During a recent work visit to Holguín province, Cuban leader Miguel Díaz-Canel pointed fingers at small private businesses for rising prices, labeling some as "abusive" and "torturous." His comments come amid a deepening economic crisis characterized by inflation and shortages of essential goods, where citizens face an ever-growing state of hardship.
"Among the distortions in the economy, what stands out most to me based on public opinion here, and it was a topic addressed, is the prices. The criticism of high prices is more pronounced. Prices can't be the same as they were 5 or 6 years ago," Díaz-Canel stated in a Canal Caribe report. "But we can't allow for abusive and torturous prices," he remarked, shifting the focus to small entrepreneurs while sidestepping the structural roots of the crisis.
He also criticized non-state forms of commerce, noting that "every time a group of non-state entities that sell at high prices hears about inspections or audits, they withdraw. That’s the first sign that they're up to something, and we have to confront it."
Although Díaz-Canel emphasizes the importance of operating "within legality," his statements fail to address the extreme conditions faced by small traders, who operate in a market lacking basic supplies, with irregular supplies and wholesale prices that force them to set high margins to survive.
Instead of acknowledging the restrictions imposed by the system itself, the government continues to use the private sector as a scapegoat. At the end of his speech, Díaz-Canel announced that January would bring new visits to Holguín province, suggesting increased supervision and control over entrepreneurs, potentially worsening the already fragile situation of the private sector in Cuba.
Recently, the government further targeted the private sector. The Official Gazette of the Republic (Number 119) published Resolution 56 by the Minister of Domestic Trade, Betsy Díaz Velázquez, which automatically cancels licenses for wholesale activities granted to private micro, small, and medium-sized enterprises, as well as non-agricultural cooperatives.
This measure, effective from December 5, was justified as an attempt to "organize" wholesale and retail commerce but represents another blow for entrepreneurs, who already face tremendous challenges in operating amid the economic crisis.
Furthermore, in July, Díaz-Canel made clear the regime's stance toward the private sector when he declared: "It's time to take action!" With this statement, the leader confirmed the Cuban regime's shift from its timid economic opening policy and reaffirmed its intent to subject the activities of "new economic actors" to state directives and centralized economic planning.
Impact of Government Policies on Cuba's Private Sector
Why is Díaz-Canel blaming small private businesses for price increases?
Díaz-Canel is blaming small private businesses for price increases to divert attention from the structural issues within the Cuban economy and to shift the blame to non-state actors, despite the challenging conditions these businesses face.
What is the current situation of private businesses in Cuba?
Private businesses in Cuba are operating in a difficult environment characterized by a lack of basic supplies, irregular supply chains, and restrictive government policies that complicate their ability to function effectively and profitably.
How has the government further impacted private businesses recently?
The government has impacted private businesses by issuing a resolution that cancels licenses for wholesale activities, presenting it as an effort to "organize" commerce, but effectively hindering entrepreneurs' ability to operate.