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Cuba is experiencing one of the worst economic crises in its recent history. The scarcity of foreign currency, relentless inflation, and a thriving informal market are shaping the daily lives of millions of Cubans. In light of this situation, the regime has introduced a new set of measures aimed at attracting dollars and trying to bring order to the economic chaos. Will they work? That is the big question on everyone's mind, although the initial reactions are not encouraging.
Among the most controversial announcements is the increase in reference prices for buying and selling homes, which are now five times higher than in 2017. According to Prime Minister Manuel Marrero Cruz, this aims to "adjust" official values to those of the market. However, in a country where accessing a home was already a monumental challenge, many see this measure as yet another blow to the dreams of having one's own roof. Experts and citizens criticize that this policy will only benefit those who handle large sums of money, while most will be left out of the equation.
Another change that has sparked strong reactions is the increase in internet rates. Starting in 2025, ETECSA, the state telecommunications company, will introduce new packages priced in dollars, a decision that Marrero justifies as a way to attract foreign currency. However, for many, this measure reflects the "economic apartheid" that further divides those who have access to foreign currency from those who struggle to get by with Cuban pesos. Criticism quickly emerged on social media, where users voiced their outrage. “They are putting a noose around our necks,” one of the most shared comments stated.
As if that weren't enough, the government announced that it will eliminate subsidies for basic products distributed through the supply booklet. How will this affect families? For most, who rely on these products for food, it will be devastating. Many fear that this will worsen an already unsustainable food crisis.
Partial dollarization: A failed strategy?
Another contentious issue is the implementation of a partial dollarization system. Now, key sectors such as wholesale and retail trade, as well as tourism services, will be able to operate in dollars. Even agricultural producers who substitute imports will receive payments in this currency. Is this an attempt to resolve the crisis? Perhaps, but many believe it will only deepen existing inequalities. Most Cubans do not have access to dollars, which means they will fall even further behind.
The regime claims that these measures are part of a "Macroeconomic Stabilization Program," but the situation in the informal currency market, where the dollar remains high, contradicts any attempts at stability. Furthermore, the mixed message of wanting to de-dollarize while allowing transactions in dollars leaves many analysts wondering if the government truly has a clear plan.
The reaction of the population: Criticism, memes, and despair
On the streets and social media, the criticisms have come swiftly. The phrase "Get out" has become a slogan for many Cubans who see these measures as the last straw. "First they take away our food, now the internet, and on top of that, they make us pay in dollars," read a meme that quickly went viral.
But it's not all humor. Some fear that these decisions will push a population already weary of living in crisis to its limits. For many, these policies are merely quick fixes aimed at raising money, without addressing the underlying issues. Discontent is palpable, and with each announcement, the government seems to distance itself further from its people.
The role of Raúl Castro: The political leadership behind the measures
In the midst of this scenario, Raúl Castro reappeared at the National Assembly, reminding everyone who is still setting the agenda. His order for the Parliament to stand and raise their fists was a gesture rich in symbolism. "Unity and discipline," he stated, making it clear that these measures have his support.
But for many, this "slap on the table" is more a sign of disconnection than of leadership. While the leaders call for sacrifices, the population struggles to survive in an increasingly difficult reality.
A quick fix or the beginning of a structural change?
Is this the beginning of a real transformation, or just another band-aid on a crumbling economy? While the regime seeks quick fixes, the failure of projects like the Mariel Special Development Zone makes it clear that temporary solutions will not work in the long run.
For many Cubans, these measures are just another chapter in a long history of policies that promise much but deliver little. Time will tell if the government can implement reforms that truly benefit the population, or if everything will fade into oblivion, as has happened so many times before.
Frequently Asked Questions about the New Economic Measures in Cuba
What is the Cuban government aiming for with the partial dollarization of the economy?
Partial dollarization aims to attract more foreign currency and reorganize key sectors of the Cuban economy, such as wholesale and retail trade, while also regulating the impact of the informal exchange market. Although the government is trying to move toward dedollarization, the use of the dollar remains essential for improving liquidity in the country.
How will the increase in internet rates affect Cubans?
The rise in internet rates will impact Cubans by limiting access for those whose income is solely in national currency. This measure has been criticized for creating an "economic apartheid" and aims to attract more foreign currency through the purchase of packages in dollars, further widening the gap between those who have access to foreign currency and those who do not.
Why did the Cuban government eliminate subsidies for the ration book?
The Cuban government has eliminated subsidies for the ration book as part of a plan to correct economic distortions and revitalize the economy. However, this measure will significantly impact Cuban families, as many basic goods may become unaffordable due to rising prices.
What does the increase in reference prices for buying and selling homes in Cuba imply?
The increase in reference prices for buying and selling homes in Cuba means that official prices will align more closely with the real market values. This measure aims to reduce tax evasion and promote greater transparency, but it may make housing less accessible for many in a challenging economic context.
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