Cuba's Socialist Economy Toward the Mid‐1990s

Abstract

In the years 1991–93, the Cuban economy declined by some 50 per cent, and it is in a dire condition. Some measures have been introduced to counteract the decline: permitting the use of foreign currencies (particularly the dollar), allowing self‐employment and converting state farms into co‐operatives, and attempting to attract foreign firms to enter joint ventures, particularly in tourism. The reforms have been only partial, however, and evidently accepted reluctantly by President Castro. With subsidies from the former Soviet Union eliminated, the economy depends critically on the relative prices of oil (a principal import) and sugar (the main export). Without more vigorous reform, the outlook is extremely bleak.