Cuba US People to People Partnership

Sunday, December 21, 2025

CIPI Paper on how to increase travel from the US to Cuba

Reinvigorating U.S. people to people travel to Cuba, adopting Viet Nam’s market model.

By John McAuliff, Fund for Reconciliation and Development

Edited and expanded from oral presentation at Programa de la XXIII Serie de conversaciones Cuba en la política exterior de EE.UU.: El Regreso de Trump: Impacto presente y futuro para Cuba. Centro de Investigaciones de Politica Internacional (CIPI) December 18, 2025

(Thanks to Amb Cabanas who contributed to and enjoyed the most positive moments of bilateral relations in decades, before or since.)

Everyone is aware of the very difficult situation for tourism in Cuba.[1] The number of foreign visitors declined from 4.7 million in the peak year of 2018 to 2.2 million in 2024. 2025 is expected to be worse. While competitors in the Caribbean recovered from the covid shock, Cuba’s market has not.

A significant cause is harsher application of the US embargo. While there are still legal categories permitting American travelers, large scale commercial movement is impossible as long as cruises and use of State owned hotels is banned. That was a maximum pressure policy initiated by the first Trump administration and not corrected by Biden.

The absurd listing of Cuba as a state sponsor of terrorism discourages visitors from Europe who lose their ESTA visa waiver to enter the US for ten years if they travel to Cuba.

The objective conditions in Cuba of power failures, limits on food and debilitating mosquito borne diseases have also had a depressing effect on conventional holiday tourism. The harsh treatment of both moderate and extremist protestors in 2021 and conflicts between cultural dissidents and authorities also diminish enthusiasm for Cuba as a destination. The same thing happened with China for two to three years after Tiananmen Square

Cuba is making efforts to reverse the trend. A significant step is that foreign companies will be able to lease as well as manage hotels. In theory, they will have more normal corporate authority to directly hire staff and to invest in improved facilities. A conversation with a staff member of Sol Melia suggests the major chains will be cautious and see how the new system works on one or two test cases.

I am approaching this problem on both a macro and micro level.

A. Macro

Based on my decades long experience with Viet Nam, it is worth considering what the impact would be on travel if Cuba took bold experimental steps towards a market economy in only this sector. When I first began organizing trips for professors and other professionals in the mid 1980s, Viet Nam like Cuba treated travel as a state monopoly. Vietnam Tourism organized all group tours and owned and controlled all the hotels, not even allowing management by foreign companies. The first signs of change were private mini hotels on the fringes of Ha Noi. The doi moi market reforms in 1986 led to legal and administrative changes that allowed foreigners, both Asian and western, as well as Vietnamese investors, to build and own hotels. Large international companies created luxury branded properties. Vietnamese investors competed in this market and dominated smaller scale two or three star offerings for backpackers, overseas nationals and other budget conscious travelers.

This graph created by Chat GP illustrates the dramatic change in revenue share between the state and private sector in less than twenty years. Notable is that domestic private has a greater value share than foreign ownership in the initial and later stages

The number of foreign tourists coming to Viet Nam. Data not available before 1995.

In current dollars, the value of international tourism, marked by circles, and percent of national GDP, marked by squares, until COVID

Vietnamese entrepreneurs created travel agencies, tour operators and specialized services supplemented by foreigners with niche businesses like SCUBA shops and tours. The Vietnamese Union of Friendship Organizations, the counterpart of ICAP, still organizes tour programs that focus on friendship and many kinds of long term institutional cooperation. US veterans of the American war and of the peace movement are an important although diminishing special audience.

The growth of international arrivals in Viet Nam demonstrates the roaring success of a free market methodology from 250,000 in 1990 to 19.1 million by November of this year. (Note that Viet Nam has ten times the population of Cuba so the ratio of visitors is less.)

If Cuba chose to introduce a similar open market system for the travel sector, it could attract substantial foreign investment, management and training skills, and a growing number of tourists. US companies excluded by the embargo would complain more strongly to our government about long term competitive disadvantage that will become more serious than when the only benefit for European companies is management contracts. If Cuba sold rather that leased selected hotels to trusted European partners, under current US law and regulations they could become available for American tour groups and independent travelers.

B. Micro

Turning to the micro level, there is a small step that has been officially rejected[2], but can be taken easily and quickly, the licensing of tour guides as cuenta propistas and of microenterprises in the travel sector. There is already a gray market of guides who operate privately, many of whom formerly worked for state companies. In 2021 an informal association of guides made a written proposal to the Ministries of Tourism and Labor that was rejected.[3] Symptomatically all but two members of the original organizing committee now live abroad, a loss of badly needed entrepreneurial talent and energy.

If cuenta propista guides and microenterprise travel companies were legally recognized, it could have a significant impact on US visitors organized by independent travel agencies and home based agents, about 15% of the US holiday travel industry. Their small scale does not easily fit with Cuba’s state companies, but their cumulative impact for the country’s economy can be significant. Legal status for their Cuban counterparts and a channel to transfer pre-payments are essential requirements for serious business. The ability to develop mutually trusted business relationships that match the agendas and styles of senders and receivers is an inducement for additional visitors and repeat trips. Direct company to company collaboration between Americans and Cubans will generate practical ways to overcome current objective hardships and will increase tax revenue.

Private tour guides became active in Viet Nam from the late 1980s. In 2001 a legal licensing mechanism was adopted requiring educational qualifications and tourism training that currently registers 26,309 guides for international visitors.

C. Changing bilateral parameters

Finally, I want to address the policy problem that constrains a large economic impact of US tourists. Attention should be given to the unusual character of the Trump Administration. The first half of Trump One witnessed little change in the Obama policies on travel. It was only when John Bolton became National Security Adviser (April 2018 to September 2019) that his long animus to the Cuban revolution combined with the political agenda of Senator Marco Rubio and Mauricio Claver-Carone to devastate travel through maximum pressure. Cruises were forbidden so abruptly on June 5, 2019 that ships had to be rerouted. Trump now despises and distrusts Bolton and is seeking revenge with controversial criminal indictments. It should also not be forgotten that before he became a candidate for President Trump sent an exploratory team to Cuba that had very positive conversations about golf courses and resorts.

