Two students by a housefront with a Che Guevara mural, Havana, Cuba, January 26, 2026. Photo: Jiang Biao/Xinhua News.
The president of Cuba, Miguel Díaz-Canel, presented a comprehensive program of economic and social reforms aimed at boosting production, attracting investment, and strengthening social protection amid the difficulties caused by the US blockade.
The proposals were discussed during a special plenary of the Central Committee of the Communist Party of Cuba on Thursday, June 18, held at the Palace of the Revolution. The program, consisting of 23 fundamental axes and 176 concrete measures, aims to not only address the current economic situation but also lay the foundations for a new cycle of growth and development.
🇨🇺| Presidente @DiazCanelB:
“Cuando la vida del pueblo se vuelve tan dura, el primer deber del Partido Comunista y del Gobierno Revolucionario no es explicar mejor la crisis, sino cambiar lo que haya que cambiar para salir de ella”.https://t.co/8lgHWyL20I
— Presidencia Cuba 🇨🇺 (@PresidenciaCuba) June 18, 2026
In his closing speech, Díaz-Canel, first secretary of the Central Committee of the Communist Party of Cuba stated that the country needs “a broad and flexible economic agenda, changes executable in the short term” that would provide for the dynamization of the economy, the expansion of production, the generation of higher incomes, and the protection of the most vulnerable sectors, without renouncing the principles of the socialist model. He stated that the transformations intend to address the challenges accumulated over years of economic restrictions exacerbated by the United States’s financial strangulation policy.
A new approach for the economy
President Díaz-Canel explained that the transformations will focus on five main areas: macroeconomic stabilization, recovery of the productive sector, transformation of the economic and social model, strengthening of business management, and mitigation of the social costs derived from the reforms.
One of the central changes consists of redefining the role of state planning. According to the president, central planning will stop focusing on the direct administration of the economy and will instead focus on creating institutional and regulatory conditions that stimulate production and services more efficiently.
He also announced an expansion of the autonomy of state-owned enterprises and a more professional administration of public assets through the National Institute of Business Assets.
Opening for agricultural production
Among the most significant measures is the expansion of the granting of land in usufruct to producers, cooperatives, micro, small, and medium-sized enterprises, and other associative forms with production capacity. President Díaz-Canel also called for the elimination of idle lands and putting them into productive use, while maintaining public ownership of the land.
In terms of foreign trade, he announced one of the most important reforms of the program: “Regarding foreign trade, exports, logistics, and value chains, we must authorize direct import and export for state-owned and non-state-owned companies, whether they are productive or exporting companies or those that substitute imports, maintaining technical and fiscal requirements, but eliminating mandatory intermediation.”
He further announced that the list of activities prohibited to the private sector will be reviewed, the social purpose of micro, small, and medium-sized enterprises (MSMEs) will be made more flexible, and economic associations between state and non-state actors will be facilitated.
Foreign investment and diaspora participation
Cuban authorities propose to significantly expand opportunities for foreign investment. Among the new features is the authorization of foreign direct investment in Cuban private SMEs, under defined rules of ownership, reinvestment, and dispute resolution. Greater freedom will also be allowed for investors to directly select their workers.
The program also includes facilitating investments from Cubans residing abroad. “To the Cuban resident abroad who wants to invest, donate, import technology, open a market, or launch a project in their homeland, we will offer a clear, stable, and respectful framework, without being viewed with suspicion for wanting to help their own or contribute to the development of the land where they were born,” the Cuban leader said.
Energy transition
The Cuban government announced an acceleration of the energy sovereignty strategy based on renewable resources. The measures include the direct participation of foreign companies to supply solar panels, batteries, and inverters, the elimination of taxes on the sale and installation of solar technologies, and the creation of financing mechanisms for households, micro, small, and medium-sized enterprises, and public institutions.
Electric transportation will also be promoted through tariff exemptions and facilities for the importation of electric vehicles, batteries, and chargers, in addition to promoting a national network of charging stations with state, private, cooperative, and foreign participation.
Social protection: subsidizing persons, not products
Díaz-Canel presented a reorientation of social policy based on direct aid to the most vulnerable sectors. The proposal aims to guarantee the basic basket for retirees, families with chronically ill children, and people in vulnerable situations, as well as to develop targeted programs in impoverished neighborhoods.
The president stated that the current economic reality demands abandoning generalized subsidy schemes and moving toward more targeted mechanisms that directly protect those who need it the most.
Financial and tax reform
The proposed plan includes significant reforms in the Cuban financial system. Among the measures, the gradual reduction of general price controls, the introduction of a value-added tax (VAT), the digitization of invoicing, and the correction of tax distortions that increase production costs stand out.
Regulated spaces will also be opened for private and foreign financial institutions, new mechanisms for productive credit will be enabled, and the use of accounts abroad, payments in foreign currencies between companies, and auditable international operations will be allowed.
Digitization, artificial intelligence, and salaries
Another priority will be the cross-cutting incorporation of digital transformation and artificial intelligence in sectors such as agriculture, energy, health, education, banking, logistics, and tourism. The government also announced that it will eliminate salary caps to retain highly skilled personnel in strategic areas, allowing remuneration schemes linked to productive results, exports, and savings in imports.
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Youth participation and popular control
The proposed reforms include the creation of a Community Youth Network aimed at promoting productive projects, local employment, technological training, and community activities in the neighborhoods.
Díaz-Canel stressed that each measure will have responsible parties, deadlines, and compliance indicators, and reiterated that the process intends to combine broad economic transformations with the preservation of national sovereignty and the protection of the most vulnerable sectors against the effects of the US blockade.
Deeply participatory process
The transformation program was conceived based on the report and debate of the Congress of the National Association of Economists of Cuba (ANEC), the popular consultation on the Economic and Social Program for 2026, the opinions of economists and experts, and the debates and contributions made by the Economic Commission of the Central Committee of the Communist Party of Cuba, as well as other bodies.
The experiences of socialist construction in other countries such as China and Vietnam were also taken into account, and artificial intelligence was used to delve deeper into the search for references and to evaluate the proposals in relation to current laws.
Cuban authorities consulted the leader of the Revolution, General Raúl Castro Ruz, about this proposal. He proposed its implementation, considering that a strengthened economy is most convenient for the Revolution, and requested that the opinions of the population be taken into account.
Translation: Orinoco Tribune
OT/SC/SH
