Reaching out Cuba's New Economy and the International Response

Total Page:16

File Type:pdf, Size:1020Kb

Reaching out Cuba's New Economy and the International Response Reaching Out Reaching Reaching Out - Cuba’s New Economy and the International Response Response and the International Economy New - Cuba’s Cuba’s New Economy and the International Response Richard E. Feinberg Richard Richard E. Feinberg The Brookings Institution 1775 Massachusetts Ave., NW Washington, D.C. 20036 NOVEMBER 2011 brookings.edu Reaching Out Cuba’s New Economy and the International Response Richard E. Feinberg NOVEMBER 2011 Table of Contents Acknowledgements . iii Abbreviations . iv Introduction . 1 1 . The Cuban Economy: Distorted Development and Gradual Reforms . .5 2 . Cuba’s Emerging Market Strategy . 22 3 . International Development Cooperation: Cuba as Beneficiary . 44 4 . The International Financial Institutions: Relations with Non-Members . 61 5 . Updating Cuban Perceptions: Vietnam and Nicaragua in the Global Economy . 84 6 . Key Findings and Recommendations: Nudging History Forward . 96 About the Author . 102 Reaching Out: Cuba’s New Economy and the International Response Latin America Initiative at Brookings ii Acknowledgements any individuals and institutions were extraordinarily generous in lending their assistance Mto this project . Present and former executives and staff members of the IMF, World Bank, Inter-American Development Bank (IDB), Andean Development Corporation (CAF), and the Organi- zation of American States (OAS) provided off-the-record but indispensable accountings of past and present policies of their multilateral institutions . Officials at the U .S . Treasury Department (where I labored so many years ago) greatly enhanced my understanding of relevant U .S . legislation . The research of the economists of the Center for the Study of the Cuban Economy of the University of Havana provided much of the basis for my analysis of the Cuban economy, and special thanks are due to the Center’s director, Omar Everleny Perez Villanueva, and to international economist Jorge Mario Sanchez Egozcue . Also in Havana, Luana Reale was my knowledgeable guide to the European donor community . Ace journalist Marc Frank remains a constant source of reliable and well-framed information . I would especially like to thank those who read and offered most useful comments on all or portions of draft manuscripts, including Mario Arana, Jaime Biderman, Low- ell Blankfort, James Boughton, Juan Alberto Fuentes, Peter Hakim, Homi Kharas, Eric Leenson, Matthew Levin, Edmund Malesky, Robert Pastor, Rafael Romeu, Hernan Rosenberg, and Andrew Wolfe, as well as Brookings’ external peer reviewers . The lifetime scholarly commitments of Philip Brenner and Margaret Crahan to Cuban studies have been an important source of inspiration . The Peterson Institute for International Economics offered me valuable feedback at one of Wash- ington’s highest caliber gatherings, its Friday staff luncheons . The 2011 symposium on Cuba or- ganized by the Bildner Center for Western Hemisphere Studies under the leadership of Mauricio Font was a tremendous source of current analysis . I also wish to thank the Brookings Institution, The Christopher Reynolds Foundation, and the Woodrow Wilson International Center for Scholars for their vital financial and institutional support . Especially deserving of my appreciation are Ted Piccone and Emily Alinikoff of Brookings and Cynthia Arnson of the Wilson Center for their vital enthusiasm and warm friendship . Expert research assistance was provided by Savannah Thomas Arrigo, Ian McMurtry and Diogo Simas . Reaching Out: Cuba’s New Economy and the International Response Latin America Initiative at Brookings iii Abbreviations ABC Brazilian Cooperation Agency AECID Spanish International Development Cooperation Agency ALBA Bolivarian Alliance for the Americas Bancomext Banco Nacional de Comercio Exterior (Mexico) BNDES Brazilian National Development Bank CAF Andean Development Corporation CAFTA-DR U .S .