Cuban Economics: How Politics Has Changed the Course of Economic Growth and Stability Created By:...

Cuban Economics: Cuban Economics: How Politics Has Changed the Course How Politics Has Changed the Course of Economic Growth and Stabilityof Economic Growth and Stability

Created By:Jason ZimmermanMartin Rugeroni

Brittany RileyMartha Kramer

Spring 2010Econ 4311

Aim and OutlineAim and Outline Aim: Aim: To present and analyze how To present and analyze how

Cuba’s political decisions have affected Cuba’s political decisions have affected the course of its economic growth.the course of its economic growth.

Pre-revolution EconomyPre-revolution Economy Revolutionary PeriodRevolutionary Period Evolution of the EmbargoEvolution of the Embargo The Fall of the Soviet UnionThe Fall of the Soviet Union Economic ReformEconomic Reform Recent Policy ChangesRecent Policy Changes Cuba’s FutureCuba’s Future

HistoryHistory Spanish Colony until Spanish Colony until

1902 1902 1902 US companies 1902 US companies

controlled 80% of controlled 80% of Cuba’s nickel exportsCuba’s nickel exports

Owned most sugar Owned most sugar and cigarette and cigarette companiescompanies

US began a massive US began a massive public health programpublic health program

1902 Cuba Independent1902 Cuba Independent Platt Amendment , great Platt Amendment , great

dependency from the US.dependency from the US. Cuba would not transfer Cuban Cuba would not transfer Cuban

land to any power other than the land to any power other than the United StatesUnited States

The right to US intervention in The right to US intervention in Cuban affairs and military Cuban affairs and military occupation when the US occupation when the US authorities considered that the authorities considered that the life, properties and rights of US life, properties and rights of US citizens were in danger.citizens were in danger.

1933 – Eight-hour day established.1933 – Eight-hour day established.

1940 Fulgencio Batista elected 1940 Fulgencio Batista elected presidentpresident

1940 Modified the Constitution 1940 Modified the Constitution Progressive ideas Progressive ideas Wages and BenefitsWages and Benefits Land ReformLand Reform EducationEducation Improvements in MediaImprovements in Media Social IndicatorsSocial Indicators

A third of the population still A third of the population still lived in povertylived in poverty

Distribution of landDistribution of land Relations with the USRelations with the US Urban violenceUrban violence CorruptionCorruption Fidel Castro attempted to Fidel Castro attempted to

overthrow Batista in 1953 and overthrow Batista in 1953 and failed.failed.

Why a Revolution?Why a Revolution?

2626thth of July Movement, of July Movement, 1956. 1956.

United States imposed United States imposed trade restrictions on the trade restrictions on the Batista administration Batista administration

Batista Fled Jan 1, 1959Batista Fled Jan 1, 1959

Castro took overCastro took over

The RevolutionThe Revolution

Persecution of opponentsPersecution of opponents Labor unions were made illegalLabor unions were made illegal Land and property expropriation Land and property expropriation

and nationalization.and nationalization. Cuba also nationalized all United Cuba also nationalized all United

States and other foreign-own States and other foreign-own land and propertyland and property

Castro went to the United States Castro went to the United States to explain his revolution. He to explain his revolution. He said, "I know what the world said, "I know what the world thinks of us, we are Communists, thinks of us, we are Communists, and of course I have said very and of course I have said very clearly that we are not clearly that we are not Communists; very clearly."Communists; very clearly."

The United States, in turn, The United States, in turn, responded by freezing all Cuban responded by freezing all Cuban assets in the United States, assets in the United States, severing diplomatic ties, and severing diplomatic ties, and tightening the embargo on tightening the embargo on Cuba, which is still in place Cuba, which is still in place after 50 years.after 50 years.

In response to the acts of the In response to the acts of the Eisenhower administration, Eisenhower administration, Cuba turned to the Soviet Union Cuba turned to the Soviet Union for support.for support.