If anyone could exercise unilateral power to end the embargo, it is Donald Trump. Robert Muse outlined the legal argument in 2020.[4] Marco Rubio as an ambitious and opportunist Secretary of State who hopes to succeed Trump, could not oppose him. An inducement to this transactional President, would be to allow the Trump Corporation to lease or purchase Cuba’s new mega hotel on La Rampa. It would discomfit most of your American friends and many Cubans to see the name Trump on the top of the tallest building in Havana, but it could be only a temporary burden.

I want to make another Viet Nam comparison. Just before we went to Viet Nam to celebrate the 50^th anniversary of peace and reunification, Damien Cave, who also has a history covering Cuba, wrote a long article about a $1.5 billion dollar Trump golf resort to be built near Ha Noi.[5] Many Vietnamese were upset because the project ignored normal approval procedures, including environment restrictions, and because it will replace valuable privately owned farmland. But from the viewpoint of government leaders, good will from the all transactional Trump could help with upcoming high priority tariff negotiations.

An even greater and more controversial inducement could involve Venezuela. President Trump does not want on his record thousands of civilian deaths and endless war entailed by regime change. However he needs a symbolic victory over President Maduro given how much he has committed US forces and prestige. From a Venezuelan perspective, what is more important, the titular position of Maduro whose electoral victory is doubted by significant friends of Cuba or the preservation of peace and of a sovereign functioning government? If Cuba used its historic ties with Venezuela’s government and military to help find a transitional diplomatic solution reflecting current realities, it would be reasonable for it to insist on as significant a change in US policy on Cuba, i.e. the end of the embargo.

Additional resources

"Travel: Symbol of and Vehicle for Change" by John McAuliff Edited Spanish version presented to Congreso de Pensamiento, Holguin, Cuba 10/23/19 (revised and updated from talk presented at XVI Edicion de la Serie de Conversaciones Cuba en la Politica Exterior de los Estados Unidos de America del 13 - 15 de diciembre de 2017 Centro de Investigaciones de Politica Internacional (CIPI) Instituto Superior de Relaciones Internacionales (ISRI)

“People to People Diplomacy: A step, not a solution” Presented at Ultimo Jueves panel sponsored by Revista Temas, Havana, July 18, 2019 https://cubapeopletopeople.blogspot.com/2019/09/people-to-people-diplomacy-diplomacia.html

Wikipedia Summary of Current Situation of Tourism in Viet Nam https://en.wikipedia.org/wiki/Tourism_in_Vietnam

“Tourism & Economic Development in Vietnam” by Bee Chin NG School of Social Science Institution for Asian Studies The University of Birmingham, June 2008 https://etheses.bham.ac.uk/id/eprint/1783/1/Ng08MPhil.pdf

“Tourism development in Vietnam: New strategy for a sustainable pathway” https://www.researchgate.net/publication/344416150_Tourism_development_in_Vietnam_New_strategy_for_a_sustainable_pathway

“From Deadly Enemies to Comprehensive Strategic Partners: The Twenty Year Transformation of US Viet Nam Relations, Potential Implications for US-Cuba Relations” by John McAuliff Programa del evento XXI Edición de la Serie de Conversaciones “Cuba en la Política Exterior de Estados Unidos de América”. El Centro de Investigaciones de Política Internacional (CIPI) con el coauspicio del Instituto Superior de Relaciones Internacionales (ISRI) Hotel Nacional, Havana, December 17-19, 2024 https://vnpeacecomm.blogspot.com/2024/12/the-path-to-us-viet-nam-normalization.html

“Reconciliation Between Peace and Normalization, 1975-1995” Prepared for US Institute of Peace Dialogue on War Legacies and Peace, October 13, 2022 by John McAuliff https://vnpeacecomm.blogspot.com/2022/10/mcauliff-paper-for-usip-on.html

[1] “Cuban tourism industry flounders as sunseekers look elsewhere” By Marc Frank February 18, 2022 https://www.reuters.com/world/americas/cuban-tourism-industry-flounders-sunseekers-look-elsewhere-2022-02-18/

[2] Cuba approves long-sought legal status for private businesses

By Marc Frank June 2, 2021

“Resolution 132/2021, published in the extraordinary Gaceta Oficial 46, indicates that national travel agencies are the only ones authorized to carry out procedures such as the issuance, reception and service of tourists, the representation of foreign tour operators, and the design and marketing of tourist packages.”

[3] https://cubapeopletopeople.blogspot.com/2021/10/arguement-for-tour-guide-privatization.html

[4] “The president has the constitutional power to unilaterally terminate the embargo on Cuba”

Robert L. Muse | October 8, 2020 https://cubapeopletopeople.blogspot.com/2022/02/presidential-power-to-end-embargo.html

[5] "Why Vietnam Ignored Its Own Laws to Fast-Track a Trump Family Golf Complex," by Damien Cave, May 25, 2025

https://www.nytimes.com/2025/05/25/world/asia/trump-vietnam-golf-project.html?unlocked_article_code=1.-k8.McQG.TdUN0fE3dGva&smid=url-share

Monday, December 8, 2025

Essential Dissent by La Joven Cuba

Without dissent there is no way out of the crisis

byEditorial Team

November 29, 2025

In any society, dissent serves to highlight problems, question political decisions, and hold those in power accountable. In the case of Cuba, where managing a prolonged economic and social crisis requires reviewing decisions, correcting errors, and opening channels for participation, treating criticism as a threat instead of recognizing it as a legitimate civic right can only exacerbate existing tensions.

The 2019 Constitution establishes that "the State recognizes, respects, and guarantees to all persons the freedom of thought, conscience, and expression." It also affirms that "every person, as a guarantee of their legal security, enjoys due process," and therefore may not "be deprived of liberty except by a competent authority and for the legally established time." Likewise, it recognizes that "persons have the freedom to enter, remain in, travel through, and leave the national territory."

However, the gap between this constitutional framework and its everyday application is considerable. In practice, there has been an expansive and discretionary use of certain criminal and administrative offenses—such as “disobedience” and regulations linked to the supposed interest of national security—that enable the punishment of conduct that, in itself, forms part of the legitimate exercise of rights. The cases of entrepreneur William Sosa , recently detained, and historian Alexander Hall , barred from leaving the country, confirm these assertions.

