{"id":334686,"date":"2026-02-05T05:31:20","date_gmt":"2026-02-05T10:31:20","guid":{"rendered":"https:\/\/oncubanews.com\/en\/?p=334686"},"modified":"2026-02-05T05:31:20","modified_gmt":"2026-02-05T10:31:20","slug":"the-imperative-of-economic-reform-in-cuba","status":"publish","type":"post","link":"https:\/\/oncubanews.com\/en\/cuba\/the-imperative-of-economic-reform-in-cuba\/","title":{"rendered":"The imperative of economic reform in Cuba"},"content":{"rendered":"<p><span data-contrast=\"auto\">Does economic reform fit into the concept of\u00a0\u201cchanging everything that needs to be changed\u201d? Are these mutually exclusive paths? Does reform save or destroy Cuban socialism?<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Once again, voices advocating for economic reform in Cuba are being heard. At the same time, others are rising to disqualify it or simply deny its necessity. All of this is happening during the most serious economic and social crisis of the revolutionary period, while the United States is intensifying its economic war, which, after the kidnapping of Nicol\u00e1s Maduro, threatens to\u00a0<\/span><a href=\"https:\/\/oncubanews.com\/cuba\/cuba-denuncia-amenaza-de-bloqueo-naval-de-eeuu-a-sus-suministros-de-petroleo\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">prevent<\/span><\/a><span data-contrast=\"auto\">\u202fthe entry of the\u00a0<\/span><a href=\"https:\/\/oncubanews.com\/opinion\/columnas\/dato-y-relato-economia\/la-venezuela-de-hoy-escenarios-y-premuras-para-la-economia-cubana\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">few remaining sources of fuel.<\/span><\/a><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">But what exactly is\u00a0the\u00a0economic\u00a0reform? It is not simply a change or a correction. Although these concepts share the idea of\u00a0<\/span><span data-contrast=\"auto\">\u200b\u200b<\/span><span data-contrast=\"auto\">modifying\u00a0an existing situation, they differ in depth,\u00a0scope\u00a0and direction.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Reforming the economy implies intentionally redesigning its rules of the game through a coordinated range of policies and institutions, to\u00a0do away with\u00a0structural inertia and\u00a0facilitate\u00a0stable and lasting growth.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Sounds good, doesn\u2019t it? So why does it generate so much support as well as resistance?<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h3><b><span data-contrast=\"auto\">Previous\u00a0experiences with reforms<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">Like the debate surrounding them, economic reforms in the revolutionary period are not new. To mention just a few examples:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u2022\" data-font=\"Verdana\" data-listid=\"2\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Verdana&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u2022&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"0\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">First Agrarian Reform Law (1959).<\/span><\/b><span data-contrast=\"auto\">\u00a0Four months after the triumph of the 1959 revolution, the first Agrarian Reform Law was enacted.\u00a0It\u00a0eliminated\u00a0large landholdings, expelled large\u00a0U.S.\u00a0companies\u00a0and nationalized 50% of the land. More than 100,000\u00a0farmer\u00a0families received land ownership. The law radically changed economic relations in the countryside and\u00a0represented\u00a0the first direct confrontation between the nascent Cuban Revolution and U.S.\u00a0interests on the island.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u2022\" data-font=\"Verdana\" data-listid=\"2\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Verdana&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u2022&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Second Agrarian Reform Law (1963).\u00a0<\/span><\/b><span data-contrast=\"auto\">If the first agricultural reform dismantled large national and foreign private property in the countryside, the second further reduced its size. As a result,\u00a0state\u00a0ownership rose to 70%.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u2022\" data-font=\"Verdana\" data-listid=\"2\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Verdana&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u2022&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">The\u00a01990s\u00a0reform.<\/span><\/b><span data-contrast=\"auto\">\u00a0The Soviet implosion left Cuba isolated in a world that shifted from bipolarity to U.S. hegemony. The global socialist system and the exceptional terms of trade with Cuba disappeared. The economic crisis caused a 35% contraction of GDP, comparable only to countries in wartime conflicts. The country\u2019s leadership, headed by Fidel Castro, implemented\u00a0an\u00a0economic reform based on allowing foreign investment, boosting the tourism industry, developing biotechnology, expanding self-employment, authorizing free markets in agricultural sales, decriminalizing the possession of foreign currency, reorganizing the state enterprise system, eliminating free services and subsidies, among other measures.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u2022\" data-font=\"Verdana\" data-listid=\"2\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Verdana&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u2022&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">The attempted reform of 2011.