Cuban economy

The Cuban economy is sustained by the country's natural resources, which are highly varied and range from minerals such as nickel and cobalt, to tropical landscapes that attract millions of tourists every year. Human capital is the other fundamental pillar of the country's economy, which has some of the highest rates of literacy, life expectancy and health coverage in all of Latin America and the Caribbean. Despite the fact that problems of shortages and lack of basic supplies.

The Cuban government maintains its adherence to socialist principles when it comes to organizing its economy, with planning, with options different from those that would be dictated by the market; although after the collapse of the USSR and the socialist countries of Eastern Europe, private initiative and the role of the market have increased, although not to the level of what happened in Eastern Europe.

On the other hand, and according to UN data, Cuba would be the only country in the world that meets the two criteria that, for the WWF organization, mean the existence of sustainable development: high human development (IDH > 0.8) and sustainable ecological footprint (footprint < 1'8 ha/p). According to the 2010 EPI report, carried out by the universities of Yale and Columbia in the United States, the country is in the 9th position in the world with the best environmental performance, with figures only comparable with highly developed nations.

Economic history before the revolution

The Cuban economy has been closely linked to sugar since its independence in 1902; which has been the main product exported by the island since the XIX century; although tobacco and cocoa were also supports for Cuba's colonial economy and Havana was the most important cocoa emporium in the XVIIIth century. After independence Cuba depended on sugar; its economy was closely linked to its price on the international market because almost all the sugar produced was destined for the foreign market, especially the United States.

However, between 1920 and 1933 the island's exports and imports dropped from 60% to 50%. This drop was due to several factors. In 1920 the US, which had previously bought huge quantities to feed the soldiers of the First World War, no longer needed so much sugar and from 1925 began to produce sugar from beets grown on its own territory that little by little was substituting sugar from Cuba. To finish sinking exports in 1929 there was the stock market crash that would lead to the Great Depression.

As the demand for sugar fell, the price began to fall, and the Cuban economy began to lose its advantage in terms of trade: now it needed to sell more tons of sugar to be able to import from abroad the same amount of another product as before, that is to say: if in 1900 he had to sell a ton of sugar for each car he bought, in 1950 he had to sell two tons to be able to buy a foreign car.

After carrying out a coup in 1952, General Batista abolished the 1940 Constitution and suspended constitutional guarantees, including the right to strike. He sought the support of the island's wealthy landowners who owned the largest sugarcane plantations and presided over a stagnant economy that widened the gap between rich and poor Cubans. Batista's increasingly corrupt and repressive government began to enrich itself from systematically exploiting the commercial interests of Cuba and carrying out lucrative deals with the American mafia, which controlled the drug, prostitution and gambling businesses in Havana.

This led to a deep economic and social crisis on the island that ended up leading to the Cuban revolution.

Immediately before the Revolution, in 1958, Cuba had a GDP per capita of $2,363, which placed it in the middle of the ranking among Latin American economies. According to the UN, between 1950 and 1955, Cuba had a life expectancy of 59.4 years, occupying position 56 in the world ranking.

Recent economic history

Most of the means of production belong to the Cuban state and are administered by the Cuban government and, according to government statistics, the state employs about 75% of the workforce. today there are more than 470,000 self-employed throughout the island by 2015 there were more than half a million private workers.

By 1985, Cuba's estimated per capita income exceeded that of other countries in its geographical environment such as the Dominican Republic, Haiti, El Salvador, Nicaragua and Honduras.

Due to the loss of Soviet subsidies in 1993 and 1994, the government introduced some mercantilist-oriented reforms, including opening up to tourism, permitting foreign investment, legalizing the dollar, and authorizing self-employment in almost 150 professions. These measures resulted in moderate economic growth.

In order to offer employment to those workers who were made redundant due to the economic crisis, and in order to provide services that the government found difficult to offer.

The government maintains tight control over the small private sector through regulation and taxes. For example, the owners of a small private restaurant cannot provide seats for more than 50 people and must pay 25% tax on the salary paid to contract workers beyond five units. Monthly fees must be paid without regard to income, and there are frequent inspections where hefty fines are imposed when any of the many rules of self-employment are violated.

Historical developments in Cuba ' s per capita income compared to other Central American and Caribbean countries.

