Economic Developmen Cuba. Give the information on Cuba below, picture yourself a

Question

Economic Developmen

Cuba.

Give the information on Cuba below, picture yourself as the architech for Cuba’s economy from now on. Given the basic information below, briefly discuss:

1. Merits of Cuba’s political and economic systems that should be retained.

2. Shortcomings of Cuba’s political and economic systems that may need change(s)

3. Analyzing ## 1 and 2 abvoe, give economic reasons/ rationale for why “xxx” need to be retained and why “yyy” need to be reformed.

Note: The essay analysis-exam should not be too long, neither should it be too short. Qualitative analysis is more important than quantitative descriptions/ verbiage.

Bacground Information

        The largest island of the West Indies group (equal in area to Pennsylvania), Cube is also the westernmost--- just west of Hispaniola (Haiti and the Dominican Republic), and 90 mi (145 km) south of Key West, Fla., at the entrance to the Gulf of Mexico. The island is mountainous in the southeast and south-central area (Sierra Maestra). It is flat or rolling elsewhere. Cuba also includes numerous smaller islands, islets, and cays.

         The Treaty of Paris established Cuban independence from the US in 1902 after which the island experienced a string of governments mostly dominated by the military and corrupt politicians. Fidel CASTRO led a rebel army to victory in 1959; his iron rule held the subsequent regime together for nearly five decades. He stepped down as president in February 2008 in favor of his younger brother Raul CASTRO.

          Cuba’s Communist revolution, with Soviet support, was exported throughout Latin America and Africa during the 1960s, 1970s and 1980s. The country faced a severe economic downturn in 1990 following the withdrawal of former Soviet subsidies worth $4 billion to $6 billion annually. Cuba portrays its difficulties as the result of the US embargo in place since 1961.

           Illicit migration to the US- using homemade rafts, alien smugglers, air flights, or via the southwest border- is a continuing problem.

            Cuba is an island nation with a population of approximately 11.5 million people and a total mass/sea area of 110,860 square kilometer. The size is slightly smaller than the state of Pennsylvania. ^%.1% of Cuba’s population are white, 24.8% are mulattos and mestizos and 10.1% black.

             Cuba’s primary minerals include the following: cobalt, nickel, iron ore, chromium, copper, salt, timber, silica, petroleum.

Government/ Administration

             Presently Gen. Raul Castro is both the President of the Council of State and President of the Council of Ministers. President and vice presidents elected by the National Assembly for a five- year term.

              Cuba’s national legislature, the National Assembly of People’s Power (Asamblea Nacional de Poder Popular), is the supreme organ of power; 609 members serve five – year terms.

               The assembly meets twice a year; between sessions legislative power is held by the 31 member Council of Ministers. Candidates for the Assembly are approved by public referendum. In theory, all Cuban citizens over 16 who have not been convicted of a criminal offense can vote. Article 131 of the Constitution states that voting shall be “through free, equal and secret vote. No political party is permitted to nominate candidates or campaign on the island, including the Communist Party.

Economy

              The government continues to balance the need for economic loosening against a desire for firm political control. It has rolled back limited reforms undertaken in the 1990s to increases enterprise efficiency and alleviate serious shortages of food, consumer goods and services. The average Cuban’s standard of living remains at a lower level than before the downturn of the 1990s, which was caused by the loss of Soviet aid and domestic inefficiencies.

               The economy of Cuba is a largely state- controlled, centrally planned economy overseen by the Cuban government, thought there remains significant foreign investment and private enterprise in Cuba. Most of the means of production are owned and run by the government, and most of the labor force is employed by the state. In the year 2000, public sector employment was 76% and private sector employment was 23% compared to the 1981 ratio of 91% to 8%. Capital investment is restricted and requires approval by the government. The Cuban government sets most prices and rations good to citizens.

                 In the 1950s, Cuba had a vibrant but extremely unequal economy, with large capital outflows to foreign investors. The country has made significant progress since the Revolution towards a more even distribution of income.

