Cuban Economic Crisis

Cash is not abundant in Cuba, especially for the poor to middle class families. An example of this would help move “product” from point a to b and in return, the employers can provide your family with food for a month.Government officials will often times take kickbacks for awarding large contracts to foreign companies . In return get money back from the investment in the company.

President Barack Obama stated “In Cuba, we are ending a policy that was long past its expiration date” (qtd. in LeoGrande 939) in regard to the USA embargo against Cuba. The embargo started on 1960, as an idea of the Eisenhower’s administration to cause the collapse of the emerging Cuban Socialist Regime by provoking economic pressure. In 1962, President J. F. Kennedy, formally implemented the total embargo of trade between the United States and Cuba, prohibiting any commercial and financial relations between American businesses and the Island, and declaring that severe monetary penalties will be implanted to those that violate the embargo. Over the years, the embargo has limited USA and Cuba trade possibilities,

Secondly, Cubaneeds to repair its corrupt, failing state-run economy. The reality of thisstruggling economy is that Cuba’s resources are plenty, and its

economic growth comes from agriculture and exports to and from Europe. Since America has had an embargo on Cuba since 1962 neither countries trade with each other because of many disagreements about governing techniques and Fidel's unwillingness to comply with U.S. instructions. Cuba’s long history and culture has contributed to many economic and social growth through out the world, but Cuba is still struggling to try to stable their economy.

However, the unemployment rates of the USA are 9.6% (2010 est.) and 9.1% (2011 est.). It seems a bit higher than Cuba.

In 2016 Cuba’s economy was a bit indecisive, the first half of 2016 Cuba’s economy collapsed 0.9% while during the last half of 2016 Cuba’s economy ascended 1% (Chase, 2017). Not only does Cuba have a bit of an indecisive economy their economy also seeks reliability from other countries such as the Soviet Union along with Venezuela. For three decades Cuba stayed dependent on the annual subsidies delivered by the Soviet Union. When all subsidies ceased from the Soviet Union in 1991 Cuba’s economy plummeted. Then history later repeated itself with Venezuela as their economy fell and left Cuba’s economy once again in laboriously hard times (Chase, 2017). But everything soon changed for Cuba’s economy once President Barack Obama opened the doors between the United States and Cuba. As of 2017 Cuba’s economy flipped around with the notable increase of U.S. tourist just from 2016. Cuba’s economy has come an astronomical way in twenty-six years, they found their way making it up to the second most popular place to visit throughout the Caribbean’s (Chase, 2017). With the amount of tourist that come to Cuba provides support and cushion on a good feeling of conducting business in Cuba.

On January 8th, 1959, Fidel Castro and his rebel army marched triumphantly into Havana, Cuba, having overthrown corrupt dictator Fulgencio Batista the week earlier. It was the fruition of the Cuban Revolution, and the dramatic shift in power was about to radically alter the country’s political, social and economic course forever. The positive and negative effects of the revolution on the Cuban people, however, as well as the condition of Cuba’s economy pre and post-revolution, is subject to heated debate. Castro’s iron-fisted regime was the introduction of communism into the western hemisphere, and now, over fifty years later, the Cuban Revolution continues to be one of the most controversial events of the twentieth century. Despite the criticism levelled at Fidel Castro and his communist regime, however, the Cuban Revolution was necessary in improving the quality of life for the majority of Cuban citizens. The four fundamental categories on which to assess this are healthcare, education, economy and governance. By comparing the country’s overall performance under Fulgencio Batista versus under Fidel Castro in these areas crucial to a fully-functioning nation, it can be shown that the Cuban Revolution was a necessary and positive change in Cuban society which benefitted the majority of citizens.

War is inevitable when nations with an insufficient amount of power in any respect is present, representing a weakness as was evident in the US during the time of the Cuban Revolution. In the past the Cuban Revolution displayed to the world a flaw in the United States’ ability to react to potential disaster. Moreover a later attempt to invade Cuba and overthrow Fidel Castro with a force of American trained Cubans failed to prove anymore successful than prior actions. Therefore, only through a strong leader with the ability to make the “right” choices with confidence as well as a calm demeanor can we be better prepared in the event of a domestic or even a world wide disaster.

