Once again, the Cuban regime has staged its typical bureaucratic theater, masquerading as economic analysis, all the while ignoring the structural issues that have plunged the nation into a constant state of crisis. During the recent annual meeting of the Ministry of Economy and Planning (MEP), Miguel Díaz-Canel and his governing clique delivered speeches filled with euphemisms, empty promises, and a persistent blaming of external factors like the "economic war," "climatic phenomena," and the "global multidimensional crisis" to justify the internal collapse.
Ministry as an Echo Chamber of Failure
In the gathering, Economy and Planning Minister Joaquín Alonso presented the dismal results of the sector for 2024 but failed to address the root cause: the centralized, ineffective, and unviable economic model that the regime refuses to reform. In his speech, covered by the National Television News (NTV), Díaz-Canel emphasized "digital transformation" as if it were a magic bullet for optimizing processes, without explaining how a country plagued by constant blackouts and lacking modern technology and funding could achieve such a revolution.
“We need to apply innovation in structures, function, organization, and process, and conduct research on the most complex issues in our economy… It’s a huge task that, in my view, the ministry should lead, including finding more funding sources for the development of science and innovation in the country,” the leader said vaguely and unconvincingly. He also stated that the MEP should "enhance science and innovation," which sounds ironic in a nation where the academic sector faces censorship, massive emigration, and lacks basic resources.
“Because it’s not just about willpower; science and innovation also require resources. But what’s better than a Ministry of Economy and Planning acting as the economic headquarters, embracing the shared value that science and innovation are needed, not just for the Ministry, but for the country? One of the key issues for enhancing science and innovation is securing funding for it,” added the First Secretary of the Communist Party of Cuba.
Economy of War: A Euphemism for Disaster
One of the main points of the meeting was adopting the concept of an "economy of war" as the core of planning for 2025. This narrative aims to instill the idea that Cuba is under constant siege, thereby justifying the food shortages, public transport collapse, and deterioration of basic services. However, what this discourse really conceals is the government's total inability to implement effective policies to revive national production and curb rampant inflation.
Prime Minister Manuel Marrero Cruz has repeatedly stated that "different approaches are needed," yet concrete solutions remain elusive. The removal of Alejandro Gil Fernández as Economy Minister did not bring about structural changes but served as a scapegoat to mask the stagnation of the model.
A Plan Without Real Solutions
Among the "projections" for 2025 presented by Minister Alonso are the "implementation of the National Economic and Social Development Plan until 2030," "perfecting annual planning," and "strengthening investment execution control." However, there was no mention of removing obstacles for the private sector, opening the domestic market, or a fiscal reform to incentivize productivity.
The official narrative also referenced the "transformation of the Socialist State Enterprise," an ambiguous concept that in practice has only served to perpetuate an inefficient and corrupt business network that solely serves the interests of the ruling elite. Meanwhile, Cuban workers continue to earn wages that fall short of covering basic needs, and the cost of living continues to rise due to inflation that the state is unable to control, compounded by the recent "partial dollarization of the economy," a currency capture plan that exacerbates inequalities and injustice in the country.
Ideological Propaganda Disguised as Economic Thought
It is concerning how the government continues to prioritize ideological indoctrination over genuine economic solutions. Marrero made it clear that "consolidating unity" and "strengthening political and ideological work" are fundamental parts of the government’s plan for 2025, which confirms that the regime’s main concern is not the economy, but maintaining control over the population.
Díaz-Canel has repeatedly insisted that the solution lies in "socialism," ignoring international reports that have ranked Cuba as one of the countries with the worst economic freedom in the world. While Cuban leaders gather in air-conditioned rooms to repeat the same empty slogans, the people face the harsh reality of shortages, blackouts, and lack of opportunities.
The government’s recipes remain unchanged: grandiose speeches, stale excuses, and unfulfilled promises. The Cuban economy does not need more "centralized planning" or "distortion correction," but a real opening that allows Cubans to take charge of their future without the interference of an ineffective and repressive state.
Understanding Cuba's Economic Challenges
What are the main structural issues affecting Cuba's economy?
The main structural issues include a centralized economic model that is inefficient and outdated, a lack of investment in modern technology and infrastructure, and an over-reliance on government control which stifles innovation and private sector growth.
How does the "economy of war" concept affect Cuba's economic policies?
The "economy of war" concept is used to justify scarcity and infrastructural failures by portraying Cuba as being under constant external threat, which diverts attention from internal mismanagement and policy failures.
What role does innovation play in Cuba's economic strategy?
While the government talks about innovation as a key strategy, the lack of resources, funding, and an open market restricts real innovation, serving more as a rhetorical tool rather than a practical approach to economic development.