Tag Archives: Cuba Economic

Cuba Economic Changes and Discontent in 2021

Money, Home, Coin, Investment, Business

A New Hampshire resident, Jorge I. Dominguez graduated from Harvard University and holds a Ph.D. in political science. Jorge Dominguez served in the past as a professor and chair of international and area studies at Harvard. Jorge I. Dominguez is also an author and published The Cuban Economy in a New Era.

Cuba is undergoing huge economic changes in 2021 due to the pandemic and coronavirus. The state seems to have hit a new low with people being discontent about the rising of prices and the decrease of wages once adjusted for high inflation increases. After shrinking the economy by 11 percent in 2020, the crisis has extended to 2021. Cuba has a command economy, which means the government mainly decides and determines the prices of goods, as well as the production and availability of goods.

Cuba lacks private ownership of large-scale industries, properties, and resources due to the command economy. Command economy is a feature of communism, which has been present in Cuba since 1959. Recent command economy policies and the economy in general have frustrated citizens, as the fact that the production of goods is controlled by the government can lead to shortages of goods and high prices.