top of page
Victor Wilson Mattathi

Cuba's Economic Crisis

The pandemic has ruthlessly affected many countries and their economies worldwide. But Cuba has had to withstand various other challenges. The country has been facing significant devastation due to acute shortages of medicine and food throughout the course of the pandemic. Inflation, along with blackouts during the tropical summer heat has exacerbated the situation. Along with the aforementioned issues, the silent killer here is the crippled economy. The cause of the issue, according to the Cuban government, seems to be the US trade embargo. This is an analysis of the economic structure, the effect of the pandemic, and travel restrictions.


The failure to adopt a market-based system has created a stagnant economy, the embargo coupled with it has lost Cuba quite a lot of investors thereby adding to a loss of liquidity. The relief provided at the time of the pandemic initially was handled by the government which lead to huge losses of funds. Former US President Donald Trump’s travel restrictions had reduced tourism to the island. The aid Cuba relied on from Venezuela had also declined due to the circumstances. The citizens have also been cut off from remittances. To add to the suffering, the sweltering summer heat with the constant blackouts was the straw that broke the camel's back.


“There is a lack of credibility over the promised reforms. It’s not just the economic crisis. People don’t have hope in getting out of the crisis in a definitive way,” said Vidal, a Cuban diplomat, in her analysis, showing that the Cuban government has already established a track record for not fulfilling resolutions and now the citizens are demanding legitimacy through results. July 11th witnessed a nationwide protest to demonstrate the citizens' loss of confidence in the economic situation and the curbing of civil rights. As of 12th August, hundreds of protesters, including opposition activists and dissident artists remain detained in the name of the government. Several of them claim the conditions unsanitary. This speaks volumes of the government's handling of the Covid 19 pandemic, thereby making jails a hot spot for the virus.


The strongest rationale to end the embargo against Cuba is the immense toll that the policy continues to enact on the Cuban citizens. Joe Biden promised to move away from the Trump strategy of “maximum pressures” against Cuba but has failed to take any action as of yet. Additionally, the White House admitted earlier this year that the Cuban policy shift is not their top priority.



31 views

Recent Posts

See All

Kommentarer


bottom of page