<\/span><\/b><span data-contrast=\"auto\">\u00a0The effective economic policies of the 1990s reactivated the economy, and it\u00a0emerged\u00a0from the worst stage of the Special Period, but the economic model continued to show signs of exhaustion. Ra\u00fal Castro was the main driving force behind the\u00a0\u201cupdating of the Cuban economic model,\u201d\u00a0a reform process approved by the Communist Party of Cuba in April 2011.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">The reform was ambitious, but its implementation quickly faced resistance,\u00a0delays\u00a0and\u00a0countermarches. The postponement of key changes such as monetary unification, the transformation of state-owned enterprises and the expansion of the private sector, along with the inherent contradictions of the change,\u00a0ultimately stalled\u00a0this attempt to perfect Cuban socialism. The concept of\u00a0\u201cupdating,\u201d\u00a0omnipresent in policies, speeches and the media, disappeared.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">There are substantial differences in the four examples above. The agrarian reforms were partial, focused on a single sector. They were implemented to dismantle the pre-revolutionary model in the countryside, which was based on the dominance of U.S. private capital. They were\u00a0the\u00a0natural and logical response to their historical moment. Along with other measures in the first three years of the Revolution, they laid the foundations of the socialist system.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">For their part, the reforms of the 1990s and the attempted reforms of the past decade were more far-reaching and comprehensive. They encompassed various economic sectors and aimed at\u00a0a structural\u00a0transformation of the model. They share a fundamental characteristic: they were implemented while the socialist system was still in power. Their\u00a0objective\u00a0was not to dismantle it, but to improve it\u00a0in order to\u00a0guarantee its preservation.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Economic reforms are also\u00a0not uncommon\u00a0in other socialist experiences. What else is the\u00a0<\/span><b><span data-contrast=\"auto\">Reform\u00a0<\/span><\/b><span data-contrast=\"auto\">and\u00a0<\/span><b><span data-contrast=\"auto\">Opening Up<\/span><\/b><span data-contrast=\"auto\">\u00a0policy that guides China\u2019s economic policy? Thanks to it, in half a century the Asian giant has lifted 800 million people out of poverty and transformed China into the world\u2019s second-largest economy, surpassing Europe and Japan and competing directly with the United States.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">What else is the\u00a0<\/span><b><span data-contrast=\"auto\">Vietnamese Renovation (Doi Moi)<\/span><\/b><span data-contrast=\"auto\">? A reform that transformed an underdeveloped and war-torn country into a global exporter of rice,\u00a0coffee\u00a0and manufactured goods. Vietnam aspires to be one of the\u00a0<\/span><a href=\"https:\/\/es.vietnamplus.vn\/vietnam-aspira-a-ubicarse-entre-las-30-principales-economias-del-mundo-para-2030-post227639.vnp\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">30\u00a0largest economies on the planet\u00a0<\/span><\/a><span data-contrast=\"auto\">by 2030.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">What else was the\u00a0<\/span><b><span data-contrast=\"auto\">New Economic Policy (NEP)<\/span><\/b><span data-contrast=\"auto\">\u00a0in Bolshevik Russia? A bold reform driven by the most pragmatic and revolutionary Lenin, who understood the urgency of doing what he himself acknowledged as a tactical retreat to save Soviet power and rebuild the economy.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">At this point, it is worth asking whether the\u00a0<\/span><b><span data-contrast=\"auto\">Government Program to correct distortions and boost the economy<\/span><\/b><span data-contrast=\"auto\">\u00a0entails a reform process. In a\u00a0<\/span><a href=\"https:\/\/oncubanews.com\/opinion\/columnas\/dato-y-relato-economia\/seis-puntos-del-programa-de-gobierno-y-una-evocacion-obligatoria\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">previous article<\/span><\/a><span data-contrast=\"auto\">, I explain why it does not.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">However, at this moment, terminology is probably the least important discussion.\u00a0There should be a consensus that the Cuban economic model needs a profound transformation. The debate is about\u00a0<\/span><b><span data-contrast=\"auto\">how<\/span><\/b><span data-contrast=\"auto\">\u00a0to do it.\u00a0Therefore,\u00a0let\u2019s discuss the content instead of the form.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">What kind of economic reform are we talking about?<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">There are as many reform proposals as there are economists and experts who\u00a0champion\u00a0them. Here I only speak for myself, but the economic reform I advocate, like many other colleagues, does not imply a\u00a0\u201creturn to capitalism,\u201d\u00a0but rather developing the profound changes necessary to preserve the socialist system. It is not correct to classify everyone who\u00a0defend\u00a0it as a manipulator,\u00a0sellout\u00a0or annexationist. On the path of disqualifications, many valuable ideas from people committed to the\u00a0country\u00a0risk being discarded.