-Central America Free Trade Agreement CARTAC The Caribbean Regional Technical Assistance Center (IMF) CEEC Center for the Study of the Cuban Economy CIDA Canadian International Development Agency CNPC Chinese National Petroleum Company CPS Country Partnership Strategy EC European Commission ECF Extended Credit Facility EDC Export Development Canada EMs Emerging Markets EEZ Exclusive Economic Zone FDI Foreign Direct Investment FSLN Sandinista Front of National Liberation (Nicaragua) GAE Grupo de Administracion Empresarial IBGE Brazilian Institute of Geography and Statistics IBRD International Bank for Reconstruction and Development IDA International Development Agency (World Bank) IDB Inter-American Development Bank IMDIL Initiative for Municipal and Local Development IFC International Financial Corporation IFIs International Financial Institutions IMF International Monetary Fund Reaching Out: Cuba’s New Economy and the International Response Latin America Initiative at Brookings iv MDGs Millennium Development Goals MEP Ministry of Economy and Planning MINFAR Ministry of the Armed Forces MINCEX Ministry of Foreign Commerce and Investment MININT Ministry of Internal Security MOUs Memoranda of Understanding NAFTA North America Free Trade Agreement NAM Non-Aligned Movement NOCs National Oil Companies OAS Organization of American States OECD Organization of Economic Cooperation and Development ONE National Office of Statistics (Republic of Cuba) PDVSA Petroleos de Venezuela, S .A . PRGF Poverty Reduction and Growth Facility PRI Institutional Revolutionary Party (Mexico) SEDP Socio-Economic Development Plan SOEs State-Owned Enterprises UNDP United Nations Development Program UNESCO United Nations Education, Scientific and Cultural Organization UNICEF United Nations Children’s Fund UNMIK United Nations Mission in Kosovo WBG West Bank/Gaza WFP World Food Program (United Nations) Reaching Out: Cuba’s New Economy and the International Response Latin America Initiative at Brookings v Introduction ive decades after Fidel Castro’s “26th of July Movement” marched victoriously into Havana on FNew Year’s Day, 1959, the United States and Cuba, separated by less than 100 miles of choppy wa- ters, remain deeply distrustful neighbors entangled in a web of hostilities . Heated U .S . policy debates over how best to respond to the Cuban Revolution—through legislation in the Congress or executive orders issued by the Executive Branch—implicitly assume that there are only two players in conten- tion: Washington and Havana . Yet, this conceit takes us very far from the realities of Cuba today . Since the collapse of its former patron, the Soviet Union, a resilient Cuba has dramatically diver- sified its international economic relations . Initially, Cuba reached out to Europe, Canada, and a widening array of friendly states in Latin America . Over the last decade, Cuba has reached out to forge economic partnerships with major emerging market economies—notably China, Brazil, and Venezuela . Spanish firms manage many of the expanding hotel chains in Cuba that cater to 2 .5 million international tourists each year . A Canadian company jointly owns mining operations that ship high-priced nickel to Canada and China . In the next few years, China is poised to spend billions of dollars building a large petrochemical complex at Cienfuegos . A Brazilian firm will modernize the Mariel Port so that it can accommodate very large container ships transiting the newly widened Panama Canal . Petroleum companies from ten or more countries have lined up to explore for deep- sea oil in Cuban waters in the Gulf of Mexico . Despite these advances, the Cuban economy remains in the doldrums (as described in Section 1) . The main constraint slowing the Cuban economy is not U.S. sanctions (even as they have hit hard). Rather, it is Cuba’s own outdated economic model, inherited from the Soviet Union, of central plan- ning . Cuba’s many commercial partners would like to invest more in Cuba and would prefer to purchase more Cuban exports to correct the imbalances in their bilateral trade accounts, but are frustrated by Cuba’s scant economic offerings . Reaching Out: Cuba’s New Economy and the International Response Latin America Initiative at Brookings 1 Section 2 of this policy paper tells the story of Cuba’s outreach to the dynamic emerging market economies, as seen from the perspective of Cuba and also through the eyes of its Chinese, Brazil- ian, Venezuelan and Mexican partners—examining their motivations as well as their anxieties and frustrations . How does Cuba fit into their international economic and geo-political strategies, and what are the domestic political drivers behind their