Cuban Relations with Cuban Relations with USSRUSSR

1960 – Cuba and Soviet Union 1960 – Cuba and Soviet Union sign trade agreementsign trade agreement– Soviet Union buys sugarSoviet Union buys sugar– Cuba buys crude oilCuba buys crude oil

U.S. oil firms in Cuba stop U.S. oil firms in Cuba stop refining oil purchased from USSRrefining oil purchased from USSR– Cuba nationalizes refineriesCuba nationalizes refineries

Start of the EmbargoStart of the Embargo President Eisenhower cancels most President Eisenhower cancels most

of Cuban sugar quotaof Cuban sugar quota

Cuba retaliates Cuba retaliates – expropriates all U.S. propertyexpropriates all U.S. property– Discriminates against imports of U.S. Discriminates against imports of U.S.

goodsgoods

U.S. imposes export embargo to U.S. imposes export embargo to Cuba except for medicine and foodCuba except for medicine and food

1961 – US-Cuban diplomatic 1961 – US-Cuban diplomatic relations are severed; US restricts relations are severed; US restricts travel to Cuba travel to Cuba

Foreign Assistance Act - Total Foreign Assistance Act - Total embargo on all tradeembargo on all trade– Amendment included barring aid to Amendment included barring aid to

countries assisting Cuban governmentcountries assisting Cuban government

Organization of American States Organization of American States (OAS) -Leninist ideology is (OAS) -Leninist ideology is incompatible with inter-American incompatible with inter-American systemsystem

More RestrictionsMore Restrictions

1962 - Cuban Missile Crisis 1962 - Cuban Missile Crisis – U.S. “quarantines” CubaU.S. “quarantines” Cuba

Kennedy administration prohibits Kennedy administration prohibits travel to Cubatravel to Cuba

Financial and commercial Financial and commercial transactions with Cuba illegal for transactions with Cuba illegal for U.S. citizensU.S. citizens

Decreasing RestrictionsDecreasing Restrictions

1975 – OAS lifts collective sanctions1975 – OAS lifts collective sanctions– Each nation decides relations with CubaEach nation decides relations with Cuba

U.S. allows foreign subsidies of U.S. U.S. allows foreign subsidies of U.S. companies to sell products in U.S.companies to sell products in U.S.

No longer penalize other nations for No longer penalize other nations for trade with Cubatrade with Cuba

1977 - Congress repeals 1977 - Congress repeals provision of Foreign Assistance provision of Foreign Assistance Act of 1961Act of 1961– No longer refuses aid to countries No longer refuses aid to countries

trading with Cubatrading with Cuba

1978 – U.S. residents allowed to 1978 – U.S. residents allowed to send up to $2000 in remittances send up to $2000 in remittances a yeara year

Resurgence of Embargo Resurgence of Embargo PoliciesPolicies

1981 – Reagan inaugurated as 1981 – Reagan inaugurated as president, initiates tighter president, initiates tighter economic embargoeconomic embargo

1982 – Reestablished travel ban1982 – Reestablished travel ban

Remittances reduced from Remittances reduced from $2,000 to $1,200 per year$2,000 to $1,200 per year

Minimal Effects of the Minimal Effects of the EmbargoEmbargo

By the late 1980s:By the late 1980s: 99% of Cuba’s oil came from the Soviet 99% of Cuba’s oil came from the Soviet

UnionUnion Received oil at prices far below market Received oil at prices far below market

valuevalue Cuba had reduced oil-consumptionCuba had reduced oil-consumption Re-exported surplus petroleum was 2nd Re-exported surplus petroleum was 2nd

largest export (after sugar)largest export (after sugar) Vessels from the Socialist bloc Vessels from the Socialist bloc

transported 85% of Cuban tradetransported 85% of Cuban trade 85% of Cuban trade was with Council of 85% of Cuban trade was with Council of

Mutual Economic Assistance (COMECON)Mutual Economic Assistance (COMECON)– Transactions mostly in nonconvertible Transactions mostly in nonconvertible

currencycurrency

Real GDP Per Capita

0

1000

2000

3000

4000

5000

6000

7000

8000

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

Year

Real G

DP

per

cap

ita

Brazil

Chile

Mexico

Cuba

Openness

0

5

10

15

20

25

30

35

40

45

50

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

Year

Op

en

ness Brazil

Chile

Mexico

Cuba

A Time of TransitionA Time of Transition

Late 1980s: Cuban-Soviet relations Late 1980s: Cuban-Soviet relations weakened as Soviet leadership weakened as Soviet leadership moved away from Marxismmoved away from Marxism

Late 1989: Cuba announced the Late 1989: Cuba announced the Program AlimentarioProgram Alimentario– Goal: improved self-sufficiencyGoal: improved self-sufficiency– Method: large investments in Method: large investments in

agricultural sectoragricultural sector

A Special Period in a Time A Special Period in a Time of Peaceof Peace

August 1990 Cuba announced August 1990 Cuba announced the the Período EspecialPeríodo Especial

