Raul Castro backs sweeping Cuba reforms to revive struggling economy

Cuba's powerful ex-president Raul Castro on Wednesday threw his weight behind liberal reforms aimed at reviving the collapsing economy in the face of a crippling US blockade. The Cuban government has announced a series of fast-track reforms to open more sectors to private investment, attract more capital from Cubans living abroad, and shrink the state. President Miguel Diaz-Canel has presented the measures — some of which are set to be approved by the National Assembly on Thursday — as the most substantial in years.

The Communist Party's politburo held an extraordinary plenary on Wednesday to discuss the proposals. Castro, widely seen as the power behind the throne, backed the proposals in a letter shown to the plenary, calling them "the most beneficial to the revolution at this time." The nonagenarian Castro, who was recently indicted by the United States over the downing of two civilian planes three decades ago, led the country for 15 years after succeeding his brother Fidel in 2006.

It is unclear whether the reforms would satisfy US President Donald Trump, who is pushing for a change in Cuba's economic model. The oil blockade imposed by Trump in January has brought Cuba's already moribund economy to the brink of collapse, marked by power cuts sometimes lasting over 30 hours and shortages of food, fuel, drinking water, and medicine.

"I welcome any change that helps revive the dying patient," the owner of a small private supermarket in Havana told AFP, declining to be identified. The government, which is in negotiations with Washington, has teased new investment opportunities for Cubans living on the island and abroad in a broad range of sectors. Prime Minister Manuel Marrero assured that the reforms "in no way imply relinquishing the social responsibility of the state."

Private businesses, which can employ up to 100 people, were authorized in 2021 and have become an increasingly important part of the island's economy. Diaz-Canel said Cubans will be granted the same conditions as foreign investors, some of whom recently pulled out of Cuba over US sanctions. He has also announced plans to cut back the state by reducing the number of ministries and public servants. Some of the reforms announced were a rehash of earlier proposals, such as granting greater autonomy to state-owned enterprises, which account for roughly 80% of economic activity.