Cuba – Challenges, Despite Unofficial Opening of Some Restrictions

Jorge Dominguez
Image: people.fas.harvard.edu

Most recently serving as Harvard University’s Department of Government Antonio Madero Professor for the Study of Mexico, emeritus, Jorge Dominguez focused on Latin America. Jorge Dominguez recently edited The Cuban Economy in a New Era: An Agenda for Change Toward Durable Development and was interviewed in-depth by Readara on the subject.

With Cuba under president Miguel Diaz-Canel having made moves to increase foreign direct investment (FDI) and authorize private businesses in some areas of the economy, there are still major challenges. Beyond the inherent inefficiencies of most of Cuba’s state run sectors, there are no officially sanctioned wholesale markets or international supply chains for imported products, which would allow critical supplies to be accessed at competitive prices.

As Professor Dominguez describes it, ordinary people must do “crazy and illegal stuff” to access needed supplies. The government on some level recognizes the necessity of this, as tourism is a positive area in the Cuban economy that would be hurt if those entrepreneurs who do access supplies illegally were shut down.

If the system whereby private restaurants are allowed to operate within the law was extended to other parts of the Cuban economy “it would make a great deal of sense.” Unfortunately, there is a lingering fear among the leadership that things might get out of control and their primacy would be threatened by U.S. government pressure.

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