Faced with an existential economic and political crisis in the aftermath of the collapse of the Soviet Union, Cuba launched reforms that were aimed at making its socialist system more sustainable. Self-managing cooperatives, which were to be independent of state control, started getting promoted as the preferred instruments for Cuba’s transition to 21st-century socialism. Drawing on fieldwork in Cuba and on secondary material, it is argued that these cooperatives have a fair chance of success, but that uncertainties exist, especially with respect to the project of “downsizing the state.”