Due to the country's dismal credit, $11 billion in hard currency debt, and the risks associated with investing in Cuba, interest rates have reportedly reached as high as 22%. Likewise, the US embargo negatively affects Cuban foreign trade, preventing it from accessing strategic products from certain US, Finnish, Japanese and other countries companies. The increase in international reserves reached 11,103 million dollars in 2014, doubling what existed five years ago.

According to the report of the Cuban government on the consequences of the 2007 embargo presented to the UN, the documentable damages caused by the embargo reached 96 billion dollars in 2008. The main center of attraction for foreign investment is the 450 km² Special Development Zone of Mariel, where it is planned to create joint laboratories with Brazilian companies for the production and export of Cuban medicines. In late 2014, private businesses were opened in 201 different activities, especially in the service sector, employing more than 476,000 citizens in private activities. The private activity promoted by Raúl Castro, especially in the service sector, together with the development of cooperatives, has grown in recent years. The number of private sector workers and self-employed workers in Cuba rose to 489,929 at the end of February 2015.

Exports derived from forestry activities in Cuba have allowed the entry of more than 24 million dollars into the national economy in the last decade. According to data from the Food and Agriculture Organization of the United Nations (FAO), Cuba is one of the few countries in the world that achieves annual growth in its forested area, which represents more than 30% of the land.

Foreign trade

In 2020, the country was the 139th largest exporter in the world (US$1.6 billion, less than 0.1% of the world total). In imports, in 2019, it was the 126th largest importer in the world: US$ 5.3 billion.

Primary sector

Agriculture

Cuba produced, in 2019:

• 8.7 million tons of sugar cane (between 21st and 25th world producer);
• 950 thousand tons of banana;
• 795 thousand tons of cassava;
• 752 thousand tons of vegetables;
• 555 thousand tons of sweet potatoes;
• 480 thousand tons of tomatoes;
• 382 thousand tons of mango;
• 377 thousand tons of rice;
• 307 thousand tons of corn;
• 206 thousand tons of yautia;
• 184 thousand tons of papaya;
• 169 thousand tons of beans;
• 129 thousand tons of potato;
• 27 thousand tons of tobacco;
• 5.3 thousand tons of coffee;

In addition to other productions of other agricultural products.

Livestock

In livestock production, in 2019 Cuba produced 234 thousand tons of pork, 438 million liters of cow's milk, 81 thousand tons of beef, and 24 thousand tons of chicken meat, among others.

Secondary sector

Industry

The World Bank lists the top producing countries each year, based on the total value of production. According to the 2018 list, Cuba had the 66th most valuable industry in the world (US$13 billion).

Mining

In 2019, the country was the fifth largest producer of cobalt (3,800 tons) and the tenth largest producer of nickel (49,200 tons). In other minerals, it is not among the largest producers in the world.

Cuba also has important mines, although not as developed as other industries, mainly nickel (Cuba has the fifth largest nickel deposit in the world, behind Indonesia, Australia, Brazil and Russia), cobalt and copper, among others. The main nickel deposits are located in the municipality of Moa, Holguín province and in the Guantánamo province (although on a smaller scale). This product has in fact become an important Cuban economic base.

The government claims it will increase nickel production to 80,000 tons per year, making it a powerful source. Programs to modernize this extraction procedure are underway during the 2000s and it constitutes an important reserve It is even stated that with the construction of a fourth nickel company, production will rise to 100,000 tons. Similarly, China is trying to sign cooperation agreements for the extraction of this mineral.

Cobalt is another mineral extracted in eastern Cuba, although it is also extracted in provinces such as Villa Clara. Cuba has 26% of world reserves (second largest) produces approximately 10% of this mineral worldwide and exports most of it to China. Regarding this matter, Cuba signed agreements with Canada. With nickel, it is cooperating with China and exploring new reserves of this mineral in the north of eastern Cuba. Cuba also produces 400,000 annual tons of steel in the industries of Havana and Las Tunas. Due to its geographical location, Cuba extracts sea salts from the Caribbean Sea. It has made a new product out of them, which is exported to the international market and used for consumption. Production is approximately 250,000 tons in total. The most important salt mines are located in Puerto Padre and Guantánamo, both in the eastern part of the country.

Energy

In non-renewable energy, in 2020, the country was the 53rd largest oil producer in the world, extracting 41 thousand barrels / day. In 2011, the country consumed 150 thousand barrels/day (64th largest consumer in the world). The country was the 37th largest oil importer in the world in 2013 (160,000 barrels/day). In 2016, Cuba was the 62nd world producer of natural gas, 1,100 million m³ per year. In 2016, the country was the 87th largest gas consumer (1.1 billion m³ per year). The country does not produce coal.

