Major free-market reforms take effect in Cuba

Foreigners now have the ability to invest in Cuban real estate and domestic companies can import and export goods without government intervention as part of major free-market reforms implemented this week. These reforms, introduced as Cuba faced a severe economic crisis, were announced in June by the communist leadership of the island nation.

The measures were implemented in response to pressure from Washington, following a five-month US fuel blockade that brought the country close to collapse. Havana announced 176 reforms, opening up sectors such as banking, tourism, and agriculture to private investment. On Wednesday, the government began enforcing these changes through a series of decrees, resolutions, and regulations.

One decree permits private Cuban companies to collaborate directly with foreign investors and handle overseas bank accounts, eliminating the need for state intermediaries. Other reforms include the establishment of private companies with over 100 employees and the creation of privately-owned banks, pharmacies, and gas stations. President Miguel Diaz-Canel has emphasized that these measures do not represent the gradual introduction of capitalism, stating that they aim to preserve socialism.

Despite these changes, the private sector has already been thriving, with over 15,000 small and medium-sized enterprises currently operating on the island and employing more than a third of the workforce. Private companies have even become dominant in food and fuel distribution. The economic crisis in Cuba has worsened, leading to US sanctions on key companies that are crucial to the island's collapsing economy.