Originally created for a time of Originally created for a time of warwar

Established a framework to Established a framework to implement austerity measuresimplement austerity measures

““Special Period”Special Period”

New rationing schedulesNew rationing schedules 200 goods added to the ration 200 goods added to the ration

listlist 50% cut in energy consumption 50% cut in energy consumption

requiredrequired Reduced work hours at factoriesReduced work hours at factories Large cuts in public Large cuts in public

transportationtransportation Encouraged use of animals for Encouraged use of animals for

transportation/plowing in transportation/plowing in agricultureagriculture

The Fall of the Soviet The Fall of the Soviet UnionUnion

Late 1991: Gorbachev withdrew Late 1991: Gorbachev withdrew almost 3,000 troops from Cubaalmost 3,000 troops from Cuba– Symbolic significance: end of Symbolic significance: end of

Cuban-Soviet tiesCuban-Soviet ties

Christmas 1991: Soviet Union Christmas 1991: Soviet Union officially dissolvedofficially dissolved

Problems for CubaProblems for Cuba

Weakened Cuban militaryWeakened Cuban military

Major issue: loss of trade Major issue: loss of trade partnerspartners

External forces of the early External forces of the early 1990s:1990s:– Decrease in sugar pricesDecrease in sugar prices– Increase in oil pricesIncrease in oil prices– Vulnerable to U.S. actionsVulnerable to U.S. actions

Changes in U.S. PolicyChanges in U.S. Policy April 1992: Bush banned ships April 1992: Bush banned ships

trading with Cuba from stopping trading with Cuba from stopping at U.S. portsat U.S. ports

September 1992: Bush instituted September 1992: Bush instituted a limit on the humanitarian aid a limit on the humanitarian aid that U.S. citizens could send to that U.S. citizens could send to CubaCuba

October 1992: Torricelli BillOctober 1992: Torricelli Bill November 1992: stronger November 1992: stronger

restrictions on baggage for people restrictions on baggage for people traveling to Cubatraveling to Cuba

Torricelli Bill: Torricelli Bill: Cuba Cuba Democracy ActDemocracy Act

Banned subsidiaries of U.S. Banned subsidiaries of U.S. companies in other countries from companies in other countries from investing in or trading with Cubainvesting in or trading with Cuba

Ban included food and medical Ban included food and medical supplies (in 1992 this was 90% of supplies (in 1992 this was 90% of Cuban trade with U.S. subsidiaries)Cuban trade with U.S. subsidiaries)

Torricelli Bill cont’d:Torricelli Bill cont’d:

Authorized U.S. president to Authorized U.S. president to “punish” countries that provided “punish” countries that provided aid to Cubaaid to Cuba– Withhold economic assistanceWithhold economic assistance– Withhold debt reliefWithhold debt relief– Terms of free trade agreementsTerms of free trade agreements

Strengthened the ban from 1992: Strengthened the ban from 1992: ships trading with Cuba could not ships trading with Cuba could not use U.S. ports for 6 monthsuse U.S. ports for 6 months– Cuba only capable of carrying 20% of Cuba only capable of carrying 20% of

its total tradeits total trade

1990-1993: A Cuban 1990-1993: A Cuban CrisisCrisis

ShortagesShortages– FoodFood– OilOil– Medical SuppliesMedical Supplies

Drop in GDP per capitaDrop in GDP per capita

Large budget deficitsLarge budget deficits

Cuban GDP 1970-2007

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

Year

GD

P

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Pérez-López, Jorge F. "The Cuban Economy in an Unending Special Period." Association for the Study of the Pérez-López, Jorge F. "The Cuban Economy in an Unending Special Period." Association for the Study of the Cuban Economy (2002): 510. Print.Cuban Economy (2002): 510. Print.