In renewable energy, in 2020, Cuba did not produce wind energy and had 0.1 GW of installed solar energy capacity.

Oil extraction in the vicinity of Havana.

Oil is a resource that still has little production. According to The World FactBook in its 2006 edition, approximately 4,000,000 equivalent annual tons of oil and gas are extracted and processed (70,000 b/d over 48% of domestic consumption). ^{[citation required]}

Oil is mainly extracted in the provinces of Havana (Canasí, Yumurí, Jaruco, Puerto Escondido) and Matanzas (Cárdenas and Varadero).

Oil is processed in Cuba through four refineries located in Havana, Santiago de Cuba, Cienfuegos and Sancti Spíritus (Cabaiguán); The latter is mainly dedicated to the production of basic oils for the industry. Oil imported from Venezuela to the island is also processed in compliance with the PetroCaribe treaty.

Zeolite and silica are abundant and an industrialization process has begun to extract these minerals that in 2009 are exported to countries in the area such as Mexico or Colombia.

Tourism

In 2018, Cuba was the 50th most visited country in the world, with 4.6 million international tourists. Tourism revenue this year was $2.9 billion.

In the mid-1990s, tourism surpassed sugar, long the mainstay of the Cuban economy, as the main source of foreign exchange. Tourism figures heavily in the Cuban government's development plan, with one senior official describing it as the "heart of the economy." Havana dedicates significant resources to the construction of new tourist facilities and the renovation of historical structures for the use of the tourism sector. Approximately 1.7 million tourists visited Cuba in 2000, generating some $1.9 billion in gross receipts; But the government's hopes for sustained growth in this sector failed to materialize due to the decline in the world economy in 2001 and the negative effects on regional tourism after 9/11. The final figures for 2001 reflect negligible growth in the number of tourists and no change in gross receipts for 2002. This situation changed over the course of the decade.

In 2008 the figure of 2.3 million tourists was reached and per capita income also increased. The construction of hotels and other tourist infrastructure skyrocketed in 2005, and the growth in tourist arrivals has been maintained in the midst of the global crisis, although income has decreased somewhat. Cuba has become the main destination after Western Europe for Canadian tourists, reaching 818,246 tourists in 2008, and has a significant share of the Spanish, Italian and British markets.

The main destinations are:

• Old Havana
• Varadero
• Gardens of the King
• Storm

The Ministry of Tourism (MINTUR) is the governing state body of the Tourism System, in which other entities of the country participate. The MINTUR prepares the policy and controls its application in the entities that directly manage the properties of the sector. Cuba also has a new faculty at the University of Havana, dedicated to tourism studies, the Faculty of Tourism.

To carry out the integral development of tourism in Cuba, a system has been structured made up of hotel entities (Gran Caribe, Habaguanex S.A., Islazul, Horizontes, Grupo Gaviota, Cubanacan, etc.) and non-hotel entities (Rumbos, Cubatur, Transtur, Turarte, etc.), as well as others of an autonomous and independent nature, which assume support functions for the rest.

Since 2008, Cuban citizens are allowed to enter and use tourist facilities.

In 2015 the figure of 3 million 500 thousand foreign tourists was reached, which was a new record. A more abrupt growth is expected in 2016 with the opening of commercial flights between the United States and Cuba, an agreement signed in February 2016 that will allow 110 daily flights between Cuba and the United States divided into 20 to Havana and 10 more to each of the other nine international airports in Cuba. In 2017, 4.8 million foreign tourists arrived on the island.

Sugar Industry

Cuba in the period before 1914 was dedicated mainly to the export of a single product: sugar. This product originates from Africa and was introduced to America by the Spanish in the XVII century. It requires high temperatures during its growth (27 °C), a lot of sunlight and abundant rainfall (1500 mm per year). It grows in flat, deep and well-drained soils.

The process that Cubans used to obtain sugar consisted of compressing the cut canes with rollers, extracting the sweet liquid that they contain inside. Then they slowly cooked the juice, achieving its reduction through the evaporation of water, until reaching the desired density and concentration (molasses). Sugar loaves were obtained from this and commercial sugar was obtained from its grinding.

Graphic representation of the country's export products in 28 color-coded categories.