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The economic reform must be bold. This involves principles and structural transformations that include, but are not limited to, the following:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u2022\" data-font=\"Verdana\" data-listid=\"2\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Verdana&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u2022&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"4\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">The role of the State.\u00a0<\/span><\/b><span data-contrast=\"auto\">The reform must be a state policy, driven,\u00a0guided\u00a0and implemented by the country\u2019s leadership. It is not possible to implement such a process without the leading role of the State.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u2022\" data-font=\"Verdana\" data-listid=\"2\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Verdana&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u2022&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"5\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Macroeconomic stability.<\/span><\/b><span data-contrast=\"auto\">\u00a0Correcting macroeconomic distortions is equivalent to having a calm ocean for ships (enterprises\u00a0and other economic agents)\u00a0to navigate\u00a0without difficulty. The sustained\u00a0<\/span><a href=\"http:\/\/www.cubadebate.cu\/noticias\/2025\/12\/18\/marrero-cruz-el-programa-de-gobierno-se-ha-tenido-que-ejecutar-en-condiciones-adversas\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">reduction\u00a0of the fiscal deficit\u00a0<\/span><\/a><span data-contrast=\"auto\">achieved in recent years is worth acknowledging. Fiscal discipline is an essential pillar of stability for the real economy.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u2022\" data-font=\"Verdana\" data-listid=\"2\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Verdana&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u2022&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"6\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Productive transformation policy.<\/span><\/b><span data-contrast=\"auto\">\u00a0The productive transformation policy must concentrate the country\u2019s limited resources on strategic sectors with high added value. It must include special incentive mechanisms that encourage cooperation among all domestic and international economic actors. In this regard, it is fundamental to change the investment pattern, which is currently too high in the tourism sector (<\/span><a href=\"https:\/\/www.onei.gob.cu\/sites\/default\/files\/publicaciones\/2026-01\/indicadores-seleccionados-noviembre-2025.pdf\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">17.3%\u00a0of the\u00a0total<\/span><\/a><span data-contrast=\"auto\">) and extremely low in agriculture (2.1%).<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u2022\" data-font=\"Verdana\" data-listid=\"2\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Verdana&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u2022&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"7\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Transformation of the state-owned enterprise sector.<\/span><\/b><span data-contrast=\"auto\">\u00a0State-owned enterprises require reform in their governance,\u00a0incentives\u00a0and size. They must gain real autonomy to decide on investments, prices,\u00a0wages\u00a0and staffing, be subject to rules of competition and transparency, and stop receiving automatic, perpetual subsidies. Some will have to merge, others will have to be restructured and still others will have to be closed, so that the State can concentrate resources on an efficient core of state-owned enterprises that will continue to control strategic sectors, because this is what essentially defines its role as the main economic actor. All of this was foreseen in the draft Law on Enterprises, which, without explanation, has been postponed indefinitely.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u2022\" data-font=\"Verdana\" data-listid=\"2\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Verdana&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u2022&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"8\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Promotion and development of the national private sector.<\/span><\/b><span data-contrast=\"auto\">\u00a0Private enterprises must cease to be the\u00a0\u201cunwelcome guest\u201d\u00a0of the economic model and be recognized as an essential\u00a0component\u00a0of the economy. This implies a national policy of promotion and development that does not currently exist, and which is one of the reasons why private\u00a0enterprises\u00a0imported $2.2 billion worth of goods, mostly finished products, instead of investing capital in domestic production.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u2022\" data-font=\"Verdana\" data-listid=\"2\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Verdana&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u2022&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"9\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">A new approach\u00a0to foreign direct investment.