Cuba launches major economic reform package aiming for a social market economy

Five Cuban economists have presented a proposal called “Cuba Transformación” that outlines a three‑stage plan to halt the island’s economic and social deterioration, protect vulnerable groups and establish a social‑market economy within a democratic rule‑of‑law framework. The proposal, developed since March, emphasizes gradual reforms in stabilization, productive recovery and medium‑to‑long‑term development.

In parallel, the Cuban government approved a sweeping reform package of 176 measures grouped into 23 pillars, the most extensive shift since the Revolution. The reforms open the economy to private ownership, allow foreign investors to operate without mandatory state partnerships, liberalize real estate sales (especially in tourism zones), and grant private banks and currency‑exchange operations greater autonomy. Other changes include restructuring state enterprises into joint‑stock companies, expanding the role of small and medium‑size private businesses, and encouraging diaspora investment. The package is presented as a response to a deep crisis marked by inflation, currency depreciation, energy shortages and intensified U.S. sanctions, while also acknowledging internal policy shortcomings.

Both the expert proposal and the government’s reform package aim to stabilize macro‑economic indicators, revive production, attract investment and improve public services, signalling a historic pivot toward a more market‑oriented Cuban economy.