Sugar canes were collected by Cubans manually and with the only help of cows. In this way they transported the sugar canes in large wooden carriages to the place where they were going to transform them. Finally, once the sugar was produced, it was transported by the cows in large wooden drums to the ports.

In 1835 the first railroad arose in Cuba, a fact that allowed them to advance a little in their economic activity, although it was still insufficient, the built network did not articulate the territory and did not serve to create a market.

Caña de Sugar in Cuba.

In 1890, technological modernization arose both in the sugar production process and in transportation. However, despite this they continued to collect the canes by hand, since slavery was so widespread in this country, labor was very cheap.

Such was the economic dependence that Cuba had on this product that they dedicated all their land to planting sugar cane. This became a bug: they didn't let the field regenerate. Another problem that Cuban cane sugar experienced was the emergence of competition in 1890 from sugar beets. From then on, Cuban sugar production dropped drastically.

Exports could only be carried out by foreign investment ^{[citation needed]}and also the benefits of these exports in most cases did not remain in the country, while at best some small part remained.

Since the collapse of the USSR, sugar production in 1989 exceeded 8 million tons, by the mid-1990s it had fallen to around 3.5 million tons. a sugar production it grew in the 2013-2014 harvest by 4.2%, according to the final official balance, to achieve the highest growth in the last ten years.

In June 2002 the government announced its intention to carry out a "broad transformation" of this declining sector, with the so-called Álvaro Reynoso Task. The plan proposes to match sugar production with world prices and to close almost half of the sugar mills, laying off more than 100,000 workers, who would be retrained in other professions and given new jobs.

Sugar production has had five years of sustained growth at an average of 13% per year. At the same time, projects for the production of alcohol, electricity and food for livestock are being developed.

Other agricultural products

Some products from the Cuban countryside.

In recent years, agricultural diversification towards sectors such as fruit and vegetables has increased. In Cuba there are many tropical fruits such as pineapple, guava, anón, mamey, papaya, etc. Most of Cuba's agricultural production (60%) is carried out by private farmers and cooperative members.

Coffee is a well-produced product in Cuba, thanks to a mountainous relief where it is planted in the shady soil, mainly in the mountains. The export of coffee is approximately 8,000 tons.

Tobacco: Upon the arrival of the Spanish in Cuba, the tobacco plant spread throughout the world. King Felipe V imposed in 1717 a royal monopoly on the tobacco that was grown in Cuba, a decision that bore the name of "Estanco del Tabaco". At the end of the 19th century there was a boom in the production and distribution of tobacco. Cuban and foreign manufacturers such as Hermann Upmann founded factories in Havana (La Real Fábrica de Tabacos H. Upmann) today called José Martí, and a bank for it: H. Upmann & Co., and became the most important in the world. Manufactured tobacco is known as cigars and is sold at a high cost worldwide; in 2007 exports reached 400 million US dollars.

In the winter season, when temperatures are cooler, it is possible to intensively cultivate a wide variety of vegetables such as lettuce, chard, carrots, radishes, etc. In a new project to self-supply cities and towns, the so-called "Urban and suburban agriculture" was created, which uses protected and semi-protected crops, to have vegetable crops in the summer season where the heat is suffocating.

Agriculture is currently (2009) partially mechanized, due to the fact that many of the implements are of Soviet origin and are in poor condition, although efforts have been made in recent years to give new impetus to mechanization, especially irrigation. ^{[citation required]} On the other hand, in Cuba chemical insecticides are not widely used and instead those of animal and vegetable origin are used, including vermiculture (use of earthworms) to fertilize the soil. This type of practice has placed Cuba as the only country on the planet with sustainable development according to the WWF.

Fishing industry

The fishing industry is developed mainly in Havana, Manzanillo and Matanzas. The production of marine aquaculture is generally small, with a maximum production of 300 tons. The production of freshwater aquaculture is more developed, in the year 2000 it was around 90 thousand tons. Among the fundamental species that are caught Dorado, sea bass, claria or catfish, tench and tilapia are found. Molluscs, crustaceans such as shrimp, lobster for export and squid are also farmed and fished.

Construction

The construction industry in Cuba consists of the production of construction materials such as cement and bricks and architectural remodeling and repair.

For the latter is the UNAICC, in charge of restoration and construction projects. Construction materials are produced in Artemisa, Mariel, Matanzas, Camagüey, Nuevitas, Cienfuegos and Santiago de Cuba.

