Cuba Archives - Economy Watch

Where Cuba Punches Above its Weight

As the first US president visits Cuba in 88 years, many Americans hope that Barack Obama’s trip will lead to a normalisation of relations with Cuba, opening the Caribbean nation up to the American values of liberty, free trade and democracy. Cuba undoubtedly has its problems, as numerous articles attest. However, my experience as a visitor and researcher there shows a different side to the story and there is much the capitalist world can learn from Cuba, too.

Paving the Way Forward, Ready or Not

President Barack Obama became the first sitting U.S. president to visit Cuba in nearly 90 years as he set off on a three-day trip to the island nation on Sunday, the latest step in a thaw in relations that began in December 2014.

Ahead of the trip, the administration issued its fifth set of measures relaxing regulations that restrict U.S. banking, financial, travel, business and economic dealings with Cuba.

Cuban Economy Heating Up; Posts 4 Percent Growth for First Half of 2015

Raul Castro’s Cuba has made many changes in recent years, and some of these seem to be paying off for the economy. After more than five decades of limited diplomatic relations with the US, the island nation just south of Florida has finally begun to work on restoring official channels of communication. Castro has also allowed a limited opening of the Cuban economy to private interests while also trying to attract foreign investments.

Cuban Economy Grows as Relations with U.S. Improves

Analysts project that the Cuban economy will grow 4.0 percent in the first half of 2015, due to gains in such areas as manufacturing, trade and construction. Tourism also shot up 15 percent in the first few months of 2015.

Peeking Behind the Curtain of the Cuban Economy

After decades of Cold War era embargoes and secrecy, Cuba has allowed the veil over its economy to lift just a bit in recent years. In an effort to join the rest of the world economically, Cuba has slowly loosened a few of its own policies geared toward preventing outside influence that could undermine the communist government’s control. This has allowed an array of American businesses, from airlines to law firms, to dip a toe into Cuba’s economic pool, and generally, Americans seem to find the climate hospitable enough.

How Communism has Crippled Cuba

The failure of communism in Cuba has been a long, tragic journey. One can even say that it began with Karl Marx. His doctrine is full of illogical ideals, loopholes, and other unsolved problems. He based his idea of economics on the labor theory of value, a grave oversimplification of the market.

A Cuban Economic Boom? Not so fast.

The restoration of full diplomatic relations between the US and Cuba, announced simultaneously by Barack Obama and Raúl Castro yesterday, is a huge political breakthrough. The benefits to the Cuban economy, however, will be more gradual.

Economic sanctions by the US against Cuba began in 1960. They consisted of a range of measures, only some of which can be removed by the US president in the short term. The rest require congressional approval, which is likely to be a difficult and protracted process.

Cuban Economy Stagnates, Prompting Calls for Further Reforms

Some of the well-respected economists in Cuba have begun to question the core of the command economy that is being run with Soviet-style formation. Are they not about 50 years too late on this one?

US Embargo Costs Cuba Economy over $1 Trillion

Experts on the Cuban economy have recently announced that the country has been consistently suffering from a ‘systematic worsening’. According to Cuba, the problem is the fault of America and the US embargo. Since Washington imposed sanctions in 1960 they have robbed Cuba of approximately $1.1 trillion dollars (considering the depreciation of the dollar against gold). Even now, the blockade the US holds against Cuba remains firmly in place, and harassment against third-country banks and firms seeking business with Cuba increases.

Cuba Approves New Foreign Investment Law, Aims To Bring In $2 Billion A Year

The Cuban parliament on Saturday unanimously passed a new law to open up the country to more foreign investments, promising less government control and greater flexibility for overseas investors.

According to Reuters, the new law, which will take effect within 90 days, will cut taxes on profits by half to about 15 percent, as well as eliminating a labour tax and granting new investors an 8-year exemption on the profits tax.