Economic Issues In Cuba

Superior Essays
Cuba is a nation riddled with distress. Due to the nature of the country they have remained economically dependent on another country for much of history. The nation has faced a lot of up and downs and has been politically effected since the cold war. Much of the problem with Cuba’s economy has been their inability to remain economically independent. This has led to larger economic problems within the country, when there are global political issues. For instance Cuba has been reliant upon the United States, The Soviet Union, and Venezuela only to have financial problems when issues involving these countries occurred. Cuba, in recent years, has been adopting new political policies that are suggesting a gradual move to the incorporation of capitalist …show more content…
A treaty was signed in 1903 that allowed America to use Guantanamo Bay while giving Cuba independence (Sierra). Inequality was a huge problem in Cuba before the revolution, this was largely due to issues regarding race relations. Sugar production caused inequality and further economic problems because the crop is seasonal. Due to this, the workers would be employed for approximately four months out of the year and would find themselves in poverty and debt during the off months (Fidel Castro). These issues in Cuba led to Fidel Castro’s success following the Cuban …show more content…
For example, under Raul’s leadership there has been a movement to reduce the state sector. In 2011 his goal was to eliminate 500,000 state sector jobs. He wanted to replace these jobs in the private sector. Despite only eliminating 137,000 of these jobs there has still been a significant shift toward the private sector. This is an important aspect of politics in Cuba because they were following the Soviet Union model of communism. Under this model there is a very powerful one party system and all aspects were nationalized. Also in an effort to privatize, citizens have been given a little bit more freedom. For instance, owning a small business is now legal in Cuba. In the past people had done jobs from their homes illegally and were paid under the table. Currently people are allowed to open small businesses however, these are still highly regulated; where owners are not allowed to hire employees and

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