<\/span><\/b><span data-contrast=\"auto\">\u00a0International capital investment in the Cuban economy is one of the few sources for attracting foreign currency into the productive sector. It requires genuine bureaucratic simplification. With a law that clearly defines the approval powers, foreign investment projects could be decentralized from the central government to direct authorization by local governments, where chambers of commerce, planning departments, experts and other qualified resources exist. Furthermore, the focus should shift from attracting only multi-billion-dollar\u00a0investments to also attracting smaller amounts, ranging from tens to hundreds of thousands of dollars. Foreign investment should be allowed not only in the state sector but also in the emerging private sector, which also requires capital.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">The Cuban case involves a characteristic different from other contexts that cannot be overlooked: U.S. aggressiveness, which, more than a blockade, is a\u00a0<\/span><b><span data-contrast=\"auto\">full-fledged economic war<\/span><\/b><span data-contrast=\"auto\">, as I always describe it in\u00a0<\/span><a href=\"https:\/\/oncubanews.com\/author\/danieltorralbas\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">my\u00a0articles<\/span><\/a><span data-contrast=\"auto\">.\u00a0But with it and despite it, we must think about and build development.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h3><b><span data-contrast=\"auto\">The myth of the\u00a0opportune\u00a0moment: now or later?<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">With GDP declining for three consecutive years, agriculture at its lowest levels in decades, a productive sector\u00a0practically paralyzed, sustained\u00a0emigration\u00a0and a combination of external shocks, where the economic war is the main one, we are far from the\u00a0\u201cbest moment.\u201d<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The best moment was to continue the 2011 reform without the usual interruptions. The myth of the\u00a0\u201copportune moment\u201d\u00a0will always find reasons to postpone changes. Therefore, regardless of the complexity of the current scenario, the opportune moment is precisely now.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The reform is not only about reactivating the economy, but a strategic commitment to\u00a0establishing\u00a0a productive,\u00a0efficient\u00a0and sustainable economic model. Economic growth puts Cuba in a better position to address pending social debts, from public service infrastructure, the quality of health and education, to poverty reduction. A healthy economy supports the entire system, even a robust defense system against the danger posed by the fascist tendencies of the U.S. regime.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h3><b><span data-contrast=\"auto\">Nuancing the\u00a0effects of\u00a0the\u00a0economic reform<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">If reforming the economy seems to be the right path and there are successful experiences in socialist countries, then why do some give it a negative connotation?<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">First, the dilemma of\u00a0\u201c<\/span><b><span data-contrast=\"auto\">revolution or reform<\/span><\/b><span data-contrast=\"auto\">\u201d\u00a0has permeated the historical struggles of socialism: Marx and Lenin confronted, each in their own time and way, the reformist ideas that\u00a0sought\u00a0to avoid revolutionary upheaval. As happened in 19th-century colonial Cuba, reformism advocated\u00a0maintaining\u00a0Spanish domination over the island in exchange for economic and political concessions. The same occurred in the pseudo-republican 20th century, when conservative forces repeatedly attempted to reform the system to curb the revolutionary processes of the 1930s and 1950s. Reformist positions have clashed head-on with the ideals of independence, which do not conceive of a Cuba subjugated to any foreign power. Revolution and reformism have\u00a0been\u00a0irreconcilable positions.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">However, there is a fundamental difference in context. Reform at that time was presented as an alternative path that implied renouncing the struggle for political power; in other words, it did not guarantee the nation\u2019s independence. Reform now presents itself as an opportunity for socialism in power to perfect the model and preserve its essence.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Second, economic reforms in socialist processes involve the introduction of\u00a0<\/span><b><span data-contrast=\"auto\">market mechanisms<\/span><\/b><span data-contrast=\"auto\">. This generates\u00a0\u201cideological tensions\u201d\u00a0among the\u00a0\u201cmore orthodox,\u201d\u00a0because the market evokes capitalist exploitation and the risk of\u00a0\u201crestoration,\u201d\u00a0and is associated with political concessions that undermine the revolution, fosters visible inequalities and forces the justification of\u00a0\u201cbourgeois\u201d\u00a0tools. This phenomenon is not negative by nature, but rather part of the transition period, but in the eyes of the purists, it becomes the perfect argument to reject it.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Third, the failure of very symbolic reforms such as\u00a0<\/span><b><span data-contrast=\"auto\">perestroika<\/span><\/b><span data-contrast=\"auto\">, which\u00a0ultimately led\u00a0to the collapse of the USSR, generates an understandable fear of undertaking a process so risky for the very survival of the system. However, we must understand that not undertaking reform also leads to the path of implosion.