Cuba's failed reforms and new economic crisis

Pavel Vidal Alejandro

Chapter 18 in The Elgar Companion to the Economies of Latin America and the Caribbean, 2025, pp 376-390 from Edward Elgar Publishing

Abstract: The Cuban economy faces challenges similar to those of the Special Period of the 1990s. The current crisis, triggered by the COVID-19 pandemic's impact on an already fragile economic system, is marked by a multi-year recession, runaway inflation, and social unrest, exacerbated by the persistence of U.S. sanctions. This chapter explores the parallels and differences between these crises, highlighting the critical need for a comprehensive reform program. Such a program should prioritize exchange rate unification, fiscal deficit reduction, and structural transformations. Restructuring the largely decapitalized state-owned enterprise sector, which is currently unable to generate net wealth, should be central to fiscal adjustment and the transformation of the productive system. The program should also aim to enhance Cuba's integration into the global economy, thereby improving the country's credibility with international creditors.

Keywords: Cuban economy; U.S. sanctions; Structural reforms; Special Period; Monetary reform; International relations (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035317196
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