Should The Cuban Government Require Non-Cuban Businesses?

... the majority of which sought refuge in the United States. With the fall of the Soviet Union, Cuba now stands at a crossroads. The battle cry has changed from “ Socialism or death to Resist, struggle and win” (Castro’s Cuba II). Hopefully, Castro and/or Cuba will not be forced into a market-based economy and all the materialistic commodities that go along with capitalism. In my opinion, Castro should hold out for as long as possible griping to the former battle cry “Socialism or death”. Only time will tell what the fate of Castro’s Cuba will be. Trade might once again flourish the economy, tourism might open up new economic opportunities and foreign investments from Italy, France and Spain could possibly dig Cuba out the current economic hole it’s in. Until then however, the battle against capitalism must not lose any of its vigor.

Since the fall of the U.S.S.R. and its communist system, Cuba has not posed a significant military threat to the United States or to other co...

public no longer feels the need for the embargo against Cuba. The poll, conducted in January 2014, showed that nationwide 56% of Americans support the normalizing of relations with Cuba (Planas, 2014). The number of people who oppose the embargo in the state of Florida, which is more closely affected by the embargo, is at a high of 63%. The lack of support isn 't just found in the American public, but the poll also found that 60% of Democrats and 52% of Republicans favor increased engagement with Cuba (Planas, 2014). Now that the polls show that the majority of Americans are opposed to the embargo, the likelihood of Congress addressing it is much higher. Of course, there are still some people who agree with the embargo due to the fact the the Cuban government hasn’t changed and is still under Castro rule, but those people need to understand that the only way the Cuban government can change is if they have a positive role model. Their last strong connection was with the Soviet Union which was also a communistic state. It is up to the United States to strengthen relations with Cuba and show the Cubans what democracy looks like in hopes that it will force changes in the Cuban

Maybe Castro shouldn't be blamed for the conditions that exist in Cuba. Castro has taken on a problem that has never been right. Cuba has been corrupt from day one, so what make you think that the problems of Cuba belong to the leader that is in charge now? Castro is in a system that will always remain behind the major players of the world, and it is not totally his fault. Colonization played some part in the social-economic status that Cuba has now.

Cuba and the Affects of the Embargo The island nation of Cuba, located just ninety miles off the coast of Florida, is home to 11 million people and has one of the few remaining communist regimes in the world. Cuba’s leader, Fidel Castro, came to power in 1959 and immediately instituted a communist program of sweeping economic and social changes. Castro allied his government with the Soviet Union and seized and nationalized billions of dollars of American property. U.S. relations with Cuba have been strained ever since. A trade embargo against Cuba that was imposed in 1960 is still in place today. Despite severe economic suffering and increasing isolation from the world community, Castro remains committed to communism. (Close Up Foundation) The United States and Cuba share a long history of mutual mistrust and suspicion. All aspects of U.S. policy with Cuba, such as the current trade embargo, immigration practices, and most recently the possibility of a free exchange by members of the media, provoke heated debates across the United States. While most Americans agree that the ultimate goals should be to encourage Castro’s resignation and promote a smooth transition to democracy, experts disagree about how the U.S. government should accomplish these aims. Some believe that the country’s current policy toward Cuba is outdated in its Cold War approach and needs to be reconstructed. However, many still consider Fidel Castro a threat in the hemisphere and a menace to his own people and favor tightening the screws on his regime even more. (Close Up Foundation) For almost forty years, the United States has not imported any Cuban products, nor allowed any American food, medical supplies, or capital to enter Cuba. President Clinton, like each of his predecessors, supports the trade embargo. Two recent pieces of legislation have tightened the economic restrictions on Cuba. (Close Up Foundation) The Cuban Democracy Act, passed by Congress in 1992, further isolates Cuba from the world economy by prohibiting any foreign-based subsidiaries of U.S. companies from trading with the country. The bill’s goal was to cripple the Cuban economy in order to bring down Castro “within weeks,” according to the bill’s primary advocate Robert Torricelli (D-N.J.). The Helms-Burton Act states that American citizens can sue foreign investors who utilize American property seized by the Cu...

Since 1959, when Fidel Castro seized power in Cuba, relations between the United States and Cuba have been on egg shells. Sanctions were immediately imposed on Cuba as soon as Castro came into power, which resulted in even worse relations between the two countries. However, it was not until 1962 when President John F. Kennedy officially placed an embargo on Cuba. This embargo blockaded any and all transportation to and from the country, disallowed any trade with Cuba, and cut off any ties the United States had with the nation. That was a time when the embargo was needed; with Cuba and the Soviet Union the United States needed something the try to break down the relationship and each individual nation. Now Fidel Castro is not in power, Cuba

Castro’s economic reforms have legalized the creation of “private sector jobs” in Cuba. Cuban citizens can now open small businesses and hire their own workers; create cooperatives that can function as small businesses in areas from agriculture to entertainment; reduced government funded social programs, and have gone as far as ending some state subsidies. These reforms are associated with a goal to reduce the number of workers employed by the government by one million or more. (Laverty)

This embargo is ultimately hurting the people of the Cuba more than the government. The United States has all of the resources that Cuba needs, but they cannot get access to them. This embargo is punishing the wrong people. Being deprived of basic essentials such as medicine, food, and technology is inhumane, and should not be taken away from them. Because of this, the embargo has to end.

The fall of the Soviet Union devastated the Cuban economy. Cuba’s GDP contracted by 35-50% from 1989-1993 (LeoGrande quest 5). As a percentage of total Cuban trade, the Soviet Union’s share fell from 66% in 1990 to 15% in 1994 (5). Moreover, Russia reneged on its oil agreement, and fitful exports caused energy shortages in Cuba. Production and consumption plummeted.

Cuba has traditionally had many trade restrictions and trade barriers. There is some restructuring in state sector since 2010, but there are heavy regulations and tight state controls in the private sector. There are no open-market policies to improve growth in trade and investment, and the lack of competition continues to throttle dynamic economic expansion. Only government enterprises can enter into economic agreements with foreigners as minority partners; ordinary citizens cannot participate. Most of the means of production are owned by the government. Its planned economy discourages foreign trade and investment. The financial sector remains heavily controlled, and access to credit for entrepreneurial activity is seriously obstructed by the shallowness of the financial market. The government maintains strict exchange and capital controls.

Based on the e-Activity, identify one challenge of a developing economy and how it can be managed.

When the embargo was set in place in 1960 the US stated that there would be some requirements that Cuba would have to meet in order for the embargo to be lifted. However Cuba has not done anything necessary in order for the US to even consider lifting the embargo. One requirement was as simple as Cuba having to change the way they treat the US, president Obama stated “Now, what we've tried to do is to send a signal that we are open to a new