Economic and Market Reforms, Cuba is Ready to Face America

JAKARTA - Cuban President Miguel Diaz-Canel, Friday (12/6), announced a proposal to restructure the island's national economy and redefine Cuba's role in the global market amid US economic and energy sanctions.

The steps taken by the Donald Trump administration against Cuba have increased, prompting the Communist-led government to seek solutions outside its traditional economic model, including incentives for tourism businesses, foreign investment, and the import of renewable technologies.

In a closed-door press conference, the Cuban leader first announced a series of proposals that he said would determine the country's path forward in response to "the very aggressive policy of the government of the United States."

"I believe that is precisely what we need to discuss: How will we overcome these challenges and how have we overcome them?" said the Communist Party leader and president.

"The United States cannot forgive the fact that, after all the maximum pressure they have put on, the revolution is still there and this country continues to function. They themselves do not believe in the narrative they constantly repeat about Cuba as a failed state," he said again.

Diaz-Canel focused especially on the need for a reconfiguration of the centrally planned economy, the foundation of the island's economic model and the legacy of the Cuban Revolution. He said the first step was to give more authority to city governments.

"The city government must have the authority to import and export and not depend on the central plan. The city government must be able to manage foreign currency income and promote and oversee foreign direct investment in their regions in accordance with local interests," he said.

Based on the proposal, the state will decentralize power, allowing city governments to determine which companies and economic actors operate in their jurisdiction.

The reform will also expand economic participation by private actors from abroad. In particular, Díaz-Canel argues that it is necessary to create a mechanism that facilitates investment in Cuba from Cubans living outside the island.

"Encouraging foreign direct investment requires the granting of land use rights, the removal of barriers, increased use of bank accounts, reducing the approval period, and ensuring a faster response throughout the investment process," said Diaz-Canel.

"We have discussed two specific forms of investment in Cuba: investment by residents abroad and investment by Cubans living abroad, so that in the same conditions they can participate as economic actors together with foreign direct investment and state-owned enterprises," he said.