HAVANA: Cuba’s National Assembly on Thursday unanimously approved a sweeping package of economic reforms that could mark the most significant shift toward a market economy since the 1959 revolution, as the government seeks to counter the impact of severe U.S. sanctions and a prolonged economic crisis.
The reforms, backed by the ruling Communist Party and former president Raul Castro, would allow private real estate development, private banking operations, and the sale of state-owned properties to both domestic and foreign buyers, including Cubans living abroad.
The measures also propose transforming state-owned enterprises into commercial entities with shares and equity stakes, significantly reducing the state’s direct role in the economy.
President Miguel Diaz-Canel defended the reforms, saying they were necessary to sustain Cuba’s socialist system under what he described as the “longest blockade in history” by the United States.
“We are not renouncing socialism,” Diaz-Canel told lawmakers before the vote.
Prime Minister Manuel Marrero said the reforms recognize the market as “an instrument for the efficient allocation of resources” while remaining consistent with the country’s socialist principles.
The package includes more than 175 measures and received unanimous approval in the National Assembly. However, authorities have not specified a timeline or implementation mechanism for the reforms.
The changes come as Cuba faces one of its worst economic crises in decades. The state-run economy has struggled with chronic shortages, declining productivity, and reduced foreign investment, challenges that have intensified under renewed U.S. sanctions, including restrictions on oil supplies and trade.
Diaz-Canel said the reforms were not linked to ongoing talks with Washington, which began earlier this year but have reportedly stalled.
In a letter presented to party leaders and lawmakers, Raul Castro endorsed the measures and called for their rapid implementation, describing them as beneficial for the country’s future.
If enacted, the reforms would significantly expand opportunities for private enterprise. Businesses would be permitted to employ more than 100 workers for the first time, while entrepreneurs would be allowed to own multiple private companies.
The government also plans to establish a state-regulated private banking sector and a real-time digital foreign exchange market to facilitate private investment and capital flows.
The reforms introduce a new taxation system under which both public and private businesses, including foreign firms, would contribute to financing public services such as healthcare, education, and transportation.
Cuban officials say the measures are aimed at improving living standards while preserving the country’s socialist framework.