friendships with Havana? Canadian interests are also explored, as Ottawa has sharply differentiated its Cuba policy from those of its close North American ally . While comprehensive U .S . sanctions attempt to undermine the Cuban economy, European coun- tries have been sending development assistance, albeit in modest amounts . European aid targets its resources to empower municipalities, private farmers and cooperatives—to strengthen social forces less dominated by Havana’s powerful bureaucracies . Section 3 describes these European and Canadian cooperation programs as well as the creative initiatives of the non-governmental or- ganization Oxfam, and draws lessons—pointing out potential pitfalls as well as opportunities—for future international development programs operating in the difficult Cuban context . One hundred and eighty-seven nations are members of the International Monetary Fund (IMF) and World Bank—virtually equivalent to the universal membership of the United
Recommended publications
  • Cuba's Food & Agriculture Situation Report, USDA, 2008
    Cuba’s Food & Agriculture Situation Report by Office of Global Analysis, FAS, USDA March 2008 Table of Contents Page Executive Summary........................................................................................................................ 1 Cuba’s Food & Agriculture Situation Report ................................................................................. 3 The Historical Context Underlying U.S.–Cuban Relations..................................................... 3 Economic Background.............................................................................................................4 Cuba’s Natural Resource Base and Demographic Characteristics .......................................... 8 Population, Food Consumption and Nutrition Issues ............................................................ 14 Tourism and the Demand for Agricultural Products.............................................................. 17 Cuba’s Market Infrastructure and the Role of Institutions in Cuba’s Food and Agricultural Sector............................................................................................................ 18 Cuba’s International Trade Situation..................................................................................... 29 Other Observations ................................................................................................................ 33 Summary and Conclusions .................................................................................................... 33 Addendum
    [Show full text]
  • State, Gender and Institutional Change in Cuba's 'Special Period'
    UNIVERSITY OF LONDON 43 INSTITUTE OF LATIN AMERICAN STUDIES RESEARCH PAPERS. State, Gender and Institutional Change in Cuba's 'Special Period': The Federation de Mujeres Cubanas Maxim Molyneux STATE, GENDER AND INSTITUTIONAL CHANGE IN CUBA'S 'SPECIAL PERIOD': THE FEDERAClON DE MUJERES CUBAN AS Maxine Molyneux Institute of Latin American Studies 31 Tavistock Square London WC1H 9HA British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library ISBN 1 900039 05 2 ISSN 0957-7947 ® Institute of Latin American Studies University of London, 1996 CONTENTS Introduction. A Debate on Change 1 The 'Woman Question' and the Revolutionary State 5 The FMC in the 1980s: Adaptation and Resistance 11 'Emancipation' and Instrumentalism 18 The FMC in the 1990s 22 The Costs of Adjustment 27 The Household 35 Non-Governmental Organisations 40 Conclusions 43 Bibliography 51 Maxine Molyneux is Senior Lecturer in Latin American Sociology at the Institute of Latin American Studies. Acknowledgements The author would like to thank Ruth Pearson for productive discussions about shared concerns, Margarita Velazquez and Fred Halliday for comments, and Jean Stubbs and Emily Morris for their help with materials. State, Gender and Institutional Change in Cuba's 'Special Period': The Federation de Mujeres Cubanas 'We have gone through three periods since the revolution: in the first we looked to the state to solve all of our problems, and we managed more or less OK. In the second, from 1988, we found the state couldn't meet our needs, and we were unable to meet them ourselves. Since 1993 we no longer rely on the state because we know that it cannot deliver what we need.
