Cuba’s National Assembly has unanimously approved a sweeping package of more than 175 economic reforms that could mark the country’s biggest shift toward a market economy since the 1959 revolution. Backed by the Communist Party and former leader Raul Castro, the measures would allow private real estate development, private banking, and the sale of state-owned properties to both domestic and foreign investors, including Cubans living abroad. The reforms also propose transforming state-run enterprises into commercial ventures with shares and equity stakes.
President Miguel Diaz-Canel and Prime Minister Manuel Marrero defended the changes as necessary to strengthen Cuba’s socialist system rather than abandon it. Marrero described the market as an instrument for the efficient allocation of resources, while Diaz-Canel said the reforms were aimed at preserving socialist construction in the face of decades-long U.S. sanctions. Raul Castro also endorsed the measures, calling them beneficial and urging their swift implementation.
The reforms come as Cuba faces severe economic challenges, including shortages, declining tourism, and the impact of intensified U.S. sanctions. If implemented, businesses will be allowed to hire more than 100 employees, entrepreneurs can own multiple companies, and a private banking system and digital foreign exchange market will be introduced. The government also plans a new taxation framework under which both public and private businesses will help fund essential services such as healthcare, education, and transportation.
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