"Life has shown us that this was not sustainable": Díaz-Canel admits Cuba's external dependency

Díaz-Canel admitted before the National Assembly that Cuba maintained its model thanks to external Soviet and Venezuelan resources, and that this dependency proved unsustainable.



Miguel Díaz-CanelPhoto © Video Capture/Facebook/Canal Caribe

The Cuban ruler Miguel Díaz-Canel acknowledged this Thursday that the Cuban economic and social model was sustained for decades thanks to material support from foreign allies, marking one of the most explicit admissions made by a leader from the island regarding its historical dependence on external resources.

During the Third Extraordinary Session of the National Assembly of People's Power, the leader defended the package of 176 economic reforms promoted by the regime and acknowledged that the sustainability of Cuban social policies did not solely rely on the country’s internal management.

"It must be acknowledged that many times we were able to sustain it not only due to political will but also because we received a significant amount of resources from other places. At one point, from the socialist camp; at another moment, from a group of relationships we had with friendly countries. But life showed us, and we learned, that this was not sustainable," he stated before the deputies.

Although he did not mention specific countries, the reference points to the economic support that Cuba received for decades from the Soviet Union and, later, from Venezuela, two allies that played a key role in sustaining the Cuban economy.

Díaz-Canel stated that the main current challenge is to sustain the political project of the regime without relying on that type of external support.

"The debate is how, without that external dependency, we are able, with our own talent and our own effort, to continue building socialism in a sustainable manner," he noted.

The statements were made during an extraordinary session convened to analyze and support a broad package of economic transformations presented by Prime Minister Manuel Marrero Cruz in response to the profound crisis the country is experiencing.

The ruling leader also acknowledged that some of the obstacles hindering economic development have internal origins.

"There are obstacles that do not come from outside or from the blockade, but rather from slow processes, bureaucracy, regulations that hinder those who want to produce, and postponed decisions," he stated.

The admission adds to other statements made this week by Díaz-Canel, who previously acknowledged that several of the now-approved reforms had been discussed for years without being implemented.

"The mistake was not in proposing them, but in having postponed them," he said during the recent Extraordinary Plenary of the Central Committee of the Communist Party.

Among the measures approved are the authorization of private financial institutions, the establishment of private currency exchange houses, a greater openness to foreign investment, the easing of regulations for small and medium enterprises, the removal of general price caps, and a reform of the subsidy system.

The authorities also announced the reduction in the number of ministries and new mechanisms to attract foreign currency and stimulate economic activity.

The reforms come at a particularly delicate moment for the country. Cuba is facing a prolonged crisis characterized by blackouts, fuel shortages, difficulties in supplying food and medicine, a sharp depreciation of the peso, and a sustained decline in national production.

International organizations foresee a new contraction of the Cuban economy in 2026, while independent economists warn about the accumulated deterioration of recent years.

Economist Pedro Monreal has noted that, in an adverse scenario, the decline in economic activity could approach the levels recorded during the Special Period of the 1990s.

In that context, Díaz-Canel's words reflect an unusual admission regarding one of the pillars that has sustained the Cuban economy for decades: the financial and energy support from foreign allies who are no longer in a position to back the island as they once did.

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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.