    [Show full text]
  • Políticas Sociales Y Reforma Institucional En La Cuba Pos-COVID
    Políticas sociales y reforma institucional en la Cuba pos-COVID Bert Hoffmann (ed.) Políticas sociales y reforma institucional en la Cuba pos-COVID Verlag Barbara Budrich Opladen • Berlin • Toronto 2021 © 2021 Esta obra está bajo una licencia Creative Commons Atribución 4.0 (CC-BY 4.0), que permite su uso, duplicación, adaptación, distribución y reproducción en cualquier medio o formato, siempre que se otorgue el crédito apropiado al autor o autores origi- nales y la fuente, se proporcione un enlace a la licencia Creative Commons, y se indique si se han realizado cambios. Para ver una copia de esta licencia, visite https://creativecommons.org/licenses/ by/4.0/. Esta obra puede descargarse de manera gratuita en www.budrich.eu (https://doi.org/10.3224/84741695). © 2021 Verlag Barbara Budrich GmbH, Opladen, Berlín y Toronto www.budrich.eu eISBN 978-3-8474-1695-1 DOI 10.3224/84741695 Verlag Barbara Budrich GmbH Stauffenbergstr. 7. D-51379 Leverkusen Opladen, Alemania 86 Delma Drive. Toronto, ON M8W 4P6, Canadá www.budrich.eu El registro CIP de esta obra está disponible en Die Deutsche Bibliothek (La Biblioteca Alemana) (http://dnb.d-nb.de) (http://dnb.d-nb.de) Ilustración de la sobrecubierta: Bettina Lehfeldt, Kleinmachnow – www.lehfeldtgraphic.de Créditos de la imagen: shutterstock.com Composición tipográfica: Ulrike Weingärtner, Gründau – [email protected] 5 Contenido Bert Hoffmann Políticas sociales y reforma institucional en la Cuba pos-COVID: una agenda necesaria . 7 Parte I: Políticas sociales Laurence Whitehead Los retos de la gobernanza en la Cuba contemporánea: las políticas sociales y los Objetivos de Desarrollo Sostenible de las Naciones Unidas .
    [Show full text]
  • Ernesto 'Che' Guevara: the Existing Literature
    Ernesto ‘Che’ Guevara: socialist political economy and economic management in Cuba, 1959-1965 Helen Yaffe London School of Economics and Political Science Doctor of Philosophy 1 UMI Number: U615258 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. Dissertation Publishing UMI U615258 Published by ProQuest LLC 2014. Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 I, Helen Yaffe, assert that the work presented in this thesis is my own. Helen Yaffe Date: 2 Iritish Library of Political nrjPr v . # ^pc £ i ! Abstract The problem facing the Cuban Revolution after 1959 was how to increase productive capacity and labour productivity, in conditions of underdevelopment and in transition to socialism, without relying on capitalist mechanisms that would undermine the formation of new consciousness and social relations integral to communism. Locating Guevara’s economic analysis at the heart of the research, the thesis examines policies and development strategies formulated to meet this challenge, thereby refuting the mainstream view that his emphasis on consciousness was idealist. Rather, it was intrinsic and instrumental to the economic philosophy and strategy for social change advocated.
    [Show full text]
  • Cuba and Castro: Beyond the Battle of Ideas
    CHAPTER 4 Cuba and Castro: Beyond the “Battle of Ideas” Mauricio A. Font Abstract: This paper explores the logic, causes, and priorities of the “Battle of Ideas” in part through an analysis of Fidel Castro’s published statements in Reflexiones since 2006. This study suggests that this campaign harkens back to past efforts of the regime to reinforce ideological orthodoxy and revolutionary renewal through the regime’s fundamental belief in the power of ideology to consolidate political power. Out of the Special Period During the second half of the 1990s, Cuban authorities began to apply a series of countermeasures to the reform process adopted in the Special Period, seemingly confident that they had surmounted the worst of the economic crisis of the early decade. Already by 1995 the regime had defined the limits of the reform process and restricted some of the liberal- izing measures, blaming them for growing social problems. By the end of the turn of the century, Fidel Castro was framing his own thoughts and perspective as the “Battle of Ideas.” He and the hardliners were ready for a renewal of the traditional Cuban model and initiated specific steps and ideas in that regard. Through 2006, the year Fidel Castro fell gravely ill, the “Battle of Ideas” campaign subsumed many initiatives to supplant the Special Period. This paper explores the role of the “Battle of Ideas” in opening a new chapter in the history of the Cuban revolution. The broader issue is how to characterize the timing, properties, and dynamics of the post Special Period years. An important issue is the extent to which a new coherent approach was launched in the early 2000s.
