Downtown Havana, Cuba, on May 4, 2026. Cuba’s economic woes are exacerbated by its military-owned conglomerate GAESA, writes Lauren Cargal. (Shutterstock/Omri Eliyahu)

The Hidden Culprit of Cuba’s Economic Crisis

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Debates about the country’s rapid decline rarely discuss the Cuban military’s outsized economic power.

Cuba is in an escalating state of emergency. Numerous complaints by the Cuban government cite the decades-long US embargo as the primary cause of this crisis. Additionally, the ongoing restructuring of the Venezuelan government, the main exporter of crude oil and fuel to the nation, is actively worsening the effects of the embargo. Although these events undoubtedly affect Cuba’s economic plight, one factor in the country’s woes attracts less scrutiny: el Grupo de Administración Empresarial (GAESA).  

GAESA is the Cuban military conglomerate that owns a large part of the state’s industry. US Secretary of State Marco Rubio highlighted the organization’s role in the country’s problems in an address to the Cuban people; GAESA controls an estimated 40–70 percent of state wealth. As Rubio put it, the money GAESA holds........

© The National Interest