Monday, December 22, 2025

CIPI Paper by Fulton Armstrong on Trump's Potential Moderation

Drivers That Could Force a Moderation of Trump’s “Maximum Pressure” Policies 


Fulton T. ARMSTRONG 

Center for Latin American and Latino Studies 

American University 

Washington, DC 


Thank you, Ambassador Cabañas and your team at CIPI, for inviting me again to this 

important conversación. 

The Trump Administration so far has faced little or no opposition to the continuation and 

deepening of its “maximum pressure” policies to achieve “regime change” in Cuba. Indeed, 

reactions have been subdued even as the Administration tightens its noose around the 

neck of Venezuela in a major escalation of efforts to tear down Cuba as part of what former 

National Security Advisor John Bolton, the original architect of the Administration’s current 

Latin America policy, called the “Troika of Tyranny.” But U.S. economic problems, 

competing foreign policy priorities, and other factors could mitigate those tactics. 

Note, please, my use of the word could. It is a weak word in analysis, but I feel it would be 

too risky to say will or even probably will at this juncture. That’s to some degree because 

this is the most opaque, non-consultative Administration that I have seen in my lifetime, 

which has included more than 30 years in an array of positions in the intelligence 

community, State Department, White House, and Congressional staffs. We have no honest 

information about its deliberations and are forced to analyze it from outside a high wall. The 

noises that we occasionally hear about what passes for policy debate are muffled, self

censored, and usually manipulative. But we outsiders aren’t dummies, and it’s not hard to 

see what the Administration has done, is doing, and intends to do. 

From the outside, we can reliably say that Secretary of State Marco Rubio, who occupies 

the two top foreign policy positions, is the loudest of several voices on Latin America policy. 

The words of “Special Missions Envoy” Richard Grenell and Deputy Secretary of State 

Christopher Landau are audible through the wall at times, but it is Secretary Rubio – who 

has built his political career on opposition to the government of Cuba and in recent years 

Venezuela – who seems to have a strong head of steam. 

• He is buttressed by a State Department bureaucracy that has been largely Monroe

ist for decades, and almost always careerist. Many functionaries cringed when Bill 

Clinton apologized to Guatemala for U.S. excesses and Barack Obama declared the 

Monroe Doctrine dead and said Latin America and the Caribbean weren’t our 

“backyard” but rather our neighborhood of partners. Even the normalization process 

launched by President Obama and President Raúl Castro – which for two years was 

a bandwagon that many of our bureaucrats jumped on – was dropped like a hot 

potato the minute that political winds in Washington shifted. Our bureaucrats take 

good care of their careers. 

• Rubio is also supported by the beneficiaries of the many “democracy promotion” 

programs that he steered for years in the U.S. Senate. During my years as a senior 

professional advisor to the Senate Foreign Relations Committee, Senators 

Menéndez and Rubio were briefed and given a say on many millions of dollars of 

grants and contracts that we were told were “too sensitive” for the committee’s 

Chairman, John Kerry, to be briefed on. Because of the clandestine and covert 

nature of the regime-change programs, we can’t know who most of these 

beneficiaries are and how many millions they have received – or even how much of 

the cash ever leaves Miami, Madrid, Prague, or Oslo – but we see their power in the 

use of “independent journalists” who flood us with information (real or fake) that 

serves their benefactors’ agenda. 

• The Administration also benefits from its essentially unchallenged domination of the 

narrative on Cuba, including its allegations about the so-called “sonic attacks,” 

“Chinese spy bases,” “human trafficking” in doctors, and other issues. That it 

pushes these memes and tropes is natural; all governments try to do it. Much of the 

Administration’s fake news is weak and verifiably wrong, but it is powerful because 

few in the political community, the media, and academia are willing to challenge it. 

Do a Google search of the names of Latin America experts who’ve challenged the 

fake narratives, and you’ll see the problem. Even in what we call “small town 

America,” these narratives are embedded in people’s minds – erasing the traditional 

common-sense reactions of people who wonder why we still have a 63-year-old 

embargo against a country that poses no threat. This is a big victory for the State 

Department, where bureaucrats ridicule the specialists who don’t challenge them. 

Another major plus for the Administration is that Cuba and Latin America rank low in U.S. 

people’s priorities, freeing it from significant oversight. Look for the reactions, even among 

our Latin America experts, about the Administration’s vigorous reassertion of the Monroe 

Doctrine – or what the White House is calling its “Trump Corollary” – and you’ll see why the 

Administration thinks it has a big green light to march on. Look at reactions to Washington’s 

punishment of Lula for not stopping the Brazilian courts’ necessary criminal action against 

Bolsonaro; its cash-on-the-barrelhead intervention in the Argentina elections; its sanctions 

against Colombia; its threats against Honduras if Trump’s preferred candidate didn’t win; 

its adulation of Bukele’s unconstitutional actions in El Salvador … and on and on goes the 

list. The U.S. media, as if starved to show the Administration that there’s at least one Latin 

American hero they love, have put a U.S.-nurtured political activist in Venezuela on a 

pedestal so high that they seem ignorant of the mis- and disinformation she has spread 

about cartels and “narcoterrorists” that don’t exist as well as the deep splits she has 

caused with other activists who have deeper experience than she. They also seem ignorant 

of the meaning for a Latin American politician to be urging U.S. military intervention in her 

country. 

