Foreign investiment in socialist Cuba: Significance and prospects

Abstract

In February 1982, Cuba’s Council of State approved legislation that authorized some forms of foreign investment in the island. The legislation was largely ignored by foreign business that for nearly a decade showed scant interest in investing in Cuba. However, in the 1990s, foreign investiment in socialist Cuba has increased rapidly. The first part of the article gauges the economic significance of foreign investment in the context of the financial needs of the country. The second part touches on a number of issues that have a bearing on the further growth of foreign investment in Cuba. The article concludes with some general observations on the impact of foreign investment on the Cuban economy and prospects for the future.