The way in which the work of the non-state media outlet elToque and its relationship with contributors and entrepreneurs on the island have been handled has also been highly questionable. From a democratic perspective, a media outlet has the right to question a government's actions, just as a government has the right to point out elements of a media outlet's agenda that it deems interventionist or manipulative.

However, legal action against a media outlet is only warranted when the publication engages in conduct defined as crimes under the law, such as disseminating false information that causes verifiable harm, acts of defamation, or the violation of other rights recognized by current legislation. In some countries, receiving or using funds from enemy foreign governments intended to influence internal political processes, including regime change programs, may also be considered illegal.

However, for these mechanisms to operate legitimately and effectively, a state governed by the rule of law is essential, with a clear, coherent, and protective legal framework that safeguards freedom of expression and of the press, including the practice of independent journalism and not just that of state or public media. The absence of such a framework—which the Cuban state has avoided establishing—limits the possibility for citizens and the media themselves to access effective legal remedies and an environment of genuine informational freedom.

Therefore, publicly criminalizing an entire team under terms like "media terrorism," with no basis in international treaties, is more of a police response to a political situation, and an attempt at reputation assassination, than a legitimate questioning of a media outlet's agenda.

On the other hand, it is crucial to distinguish between criticizing the government and criticizing the country , a difference that has often become blurred in Cuban political discourse. Questioning specific decisions, pointing out management errors, or demanding changes in public policies is not the same as attacking the nation or wishing ill upon Cuba; on the contrary, many of these criticisms stem precisely from concern for the collective well-being and the defense of the national interest.

The problem is not the existence of criminal offenses aimed at truly harmful conduct, but the flexibility with which they can be interpreted when what is at stake is the expression of discontent with government decisions, criticism of leaders, or citizen organization for peaceful purposes.

It is important to emphasize that limitations on freedom of expression for reasons of public interest are not a phenomenon exclusive to Cuba. Various legal systems penalize, for example, the disclosure of state secrets that could jeopardize security operations, or the incitement of hatred and violence against certain groups.

However, these restrictions must be regulated by clear rules, and their application must be governed by due process. In contrast, when reasons of "national security" are repeatedly invoked to restrict or punish expressions of citizen discontent that do not incite violence or conceal criminal activity, several problems associated with this distortion become evident.

On the one hand, a legitimate and essential citizen's right to oversee public power is restricted. On the other, the very concept of national security is trivialized and vulgarized, becoming less associated with protecting the country's sovereignty and integrity and more with the political protection of certain decisions or figures within the bureaucratic apparatus. Allowing the category of "national security" to become a catch-all to delegitimize any criticism ultimately erodes public trust in the integrity of the institutions that are supposed to safeguard it.

Nor can a foreign government's policy of hostility and aggression be used as a perpetual blank check to punish internal dissent. The existence of an adverse external context does not absolve the national leadership of its responsibility for managing the economy, public services, social protection, or transparency.

Today, Cuba is experiencing a multidimensional crisis, with visible effects in the scarcity of food and medicine, the recurring blackouts, the instability of public services, and a noticeable decline in the quality of life. Given this reality, a people who suffer these deprivations daily cannot be expected to refrain from confronting those with the legal and political mandate to find solutions. Attempting to silence this confrontation does not eliminate the causes of the discontent, nor does it make those who suffer them forget them.

The criminalization of dissent also has profound consequences for political and social dynamics. One of these is the rise of reactive extremism and polarization. When moderate avenues of expression and participation are blocked, the perception grows that only the most radicalized positions are capable of breaking through the barrier.

Another consequence is the gradual delegitimization of the institutions themselves: if they are perceived as responding to criticism with punishment, but not with corrections or accountability, the idea that change and reforms are possible within the existing framework is weakened.

On the other hand, eliminating the political function of public dissent as a mechanism to hold decision-makers accountable creates fertile ground for them to take measures without considering the impact on citizens, or for those in power to use it with impunity for their own benefit.

A clear example can be seen in the case of former Economy Minister Alejandro Gil . For years, various actors—economists, journalists, and citizens—warned on social media and in non-state media about the risks and effects of certain economic decisions made under his leadership, which contributed to the deterioration of the population's living conditions. However, these criticisms were dismissed or labeled as being aligned with "enemy agendas." Only when official bodies themselves made public investigations and accusations of alleged crimes and mismanagement was it acknowledged that serious problems existed in the economic policies.

Therefore, even from a hegemonic preservation perspective, suppressing dissent is counterproductive. No political project can be sustained indefinitely through coercion and discipline alone, especially in contexts of prolonged crisis. Legitimacy is renewed through the capacity to incorporate criticism, correct flawed decisions, and create spaces where people feel they can speak without fear of reprisal. When, instead, the natural contradictions of any society are met with criminalization or punishment, not only are dissenters harmed, but the very foundation of consensus that any state needs to reproduce itself is undermined.

Therefore, it is essential that public spaces be open and safe for citizens to point out wrongdoing, propose solutions, and confront—peacefully and respectfully—those in positions of power who obstruct those solutions. This implies reviewing the expansive use of criminal and administrative penalties for conduct that should be protected by freedom of expression and assembly; ensuring that limitations on freedoms respond to criteria of necessity and proportionality, and not to a desire to punish dissent; and strengthening accountability mechanisms so that criticism is not perceived as a threat, but as a normal component of public life.

Dissent is a fundamental element in any project that aspires to be democratic , inclusive, and sustainable. It allows for oversight of bureaucracy, exposes errors, corrects course, and prevents decisions made by those in power from completely disregarding the well-being of citizens. Criminalizing this right not only violates what is enshrined in the Constitution itself but also exacerbates the crisis by closing off avenues for dialogue and reform. Preventing people from expressing their discontent will not make them stop feeling it.

The solution is not punitive, it is political, and it involves recognizing the essential role of criticism and guaranteeing safe mechanisms so that citizens can exercise it without fear or punishment. Therefore, only in a context of real guarantees for dissent will it be possible for the diverse voices of society to contribute to overcoming the crisis. Conversely, continuing down the path of criminalization moves us further away from any peaceful solution to the conflict, which, far from diminishing, grows with each person prevented from exercising their legitimate right to disagree.

https://jovencuba.com/disenso-salida-crisis/

Structural Limits on the Private Sector

How much can the private sector grow in Cuba?

