Cuba faces choice between reform and blackouts

Cuba approaches a decisive moment with the 2026 Communist Party Congress, where the elite must choose early reform or face a permanent emergency amid structural blackouts and economic exhaustion.

Khanh Vu Duc, a professor at the University of Ottawa, in an opinion piece published by Havana Times on January 22, 2026, urges Cuba's elite to consider political and economic reforms amid the energy crisis. Roughly 40 percent of the island's energy supply once depended on Venezuela, but it is now disrupted, turning blackouts from episodic to structural. Economic exhaustion, demographic decline through emigration, and shrinking external support have made continuity no longer the least costly option.

Surveys reported by independent Cuban outlets show that a clear majority of younger Cubans would support political pluralism if it brings economic stability and opportunity. Vu Duc draws parallels to Vietnam's 1986 Đổi mới reforms, which arose from survival needs after Soviet abandonment, and Venezuela's collapse under Nicolas Maduro, driven by internal fragmentation more than sanctions alone.

The author stresses that outcomes are decided within political systems, not imposed from outside. Russia and China lack the capacity and incentive to underwrite Cuba's stagnation indefinitely, while the United States can shape incentives. Addressing Cuba's technocrats, Vu Duc argues that reform is not betrayal but responsible stewardship, safeguarding sovereignty and social dignity. He suggests initial steps like expanding space for enterprise, decriminalizing dissent, and inviting neutral observers. A free and prosperous Cuba will emerge from choice at the Communist Party Congress: reform or blackout.

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Illustration of Trump threatening to halt oil aid to Cuba, with defiant Cuban leader and solidarity symbols.
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Trump threatens to cut off oil aid to Cuba

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U.S. President Donald Trump threatened to halt oil and financial aid to Cuba from Venezuela, urging the island to strike a deal with Washington. Cuban President Miguel Díaz-Canel rejected the threats, reaffirming national sovereignty and readiness to defend the homeland. Several international figures and groups expressed solidarity with Cuba.

Cuba stands at a pivotal moment, with power outages, high inflation, and mass emigration straining its people. An analysis argues that renewal must come from within, driven by Cuban decisions, leadership courage, and civic participation, rather than external permissions. It calls for economic reforms and expanded civic spaces to achieve true stability.

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In cuba's streets, the potential fall of nicolás maduro sparks persistent worry, akin to power outages. Venezuela has served as a crucial lifeline for the cuban regime since hugo chávez's time, offering subsidized oil and diplomatic support. Though reliance has lessened, its collapse could heighten economic hardships and isolation on the island.

Cuba is confronting a triple demographic crisis: sustained decline in birth rates, massive exodus of young and skilled population, and accelerated aging transforming its social structure. Authorities confirmed at the National Assembly session on December 18, 2025, that the population declined again this year, projecting only 7.7 million inhabitants by 2050. This endangers the labor force, pension system, and political stability.

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US President Donald Trump escalated sanctions against Cuba on January 31 by threatening tariffs on countries selling oil to the island, mainly targeting Mexico's supply. International leaders and organizations condemned the move as imperialist aggression and called for an end to the blockade. In Cuba, tensions with US diplomats persist amid worsening economic hardships.

Economy Minister Joaquín Alonso Vázquez has framed the government's new partial dollarization measures—detailed in last week's resolutions—as a temporary bridge to full de-dollarization and 'socialism with Cuban characteristics.' The policy allows private entities to retain 80% of foreign currency earnings while building a formal exchange market.

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Following the U.S. seizure of the Venezuelan-linked oil tanker Skipper earlier this month, new developments are exacerbating Cuba's energy woes. The incident has spotlighted Havana's fuel resale schemes and deterred other shipments, heightening fears of prolonged blackouts and shortages on the island.

 

 

 

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