Several factors, however, may begin to force the Administration to temper, or at least 

conceal, some of its zeal. These include major distractions at home and abroad. 

• I leave economic predictions to economists, but it’s not hard to see that the U.S. 

economy is not performing as the Administration claims it is. Biden’s inflation is now 

Trump’s. The lagging employment and income figures are Trump’s, as is the growing 

unhappiness about the gap between rich and poor. Biden’s trade policies may not 

have been brilliant, but Trump’s tariffs are now hitting home – so hard that he’s just 

authorized a $12 billion payout to farmers suffering from Chinese countermeasures. 

He has no response to the looming surge in healthcare costs. His answer on these 

matters has been to try to cook the data and commandeer the Federal Reserve, but 

that’s not going to increase productivity and put food on the table. At some point, 

he’ll be asked how much it costs for him to park the U.S. Navy off the coast of 

Venezuela for months on end. (Some estimates are $10 million per day.) And at 

some point, he’s going to have to face the music in the voting booth. The mid-term 

elections next year could (I repeat the word with embarrassment) clip his wings. 

• The Administration’s foreign policies aren’t doing too well either, which I believe in 

this case argues for greater caution rather than greater distraction. Efforts to muscle 

China on trade; find a lasting peace in Ukraine; enforce a ceasefire in Gaza and 

block Israel’s absorption of the West Bank; and coerce Western Europe to move in 

an authoritarian direction have so far failed. He boasted about bringing peace to the 

Cambodia-Thailand border, which is as tense as ever. He faces the same failure in 

the Rwanda-Congo conflict. Who knows what’s going to happen in Venezuela, but 

Trump has so far failed politically to calm the MAGA base concerned about another 

“forever war” and the fury over military decisions to kill survivors of missile attacks 

in the Caribbean. The investigations into those apparent war crimes are going to 

continue — and U.S. allies are going to move farther and farther away from us. 

Failure is often the driver of further distraction, but the low probability of success in 

Venezuela and, by extension, in Cuba suggests he’ll be careful (as long as he’s not 

seen as “TACO” – Trump Always Chickens Out). The most likely casualty would be 

Marco Rubio, who is the architect of the implementation of John Bolton’s “Troika of 

Tyranny” project. 

• The probability that Democratic, progressive, or liberal voices – whatever you want 

to call them – will surge and hold sway on issues like Cuba is low. It’s ironic that 

MAGA has demanded more accountability than they have so far. But if attacks on 

the current narratives do rise, they will reawaken common sense among previous 

supporters of normalization and trigger questioning of the “maximum pressure” 

policies. Democrats can’t agree on the time of day, let alone important policies, and 

many in the party establishment are compromised by the same donors as those 

influencing the Republicans. Indeed, where I grew up we would say the progressives 

“talk the talk but don’t walk the walk.” They urge policy shifts, but (as I assert above) 

they are loath to challenge the narratives upon which current policy is based. As I 

say, I don’t see such a reawakening as likely, but there’s at least a significant chance 

that, as the Administration’s promises fade, good journalists will tire of the fake 

news and demand of progressives a counterbalancing perspective. 

I would be remiss if I didn’t add that, while Cuba is indeed the object of the “maximum 

pressure” policies and is understandably preoccupied with efforts to maintain production 

and services that they target, the government probably could also better challenge the 

narratives that paralyze Washington debate. 

• One thing I observed over many years in Washington is that rightwing groups in the 

United States paralyze government deliberations on Cuba by chanting that “regime 

collapse” in Havana is imminent. They know that even clear-thinking policymakers 

are afraid to take up a politically challenging issue like Cuba when someone’s yelling 

in their ear that the “ripe fruit” is about to fall from the tree. Cuba’s problems with 

food, energy, and other basic services are feeding the Administration’s perception 

that its “maximum pressure” policies will succeed. (They did during the Biden 

Administration too, which tried to argue that the protests in July 2021 were some 

sort of watershed and that the song Patria y Vida would be the anthem of a new era.) 

• The playing field is not level – the U.S. is spending between $50 million and 

$60 million a year to run sophisticated social media and other campaigns pushing 

its narratives – but those of us who’ve watched Cuba in action for decades know 

that Cuba will accept the challenges. And we know that as Cuba overcomes its 

challenges, it can and will change the narrative. 

The drivers behind the Trump Administration’s “maximum pressure” and “regime change” 

policies are strong – we can’t deny it – but none of them is irreversible. 


Sunday, December 21, 2025

CIPI Paper by John McAuliff 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 50th 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.”

 

[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/

 

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 one thing that is perfectly regulated: its limits

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