Machinery

Cuba has small machinery construction industries, among them some hydraulic and simple ones that facilitate labor. The main construction industries are in Havana (the capital), in Santa Clara, Sancti Spíritus, Camagüey Holguín and Santiago de Cuba. In addition, agricultural instruments and machinery are made in the regions of Holguín (see Empresa de Implementos Agrícolas de Holguín and Empresa 60 Aniversario de la Revolución de Octubre en Holguín), Ciego de Ávila, Matanzas and Havana. Projects to reopen KTP productions have been presented. It is very important in the country's economic recovery, since in its decline it lost important factories, including bus and tractor automobiles.

In the naval industry, Cuba partnered with Venezuela to build a shipyard. Ships are also produced at the Santiago de Cuba shipyard. There are also shipyards in Matanzas and Havana. The state companies Claudio Arguelles Factory in Havana and the Guanajay Automotive Industry are well known.

Food industry

In the food industry, Hatuey, Bucanero, Antillana and Manacas soft drinks and malts stand out. Dairy products, preserves (the most important ones are the product of La Estrella and the Cuban-Italian company Papas & Co.), preserves, dairy products (including soy yogurt distributed in Basic Secondary Schools) are produced. and the one given to minors by the Supply Booklet),^{[citation required]} meat, oil (also given in the supply booklet), soft drinks (highlighting Ciego Montero), juices (especially Tropical) and diet. Part of this industry is based on agriculture, such as the production of juices, where there are large crops of the required fruits.

Textile and printing industry

It constitutes the paper industry and its printing. The main paper producers are located in Havana, Matanzas and Santiago de Cuba. Textile production (of fabrics, threads and fabrics) is found rather in the western region of the country, except for Holguín. The producing companies are from Havana, Bauta, Alquízar, Matanzas, Güines and Holguín.

Transportation

IL 96 at José Martí International Airport in Havana.

Cuba has a developed road network for automotive transport that reaches 52,202 km, of which 17,212 km are paved. Of these, 11,450 are roads classified as of national interest, including 654 km of highways and 400 km of other multi-lane express roads and 1,435 of the Central Highway. This network covers all the provinces and cities of the country.

Transportation in Cuba has deteriorated due to the aging and breakage of old means and the difficulty in acquiring new ones due to the economic, financial and commercial embargo of the United States and the economic crisis to which it has been subject. the country. Since 2006, large plans have been programmed for its comprehensive improvement.

In cities it is common to still see American cars from the late 1950s. In the 1970s and 1980s, vehicles from socialist countries were imported, with the Lada, Moskvitch and Volga brands being very popular. To distribute these to private users, a priority allocation mechanism was created, prioritizing professionals and prominent workers. As of 2012, the purchase and sale of automobiles between citizens has been liberalized

Since the 1990s, modern European and Asian cars have begun to be imported. It is common to find vehicles from European brands, such as Peugeot, Citroën or Mercedes-Benz, and Asian brands, such as Toyota, Mitsubishi, Hyundai, Kia, although the vast majority are state-owned (taxis, rental cars for tourism or company cars).). In the 2000s, Chinese-manufactured cars arrived on the island, with brands such as Chery.

The country also has an extensive railway network with a length of 8,193 km that reaches all the provincial capitals and the main ports. The state company in charge of the railway network is (Ferrocarriles de Cuba). For public transport, trains from more than twenty years ago are still used, although new equipment is arriving in the country from China and Iran. There are train services from Havana to Pinar del Río and Guantánamo, crossing the entire country.

Scheme of the national public transport railway network.

Cuban aviation is relatively little used at the national level, although there are a dozen airports with regular flights to Havana. The most important international airports are located in Havana, Varadero, Holguín and Santiago de Cuba. The national airlines are Cubana de Aviación, Aerogaviota, AeroCaribbean, Aero Varadero and Aerotaxi.

Transportation by bus is the most used; There are two state companies in charge of this activity: Viazul, which operates in Cuban convertible pesos (CUC), and Astro, which operates in Cuban pesos (CUP). Both companies have modern Mercedes-Benz and Yutong brand buses. These companies operate mainly at the interprovincial level. In district and urban transport other means are used. Rigid buses can be seen in the main cities while articulated buses mainly in Havana. The popular "Camels" They gradually withdrew but you can still see them doing medium routes, such as the one that makes the Jagüey Grande - Matanzas route. To communicate small urban centers, minibuses, somewhat deteriorated by time, are used.