By Daniel Torralbas On Oct 26, 2025

https://progresoweekly.us/cuanto-puede-crecer-el-sector-privado-en-cuba/

In Cuba, a certain conceptual resistance persists toward the adoption of private property within the socialist model. Although this concept is enshrined in the Constitution and in the guiding documents for national development, the theoretical consensus has broken down when faced with practical implementation. To a certain extent, a fear, rejection, and reproach of the private sector has been cultivated, a sector that offers no solutions. Instead, it divides us.

Why this stigma? And, more importantly, can the private sector in Cuba grow to the point that justifies it?

Historically, the 1959 Revolution was founded on a critique of production relations based on exploitation and heavy dependence on foreign capital, especially American capital—characteristics that marked the Cuban economy in the first half of the last century. In 1968, the so-called Revolutionary Offensive almost completely eliminated private businesses, consolidating a dominant model of state ownership that, with the fall of the Soviet socialist bloc, showed its limitations.

In contrast, other socialist countries like China and Vietnam embarked on profound reforms in the 1970s and 1980s aimed at integrating private enterprise and the market. As a result, China has become the world's second-largest economy and a central player in the global geopolitical reshaping, while Vietnam aspires to become one of the world's top 30 economies within five years.

Cuba hasn't even undertaken half the economic reforms of China and Vietnam. Current laws keep Cuba's private sector small by definition. Its expansion has clear limits. Its growth has a ceiling. It seems there are too many micro, small, and medium-sized enterprises (MSMEs) because the starting point was zero, but the fear that they will control the economy, privatize everything, and sell off the country is not only exaggerated and malicious, but also unfounded. Let me explain:

Private entrepreneurs in Cuba complain about the lack of regulation to promote micro, small, and medium-sized enterprises (MSMEs), self-employed workers, cooperatives, and other businesses. But there is something that is perfectly regulated: its limits. This is discussed much less. Let's debunk the idea that the Cuban private sector can displace state-owned enterprises and "take over" the country:

Regulatory limits

Size

This is fundamental. Private enterprises, which are the type of businesses with the greatest growth potential, are by definition micro, small, or medium-sized. A micro, small, or medium-sized enterprise (MSME) can only have up to 100 employees. This limit restricts investment once they reach the maximum size. It will be impossible to see a "small or medium-sized" private enterprise in Cuba with 500, 1,000, or 5,000 employees and hundreds of retail outlets throughout the country.

For self-employed workers (TCP), the most numerous form of business, the restriction is greater: they can only hire up to three people, whether they are family members or not.

In the case of cooperatives, based on the principle that all members contribute their labor, they can only employ 10% of their members. That is, a cooperative with ten members could only hire one employee.

A partner, a micro, small, or medium-sized enterprise (MSME)

The principle of “one partner, one SME” establishes that a person can only be a partner (owner) in one SME. No one can own more than one company, under the principle of avoiding “concentration of ownership,” as stipulated in the Constitution.

Anyone acting as a front man commits one of the most serious offenses, according to Decree-Law 91/2024 , which implies “(…) the confiscation of assets and the definitive cancellation for the self-employed worker and forced dissolution for micro, small and medium-sized enterprises, and non-agricultural cooperatives (…)”.

Strategic Sectors

No non-state sector business may invest in sectors that the State has declared strategic, such as mineral extraction, oil production, biopharmaceutical manufacturing, the sugar industry, education, health, aeronautics, and rail transport, etc

These are all captive markets for state-owned enterprises. In some, foreign investors are allowed to participate, even when there are no opportunities for domestic private companies. Examples include the nickel, tobacco, and pharmaceutical manufacturing and export industries.

In other sectors, such as tourism, the ban is not total, but there are significant barriers. Private individuals can offer accommodation services (such as private homes), but they cannot create a private hotel chain or operate as a travel agency. The hotel tourism market is different from that of private accommodations. This is an example where, rather than competing, the state and private sectors complement each other to meet the demand of different market segments.

Other prohibited activities

There is another broad range of economic activities that, while not strategic, are prohibited to private entities under current legislation. Decree 107/2024 includes in its list the sale of vehicles, television and radio broadcasting, and financial intermediation. The manufacture of medical equipment, electricity generation (except for that produced from renewable sources), and solid waste collection are also prohibited, among many others. Various goods are not marketable by private entities: medicines, weapons, timber, and so on. In other words, only the State participates in this range of activities where, as in the strategic sectors, private entities are barred.

Professional activities such as consulting, engineering, architecture, advertising agencies, and legal services deserve special mention. The market for these services has grown; the state-run system doesn't cover them and isn't specialized in small businesses. Faced with the impossibility of operating legally, some entrepreneurs have opted for the informal sector. Worse still, those who choose not to take the risk decide to emigrate, and many find professional fulfillment where they can establish or participate in these types of businesses.

Access to real estate and land

The transfer of home ownership is strictly controlled in Cuba. An individual can only own a maximum of two homes. One must be their permanent residence. The other can only be a vacation or holiday home, according to the General Housing Law.

Property ownership in private legal entities (micro, small, and medium-sized enterprises and non-agricultural cooperatives) is not regulated. In practice, members of micro, small, and medium-sized enterprises cannot transfer ownership of their homes to their company's assets, even free of charge. The treatment of housing in Cuba as non-seizable property means that owners cannot offer their homes as collateral or security.

So how do they do it? Most private businesses that require a premises to carry out their activities do so in two ways: 1) within the owner's home, 2) renting in a state-owned premises or another private residence.

The situation with land is similar. Current laws, predating the creation of micro, small, and medium-sized enterprises (MSMEs), neither prohibit nor regulate the procedure for granting land to these legal entities, whether as owners or usufructuaries. However, the draft Land Law, which is expected to be approved in the coming months, makes it clear: Cuban legal entities will not be able to own or lease land.

Barriers to accessing land and real estate are significant limitations on the growth of the private sector as a whole. They inherently restrict its physical expansion and, consequently, its economic growth. At the same time, they limit the potential of private micro, small, and medium-sized enterprises (MSMEs) to enter, for example, the struggling agricultural sector.

The famous monopoly of foreign trade

All goods imported by private entities pass through state-owned companies. Raw materials, machinery, food, and beverages… No private economic actor—to the best of our knowledge—can import goods directly. Direct exports, while potentially a regulatory incentive, are also prohibited.