    [Show full text]
  • Educational Experiences During the “Special Period” in Cuba
    Dr. Martin Camacho Dean, Fain Collegeof Fine Arts Midwestern State University Arts Education in Cuba Revolutionary Period Expansion of artistic education and prioritization from 1961 Incorporation of music, dance and visual arts disciplines in primary education (1975) Creation of the Escuela Nacional de Arte System ENA (National Schools of Arts) 1962 – Music, Visual Arts, Theatre, Ballet, Dance, Circus Creation of Specialized Artistic Elementary System (Vocational Schools) ISA – Instituto Superior de Arte University of the Arts Created in 1976 for three disciplines: music, visual arts, and theatre. It recently added Media Arts (FAMCA) and four units outside Havana Specialized Artistic Education Music Example VOCATIONAL SHOOLS - Music Children enter Vocational Music Schools between ages 6-10 and complete K 1-9. Schools are available at the province (state) level. NATIONAL SCHOOLS OF ART - After a competitive process, selected students move to the National Schools or Art to complete professional training and grades K 10-12. Schools are available only at the regional level. UNIVERSITY - After a competitive process, selected students are admitted at ISA, University of the Arts, the only institution of higher education in the arts in Cuba. Cuban Curricula and Soviet Support (Music) Musical educational model was copied and supported by and large by the Soviet Union. The music curricula favored the formation of trained musicians in classical and the Western European tradition. Disciplines such as jazz, afro-Cuban, or traditional Cuban music were not particularly thought as strong within the music curricula, but as a co-curricular or extra-curricular activity. Special Period – Periodo Especial of 1990 The collapse of the Soviet Union in the 1990s and the toughening of the American Embargo (Torricelli and Helms-Burton law) brought very negative economic consequences.
    [Show full text]
  • Cuba's Social Services
    CUBA’S SOCIAL SERVICES: A REVIEW OF EDUCATION, HEALTH, AND SANITATION* Dan Erikson, Annie Lord and Peter Wolf Inter-American Dialogue January 31, 2002 * Commissioned as background for the World Development Report 2004: Making Services Work for Poor People. The authors would like to thank Arachu Castro of Harvard University, Sheryl Lutjens of Arizona University, and Jeffrey Puryear of the Inter-American Dialogue for their comments on previous drafts. TABLE OF CONTENTS 1. Introduction to Cuba’s Social Services 3 2. Cuba’s Education System 8 3. Cuba’s Healthcare and Sanitation 21 4. Appendix 32 5. Bibliography 38 2 INTRODUCTION TO CUBA’S SOCIAL SERVICES Cuba has become internationally recognized for its achievements in the areas of education and health, with social service delivery outcomes that surpass most countries in the developing world and in some areas match first-world standards. Since the Cuban revolution in 1959, and the subsequent establishment of a communist one-party government, the country has created a social service system that guarantees universal access to education and health care provided by the state. This model has enabled Cuba to achieve near universal literacy, the eradication of certain diseases, widespread access to potable water and basic sanitation, and among the lowest infant mortality rates and longest life expectancies in the region. A review of Cuba’s social indicators reveals a pattern of almost continuous improvement from the 1960s through the end of the 1980s. Several major indices, such as life expectancy and infant mortality, continued to improve during the country’s economic crisis of the 1990s, although other areas, such as incidence of certain diseases and over-65 mortality, were negatively affected.