In 2014, a container port was inaugurated that required an investment of 700 million dollars and was built by the Brazilian company Odebrecht in Mariel.

Energy

To avoid the deficiencies of electricity produced in the thermoelectric plants, where the already refined fuel is taken,^{[citation required]}, the Cuban government invested in the repair of generators of energy. One of them was the most modern and efficient in the country, the Cienfuegos Thermoelectric, which as of 2009 is being repaired to achieve better operation. This is also the case in others such as Santiago de Cuba, in which the toxic emissions into the atmosphere. A significant investment has also been made in the construction of sites for diesel and Fuel Oil generators scattered throughout the country, almost completely eliminating the blackouts of the 1990s.

The Cuban energy saving program known as the "Energy Revolution" sold kitchen appliances such as refrigerators, electric pressure cookers, electric stoves, etc. to households with payment facilities. to avoid the large consumption of natural gas and other fuels such as kerosene. As part of this program, electric poles and high-voltage cables for the distribution of electricity were also fixed, new generators were installed and this meant that the blackouts are already familiar. This program made Cuba the first country in the world to replace incandescent light bulbs with low-energy light bulbs, an example later followed by countries such as Australia, Venezuela or Argentina.

There are very intricate places in the country where it was not possible to bring electric light. However, it was stressed that every school had to have a television, video and computers. To obtain electricity with which to supply these devices, photovoltaic energy was used. This way of obtaining energy lies in the storage of solar rays and their transformation into electricity. This is carried out in solar panels, which have become very common mainly in the Guantánamo region.

Cuba has four large wind farms to obtain alternative energy. One of them is located on the Isla de la Juventud, in extension until 2009.

In the central region of Cuba, in Ciego de Ávila, there is another smaller park that is being expanded.

Being the most recognized and made up of several parks, the one in Gibara, Holguín, has an enormous capacity. The last adjustments were made and it has already begun to produce its first Megawatts.

The fourth, which has six Chinese Goldwind technology wind turbines, in Punta Rasa, also near Gibara, started producing at the beginning of July 2010.

Reforms by Raúl Castro

The government of Raúl Castro introduced some changes in the Cuban economic sector, which have been oriented towards two fundamental aspects: the substitution of imports (agricultural and industrial) and the reform in the countryside, issues that his government has considered as of national security. In addition, since his inauguration he spoke of eliminating unnecessary prohibitions, which has been seen in practice with the purpose of banning hotels and luxury items to nationals. In 2009, in a speech before Parliament, he stated that "the process of updating the Cuban economic system must be carried out without haste." On the other hand, a significant part of the foreign debt has been renegotiated, especially with Russia, in the case of the one contracted with the former Soviet Union, and with Mexico, as well as with favorable prospects to renegotiate with the Paris Club.

Land in usufruct

One of its pillars is the delivery of land in free usufruct for those who wish to work it. This measure increased production relatively quickly, although it had to combat bureaucratic obstacles, the elimination of which is also part of the new government program. The handover of land has been greater in the central and eastern provinces of the country:

Import substitution

This issue has been worked on together with the increase in the quality and quantity of exportable items and is present in all sectors of the economy to varying degrees, especially in agriculture and light industry.

Prices

Cuban pesos are limited to purchases with an amount planned for a month. This poster shows the availability and limits on the products in the warehouse, according to the day of the week.

The improvements in prices for private producers have encouraged some productions such as milk and fruit trees. There is a program to self-supply the country with cow's milk and eliminate imports of this powdered food. At the end of 2009, 66 of the 169 municipalities in the country were self-sufficient in milk, in a special project that covered some 6,000 wineries in 2009 (56%), except for the country's capital.

In general, milk production increased in the private and cooperative sector, as follows:

The production of pork and beef was greatly affected due to the collapse of the USSR and the end of the millionaire subsidies, the production of feed, etc.

Through the Ministry of Agriculture, the State has signed agreements with individual or cooperative producers for the sale of meat at a better price -with the consequent elimination of subsidies to increase productivity- through which the government guarantees a percentage of feed and the rest must be contributed by the farmer. Beef went from being worth just 15 cents to almost 50 cents, which has stimulated production.

Rice harvests also increased significantly in 2008 and 2009.

