Prosperity is good in itself, though China and Vietnam show it doesn’t necessarily lead to political freedom.
For more than six decades, Cuba has been one of the few places on earth where the disastrous economic policies of the socialist experiment persisted.
Today, lights are out across much of the island, amid widespread privation. More than one million people have fled Cuba since 2021, according to independent estimates. At last, Havana seems to be conceding what the rest of the world figured out a generation ago: The market works, however imperfect it is. Central planning doesn’t.
On June 18, Cuba’s National Assembly unanimously approved a package of 176 market-oriented reforms, the most far-reaching economic overhaul since the 1959 revolution. For the first time, private companies will be permitted to employ more than 100 workers, private banks will be allowed to operate, foreign investors will no longer be required to form joint ventures with the state, and Cubans will be able to own multiple businesses simultaneously. The state monopoly on foreign trade—a pillar of the economy since Fidel Castro’s nationalizations—has been dismantled. Fast-food chains can set up shop in Havana. President Miguel Díaz-Canel acknowledged that the mistake wasn’t raising these reforms, but “having postponed them.” He cited China and Vietnam when announcing the emergency package, noting that it had been shaped by the countries’ experiences.