These intermediaries, while intended to facilitate trade, often operate bureaucratically and add extra costs without providing value. Faced with the increase in private sector foreign trade operations, the number of state-owned entities authorized to act as intermediaries grew to over 70. However, in an attempt to maximize control, the government reduced the number to 48 last year.

The Government holds “the key” to private foreign trade.

Foreign Investment

Foreign investment businesses (wholly foreign-owned enterprise, joint venture, and international economic partnership contract) are reviewed and approved centrally by the Council of Ministers

In July 2022, the then Minister of Foreign Trade and Foreign Investment (MINCEX) announced to parliament that they were studying “(…) some seven foreign investment projects linked to non-state management models.” That same year, the national press mentioned one project that would receive external financing to produce pork , but ultimately that project did not come to fruition. To date, no formal foreign investment in micro, small, and medium-sized enterprises (MSMEs) has been finalized.

Other Limitations

Beyond regulatory barriers, Cuban businesses face the economic and financial limitations of the context: foreign currency shortages, inconvertibility of the peso, lack of wholesale markets, inflation, low productivity, energy deficit…

To make matters worse, in addition to all the design and contextual limitations, there are discretionary limitations, such as the freeze on the creation of micro, small, and medium-sized enterprises (MSMEs). In the ten months from September 2024 to July 2025, only 231 “new” economic actors were approved .

So what happened?

The withdrawal of the state from activities where it was predominant five years ago is evident. The most palpable example is retail: Cuban families make 55% of their purchases in private stores, according to the ONEI (National Office of Statistics and Information).

Is this happening because SMEs have "snatched" market share from state-owned companies that sold food in CUP? No, what has happened is that the state has practically withdrawn from that market. Private companies are barely trying to fill the gaps.

But this doesn't mean the private sector is "ousting" the state sector. Even in its most difficult times, the state sector controls major industries and factories, dominates exports and imports, is the only national player in foreign investment in Cuba, has no competitors in diverse branches of the economy, its companies are repeatedly saved from bankruptcy, and it employs more than two million Cubans…

The clarity of the legal limits established for the private sector in Cuba is unquestionable.

Should the country focus on further squeezing micro, small, and medium-sized enterprises (MSMEs)? Or does the state-owned enterprise need the profound reform that has been pending for years?

The Business Law has been announced since 2015. Ten years and several postponements have passed. We are wasting time debating whether SMEs are “good” or “bad,” or even whether they are a “necessary evil.”

Let's discuss how to transform Cuban state-owned enterprises to make them more efficient, competitive, and autonomous. But let's have a serious discussion, without falling into the wishful thinking that each director or worker in the state sector should fulfill their individual duty to solve all the problems. The solution essentially lies in political will expressed through economic policy decisions.

Daniel Torralbas holds a degree in Economics from the University of Havana (2019). He is currently pursuing a Master's degree in Entrepreneurship and Innovation Management at Loughborough University London. He worked at the Ministry of Economy and Planning (2019-2023), where he was a founding member of the commission that designed the policy and regulatory framework for the private sector in 2021. He participated in the authorization and implementation of the changes that led to the creation of more than 11,000 micro, small, and medium-sized enterprises (MSMEs) in Cuba. He has coordinated international cooperation projects to promote entrepreneurship and is a business development consultant. He is the author of *El Escudo Empresarial* (The Business Shield). Link to LinkedIn.

Taken from OnCuba News

Ulises Aquino on Facebook

Ulises Aquino Guerra

Favoritos ·sorSenptdogg2u1h0ch0434t5J80240nl28c5h4hi739070 g,g2e41tf5c ·

"What we have left to live"

After sixty-five years of living with all the unimaginable limitations, witnessing the destruction of what were the dreams of several generations, where the Socialist State by law, forbade us to fight individually to make a living, now we have to "guapela la comida" and forget about the basic basket.

That would be the most suitable thing to do in all circumstances, of course, if that same State freed us from so many burdens, laws, resolutions, etc., and obviously the forms of property returned to what they are when the individual is allowed to be responsible for his life and that of his family.

Everything indicates that the only plan that our government has is to sustain power at the cost of everything, without thinking about the consequences that the tremendous crisis that overwhelms them has already left our people.

That fundamentalism is leaving us without a country, it has left us without the minimum to be able to move forward, no longer in a future that is not in sight, but in the present life of an entire people.

It is difficult to understand how the fight against capitalism can justify its archetypes, and its very expensive brands in possession of which they should show the austerity and sacrifice to which they force us.

Every day we observe the leaders publicly wearing very expensive brands on their clothing, Tommy Hilgfinger, Ferragamo, Louis Voiton, Audi, Mercedes benz, etc. The Business Groups that are in permanent losses rolling new cars, while medicines and medical supplies are scarce or non-existent in our hospitals.

No one is accountable, no institution.

The meetings are only between the same people who have not managed to move the economy forward, and who propose nothing new, instead, they insist on sustaining this state of affairs that will soon not benefit them.

The most profitable companies in the hands of GAESA, and that according to the Comptroller of the Republic, is not auditable, synonymous with the fact that our people do not have the right to know the results of a Holding that was set up with public companies and was not built by their means, much less where their income goes simply because it is not auditable.

The height of bad times is the presence of the Russian Navy Ships, it seems for a country at war like Russia an act of provocation to the United States, or at least it places our people in the middle of a dispute to which we are not part and ruins the demands of the United States government. to exclude us from the list of sponsors of terrorism and the lifting of the blockade.

I ask myself:

What is left for us to live?

Is it worth the miserable life we are living that does not find ears that listen to the complaints?

What are the plans to reverse this situation and revive a country that dies every day between the emigration of its young and the despair of the elderly?

I can't imagine what it will be like

" What we have left to live "

Ulises Aquino Guerra

Favoritos ·sorSenptdogg2f1h0ch0434t5680h4h0lt8cth4hi7390704g1g23altf5c1 ·

"You want me to tell you the Tale of the Good Pipe"

I don't say Yes, or No, I just want you to tell me, if you want me to do it, "THE STORY OF THE GOOD PIPE"

To say that in 2026, we will be better off energetically while every day we suffer from endless blackouts,

More than a display of unbridled optimism, it is a lack of respect for all Cubans.

