This article argues that overcoming Cuba’s structural crisis requires not only economic reforms, but also the construction of a social market economy within a democratic rule-of-law framework. The authors examine the historical failures of centralized planning in Cuba, highlighting how rigid state control, weak incentives, distorted markets, and the concentration of political and economic power have undermined productivity, innovation, institutional development, and individual freedoms.

The paper also outlines the principles and institutional foundations of a social market economy, emphasizing the role of private enterprise, competition, legal guarantees, and social equity alongside an effective and democratic state. In addition, it explores the political conditions necessary for a successful economic transition, arguing that sustainable reform in Cuba depends on democratic institutions capable of ensuring accountability, protecting rights, regulating markets, and fostering long-term development and social welfare.