On November 3, 2026, Cuban First Secretary of the Communist Party Central Committee and President Miguel Díaz-Canel Bermúdez convened a high-level dialogue with more than 50 state enterprise executives, business group presidents, and governing board leaders at the Higher School for State and Government Cadres, following a late-September training seminar focused on implementing the nation’s landmark 176 Economic and Social Transformations. Hosted by Roberto Ricardo Marrero, head of the National Institute for State Business Assets (INAEE), the session reviewed cross-sector progress across nearly a dozen leading business groups, and delivered clear, actionable directives to ensure the transformative reforms translate from regulatory frameworks to tangible, people-centered results.
Díaz-Canel opened by framing the socialist state-owned enterprise as the undisputed core agent of Cuba’s national economy, not a secondary administrative appendage: “The socialist state-owned enterprise has before it a historic opportunity to demonstrate that it can be agile, efficient, and competitive without abandoning its socialist nature. Business directors bear the responsibility of ensuring that this opportunity is not lost in the gap between rhetoric and practice.” He confirmed that the regulatory backbone for the reforms is nearly complete: by the end of October 2026, legal foundations for 171 of the 176 measures had been finalized, supported by 215 specific implementing regulations, with only five remaining high-priority, widely debated provisions undergoing final drafting. He praised cross-agency working groups for delivering this robust regulatory ecosystem in just three months, but emphasized that regulatory completion alone will not drive change: “What will ultimately determine the direction of these transformations will be the attitude of the officials: their willingness to lead the change with proper preparation, social responsibility, the participation of the workers, and ideological firmness, while avoiding the temptations of the market, as well as complacency and inertia.”
Rejecting widespread public and external misinformation that frames the reforms as a path to privatization, Díaz-Canel drew a clear line between expanded operational autonomy and relinquishing public ownership. The new framework grants state enterprises unprecedented authority: independent approval of wholesale prices, flexible allocation of post-tax profits, custom salary systems decoupled from national standardized scales, direct import and export rights, self-managed fuel supplies, authority to design internal organizational structures, and permission to launch subsidiaries and micro, small and medium-sized enterprises (MSMEs). He stressed this expanded independence “is not a blank check”: every new prerogative must deliver higher production, expanded revenue, increased foreign currency earnings, fairer pricing, more dynamic job creation, and ultimately, measurable improvements to Cuban citizens’ quality of life. “It must be clearly understood that transforming into a commercial entity—whether structured through shares or equity stakes—is not the same as privatization,” he stated firmly. “Here, we will always protect state-owned enterprises from privatization.” The reforms are explicitly designed to separate public ownership from day-to-day management, attract targeted capital, unlock underused enterprise capacity, and preserve social ownership as an inviolable national principle.
Díaz-Canel laid out four non-negotiable strategic pillars that every state enterprise must prioritize to drive national progress: the national energy transition, circular economy adoption, expanded science and industry collaboration, and widespread digital transformation including artificial intelligence integration. Citing the ongoing U.S. “energy blockade” that creates persistent uncertainty around fuel imports, he warned that no enterprise can remain competitive or meet production targets if it fails to accelerate its shift to renewable energy sources spanning photovoltaics, wind, biomass, biofuels and biogas. The circular economy mandate requires full adoption of recycling and reuse systems to eliminate waste and cut operational costs. For science and innovation, he called for deeper, more dynamic partnerships between Cuba’s world-class research community and state enterprises to turn academic breakthroughs into on-the-ground production solutions, noting that existing government science-industry linkage frameworks remain underutilized. Highlighting Cuba’s 30-plus years of experience in artificial intelligence development, he emphasized that digital transformation and automation are critical to overcoming the nation’s demographic challenge of a shrinking economically active population supporting a growing retired cohort: “This is a new global industrial revolution; if we do not embrace it, we will inevitably fall behind.” He mandated that all new state enterprise investments must integrate renewable energy, digital tools and AI, while existing operations must roll out phased upgrades aligned with these priorities.
Turning to the critical role of enterprise leadership, Díaz-Canel rejected the framing of directors as passive regulators of existing rules, positioning them as the primary drivers of on-the-ground change. “If you do not embrace this change, if you do not take ownership of this transformation, it will be very difficult for it to be carried out. This is, therefore, a significant responsibility—one that demands a deep level of commitment. You are officials of the Revolution; you are officials of the Party.” He outlined four core qualities every state enterprise leader must cultivate: first, continuous, team-wide preparation that strengthens governing boards and eliminates bureaucratic administrative formalities that stifle innovation. Second, a radical shift in mindset away from decades-old top-down administrative dependency, where leaders waited for central guidance before taking action. He denounced the “comfort zone” of delaying implementation to request additional instructions, noting that 171 of the 176 reforms already have full implementation guidance and supporting regulations in place, and leaders must proactively interpret rules to fit their specific enterprise context. Third, fostering genuine collective belonging and daily, meaningful worker participation in decision-making, not just symbolic engagement during major national events. “The main asset, the fundamental thing that we have in the company are the workers, who are the genuine representatives of the people. None of us knows more than all of us combined,” he stated, directing leaders to never make major operational decisions without consulting their workforce, noting that enterprises with high worker buy-in see far higher retention and productivity even during periods of economic strain. Fourth, embedding corporate social responsibility as a core, non-philanthropic component of the socialist enterprise mandate: leaders must allocate a share of post-tax profits not only to wage increases, but to workforce housing, food support, retiree benefits, and local community assistance for vulnerable populations, with all spending approved collectively by workers to ensure full transparency.
Díaz-Canel also called on state enterprises to act as collaborative bridges with the non-state economic sector, including self-employed workers and private MSMEs, building mutually beneficial partnerships that complement state capacity rather than competing against it. He cited Cuba’s successful local development of five domestic COVID-19 vaccine candidates (three of which reached full deployment) with minimal international funding as proof that the nation’s existing talent and installed industrial capacity can produce any required good if the productive forces are fully unleashed. He warned executives against a series of destructive negative trends that could derail the reforms: persistent bureaucracy and stagnant “wait for instructions” management, inefficiency, resource and energy misuse, absenteeism and workplace indiscipline, opaque asset allocation that enables cronyism, clientelism and corruption, the “comfort zone” of low productivity and constant complaint, and the harmful habit of “management by complaint” where leaders attribute every internal shortcoming to external macroeconomic factors or the U.S. embargo rather than addressing internal management failures.
Closing the session, Díaz-Canel asked all attending executives to formalize their commitment to three core pledges: to treat expanded autonomy as a responsibility rather than an excuse for inaction, seeking collaborative solutions with other national economic actors; to uphold unwavering political and ideological firmness in the face of market distortions, never confusing operational independence with abandonment of socialist principles, and measuring performance by concrete results rather than formal regulatory compliance; and to turn every enterprise into a collective learning space for workers, driving down inflated production costs and rejecting cost-passing pricing models that force ordinary Cubans to pay for internal operational inefficiency. “Transformations are implemented in every plant, every factory, and every workplace; they are realized through every decision made by the management team and through the actions and contributions of every individual worker,” he concluded, framing the reforms as a collective legacy for future generations to prove that Cuba’s socialist system can deliver widespread prosperity even amid intensified imperial aggression.