Cuba's Economic System

Cuba’s colorful history can be documented to before the days of the American Revolution in 1776, but today, American policy directly affects many Cubans’ lifestyles because of a nearly 45-year-old trade embargo that has been placed on the island nation. It is crucial to analyze the development of Cuba and its neighboring island nations in order to discern the reasons for Cuba’s current political situation with the United States. The following paper will discuss the events that shaped Cuba and larger Caribbean nations like Haiti, the Dominican Republic and Jamaica; next, a detailed description of Cuba’s turbulent history will help in explaining the Cuban transformation into a

Cuba and the United States of America have completely opposite economies. Cuba’s economy is based on the few natural resources that the country owns while the economic system in The United States is capitalist and can be recognized for its noticeable development in agriculture, energy, and other resources that keep the country expanding and provides jobs as well as a good quality of life for its residents. On the other hand, Cuba’s economy, is predominantly poor, to the point where a very huge percent of its population suffers from

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Modern Cuba is a country born of struggle. The revolutionary movement that formed the modern day government has remained in power for more than forty years. Indeed, the Cuban government is perhaps one of the most stable governments in the region. This fact is made even more evident by the recent fall of democracy in Haiti. However, the past ten years has seen a marked change in Cuban economic policy. Ostracized from the international community and faced with an embargo imposed by the United States, Cuba has turned to various sources of economic reform in order to survive in a global market.

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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.

In 1959, Fidel Castro seized control of Cuba and the country turned from dictatorship to a communist state. The Cuban socioeconomics follow that of other Communist cultures for example the Soviet Union, where the government is in control all parts of its citizen’s way of life. In most recent years, Raul Castro has setup many reforms that benefit the people. The reforms are:

During his rule as prime minister and president, Fidel Castro’s impacted the Cuban economy significantly. An analysis will first be made of his positive impact on Cuba’s economy. Castro’s positive economic impact can be traced back to 1959 when he first came into power as Prime Minister of Cuba following the approximately seven-year rule of dictator Fulgencio Batista. During Batista’s rule and even far long before it, Cuba had long had relations with the US. Under Fulgencio Batista, however, these relations were particularly strong and during this time period, Cuba saw great amounts of corruption.

Considering the circumstances of the embargo, Cuba has been able to sustain itself working around the minimum number of products they could get. Due to all the difficulties and not being able to trade with the United States, Cuba had to learn to stand on its own... the fact that they were limited in resources, forced by their circumstances, the Cuban people had to take their creativity and transform it into a survival skill. The embargo in a way brought a great deal of evolution to the

The economy is largely state-controlled with 75% of the labor force employed by the government. Cuban government consists of three branches stipulated in the Constitution of Cuba: The judiciary, executive, and legislature. The Executive Branch consists of two bodies know has the Council of Ministers and the Executive Committee Secretary. Legislative Branch hold meetings twice a year and are responsible for issues affecting the Cuban economy, industries, constructions, defense, public health, and foreign affairs. In the Judicial Branch, the Supreme Court is known as the highest court.

For companies looking to expand their markets and entertaining the idea of doing business in Cuba, international managers must understand the unique set of advantages and disadvantages that this country represents before committing to that course of action, U.S. companies must first realize that the business embargo that has been in place for decades, and indeed despite loosening og parts of the embargo by the Obama administration, the future of those steps or even more business friendly thawing are not givens with the Trump administration.

Lastly, another underlying factor of dependency of Soviet bloc as a factor that Cuba adopt self-sufficiency production as its food security policy was due to the overreliance on fuel. As stated previously, almost all of Cuba’s fuel were imported from the Soviet and its associates. The country was heavily dependent on oil for almost all of it economic purpose. Which ranges from household purposes to industrial needs. Agriculture production hold the highest segregation of the usage of fuel for Cuba. As fuel was use for machinery for the cultivation of crops. For an oil-dependent state, they remained vulnerable to it. As the state fall into a mode of sustainability, it is stated mode of public transportation was halted and Cubans went into hunger

This is especially the case as United States President Donald J. Trump recently stated that he would repeal reforms previously done under the Obama administration if Cuba were not to make more concessions (Council on Foreign Relations). Moreover, the Republican-dominated Congress is unlikely to pass a lift on the U.S. embargo of Cuban products that has been a major point of contention and business loss to Cubans for years (Council on Foreign Relations). It is evident that there are many forces trying to postpone or even reverse the trend of economic integration of Cuba in addition to the Cuban regime. Providing aid, establishing programs and setting up policies to help small business owners in Cuba would also benefit the United States, as it would promote trade with a country of great geopolitical importance as it situated in between the continental United States and Latin America. In addition, the scope of the problem is vast as entrepreneurs are finding arduous businesses environments in its capital of Havana and even less throughout the entirety of Cuba, which is predominantly

From the reasons behind the voices asking for lifting the embargo on Cuba is its Economic impacts on the U.S. economy. Some politician’s opinion is that beside the failure of the embargo in achieving democracy in Cuba and removing Castro regime, the embargo harms the U.S. economy as well. The U.S. Chamber of Commerce opposes the embargo, stating that the U.S. policies impose real costs, and according to a study by Taxes A&M University in 2010, removing restrictions on the agricultural products exported to Cuba and lifting travel ban would increase the U.S. exports by $365 million and create 6000 new jobs in the United States. Also, some experts believe that lifting the embargo would benefit agriculture, telecommunications, tourism, and construction sectors.

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