Foreign investment

To keep the economy afloat, Havana actively seeks foreign investment, which often results in the formation of joint ventures in which the Cuban government owns half the capital, as well as contracts for the management of tourist facilities or the financing of the harvest. A new legal framework, established in 1995, allows foreign owners to have a majority in joint ventures with the Cuban government. In practice, the foreign-owned majority in joint ventures is almost non-existent. Towards the end of 2000, almost 400 joint ventures operated in Cuba, which represents investments, by 46 countries, of between 42 and 45 billion dollars, although practically 70% of them could not be considered foreign investments according to the international standard, since they operate outside the country. A large part of these investments are loans or contracts for administration, supplies or services that, in Western economies, are not normally considered capital investments. Since November 1, 2013, the Cuban government inaugurated the Mariel Special Development Zone located in the Cuban province of Artemisa, which constitutes a space within the national territory that is not delimited by customs demarcation, in which special regimes and policies are applied, with the objective of promoting economic development through the attraction of foreign investment, with a view to increasing exports, import substitution and generating new sources of employment. According to data provided by the Cuban government in July 2022, 62 businesses have been approved in the area, of which 36 are in operation. The amount of investment committed exceeds 3000 million dollars since its foundation.

Remittances

Family remittances from abroad play an important role in Cuba's public accounts, amounting to between 800 and 1 billion dollars a year for an economy of 18 billion dollars. ^{[citation needed]}Most remittances come from relatives in the United States, who are allowed under US law to send up to $1,200 to the island each year. This provides access to dollars to almost 60% of the Cuban population.

In 2009, US President Barack Obama allowed all Cuban-Americans to travel and send remittances to Cuba without restrictions. In addition, he enabled telecommunications companies to negotiate with the Caribbean nation, in the midst of the dialogue process that the two states have been experiencing since Obama's inauguration of the presidency.

Science and technology

Since the beginning of the colony in Cuba, there have been scientists dedicated to such topics who have contributed with their studies to the knowledge of nature in Cuba. Many of them were collectors and biologists who donated their collections that are now exhibited in the Natural History Museums of this country.

The government of Cuba in the XXI century has dedicated a greater effort to sciences such as botany, zoology and geology. Currently recognized scientists who have made new achievements and research develop in them. Many of these issues have also been well known among the population through courses such as the University for All of Geological Nature of Cuba and Forests of Cuba. In them, through videos and slides explained by specialists, topics as important to Cuba as the others are shown.

Cuba had illustrious figures in medicine and biotechnology whose discoveries are still applicable today. Among them is Carlos J. Finlay, who fought against yellow fever. Currently, this sector has a great development, with centers of great prestige such as Genetic Engineering and Biotechnology, Hemo-Derivatives and the Molecular Immunology Center, all located in the West Havana Scientific Pole. These centers have great achievements in vaccines, such as Pentavalent, of which Cuba is the only country in the Third World and second in the entire planet to have it (only after France). Heberprot-P, a powerful healing agent developed in Cuba, is already exported to 19 countries that have authorized it. It also has vaccines against Hepatitis B and tetanus, with interferon and important clinical trials in the area of cancer.

Cuba stands out enormously in the health sector thanks to the dedication and professionalism of the increasing number of medical graduates. Some of the greatest achievements are in biotechnology, in the development of medicines and vaccines. After the special period, with the economic embargo on Cuba, it began to produce and improve medicines and vaccines in order to avoid their shortage in the country. In addition, green medicine, used before current medicines, is applied as an alternative means. Vaccines are distributed to the young population, thanks to products made against diseases that have been practically eradicated.

Regarding computing, in February 2009 a GNU/Linux distribution began to be developed in Cuba, created by professors and students of the University of Informatics Sciences. It is expected that this distribution, called Nova, will gradually replace proprietary software.^[update] Cuba also has computers in all educational centers, from primary to university level; in the latter there is an Internet and intranet connection, such as Infomed, a site in the field of medicine. It is estimated that only 1.7% of the population has access to the internet, according to the government due to the restrictions imposed by the United States blockade, according to the dissidents, it is because the government does not allow the people to have access to a free means of information.

Standard of life

Living standards at the end of the 1990s remained below those of 1989. Lower prices for sugar and nickel, increases in the price of oil, decline in tourism after the 9/11 attacks September 2001 in the United States and the devastating Hurricane Michelle in November 2001 together created new economic pressures for the country and threatened to reverse gains made in the mid-to-late 1990s. Food and fuel shortages worsened. radically.

