Cuban Economic Policies, 1990-2010: Achievements and Shortcomings

This article analyzes Cuban economic policies in the post-Cold War era, with an emphasis on recent developments. It covers macroeconomic performance, sources of growth, economic challenges, reforms under Raúl Castro. During the 1990s, international tourism and remittances replaced the once-thriving sugar industry as the top sources of hard currency for the cash-strapped Castro government. More recently, a productive partnership with Venezuela converted exports of Cuban professional services into the island's main engine of growth and triggered strong macroeconomic performance in 2005-7 before a major liquidity crunch and other problems ushered in a recession. However, Cuba continues to suffer from all the inefficiencies, red tape, and distortions of a state-dominated economy. Albeit significant, Raúl Castro's reforms have yet to address, let alone fix, the fundamental shortcomings of Cuba's socialist system.