with price caps.

"What we are proposing here is an arrangement to ensure the greatest number of offers of goods and services at fair prices for the population, and that everyone contributes all they have to contribute," he stated.

So far, the "step to action" has resulted in the revocation of the import license for almost a third of the private businesses that were authorized to do so. According to Prime Minister Manuel Marrero Cruz, "it was decided to close this capability for 24 out of the 73 approved companies for importing, due to low levels of activity and poor performance."

"In the analysis we conducted, there were many absurdities, errors...", said Marrero Cruz days ago before the deputies of the ANPP. "The document resulting from the work done by MINCEX allowed us to conclude that this faculty had to be closed for 24 companies due to low activity levels and poor performance," the Prime Minister emphasized while announcing important changes in the regulations for Mipymes and self-employment (TCP).

There is no "witch hunt," but in recent days, the Minister of Finance and Prices in Cuba, Vladimir Regueiro Ale, warned the owners of Mipymes that it was a "serious crime" to hide merchandise and not sell it to the population.

The official went to Cuban television to explain the initial control actions that the regime has agreed upon following the recent implementation of Resolution 225, which imposes a price cap on six essential products in the country.

Regueiro emphasized that hiding merchandise and obstructing commerce can be considered serious crimes or offenses.

"We are alerting and, where we have identified these cases, we have called on municipal governments to the economic actors who are responsible," he stated. The owners of Mipymes are summoned to government offices to receive guidance on the measures to be taken in each situation.

"In many cases, we have had to order forced sales of goods. As of July 13, we had ordered 151 forced sale actions of products," he said. He also specified that the largest violations are in the marketing of chicken and oil.

In an intensive operation carried out between July 12 and 13, the Cuban government closed 53 private businesses after conducting 891 inspections across the country.

Marrero Cruz reported that during these inspections, more than 4,000 violations were detected and fines exceeding 13 million pesos were imposed on Mipymes. Among the main violations detected are the concealment of products behind the price ceiling implemented by the government and the sale of goods at unregulated prices.

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Iván León

Bachelor's degree in Journalism. Master's in Diplomacy and International Relations from the Diplomatic School of Madrid. Master's in International Relations and European Integration from UAB.


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