Cuba begins soft decommunization, legalizing new changes
Photo: Cuban President Miguel Díaz-Canel (Getty Images)
Cuba has officially launched a large-scale liberalization of its economy, a move driven by intense pressure and threats from Donald Trump, according to the Financial Times.
Cuba's parliament unanimously approved the changes, as is tradition. The reforms are set to provide new incentives for private business development.
Havana also plans to actively attract foreign investment. The move is considered radical, as the country has long adhered to a centrally planned economic model. Pressure from US President Donald Trump reportedly pushed the communist leadership to act quickly.
President Miguel Díaz-Canel compared the reforms to the experiences of Vietnam and China, countries that preserved communist rule while opening up their economies. Cuba is now attempting to follow a similar path.
"To the Cuban living abroad who wants to invest, donate, import technology, open a market, or build a project in his homeland, we will offer a clear, stable and respectful framework," Díaz-Canel said.
Key changes in Cuba's economy:
- Full legalization and expansion of private property
- Creation of favorable conditions for foreign capital
- Simplification of modern technology imports
- Focus on the Cuban diaspora as a key investor base
The president acknowledged that there is no full consensus on some of the measures, but said there is no alternative — the economy must be rescued immediately.
What led to the reforms
Earlier reports noted that international companies are leaving Cuba, further damaging the island's struggling economy. At the same time, the Trump administration has increased pressure on Havana, including what it describes as a maritime blockade of the island.
Trump has also made increasingly frequent statements about Cuba, previously suggesting that after Iran, the Caribbean nation could become a next priority in US foreign policy.
