Where is the Cuban economy heading? The economy has been recovering at an average rate of four per cent per year since 1994 (after GDP declined by 35 per cent between 1989 and 1993). Many reforms have been undertaken in the direction of a market economy, but it is far from clear what kind of economy the Cuban ruling party has in mind after recovery. This article discusses the successes and shortcomings of the reform process in Cuba since the downfall of communism in Europe and the Soviet Union. It also addresses the salient issues in what appears to be a new development strategy in Cuba, and what could be said about the reforms and the strategy in the light of the debate on transition ‘ten years after’.