Consumer GoodsConsumer Goods

Commercial relations with the Commercial relations with the former Soviet Union decreased former Soviet Union decreased more than 90% from 1989 to more than 90% from 1989 to 1993 ($8.7 billion to $750 1993 ($8.7 billion to $750 million)million)

Shipments of consumer goods, Shipments of consumer goods, grains and other foods grains and other foods declineddeclined

Consumer Goods cont’dConsumer Goods cont’d

Supplies of clothing and soap Supplies of clothing and soap became sparsebecame sparse

Rationing quotas supplied Rationing quotas supplied only enough food for 2 weeks only enough food for 2 weeks of each monthof each month– Increase in black market activityIncrease in black market activity

HealthHealth Over 300 medicines eliminated Over 300 medicines eliminated

from pharmaciesfrom pharmacies

About 800,000 Cubans with About 800,000 Cubans with asthma went without necessary asthma went without necessary medicationmedication

1993: over 50,000 Cubans 1993: over 50,000 Cubans suffered from an epidemic of suffered from an epidemic of optic neuropathy as a result of a optic neuropathy as a result of a vitamin B deficiencyvitamin B deficiency

Health cont’dHealth cont’d

Evidence of delayed marriages Evidence of delayed marriages and a large drop in fertility and a large drop in fertility ratesrates

Surge of abortions: between Surge of abortions: between 1988 and 1990, 9 abortions for 1988 and 1990, 9 abortions for every 10 birthsevery 10 births

EnergyEnergy Oil supply from the (former) Oil supply from the (former)

Soviet Union decreased almost Soviet Union decreased almost 90% from 1989 to 199290% from 1989 to 1992

Shortages led cuts in public Shortages led cuts in public transportationtransportation

Frequent power outagesFrequent power outages

Energy cont’dEnergy cont’d

Daily blackouts imposedDaily blackouts imposed

Closing of many industrial plants Closing of many industrial plants and factoriesand factories

Estimated 50% of industrial Estimated 50% of industrial plants suspended operations due plants suspended operations due to shortages of fuel and to shortages of fuel and replacement partsreplacement parts

AgricultureAgriculture Imports of fertilizer decreased Imports of fertilizer decreased

80% and animal feed by 70%80% and animal feed by 70% Sugar crop declined from 8.1 Sugar crop declined from 8.1

million tons in 1991 to 4.2 million tons in 1991 to 4.2 million tons in 1993million tons in 1993

1993 shortage of chicken feed 1993 shortage of chicken feed resulted in a halt in egg resulted in a halt in egg productionproduction

Animals Animals hadhad to be used to to be used to replace tractors and other farm replace tractors and other farm equipmentequipment

Other ProblemsOther Problems Shipments of raw materials and Shipments of raw materials and

spare parts for industry ceasedspare parts for industry ceased March 1993: a winter storm March 1993: a winter storm

caused more than $1 billion of caused more than $1 billion of damage and left over 150,000 damage and left over 150,000 people homelesspeople homeless

Paper shortage: lack of print Paper shortage: lack of print mediamedia

Factory closings and Factory closings and transportation cuts left almost transportation cuts left almost 20% of the population displaced20% of the population displaced

One Success: TourismOne Success: Tourism

In 1990 tourism brought in $243 In 1990 tourism brought in $243 millionmillion

Only sector that grew steadilyOnly sector that grew steadily Revenues quadrupled in first half of Revenues quadrupled in first half of

the 1990sthe 1990s 1993 brought in more revenue than 1993 brought in more revenue than

sugarsugar If not for embargo, would U.S. If not for embargo, would U.S.

tourism change the Cuban tourism change the Cuban economy?economy?

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Reform and RecoveryReform and Recovery Summer 1993: Cuban government Summer 1993: Cuban government

began policy reforms to stabilize the began policy reforms to stabilize the economyeconomy

Legalized the use of foreign currencyLegalized the use of foreign currency– Stop the growing black market for foreign Stop the growing black market for foreign

currencycurrency– Stimulate remittances to citizens by Stimulate remittances to citizens by

relatives abroadrelatives abroad September 1993: authorized self-September 1993: authorized self-

employmentemployment– Many restrictionsMany restrictions– Only open to specific occupationsOnly open to specific occupations– Had to pay fees and taxesHad to pay fees and taxes

September 1993: broke up large state-September 1993: broke up large state-owned farms into cooperativesowned farms into cooperatives– Owners could choose management, have Owners could choose management, have

own bank accounts and sell the productown bank accounts and sell the product– Gave incentives for increased productionGave incentives for increased production

May 1994: adopted a policy for May 1994: adopted a policy for reduced expenditures and increased reduced expenditures and increased revenuesrevenues– Increased prices of cigarettes, alcohol, Increased prices of cigarettes, alcohol,

gasoline, public transportation, etcgasoline, public transportation, etc– Eliminated subsidiesEliminated subsidies– Charged for previously free items- school Charged for previously free items- school

lunches, admission to sporting events, etclunches, admission to sporting events, etc

