Combating the Challenges Facing Economic Growth in Cuba

For over four decades, Jorge I. Dominguez taught Latin American politics at Harvard University, where he also served as the director of the Weatherhead Center for International Affairs at Harvard. Jorge I. Dominguez also has a Ph.D. in political science from Harvard University. Over the years, he has written extensively about Cuba, Mexico, and Latin America. In 2012, he co-edited the book Cuban Economic and Social Development. The book analyzed Cuba’s socio-economic situation and provided recommendations for economic growth.

Although progress has been made for a long time, Cuba’s economy witnessed a downfall. From 2008 to 2015, investment was at 17 percent, and GDP dropped to 1 percent. The country’s debt and the U.S embargo remain a challenge to Cuba’s economic growth.

For Cuba to outgrow its current economic situation, experts suggest that the government prioritize sustainability while making policies as this helps in solving long-term economic issues. One step in achieving this is the elimination of factors hindering investment. For example, the government could make good incentives to encourage investment in agriculture. This action ensures financial gain and food security in the country.

They also made a case for diversification of the exports market, and exports prices should compete globally. It is known that Cuba has a booming tourism industry and a well-educated population. People go to Cuba for history, culture, business, and entertainment. Tourism alone generated 4.7 million visitors in 2018. This is an indicator to the government that people are willing to invest. These are factors that will help accomplish these recommendations.

In all of this, the Cuban government needs to become more transparent, especially in matters concerning international financial institutions. This would result in them being held accountable and careful of their financial decisions and policies.