Cuba: with Castro (part 2)

The following is a brief summary, from a study by the Canadian Embassy in Havana, about the Real History of Cuba. See our Part 1: Cuba: before Castro.

1956: After a perilous journey from Mexico, only 12 of the 85 friends of Castro survived the initial attack on Cuban soil. They escaped into the Sierra Maestra Mountains, and developed the nucleus of a successful revolution.

1959 : On New Year's Day, Castro takes power. At that time, foreign investments, mostly American, owned 75% of the arable land, 90% of transportation, electrical and telecommunication services, and 45% of the sugar industry.

For Cubans, January 1st 1959 is regarded as the date of Cuba true independence. The imposition of a centrally-planned economy was not part of the explicit agenda of Castro. Because of the US disregard to his regime, he had no choice but to install the first communist state in the Western Hemisphere.

The situation deteriorated in early 1960 when American-owned oil refineries in Cuba refused to process oil bought from the Soviet Union. This provided the impetus of a series of decree laws which ultimately nationalized all of Cuban industry. Relations between the US and Cuba fell apart rapidly in a series of retaliatory moves.

The Cuban government eventually negotiated compensation agreements with all countries involved in the nationalization program, except the United States.

Arguments of Cuba

1) by removing Cuba's sugar quota, and imposing the embargo, the US deprived Cuba of the ability to make compensation.

2) Cuba points out that Soviet military bases were installed only after the ill-fated invasion by exiles, sponsored by the United States.

1991: The collapse of the former USSR became a major setback for Cuba, and a wake-up call not to rely anymore upon one country. From 1989 to 1993, the GDP fell by almost 50%.

Today: Cuba is an emerging market with large endowment of fertile land and excellent growing conditions, as well as superb unspoiled resources for tourism. More than 2 million tourists in the last two years. Canada is the largest source of visitors, before Germany, Italy, Spain, France, UK, Japan, soon China.

Cuba is open to investment and trade from market economies in most sectors. The nation has fairly normal trading relationship with nearly every nation in the world, with, of course, the exception of the United States. The New Investment Law of 1995 has attracted an increasing number of foreign investors.

About half of the 11.5 million people are White Cubans (mostly from Spanish origin). The other half is black and mulatto. Cuba is proud in having a Higher Literacy Rate, superior cultural programs, and Lower Infant Mortality Rate than in United States, combined with the Longest Life Expectancy in Latin America, a great healthcare service and education system.

This pride is also reflected on billboards to be seen by visitors : 200 million children of the world are sleeping in the streets. None of them is Cuban.

Cuba is in the midst of a gradual transition from a centrally-planned to a mixed economy. Cuba's leaders are struggling to find an acceptable balance between much-needed economic development and subsidies to social programs. Since 2001, the number of economic associations has substantially increased.

The Facilitator

N.B. We encourage our readers to peruse our previous articles:

- Readers from New York Times (Archive of September)

- Being Smart with Cuba (Archive of September)

- The Mistake of Presidents Eisenhower and Kennedy (Archive of September)

- How to promote Democracy (parts 1 and 2) (Archive of October)

- Cuba: time to change course (Archive of October)

- The day Castro will never die (Archive of November)