Selling us a few "pounds of rice" this December, Christmas Eve and Christmas Eve, constitutes a festive alms and an insult, after a whole Year, they have given us NOTHING, for that infinite and filthy notebook, which demoralizes an entire people. Who gave everything for Utopia, for the dreams of an increasingly better, fairer and more humane country.

The meat is missing, brother.

Yes. Of whatever it is. Pork would be ideal, but let it be anyone's. Even if it doesn't resemble the one you dined on.

Speaking of rice, very few will be happy about such kindness.

From so much rice.

Far fewer will be happy to hear empty speeches and promises unfulfilled as always

In the midst of this absurd gloom hundreds of thousands are demanding other things from them.

Take the rice and keep us in mind.

Allow us, to change things to us as you do not dare.

If they do, next year we will eat meat, of all kinds, and we will celebrate new Christmases with light

There are no more lights, despite having reached the end of the Tunnel.

Then, the Years will be, truly new, nor will we need to be remade:

"The Tale of the Good Pipe"

Ulises Aquino Guerra

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"The Lost Illusions"

I hear or read the government's new policies to encourage foreign investment in Cuba.

From the operations and persecution of informal currency exchanges and I no longer blush as I used to.

I would say that although I do not find them funny, it causes me a kind of boredom, the fact that they look for those responsible for the situation in "distortions", "groups of measures", "guidelines", etc.

I ask myself only one question:

Isn't it simpler and more useful to liberate everything that is enclosed in dogmas, slogans and excessive controls?

Foreign investment in Cuba has been plagued by so many conditions that it is not attractive to anyone.

To make matters worse, a week before this new policy, they prohibit the outflow of foreign currency to companies that invested and trusted before.

Isn't it a paradox?

Who is going to invest in a country where they will not be able to export their profits? That you don't have electricity in the 21st century?

The nation's serious economic problem is at odds with the slow and little margin of movement of its policy.

They wait for situations to be critical to look for solutions and culprits, as if time did not exist.

So much so, that an official dares to say in public that our electricity sovereignty will arrive in 2035.

That is to say " next week ". He meant that we will be like this for the next ten years.

The Prime Minister says that we cannot criticize the government on social media at a cybersecurity event.

Let's see if I understand:

I have to assume that even if I am convinced that they do it badly, very badly, I cannot speak, or protest, or say.

When the error is proven again, they will have 10 more years to "correct" those "distortions"

This Cuban single guarantees that none of that will change our reality.

Neither in 2035 nor in 2080.

Because the only thing that can reverse this situation is to do the opposite.

Free up the entire economy.

To change the role of the State that it exercises as an entrepreneur, as an exploitative employer and assume the imperative need of this people to LIVE.

To join ALL CUBANS, whatever their creed, to save the Homeland that dies of diseases, hunger and what is worse, of Anguish.

To assume that at the rate we are going in 2035 we will no longer have a country.

While they were meeting, no one picked up the garbage that has made us sick, that is killing us and they did not realize it.

They didn't even recognize him.

A devastating hurricane passes through and the President of the Republic cannot give a bed to a poor old woman because according to him he does not have one.

Well, if it does. He has to give him all the beds in the visiting houses of the provincial governments, the Party or the Hotels, because in Socialism, they supposedly belong to the people.

That would have been done by anyone who was sensitized and had the power that he has to do it.

The remittances are not from the government.

Remittances are the contribution of those who emigrated to their families who finally enter the national economy as a blessing, because it costs the state nothing, not the slightest effort or a minimum investment.

But since there is nowhere to get from, we have to use the money of those who have the least, which is the people who cannot take it anymore.

But it will have the opposite effect, we will have less income from remittances, because people know that the exchange rate imposed by the government will leave them with less money.

That always happens, because it has to do with that inability to realize that the State ceased to be a people, and becomes the one that takes away far from being the one that gives.

And I expressed it in the previous post, we are walking towards disaster.

We are heading towards disaster as long as they do not assume citizen participation in decisions and blame Toque and as many media as they please.

Cuba's responsibility is not Otaola's, or Toque's, or any influencer's.

The responsibility lies with those who have the power to change things and do not do so.

Ulises Aquino Guerra

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"Disaster is inevitable"

Cuba has not developed its industrial fabric for more than 30 years, living off the sale of medical services, remittances as well as low-class tourism with too many ideological conditionings. There is not a single aspect of Cuban economic life that has developed in the last 30 years despite the income from these services that exceed 50,000 million dollars.

The economic impulse of the late nineties in the face of the fall of the Socialist Camp, where for the first time the country advanced on its own with the timid opening to the market and the entry of foreign firms and companies, was interrupted by the triumph of the Venezuelan Revolution.

Operation Miracle was the beginning of the crusade against these firms and Special Free Trade Zones.

Venezuela became the long-awaited Soviet Union that subsidized our immense expenses in fuel and others.

They destroyed what had been conquered in those years, in which numerous foreign firms invested capital in Cuba, to top it all off, many of them did not return their investment.

Then came the Mariel Special Zone, which would be another salvation for our economy until the Oddebrech scandal was uncovered.

GAESA consolidated a Business Holding with public entities that it removed from the social fabric, passing them to the military conglomerate that, as is known, is not accountable or auditable.

It was then that we ceased to be a country.

They turned us into a Medieval mega village, where a few gentlemen decide without even consulting economists. Because they are completely empowered to decide the destinies of the Cuban economy.

As I have repeated many times, the only way out of this terrible situation depends on BUSINESS MEN.

Of course, if they have total freedom of entrepreneurship and a free market without any strings attached.

Obviously, with the political changes that the exercise of that right needs and the Property regimes that guarantee investments.

Obviously, it is also essential to change all those who in one way or another have been responsible for this economic debacle.

Only then, the State, diminished in its hyperstructure, will be able to obtain enough income from taxes to revalue pensions, medical services, education and everything that urgently needs to be solved.

The only possible future, according to the correlation of forces in the world today for our survival, is to put aside pamphleteering and empty speeches.

Three things can only happen if the profound changes that Cuba needs are not made.

Either we perish from a giant pandemic, we will die victims of crime or an unprecedented outbreak.

The U.S. Naval fleet is not only in the Caribbean because of Venezuela.

The Cuban people for the most part do not see possible solutions in the government's actions.

Neither Russia nor China are going to enter into a diatribe with Trump.