    [Show full text]
  • Cubanonomics: Mixed Economy in Cuba During the Special Period BRENDAN C. DOLAN
    Cubanonomics: Mixed Economy in Cuba during the Special Period BRENDAN C. DOLAN Fidel Castro is a man of many words. No other political figure in modern history has spoken more on the public record, varying the scope of his oration from short interviews to twelve hour lectures on the state of Cuban society. Starting in 1959, his ideas flooded Cuban society and provided a code of social expectations for all to obey. Cubans listened patiently, and over time enjoyed the fruits of an egalitarian socialist system: food, shelter, education and medicine for all. By the early 1980s, Castro had constructed a centrally planned economy and an economically favorable partnership with the Soviet Union. In 1989, however, the dissolution of the Soviet Union crippled the Cuban economy and forced millions of Cubans into poverty, resulting in widespread hunger and unemployment. Faced with the threat of an economic meltdown that could end his regime, Castro looked inward for ways to revive the Cuban economy. Though previously condemning and imprisoning Cubans illegally possessing black market dollars, Castro suddenly regarded these dollar holders as the key to his regime’s survival. This hard currency was crucial to restoring the national economy, and though its legalization would undermine his socialist, anti-American ideology, Castro saw no other option. In 1993, he decriminalized the possession of U.S. dollars and established state-run dollar stores to channel dollars to the government. Castro legalized self-employment, decentralized the agricultural sector and boosted Cuba’s tourist industry. Though they aided in reviving the national economy, these policy changes transformed the socioeconomic structure of Cuban society, creating a mixed economy that required Cubans to embrace certain market principles outside of socialist doctrine.
    [Show full text]
  • The Current Peak Oil Crisis
    PEAK ENERGY, CLIMATE CHANGE, AND THE COLLAPSE OF GLOBAL CIVILIZATION _______________________________________________________ The Current Peak Oil Crisis TARIEL MÓRRÍGAN PEAK E NERGY, C LIMATE C HANGE, AND THE COLLAPSE OF G LOBAL C IVILIZATION The Current Peak Oil Crisis TARIEL MÓRRÍGAN Global Climate Change, Human Security & Democracy Orfalea Center for Global & International Studies University of California, Santa Barbara www.global.ucsb.edu/climateproject ~ October 2010 Contact the author and editor of this publication at the following address: Tariel Mórrígan Global Climate Change, Human Security & Democracy Orfalea Center for Global & International Studies Department of Global & International Studies University of California, Santa Barbara Social Sciences & Media Studies Building, Room 2006 Mail Code 7068 Santa Barbara, CA 93106-7065 USA http://www.global.ucsb.edu/climateproject/ Suggested Citation: Mórrígan, Tariel (2010). Peak Energy, Climate Change, and the Collapse of Global Civilization: The Current Peak Oil Crisis . Global Climate Change, Human Security & Democracy, Orfalea Center for Global & International Studies, University of California, Santa Barbara. Tariel Mórrígan, October 2010 version 1.3 This publication is protected under the Creative Commons (CC) "Attribution-NonCommercial-ShareAlike 3.0 Unported" copyright. People are free to share (i.e, to copy, distribute and transmit this work) and to build upon and adapt this work – under the following conditions of attribution, non-commercial use, and share alike: Attribution (BY) : You must attribute the work in the manner specified by the author or licensor (but not in any way that suggests that they endorse you or your use of the work). Non-Commercial (NC) : You may not use this work for commercial purposes.
