Cuba’s National Assembly has approved nearly 200 unprecedented economic reforms aimed at pulling the island back from the brink of collapse, marking what economists are describing as the most significant shift in the country’s economic model since the 1959 revolution.
Prime Minister Manuel Marrero unveiled 176 measures during a landmark address to lawmakers, proposing a dramatic reduction in the state’s role in the economy and opening the door to expanded private enterprise and foreign investment.
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Among the most far-reaching changes are provisions allowing foreign investors to operate without mandatory joint ventures with the Cuban state, authorizing the creation of large private companies, and permitting both domestic and foreign investors to acquire stakes in state-owned enterprises.
The package was approved unanimously by members of the National Assembly, with President Miguel Díaz-Canel closing the session by invoking Fidel Castro’s revolutionary slogan, “Socialism or death.”
The reforms come as Cuba grapples with one of the deepest economic crises in its modern history. Shortages of food, medicine, fuel and drinking water have become widespread, while prolonged blackouts lasting more than 30 hours have become increasingly common.
Díaz-Canel had earlier warned of the need for “urgent changes” to prevent economic collapse and acknowledged that some of the country’s difficulties stemmed from internal problems.
In unusually candid remarks, he criticized bureaucratic inefficiencies, delays and regulations that hinder production.
“There are obstacles that don’t come from outside,” Díaz-Canel said, citing “slowness, bureaucracy and norms that impede those who want to produce.”
While Cuban leaders have traditionally blamed the island’s economic struggles on the decades-old US embargo, mounting pressure from Washington and a sharp decline in fuel supplies have intensified the crisis. Only one oil tanker from Russia has reportedly reached Cuba since the beginning of the year, leaving the country struggling to maintain electricity generation.
London-based Cuban economist Daniel Torralbas described the measures as the most profound reforms undertaken since Fidel Castro came to power.
Michael Bustamante, chair of Cuban Studies at the University of Miami, said the Communist government now finds itself under unprecedented pressure.
“Their backs are up against the wall as never before,” Bustamante said, noting that Havana is being forced to introduce reforms that it once considered ideologically unacceptable.
Despite that pressure, Díaz-Canel insisted the changes were not being implemented to satisfy the United States.
“We are not doing this because of pressure from the Yankees,” he said, arguing that the reforms are intended to preserve socialism rather than dismantle it.
The deteriorating humanitarian situation has also attracted international concern. United Nations High Commissioner for Human Rights Volker Türk recently warned that shortages of medical supplies and pharmaceuticals have contributed to deaths among children on the island.
For many Cubans, however, the reforms have been met with skepticism.
Victor Hierrezuelo, a 63-year-old bank employee, warned that without meaningful changes, “the revolution will collapse.”
Others, particularly within the growing private sector, view the measures as a long-awaited opportunity.
“They offer hope,” said Mario González, manager of a restaurant in Havana’s historic district, expressing optimism that economic reforms could help revive tourism and stimulate business activity.
The timing of the reforms comes amid heightened tensions with Washington. The Trump administration has increased pressure on Havana, including the indictment of former president Raúl Castro and renewed calls for political and economic change on the island.
Vice President JD Vance recently confirmed that the United States remains engaged in discussions with Cuba, saying Washington wants Cubans to be “happy and successful” and is encouraging the government to “change their ways.”
Although no timeline has been announced for implementing the reforms, analysts say the measures represent a historic departure from decades of strict state control and could determine whether Cuba succeeds in stabilizing its economy or slides deeper into crisis.
