Sunday, 25 October 2020

Castro’s Shallow Economic Reforms Keep Suppressing the Dreams of Cubans

Following the economic and immigration openings between the United States and Cuba during the Obama administration, the Raúl Castro regime reportedly began timid economic reforms that placed more responsibility in the hands of private entities — but have they worked?

Castro has cultivated an economic climate that, despite having diversified trade and investment partners in Cuba, continues to be dependent on its export of services (like doctors) as well as on the production of increasingly fewer goods. (Flickr)

It doesn’t look like it, as 2017 comes to a close as the island’s second straight year of recession.

“There is little hope that the country’s economy ends 2017 with a ‘positive growth,’” Cuban Economist Pavel Vidal said, predicting that the year will finish out with as little as -1.4 percent growth in Gross Domestic Product.

- Advertisement -

Another factor that has hurt the Cuban economy — and in turn has prevented Castro’s limited reforms from blossoming — is a lack of foreign investment. On the other hand, Cuba intends to develop a Special Zone of Economic Development, specifically in the province of Mariel, 28 miles west of the capital of Havana. With this project, the island’s regime hopes to attract sustainable foreign investments as well as manufacturing and technology.

Though Economic Zones are intended to attract foreign capital, a US company has already been rejected from the project, while three more projects are reportedly in “advanced negotiation” stages.

Agriculture, construction and tourism were expected to improve the island’s GDP by around 1.1 percent; however, those predictions didn’t account for the loss of oil subsidies in Venezuela or the fall in sugar prices caused by Hurricane Irma, whose true impact the Castro regime has not yet revealed.

Castro has cultivated an economic climate that, despite having diversified trade and investment partners in Cuba, continues to depend on its export of services (like doctors) as well as on the production of increasingly fewer goods.

- Advertisement -

Article originally appeared on Today Cuba and is republished here with permission.

- Advertisement -
Q24N
Q24N
Q24N is an aggregator of news for Latin America. Reports from Mexico to the tip of Chile and Caribbean are sourced for our readers to find all their Latin America news in one place.

Related Articles

How many currencies does Cuba need?

Havana residents last week welcomed the ending of a month-long coronavirus...

U.S. Imposes New Restrictions on Tourism in Cuba

PANAM POST - The president of the United States, Donald Trump,...

MOST READ

Reinas join OIJ to help women who suffer physical and sexual violence

QCOSTARICA - A few months ago, after being in an intense self-defense class, the partners, friends and beauty queens María Teresa Rodríguez (Miss Costa...

Now your dog can accompany you to the bank

QCOSTARICA - BAC Credomatic adopted the “pet friendly” policy in Costa Rica, allowing customers to enter any of the bank's branches with their pet. "At...

Coronavirus and flights: study reveals low transmission of COVID-19 on board aircraft

QCOSTARICA - The International Air Transport Association (IATA), released an updated registry of infections of COVID-19 on board commercial flights, revealing a low incidence...

COVID-19 in Costa Rica: 1,503 new cases for Wed October 21

QCOSTARICA - Following a drop in the new cases daily since Sunday, there was a spike on Wednesday, with the Ministry of Health reported...

Passage at the southern border blocked again

QCOSTARICA - The protests and blockades did not occur Wednesday, however, Costa Rican tuckers closed again, at around 5:00 pm transit through the border...

Political parties turn their back on Government’s second attempt at dialogue

QCOSTARICA - The second attempt at dialogue by the Executive Power to define the route to follow in search of a solution to the...

Let's Keep This Going!

To be updated with all the latest news and information about Costa Rica and Latin America.

Article originally appeared on Today Cuba and is republished here with permission.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.