“It’s not about privatizing for the sake of privatization”: Díaz-Canel denies a capitalist shift in Cuba while opening more space for the market and foreign investment

The ruler seeks to mitigate criticism of the economic reform package approved by the regime. While defending the opening to private actors and foreign capital, he insists that control will remain in the hands of the state. The new measures highlight an economic shift that the government is trying to present as compatible with socialism.



The regime opens more space for private capital, and Díaz-Canel refuses to call it privatizationPhoto © CiberCuba

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The leader Miguel Díaz-Canel defended this Friday at the XXII Congress of the Central Workers' Union of Cuba (CTC) the 176 economic and social measures recently approved by the Communist Party, the National Assembly of People's Power, and the Council of Ministers, while rejecting accusations that they represent a capitalist drift and assuring that they are part of the Cuban socialist model.

During his speech at the Convention Center in Havana, attended by 759 delegates—561 of whom participated via videoconference from the provinces—the leader stated that the reforms should not be interpreted as a process of indiscriminate privatization.

"Many people are saying that these measures are capitalist because everything is privatization. That is to reduce the essence of the measures. Allowing more space for actors beyond just the state is part of our economic and social model. It is not about privatizing for the sake of privatization," he stated, cited by the official portal Cubadebate.

Díaz-Canel also questioned those who believe that the transformations imply a fundamental ideological change and reiterated that state ownership will remain the central axis of the economy.

"It is being defended and reaffirmed here that social ownership of the fundamental means of production remains the essence of the economic and social model. We are talking about popular participation and the involvement of workers. What is capitalist about that?" she asked.

However, the ruler himself acknowledged that the reform process includes a greater presence of mechanisms traditionally associated with market economies.

"Additional elements of private property, private production, capitalism, and the market will necessarily be introduced," he admitted, although he insisted that the State would maintain political and strategic control of the system.

To justify the need to attract foreign investment, Díaz-Canel referred to words attributed to the dictator Fidel Castro (1926-2016) and defended the inclusion of external capital to take advantage of currently underutilized productive capacities.

"It doesn't make sense that we have productive capacity and we underutilize it when there's someone with capital who can come and share it," he pointed out.

The leader also acknowledged the existence of divided opinions among the population regarding the economic reforms. He stated that while some Cubans welcome the announced measures with optimism, others support the changes but have doubts about their effectiveness.

"There is a group of people in our community who applaud them and are very hopeful. There is another group that supports them but has doubts about whether they will be effective," he stated, before warning that without creativity and a change in mindset, "we are not going to win."

Díaz-Canel concluded that "without the active participation of workers, the recently approved economic and social transformations will not achieve the results that the country longs for," a statement that encapsulates both the regime's commitment and the fragility of a model that demands popular support without providing genuine union freedom.

The statements reflect the regime's efforts to defend a reform program that broadens the space for private initiative, foreign investment, and market mechanisms, while attempting to maintain the narrative of socialist continuity amidst one of the deepest economic crises the country has faced in decades.

The speech took place during the worst economic moment Cuba has experienced in decades. The Economic Commission for Latin America and the Caribbean (ECLAC) projects a decline of 6.5% in Cuba's GDP in 2026, marking the worst in Latin America for the second consecutive year.

For his part, economist Pedro Monreal described the package of measures as a "monster" that does not represent a real structural reform.

The economist Mauricio de Miranda also warned that without democratic institutional checks and balances, the reforms could lead to a "Russian-style transition" that would only benefit the elites of the Communist Party.

The U.S. State Department rated the 176 measures as "superficial smoke signals" on the same day they were approved, and shortly after, on June 23, the Trump administration imposed new sanctions against five entities linked to the military elite conglomerate GAESA.

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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.