Cuba’s economic collapse blamed on socialist policies rather than U.S. sanctions
The article argues that Cuba’s current hardships stem from its own socialist system and decades of state control, not solely from the U.S. embargo.
The piece contends that Cuba’s dire situation is a product of its socialist model, not merely the result of U.S. sanctions. Economic indicators reveal a drop of over 10% in output since 2019, with agriculture, livestock and mining falling 53.4% and manufacturing down 23% before the latest embargo. State policies such as farm nationalization, price fixing and restricted private business have led to chronic shortages and a reliance on foreign aid, first from the Soviet Union and later from Venezuela.
When those subsidies ended, the economy contracted sharply, and the recent reduction in Venezuelan oil shipments has intensified the crisis. Although limited private businesses were legalized in 2021 and now account for 55% of retail sales, the government still controls the internet, media and strategic industries, preventing a full market transition.
Why it matters
Understanding the root causes of Cuba's crisis informs debates on policy, aid and the future of its economic system.
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