I have the impression that this flawed circle cannot stand any longer.

Without electricity or water there will be no production and the country is in a paralysis from which it is impossible to get out without the resources that no one has to move forward, full of debts and with more lawsuits pending for non-payment.

I hope that after this crusade against El Toque, all these problems will soon be resolved, because otherwise they will be ploughing for pleasure in the Sea.

What are you waiting for?

Ulises Aquino Guerra

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"Lo que nos queda por vivir "

Después de sesenta y cinco años de vivir con todas las inimaginables limitaciones, presenciando la destrucción de lo que fueron los sueños de varias generaciones, donde el Estado Socialista por ley, nos prohibía luchar individualmente por buscarnos la vida, ahora nos toca "guapear la comida" y olvidarnos de la canasta básica.

Eso sería lo más idóneo en todas las circunstancias, claro, si ese mismo Estado nos liberara de tantos lastres, leyes, resoluciones, etc, y obviamente las formas de propiedad volvieran a ser lo que son cuando al individuo se le permite ser responsable de su vida y la de los suyos.

Todo indica que el único plan que tiene nuestro gobierno es sostener el poder a costa de todo, sin pensar en las consecuencias que ya han dejado a nuestro pueblo la crisis tremenda que lo agobia.

Ese fundamentalismo nos está dejando sin país, nos ha dejado sin lo mínimo para poder salir adelante, ya no en un futuro que no se vislumbra, sino en el presente de vida de todo un pueblo.

Resulta difícil entender, cómo puede el combate al capitalismo justificar sus arquetipos, y sus carísimas marcas en posesión de los que debieran mostrar la austeridad y sacrificio a que nos obligan.

Cada día observamos a los dirigentes usando públicamente marcas carísimas en su vestimenta, Tommy Hilgfinger, Ferragamo, Louis Voiton, Audi, Mercedes benz, etc. Los Grupos Empresariales que están en pérdidas permanentes rodando carros nuevos, mientras las medicinas y los insumos médicos escasean o no existen en nuestros hospitales.

Nadie rinde cuentas, ninguna institución.

Las reuniones son únicamente entre los mismos que no han logrado sacar adelante la economía, y que nada nuevo proponen, en cambio, se empeñan en sostener este estado de cosas que en breve no los beneficiará ni a ellos.

Las Empresas más rentables en manos de GAESA, y que según la Contralora de la República, no es auditable, sinónimo de que nuestro pueblo no tiene derecho a saber los resultados de un Holding que se armó con Empresas públicas y no fue construida por sus medios, mucho menos a donde van a parar sus ingresos simplemente porque no es auditable.

El colmo de los malos momentos es la presencia de los Buques de la Armada Rusa, pareciera para un país en guerra como Rusia un acto de provocación a Estados Unidos, o cuando menos coloca a nuestro pueblo en medio de un contencioso del que no somos parte y echa por tierra las exigencias al gobierno de Estados Unidos, de excluirnos de la lista de patrocinadores del terrorismo y del levantamiento del bloqueo.

Me pregunto yo:

¿ Qué nos queda por vivir?

¿ Vale la pena la miserable vida que estamos viviendo que no encuentra oídos que escuche los reclamos?

¿ Cuales son los planes para revertir esta situación y revivir un país que muere cada día entre la emigración de sus jóvenes y la desesperanza de los mayores?

No me imagino como será

" lo que nos queda por vivir "

Ulises Aquino Guerra

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"Tu Quieres que yo te haga el Cuento de la Buena Pipa "

Yo no te digo que Si, ni que No, yo Solo Quiero que tu me digas, si tu Quieres que yo te haga, "EL CUENTO DE LA BUENA PIPA"

Decir que en el 2026, estaremos mejor energéticamente mientras cada dia sufrimos de APAGONES interminables,

más que una muestra de optimismo desenfrenado, resulta una falta de respeto a todos los cubanos.

Vendernos unas "libritas de arroz" este mes de diciembre, víspera de Navidades y de Noche Buena, constituye una limosna festiva y un insulto, después que durante todo un Año, NADA nos han entregado, por esa libreta infinita e inmunda, que desmoraliza a todo un pueblo. Que lo dio todo por la Utopía, por los sueños de un país cada vez mejor, mas justo y mas humano.

Falta la carne hermano.

Siiiii. De la que sea. De puerco sería lo ideal, pero que sea de cualquiera. Aunque no se asemeje a la que cenaran ustedes.

A propósito del arroz, muy pocos se alegraran de tanta bondad.

De tanto arroz.

Muchos menos, se alegrarán de escuchar discursos y promesas vacías incumplidas como siempre

En medio de esta penumbra absurda cientos de miles les están reclamando otras cosas.

Llévense el arroz y tengan nos en cuenta.

Permitan nos, cambiar las cosas a nosotros ya que ustedes no se animan.

Si lo hacen, el próximo año comeremos carne, de todos tipos, y celebraremos con luz nuevas navidades

No hay mas luces, a pesar de haber llegado al final del Tunel.

Entonces, los Años serán, verdaderamente nuevos, tampoco necesitaremos que nos vuelvan a hacer :

" El Cuento de la Buena Pipa"

Ulises Aquino Guerra

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"Las Ilusiones Perdidas"

Escucho o leo las nuevas políticas del Gobierno para incentivar la inversión extranjera en Cuba.

De los operativos y persecución de los cambios informales de divisas y ya no me ruborizo como antes.

Yo diría que aunque no me causan gracia, me provoca una suerte de hastío, el hecho de que busquen en "distorsiones", "grupos de medidas","lineamientos",etc a los responsables de la situación.

Me hago una sola pregunta:

¿ No es más sencillo y mas útil liberar todo lo que está encerrado en dogmas, slogans y controles excesivos ?

La inversión extranjera en Cuba ha estado plagada de tantos condicionamientos que no es atractiva para nadie.

Para colmo, una semana antes de esta nueva política, prohíben la salida de divisas a las Empresas que invirtieron y confiaron antes.

¿No es una paradoja?

¿Quien va a invertir en un país donde no podrá exportar sus utilidades? Que no tiene electricidad en el Siglo XXI ?

El grave problema económico de la nación está reñido al lento y poco margen de movimiento de su política.

Esperan a que las situaciones sean críticas para buscar soluciones y culpables, como si el tiempo no existiera.