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Economic reform is not a\u00a0bed of roses. It involves risks and contradictions, just as the period of transition to socialism is risky and contradictory. The crisis of the 1990s made Cuban society more heterogeneous. The following decades have deepened inequalities. At the same time, it is not rational to believe that the egalitarian model of the 1980s will return, sustained by\u00a0a virtually inexhaustible\u00a0source of resources from the generous Soviet aid that we will always remember, but which will not be replicated again.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Therefore, the contradictions of the process cannot be a pretext to halt it, as happened with the\u00a0\u201cupdating\u201d\u00a0process. These must be addressed by public policies.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">For example, the growing economic inequality is criticized, but in the distribution of products from the scarce subsidized basic food basket, the same basic goods are given to the owner of a\u00a050,000-dollar vehicle as to a single mother with three children living in a shelter. This is just one very concrete example of how the current model reproduces egalitarianism and is unsustainable, reflecting a society that no longer exists.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Nor is\u00a0reform\u00a0a\u00a0\u201cleap\u201d\u00a0to development. It is not a promise of immediate prosperity. Changes take time to be agreed upon,\u00a0implemented\u00a0and produce results.\u00a0Hence\u00a0the strategic importance of having started a long time ago. On the other hand, a reform policy does not create wealth in\u00a0itself, but\u00a0rather creates\u00a0the conditions\u00a0to reproduce existing wealth. Consequently, the starting point is\u00a0an\u00a0economy in very deteriorated material conditions.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Despite all this, some disqualify the reform by equating it to the\u00a0\u201creturn of capitalism.\u201d\u00a0In their counterarguments, they use little or no economic basis to support their claims. They reduce the discussion to an indiscriminate attack on the private sector, which they\u00a0accuse of\u00a0almost all\u00a0the country\u2019s ills.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Contradictorily, they also offer no concrete solutions. They do not have a real economic project. The calls to\u00a0\u201cmultiply good practices,\u201d\u00a0\u201cchange mentality,\u201d\u00a0or\u00a0\u201cask ourselves what else we can do\u201d\u00a0address the issue from a\u00a0voluntarist\u00a0perspective. We must address subjectivity, yes, but at the same time we must change systemic mechanisms, not just individual ones.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Offering opinions on economic issues without a grasp of basic economics is irresponsible. Correcting this is also the responsibility of all economists: to teach, explain and build an economic culture that allows for elevating public debate to\u00a0another\u00a0level. Economists must also be careful not to fall into the trap of\u00a0\u201ceconomic determinism,\u201d\u00a0which is the tendency to overemphasize the economic factor above any other social, human, political or cultural aspect. Constructive debate must involve everyone.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">None of the arguments justify rejecting and hindering the economic reform of the Cuban model. Those who take this stance become, whether they intend to or not, champions of an immobility that neither offers solutions nor inspires enthusiasm. No option is without cost, but while reform entails risks, immobility carries a certainty: collapse.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h3><b><span data-contrast=\"auto\">Economic reform to save the essence<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">I myself\u00a0answer the\u00a0initial\u00a0question of this article:\u00a0\u201cchanging everything that must be changed\u201d\u00a0includes the economic model. This is achieved through reform, the most far-reaching process.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The experience of fifteen years of sluggish and interrupted quasi-reform\u00a0demonstrates\u00a0that, in addition to a strong political will to implement it, it is essential to\u00a0\u201c\u00a0challenge\u00a0powerful dominant forces within and outside the social and national spheres.\u201d<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Immobility does not guarantee the preservation of socialism. Annexationism does not even guarantee the preservation of the Cuban nation. For Cuban socialism, economic reform is a matter of national security, not an ideological concession. In a few years, we will look back on this period and have two options: to rejoice at having made the right decisions, or to regret not having seized the opportunity.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Let us ask ourselves honestly: if we continue doing the same thing, will we be better off?<\/span><\/p>\n<div id=\"gtx-trans\" style=\"position: absolute; left: 274px; top: 5263.73px;\">\n<div class=\"gtx-trans-icon\"><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Economic reform entails enormous risks, but inaction carries a certainty: collapse. <\/p>\n","protected":false},"author":3134,"featured_media":334690,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13902,13903],"tags":[14816,19256],"ppma_author":[33546],"class_list":["post-334686","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cuba","category-economy","tag-cuban-economy","tag-featured"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - 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