Cuban Economy Essay

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Cuba was one of the communist countries back in the 19th century, its economy largely relies on the Soviet Union, after the USSR explodes in 1991, its economy experienced a quick downfall. Nowadays, Cuba is reforming to adapt the new world economy, as well as solving some problems they left in the past, like the poor political relationship with the United States.
Despite the historical influence, Cuba has done very well for itself, even set a standard for countries that have much higher GDP, though Cuba still need to change, we can’t ignore its merits.
The first, and the most important, is the Cuba government has the courage to reform and change themselves, which most governments do not have. During Fidel Castro’s government, things and regulations …show more content…

The government somehow ameliorates the shortage of food, consumer goods and services in the 1990s. They reopen tourism, allow direct foreign investment, and authorizing self-employment. They also liberate the agricultural market in 1994, allow state and private farmers sell their product at free market prices. As a result, Cuba has modest economic growth, they even have world-class biotechnology and pharmaceutical industry now, which cannot happen without an effective incentive system.
In today’s Cuba economy, the real GDP growth by an average rate of 4% in four years, services sector occupy 74% of GDP, while industry sector is 21.6% and agriculture sector is 4.3%, this shows that, because of those reforms I said above, Cuban economy is growing fast and the structure is like a developed economy. The reform they take improve the efficiency, growth and equity of the economy, while still having stability because the central planning; they also improve the progressives of the economy by allowing private sector, the limited but effective reform shows Cuba economy can adapt to new

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