In a recent statement, Cuban leader Miguel Díaz-Canel deflected blame for the island's electrical system collapse onto the United States. The crisis, marked by a complete disconnection leading to a widespread blackout last Friday, remains unresolved. Díaz-Canel described the situation as "yet another demonstration of all the issues the embargo causes us and its impacts." He criticized those who attribute the crisis to inefficiencies or deliberate disruptions, insisting that many prefer to ignore the effects of U.S. policy on Cuba.
The president highlighted two major challenges facing the energy sector: "Firstly, we lack the fuel we need, and secondly, we haven't been able to carry out necessary repairs. All these issues are tied to currency; currency we don't have due to financial persecution and fuel we can't access due to energy persecution. It's the embargo, it's due to the tightened embargo of recent times."
Contradictions in Government Priorities
Despite Díaz-Canel's accusations, the government's focus on lavish events and investments in the declining tourism sector contradicts his claims. Significant portions of the state budget are allocated to tourism, while essential upgrades to the island's electrical infrastructure and other critical services are neglected, leaving them in dire conditions.
The release of official data on Cuba's investments in the first half of 2024 has reignited discussions about resource allocation. The regime's persistent investment in tourism comes at the expense of crucial sectors like health, social welfare, and energy. According to the National Office of Statistics and Information (ONEI), nearly 40% of investments from January to June 2024 went to tourism-related activities, while spending on Health and Social Welfare was drastically lower.
Calls for Reinvestment in Critical Sectors
Cuban economist Pedro Monreal has proposed halting hotel investments to redirect funds towards more urgent needs, such as improving energy infrastructure and boosting agricultural production. In the midst of the island's deteriorating road infrastructure, with roads becoming impassable and riddled with potholes, the regime has controversially used its limited foreign currency reserves to repair roads primarily used by tourist buses and rental cars.