Cuba Launches 176 Free-Market Reforms to Combat Economic Crisis

The Government of Cuba began implementing a series of 176 free-market reforms this week to combat a severe economic crisis exacerbated by a five-month United States fuel blockade. These measures, first unveiled in June, aim to address systemic fuel shortages, power outages, and declining production.

Central to these reforms is Decree-Law 133/2026, effective September 9, which removes the 100-worker limit for micro, small, and medium-sized enterprises (MSMEs). The new regulations allow private companies to import and export goods directly, provided they receive authorization from the Ministry of Foreign Trade and Investment. The decree also permits Cubans living abroad and foreign permanent residents to act as partners and allows individuals to hold stakes in multiple companies.

Further reforms authorize the creation of private banks, pharmacies, and gas stations, while allowing foreigners to invest in Cuban real estate. These changes follow a trend where the private sector already employs more than a third of the workforce across 15,000 enterprises. President Miguel Diaz-Canel stated that these changes are intended to "preserve" socialism rather than introduce capitalism, maintaining that the private sector must operate under state oversight within the socialist system.