Tan así es, que una funcionaria se atreve a decir en público que nuestra Soberanía eléctrica llegará en 2035.

Es decir " la semana que viene ". Quiso decir que estaremos así los próximos diez años.

El Primer Ministro expresa que no podemos criticar al Gobierno en las redes sociales en un evento de Ciberseguridad.

A ver si entiendo:

Tengo que asumir que aunque esté convencido de que lo hacen mal, muy mal, no puedo hablar, ni protestar, ni decir.

Cuando se pruebe nuevamente el error, tendrán 10 años más para "corregir" esas "distorsiones"

Este sencillo cubano les garantiza que nada de eso cambiará nuestra realidad.

Ni en el 2035 ni en el 2080.

Porque lo único que puede revertir esta situación es hacer todo lo contrario.

Liberar toda la economía.

Cambiar el papel del Estado que ejerce como empresario, como patron explotador y asumir la imperiosa necesidad de este pueblo de VIVIR.

Sumar a TODOS los CUBANOS, sea cual sea su credo, a salvar la Patria que muere de enfermedades, de hambre y de lo que es peor, de Angustia.

Asumir que al paso que vamos en el 2035 ya no tendremos país.

Mientras estaban reunidos nadie recogía la basura que nos ha enfermado, que nos está matando y no se daban cuenta.

Ni siquiera lo reconocían.

Pasa un huracán devastador y el Presidente de la República no puede entregarle una cama a una pobre anciana porque según el no tiene.

Pues si tiene. Tiene para regalarle todas las camas de las casas de visita de los Gobiernos provinciales, del Partido o de los Hoteles, porque en el Socialismo, supuestamente son del pueblo.

Eso hubiera hecho cualquiera que estuviera sensibilizado y tuviera el poder que el ostenta para hacerlo.

Las remesas no son del Gobierno.

Las remesas son el aporte de los que emigraron a sus familias que finalmente entran en la economía nacional como una bendición, porque no le cuesta nada al estado, ni el mas mínimo esfuerzo ni una mínima inversión.

Pero como no hay de donde sacar, hay que echar mano del dinero del que menos tiene que es el pueblo que no puede más.

Pero causará el efecto contrario, tendremos menos ingresos por las remesas, porque la gente sabe que el tipo de cambio que impondra el gobierno les dejará menos dinero.

Eso ocurre siempre, porque tiene que ver con esa incapacidad de darse cuenta de que el Estado dejó de ser pueblo, y se convierte en el que quita lejos de ser el que da.

Y lo expresé en el post anterior, caminamos hacia el desastre.

Caminamos hacia el desastre mientras no asuman la participación ciudadana en las decisiones y culpen al Toque y a cuantos medios expresen como les de la gana.

La responsabilidad de Cuba, no es de Otaola, ni del Toque, ni de ningún influencer.

La responsabilidad es de los que tienen el poder de cambiar las cosas y no lo hacen.

Ulises Aquino Guerra

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" Es inevitable el Desastre"

Cuba lleva mas de 30 años sin desarrollar su tejido industrial, viviendo de la venta de servicios médicos, de las remesas asi como de un Turismo de baja categoría y con demasiados condicionamientos ideológicos. No hay un solo aspecto de la vida económica cubana que se desarrollara en los últimos30 años a pesar de los ingresos por esos servicios que superan los 50 000 millones de dólares.

El impulso económico de finales de los noventas ante la caída del Campo Socialista, donde por primera vez el pais avanzó por si sólo con la apertura tímida al mercado y la entrada de firmas y empresas extranjeras, se vio interrumpido por el triunfo de la Revolución Venezolana.

La Operación Milagro fue el inicio de la cruzada contra esas firmas y Zonas Francas Especiales.

Venezuela se convirtió en la anhelada Union Soviética que subvencionaba nuestros inmensos gastos en combustibles y otros.

Destruyeron lo conquistado en esos años, en que numerosas firmas extranjeras invirtieron capitales en Cuba, para colmo a muchas no les devolvieron la inversión.

Luego vino la Zona Especial del Mariel, que sería otro salve para nuestra economía hasta que se destapó el escándalo Oddebrech.

GAESA consolidó un Holding Empresarial con entidades públicas que sacó del tejido social, pasándolas al conglomerado militar que como es sabido no rinde cuentas ni es auditable.

Fue entonces que dejamos de ser un país.

Nos convirtieron en una mega aldea Medieval, donde unos pocos señores deciden sin consultar ni siquiera a los economistas. Porque están completamente empoderados para decidir los destinos de la economía cubana.

Como he repetido muchas veces, la única salida a esta terrible situación depende de HOMBRES DE EMPRESAS.

Claro está, si cuentan con total libertad de emprendimiento y un mercado libre sin ningún tipo de ataduras.

Obviamente, con los cambios políticos que necesita el ejercicio de ese derecho y los regímenes de Propiedad que garanticen las inversiones.

Obviamente también, es imprescindible cambiar a todos los que de una manera u otra han sido responsables de esta debacle económica.

Solo entonces, el Estado disminuido en su hiperestructura, podrá obtener de impuestos los suficientes ingresos para revalorizar las pensiones, los servicios médicos, la educación y todo aquello que urge solventar.

El único futuro posible, de acuerdo a la correlación de fuerzas de hoy en el mundo para nuestra sobrevivencia, pasa por dejar a un lado el panfletismo y los discursos vacíos.

Tres cosas solamente pueden suceder si no se hacen los profundos cambios que necesita Cuba.

O perecemos de una pandemia gigante, moriremos víctimas de la delincuencia o de un estallido sin precedentes.

La flota Naval de Estados Unidos no está en el Caribe solamente por Venezuela.

El pueblo cubano en su mayoría no ve soluciones posibles en el actuar del Gobierno.

Ni Rusia, ni China van a entrar en una diatriba con Trump.

Tengo la impresión de que este círculo viciado no soporta mas tiempo.

Sin electricidad ni agua no habrá producción alguna y el país se encuentra en una parálisis de la cual es imposible salir sin los recursos que nadie tiene para avanzar, repletos de deudas y con mas juicios pendientes por impagos.

Espero que después de esta cruzada contra El Toque, en breve se resuelvan todos esos problemas, porque de lo contrario estarán arando por gusto en el Mar.

¿ Que están esperando?