    [Show full text]
  • Education in Newly Independent Countries: Problematic Models And
    JOURNAL FÜR ENTWICKLUNGSPOLITIK herausgegeben vom Mattersburger Kreis für Entwicklungspolitik an den österreichischen Universitäten vol. XXII 4–2006 BILDUNG UND ENTWICKLUNG? Schwerpunktredaktion: Margarita Langthaler Pia Lichtblau Inhaltsverzeichnis 4 MARGARITA LANGTHALER, PIA LICHTBLAU Einleitung: Bildung und Entwicklung 27 BIRGIT BROCK-UTNE Development Cooperation in the Field of Education – Between Neoliberal Economics and Alternative Educational Models 52 RUI YANG The Commodification of Education and Its Effects on Developing Countries: A Focus on China 70 DARIO AZZELLINI Bildung und Hochschulbildung für alle Transformation des Bildungssystems in der Bolivarischen Republik Venezuela 96 ANNE HICKLING-HUDSON, JORGE CORONA GONZALEZ, ELVIRA MARTIN SABINA Education in Newly Independent Countries Problematic Models and the Significance of the Cuban Alternative 126 Rezension 130 Schwerpunktredaktion, Autorinnen und Autoren 134 Impressum JOURNAL FÜR ENTWICKLUNGSPOLITIK XXII 4-2006, S. 96-125 ANNE HICKLING-HUDSON, JORGE CORONA GONZALEZ, ELVIRA MARTIN SABINA Education in Newly Independent Countries Problematic Models and the Significance of the Cuban Alternative 1. Introduction Socio-economic disparities prevail in the neo-colonial education sy- stems that remain in many countries and regions, constituting a barrier to effective national development. Taking these disparities as a starting point, this paper considers the Cuban model of education and its current reforms as an alternative way of conceptualizing education and its role in develop- ment. The authors, two Cuban scholars and one Jamaican scholar, bring to this topic many years of involvement in planning, implementing and tea- ching education for national development, and have a particular interest in the global significance of the commitment that Cuba has demonstrated in promoting equity with quality in education.
    [Show full text]
  • The Special Period
    Cuba 101 Series The Special Period Until its collapse in 1991, the Soviet Union provided Cuba with significant subsidies, as well as substantial political and military support. The socialist bloc was the island nation’s main trading partner, and this relationship guaranteed a minimum level of economic security and the satisfaction of Cubans’ basic needs.1 Soviet subsidies averaged $4.3 billion a year for the period 1986- 1990,2 and constituted 21.2 percent of the Cuban Gross National Product (GNP).3 The Soviet Union sold oil to Cuba at below-market prices and allowed Cuba to re-export this commodity to the world market, generating hard currency worth more than 40 percent of the country’s total revenues—twice the share generated by exports of sugar, Cuba’s primary crop and principal commodity.4 In 1987, the Soviet Union paid Cuba an equivalent of 0.419 USD per pound for imported sugar, more than six-fold the average world market price of 0.0676 USD per pound.5 The suspension of economic relations with the former soviet bloc plunged Cuba into a crisis that threatened to undo thirty-five years of social gains and economic achievements. The country lost its primary supplier of imported food, machinery, and other goods, and was increasingly unable to purchase these goods from other sources, as it lacked markets to export the goods it produced.6 To make matters worse, the U.S. Congress tightened the embargo against Cuba with the Toricelli and Helms-Burton Acts, which extended trade prohibitions and penalties to foreign companies and foreign subsidiaries of U.S.
    [Show full text]
  • General Assembly Distr.: General 7 February 2013 English
    United Nations A/HRC/WG.6/16/CUB/1 General Assembly Distr.: General 7 February 2013 English Original: Spanish Human Rights Council Working Group on the Universal Periodic Review Sixteenth session Geneva, 22 April–3 May 2013 National report submitted in accordance with Human Rights Council resolution 16/21, annex, paragraph 5* Cuba * The present document has been reproduced as received. Its content does not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations. NY.13-23650 (E) 080313 120313 GE.13-10693 (E) 140313 A/HRC/WG.6/16/CUB/1 Contents Paragraphs Page I. Methodology and consultation process................................................................... 1–2 3 II. Legal and institutional framework for the promotion and protection of human rights in Cuba .............................................................................................. 3–10 3 III. Achievements and challenges in the promotion and protection of human rights in Cuba .............................................................................................. 11–162 4 Rights of the child................................................................................................... 13–20 4 Youth ...................................................................................................................... 21–25 5 The elderly.............................................................................................................. 26–28 5 Rights of persons with disabilities .........................................................................
    [Show full text]