According to Del, (2010) Cubas situation has continuously transitioned from poverty to malnutrition. Following the withdrawal of USSR as one of the trading partners has to a great extent frustrated its international trade with more than 35% drop in the GDP. Cuba lost the support it initially enjoyed, and this has thus intensified the countrys problems. Cubas provision of social services such as free education and free healthcare to its citizens is expensive which increases the government expenditure. Thereby, limiting the government reserves for use during times of economic crisis.
Cubas sole dependency on agriculture as their main source of income restricts the countrys ability to develop infrastructure and other sectors. It is known for its reliance on sugar in exchange for financial support by the USSR which puts the country in a very wobbly situation during an economic crisis. For example, when the agreement between Cuba and USSR was terminated the country lost the market for its agricultural goods.
Imposition of the embargo by the US government restricts the countrys ability to access exports such as food, electronics, and internet access from America which has thrown the country into a den of poverty.
The situation can still be contained. Cuba can use the following solutions to turn around their economic disaster. Poverty stricken Cuba can emerge out of this economic crisis through diversification of agriculture. The country should embark multiple productions of cash crops and not just rely on sugar. This is important to help reduce economic shocks caused by the fluctuating prices of agricultural products.
Secondly, Cuba should also extend its trading partners across the globe and avoid overreliance on one country as its trading partners. This will help in trade globalization and expansion of the international market for their goods. Cuba should try to capture new markets in Asia, Europe, and even the Middle East instead of relying on one USSR as their sole trading partners.
The government can also improve healthcare provision for its citizens through better family planning services since it will help reduce infant mortality and increase life expectancy. This is also important to help cut back on the government expenditure, and these funds can be reapportioned to the reserves and infrastructural development sectors respectively.
The communist nature of the economy can also be used to enhance efficiency in productivity. This can be possible by creating interrelation between the government and its working population. The close working relationship will help the government identify with the problems of its citizens.
The last recommendable solution is the use of a tighter monetary policy to regulate inflation and depreciation of the nations currency against the foreign currency to ease international trade. The situation of Cuba is a serious economic catastrophe, and it should not be ignored. The government should rise to address the situation. The above solutions recommended can be used to address each of the problems discussed respectively.
Del Carmen Zabala Arguelles, M. (2010). Poverty and Vulnerability in Cuba Today. Socialismand Democracy, 24(1), 109-126.
Price, S. (2017). Capitalism Causes Global Inequality. Green Left Weekly, (1125), 12.
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