Cuba is undergoing a fundamental process of change. It began in 2011 with the approval by the Cuban state of the Guidelines for Economic and Social Policy, known as the Lineamientos. In comparison with the market-based reforms that occurred in many other countries in the 1990s, this blueprint for updating the nation’s economy is limited in scope. In Cuba, however, it has far-reaching implications.

The Lineamientos offer the managers of state industries greater discretion over the use of...

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