Villa El Caney, near Santiago de Cuba.

The economic recovery that began with the new century continued to raise GDP, first with investment in tourism and then with advances in medicine, software, services, and nickel. and later with an intense program in agriculture (mainly sugar cane and the livestock industry) the increase in production for self-consumption. Together with the progress, the national services of CUBACEL (cell phones) and access to any hotel that was once dedicated solely to tourism began. In addition, the possession and sale of computers, DVD players and other household appliances was authorized. Transportation improved in 2008, mainly in Havana. As was the modernization of electrical energy supply equipment and fuel through PetroCaribe, eliminating blackouts since 2007 with the Energy Revolution, which distributed different cooking supplies to credits, and saving light bulbs, making Cuba the first country in the world to carry out this so-called "green revolution", followed later by Australia, Europe and Argentina, among other countries. Since 2005, due to the country's entry into different regional organizations such as ALBA, GDP growth skyrocketed, manifesting itself as follows:

Behavior of recent economic growth.

The estimated growth for 2008 was higher (around 7%) and it behaved like this in the first semester, with around 6%. However, the passage through the country of three powerful hurricanes made it only grow by the figure previously exposed. That same year, moonlighting was authorized to alleviate population aging, which in Cuba is similar to that of European nations. The UNDP report on quality of life and human development places the island in 2009 in 51st place on the planet with more than 0.8 points, and as the fifth best country to live in Latin America, with a life expectancy of 78,5 years and a literacy rate of 99.8%, above neighboring countries such as Mexico, Costa Rica or the Bahamas.

In 2009, Unicef confirmed that there was 0% child malnutrition in the country. However, more recent data from Unicef maintain a 7% moderate and severe malnutrition rate.

MDG

The Millennium Development Goals are met in Cuba faster than in other countries in the Latin American region. According to UNDP figures, they are related as follows:

Global recession

In 2009, despite the global recession, the economy grew by 0.8% in the first semester and approximately 2% in the second, which rounded off to 1.4% at the end of the year. This international situation affected the country with great problems of monetary liquidity, leading to a chain of non-payments to foreign companies, the greatest exponent was the dissolution of the Cubalse corporation, a parastatal giant, which owned dozens of stores and shopping centers throughout the island, its workers were relocated to the Cimex and TRD corporations. However, thanks to the growth of sectors such as agriculture (4.5%), transportation (4.6%) and services (4%) and despite the fact that the industrial sector decreased by (2%) and average commerce by (0%) growth, the country remained outside the group that suffered recession and widespread unemployment.

The embargo

The embargo that the United States imposed on Cuba (what in Cuba is known as the blockade) is an economic, commercial and financial embargo that has been in force since February 7, 1962 and it is the longest-running trade embargo in modern history.

Investors are restricted by the US Cuban Liberty and Democratic Solidarity (LIBERTAD) Act, which imposes sanctions on those who "traffick" on expropriated property owned by US citizens. As of August 2002, 18 executives from two foreign companies have been prevented from entering the United States. More than a dozen companies have left Cuba or changed their investment plans there due to the threat of sanctions under the LIBERTAD Law. This system of sanctions includes various regulations and commercial obstacles. He has been condemned 28 times by the UN General Assembly, which once again spoke overwhelmingly on June 23, 2021 against the US economic blockade of Cuba and demanded an end to these unilateral coercive measures. The resolution rejecting the embargo on Cuba this time obtained 184 votes in favor, two against (United States and Israel) and three abstentions (Colombia, Brazil and Ukraine).

Cuba in the international context

The economy in Cuba is going through a period of recovery, after the so-called Special Period in which the reforms carried out had a direct impact on all economic sectors. In 2008, accompanying the global crisis, Cuba suffered the passage of three powerful hurricanes that destroyed about 20% of its Gross Domestic Product in agriculture. Tourism was one of the key sectors in this context, since it has become, together with agriculture, the two pillars that support the country's GDP. A remarkable fact is the growth rate, which in the interval 2000-2010 shows a contraction of 62.7%, although this data does not do justice to the excellent years of growth that it presented in 2005 (11.2%) and 2006 (12.1%).). For the period 2000-2008, the evolution of its Gross Domestic Product was 98.9%, climbing up to 60 billion dollars. The following table shows the other relevant socioeconomic indicators.