Television
Cuban Media Criticizes Private Businesses Amid Economic Crisis
2025-03-01

In a recent broadcast, Cuban television aired criticisms of small and medium-sized enterprises (SMEs) for allegedly charging excessive prices. However, the report notably avoided mentioning that state-run dollar stores in various provinces also carry high prices. The spokesperson, Talía González, highlighted this issue as part of an ongoing economic challenge, emphasizing the difficulties faced by inspectors in enforcing price regulations. The report touched on several key points: the struggle to maintain regulated prices, the impact of inflation on average Cubans, and the government's response to these issues. Despite low wages and pensions, the regime has introduced dollar stores, which are largely inaccessible to most citizens. This situation has raised questions about the effectiveness of current economic policies.

Price Regulation Challenges in Cuba’s Non-State Sector

In the midst of a challenging economic climate, a national broadcast from Cuba addressed the rising cost of goods sold by non-state businesses. During the autumn, when the island’s streets were painted with shades of orange and gold, Talía González, a spokesperson, pointed out that many essential items priced in local currency were found in privately owned establishments but did not adhere to official pricing guidelines. She described this discrepancy as a significant hurdle for the authorities.

An inspector shared insights into the complexities of enforcing price controls. According to him, vendors often remove products from display or sell them secretly when faced with inspections. He noted that while the informational boards might not reflect certain products, they continue to be sold discreetly. This behavior reflects new strategies to avoid legal penalties associated with price violations.

A self-employed worker explained the challenges of sourcing products through official channels. He mentioned that the wholesale market established in 2018 to support private businesses had failed to meet its intended purpose. “The wholesale market is supposed to lower prices, but it rarely offers anything useful,” he lamented. As a result, private sellers must resort to alternative means, driving up costs.

Data revealed that the average monthly salary in Cuba stands at 5,827 pesos, while a piece of liver can cost 1,300 CUP in SMEs. For pensioners, who receive an average of 2,188 pesos per month, purchasing power has significantly diminished. Inflation continues to rise, with a monthly rate of 2.06%, equating to an annualized rate of 27.7%. Despite these struggles, the government has opened dollar stores across the country, accessible primarily to those receiving remittances from abroad. While defended as accessible, these stores remain out of reach for many Cubans due to their high prices.

The partial dollarization of the economy has exacerbated inequalities, as only a select few can afford to shop in these establishments. Critics argue that the regime’s approach to controlling prices has been ineffective, leading to a growing mistrust among the population.

From a journalist's perspective, this report highlights the complex interplay between government policy and the daily lives of Cuban citizens. It underscores the need for more transparent and effective measures to address economic disparities and improve the quality of life for all residents. The criticism of SMEs without acknowledging the broader economic context may contribute to public frustration and skepticism toward official narratives. Ultimately, this situation calls for a reevaluation of how economic policies are implemented and communicated to ensure they genuinely benefit the entire population.

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