Cuba unveils 200 historic free-market reforms amid economic pressure from the US

Amid the growing economic crisis, Cuba on Thursday unveiled nearly 200 historic free-market reforms, aiming to secure the communist nation from a severe crisis aggravated by a US oil blockade. Prime Minister Manuel Marrero delivered an address to the island country's National Assembly and laid out his vision.

In his speech, he detailed 176 measures which would aim to roll back the state's role in the economy. These initiatives also aim to attract investment in everything from banking to tourism and agriculture.

The reforms are coming at a time when the United States is exerting strong economic pressure on Cuba. Apart from imposing a stringent oil blockade, US President Donald Trump has often threatened to take over the island, which is just 145 km away from Florida.

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The measures are “the most profound economic reform programme” since the 1959 Revolution led by Fidel Castro, Daniel Torralbas, a London-based Cuban economist, told AFP. “It represents a significant shift in the country’s economic development model,” he added.

Why it matters

It is pertinent to note that measures announced on Thursday have been endorsed by the communist party and were put to a vote in the country's National Assembly. In his speech, Marrero did not give a time frame for implementing the reforms, but President Miguel Diaz-Canel on Wednesday argued the need for “urgent changes” to stave off economic collapse.

In January this year, the United States imposed an oil blockade on Cuba, immediately after ousting and arresting Venezuela's President Nicolas Maduro. The blockade brought the Cuban economy to the brink of collapse, triggering an energy crisis and forcing the government into concessions previously considered heretical by Communist hardliners.

In accordance with the reforms, for the first time in the country's history, private companies of more than 100 workers will be allowed. Cubans will be allowed to own their own companies; private banks and foreign investors will no longer be required to form a joint venture with the state.

Apart from this, Cuban nationals will be allowed to have accounts in foreign currency and remittances from relatives abroad, a lifeline for many, will no longer be channelled exclusively through the state. Experts believe that the economic overhaul would help the country navigate through the heavy sanctions imposed by the US and immediately improve the quality of life of Cubans.

With inputs from AFP.