Economy of Cuba

The economy of Cuba is a largely centrally planned economy dominated by state-run enterprises overseen by the Cuban government, though there remains significant foreign investment and private enterprise in Cuba. Most of the means of production are owned and run by the government, and most of the labor force is employed by the state, although in recent years, the formation of cooperatives and self-employment has been encouraged by the Communist Party.

In the year 2000, public sector employment was 76% and private sector employment was 23% compared to the 1981 ratio of 91% to 8%. Capital investment is restricted and requires approval by the government. The Cuban government sets most prices and rations goods to citizens. In 2009, Cuba ranked 51st out of 182 with an HDI of 0.863; remarkably high considering its GDP per capita only places it 95th. Public services and transport in Cuba however are regarded to be second-rate compared with its more developed counterparts on the mainland.

In the 1950s, Cuba had a vibrant but extremely unequal economy, with large capital outflows to foreign investors. In the 1950s, Cuba's gross domestic product (GDP) per capita was roughly equal to that of contemporary Italy, and significantly higher than that of countries such as Japan, although Cuba's GDP per capita was still only a sixth as large as that of the United States. The country has made significant progress since the Revolution towards a more even distribution of income and Cuba has been placed under economic embargo by the United States. The economy grew intermittently under Castro until the collapse of the Soviet Union, which provided Cuba with $4 billion to $6 billion in subsidies annually. Between 1990 and 1993, Cuba's GDP declined by 33%, partially due to loss of Soviet subsidies. Yet Cuba has managed to retain reasonably high levels of healthcare and education.

Cubans receive low housing and transportation costs, free education, and health care and food subsidies. Corruption is common, though allegedely lower than in most other countries in Latin America. However, in their book, Corruption in Cuba, Sergio Diaz-Briquets and Jorge F. Pérez-López Servando state that Cuba has "institutionalized" corruption and that state-run monopolies, cronyism, and lack of accountability have made Cuba one of the world's most corrupt states".

Read more about Economy Of Cuba:  History, Energy Production, Government Policies, Agriculture, Industry, Poverty, International Trade, Foreign Investment, Self-employment, Public Facilities, Connection With Venezuela, Other Statistics

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