                Despite the economic embargo by the United States, the economy grew at a rate higher than the rest of Latin America until the collapse of the Soviet Union, its main trading partner. Between 1990 and 1993, Cuba’s GDP declined by 33%. Yet Cuba has managed to retain levels of healthcare and education, and since 2000 the economy is rapidly recovering. Cuba has a highly- developed service industry with one of the largest professional workforce in the world. Its number of doctor per capita is ranked #1 in the world.

                 Cubans receive low housing and transportation costs, free education, and health care and food subsidies. [9] Corruption is common, though far lower than in most other countries in Latin America.

                  The Cuban economy is still recovering from a decline in gross domestic product of at least 35% between 1989 and 1993 due to the loss of 80% of its trading partners and Soviet subsidies. This era was referred to as the “Special Period in Peacetime” later shortened to “Special Period”.

In the past, sugar and tourism were the two most important sources of domestic activity. Unitl recent years:

The sugar industry has practically disappeared

Tourism has stagnated.

          The government has undertaken several reforms in recent years to increase labor incentives, and alleviate serious shortages of food, consumer foods, and services. To alleviate the economic crisis, the government introduced a few market-oriented reforms including opening to tourism, allowing foreign investment, legalizing the U.S. dollar, and authorizing self- employment for some 150 occupations. (This policy was later partially reversed, so that while the U.S. dollar is no longer accepted in businesses, it remains legal for Cubans to hole the currency.) These measures resulted in modest economic growth. The liberalized agricultural markets introduced in October 1994, at which state and private farmers sell above- quota production at free market prices, have broadened legal consumption alternatives and reduced black market prices. [citation

             Rationing in Cuba refers to the system of food distribution known in Cuba as Libreta de Abastecimiento (“Supplies booklet”). The system establishes the rations each person is allowed to buy through that system, and the frequency of supplies.

              More recently Cuba’s world-class biotechnology and pharmaceutical industry is gaining in its importance to the economy. It has been claimed that soon it will become Cuba’s main source of foreign exchange. Among the products sold internationally are vaccines against various viral and bacterial pathogens, and promising anti-cancer vaccines are undergoing exhaustive clinical trials. Some Cuban scientists, like V. Verez-Bencomo, have been awarded international prizes for their contributions in biotechnology. Cuban vaccines are sold, among other countries, in Russia, China, India, Pakistan, and several Latin American countries

Given its history, geography, culture and its recently thawing relationships whit the U.S. and in recent years Raul instead of Fidel Castro at the helm, analyze and advance development strategies/ policies. Be sure to justify (explain the rationale) behind your approach to the proposed development approach and path.

A few select basic statistics

Cuba’s major exports are sugar, nickel, tobacco, fish, medical products, citrus fruits, and coffee; imports include food, fuel, clothing, and machinery.

The Gross Domestic Product (GDP) in Cuba was worth 80.66 billion US dollars in 2014. The GDP value of Cuba represents 0.13 percent of the world economy.

Its per capita GDP is approximately $6,848.

According to a 2011 estimate, 4.0% of Cuba’s GDP originates from agriculture, 20.8% from the industrial sector and 75/2% from the service sector.

Products:

Agriculture: sugar, tobacco, citrus, coffee, rice, potatoes, beans; livestock

Industry: sugar, petroleum, tobacco, construction, nickel, steel, cement, agricultural machinery, pharmaceuticals

Explanation / Answer

. Merits of Cuba’s political and economic systems that should be retained.

Cuba was a country with strong will to resist domination of United states and it has successfully won the desire and had a communist regime for decades. For its benefit Cuba can still retain their government

Economically most of cuba must open up as high end service destination for spanish speakers. It has great geography and proximity to united states so it must open up trade with US

. Shortcomings of Cuba’s political and economic systems that may need change(s)

Having busienss relations with United states is most important for CUBA, Cuba is heading in right direction, There is no more cold war no hot war. Cuba is a neigbor that US respects. So Cuba must open up its tourism industry to US. More US tourists will come to cuba as its very near florida.

3) The independence and political system that cubans have is awesome, As they fought hard to get it. They can retain strong government

They have to forget about enemity with united states and formally become friends again. There is no more soviet block or strong communism. Economy must be no.1 priority for Cuban government from now.

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