Adjustments have been since then so that independent businesses in Cuba may trade with the United States, resulting in, “the United States [becoming] Cuba’s fifth largest trading partner since 2007,” (Lee and Renwick 5). Even though Obama came into office in 2008, and a year later reversed more of the restrictions set forth in the Helms-Burton Act, the actual lift of the embargo and Helms-Burton seems to not be as close as the media makes it seem. Since Raul Castro has come into office, also in 2008, he has claimed he would work towards normalizing relations with the United States, and further stated that he would leave office in 2018. Castro leaving office marks the end of the period the Castros have been in power, and leaves question to how the state of Cuba could potentially thrive. In my opinion, after reading many articles that bought forward the many problems Cuba is to overcome, I feel that Cuba has a long way to go in terms of achieving economic prosperity. However, I also deeply believe that the leaders of both Cuba and the United States are paving the roads needed to reach that level of prosperity. Journalists who have visited Cuba have come back claiming, “private businesses have blossomed due to the relaxation of limits of remittances from Cuban Americans to the island,” (O’Neil 2). This statement, and others like it, leaves me to feel

The embargo on Cuba, placed by the United States in 1962 played its role during that time period, but we have moved on from that era. Based on the research and my findings, now is the time to move forward with our relationship with Cuba. There has been little to no support from our international relations to keep continuing the embargo. The European Union has plans to explore improving relations with Havana. Their hope is to move forward in the relationship between the European Union and Cuba. Unfortunately, with our recent election I fear that our future relationship with Cuba will not improve. For those who are for the embargo, by ending it would have obvious economic benefits for both Cubans and Americans. The U.S. International Trade Commission

Affected by drastic stock prices, banks closing, businesses shut down, and numerous of farms stopping operations Americans felt that a political change was necessary so in 1896 they election President William McKinley. “Soon after his election he called a special assembly of Congress to raise customs obligations, reduce other taxes might encourage growth of domestic industries and employment for American workers”. Another reason would be the reestablishing trade agreements though there were many inadequate stipulations, it promised an opportunity to bring the United States into an international economic system from which the world might secure extraordinary rewards. Many agriculturalists as well as industries once again dreamed of record economic expansion.

Throughout history sovereignty has been known to be at the mercy of a nation’s ruler, king, or dictator. As we have come to recognize, especially in the United States, sovereignty should unconditionally belong to the people to freely determine their own destiny. For 58 years Cuba’s sovereignty has been firm, yet respected. A diverse nation and people, yet divided, where equal rights and responsibilities are at odds due to their political views. (Peterson, 1991) A nation where the government grants its people limited rights rather than the people granting their government limited powers. For 55 years, it has been a nation that is granted limited opportunities due to an imposed embargo; therefore, limiting opportunities to its people. (Leogrande, 2015)

Castro knew well in advance that an American attack was fast approaching Cuba. The front cover of The New York Times ruined the element of surprise when they published information regarding the Cuban exiles stationed in Guatemala and Florida ready to fight Castro’s forces at a moment’s notice. The report was written ten days before the invasion. However, Fidel Castro knew well before that the CIA wanted to overthrow him from power due to the openness of refugees and revolutionaries in Miami. Months before, in November 1960 The Nation described the training operations of the Cuban exiles in Guatemala with a report from the Los Angeles Times that followed shortly after. The media factor was huge in President Kennedy’s calculation of maintaining plausible deniability and ensured premature failure of the covert objectives in Cuba. When eight B-26 bombers carried out there bombing campaign against the Cuban Air Force a day before the invasion, the media ripped through the highly doubtful cover story that this was the feat of a rogue Cuban defector. As a result, President Kennedy ordered the strikes that were planned for the next day to be postponed until after airstrip of the Bay of Pigs was secured. This would prove to be a devastating mistake for the operation. American news stations had exposed the CIA in every phase of covert planning and action right up to the Invasion.

Supports Castro’s proposal for the Portfolio of Opportunities and recognizes the need to attract foreign direct investment rather than simply suggesting it, and thereby encourages Cuba to pass a series of macroeconomic and microeconomic reforms

Cuba’s development from around 1960 to the 1980s is important as there is the impact of international situations constantly changing Cuba’s economy and lastly, how Cuba responded to the change and made efforts to diversify foreign trade investments. This is important as it helps with analyzing Cuba’s economy and giving academic support to knowledge persuaded. There will also be a more statistical approach when comparing it to Canada. These findings are crucial as they play a major role in retail spaces and the fashion industry.