September 1994: created markets September 1994: created markets where agricultural producers, once where agricultural producers, once a quota was reached, could sell a quota was reached, could sell excess output at market prices excess output at market prices (determined by supply and (determined by supply and demand)demand)Price

Quantity

S

D

Equilibrium

Ration Price

Once producer reaches Once producer reaches quota:quota:-Sell at a higher price-Sell at a higher price-Consumers not limited -Consumers not limited to ration stamp to ration stamp amountsamounts

*Hybrid economy: *Hybrid economy: transition from state-transition from state-controlled/socialism to controlled/socialism to free market capitalismfree market capitalism

September 1995: changed September 1995: changed foreign investment lawforeign investment law– Allowed 100% foreign ownershipAllowed 100% foreign ownership– Simplified the process for foreign Simplified the process for foreign

investmentinvestment

May 1997: reformed the May 1997: reformed the banking systembanking system– Creation of Banco Central de Creation of Banco Central de

Cuba as an independent Cuba as an independent institutioninstitution

Real Per Capita GDP in Cuba

0

5000

10000

15000

20000

250001

98

0

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

Year

GD

P p

er

cap

ita Brazil

Chile

Mexico

Cuba

Peru

Nicaragua

SuccessSuccess

Negative growth ended and Negative growth ended and GDP grew 0.7% in 1994GDP grew 0.7% in 1994

1993-2000 the average annual 1993-2000 the average annual GDP growth was 3.8%GDP growth was 3.8%

In 1993 the budget deficit was In 1993 the budget deficit was 33.5% of GDP, in 1996 it was 33.5% of GDP, in 1996 it was 2% of GDP2% of GDP

Success cont’dSuccess cont’d

Exports increased 47.4% from 1993 Exports increased 47.4% from 1993 to 2000to 2000

Imports increased 144.4% over the Imports increased 144.4% over the same periodsame period

By the end of the 1990s, growth was By the end of the 1990s, growth was steadysteady

In 2000, GDP was still 15.4% below In 2000, GDP was still 15.4% below the level of 1989the level of 1989

Remaining Problem: Remaining Problem: EmbargoEmbargo

1996: Congress passed the 1996: Congress passed the Helms-Burton ActHelms-Burton Act

1998: report by the U.S. 1998: report by the U.S. Defense Intelligence Agency Defense Intelligence Agency stated, “Cuba does not pose a stated, “Cuba does not pose a significant military threat to significant military threat to the U.S. or to other countries in the U.S. or to other countries in the region."the region."

New DecadeNew Decade

2000 - U.S. lifts ban on exports 2000 - U.S. lifts ban on exports of certain agricultural goodsof certain agricultural goods– Cash only salesCash only sales– Cuba refused to buy goods for 1 Cuba refused to buy goods for 1

yearyear

Ban on imports from Cuba Ban on imports from Cuba continuescontinues

Hurricane MichelleHurricane Michelle

2001 – Caused $1.8 billion in 2001 – Caused $1.8 billion in damagesdamages

U.S. offered direct aid to the peopleU.S. offered direct aid to the people

Castro refuses aidCastro refuses aid

One time agreement to buy food and One time agreement to buy food and medicine from U.S.medicine from U.S.– 11stst time Cuba agreed to import food from time Cuba agreed to import food from

U.S.U.S.

U.S. Strengthened U.S. Strengthened RestrictionsRestrictions

Passed in 2004Passed in 2004 Family visits limited to once every Family visits limited to once every

three years instead of once per yearthree years instead of once per year Maintain $1,200 transfer limit per Maintain $1,200 transfer limit per

year year Remittances and gifts only allowed Remittances and gifts only allowed

to immediate familyto immediate family Castro responds – ban on Castro responds – ban on

transactions in U.S. dollarstransactions in U.S. dollars

Transition PeriodTransition Period

U.S. Commission for Assistance to a U.S. Commission for Assistance to a Free Cuba - recommends $80 Free Cuba - recommends $80 million in aid when transitional million in aid when transitional government in placegovernment in place

2006 - Raul Castro takes temporary 2006 - Raul Castro takes temporary powerpower– ““disposed to normalize relations” with disposed to normalize relations” with

the U.S.the U.S.

2008 – Raul officially takes power2008 – Raul officially takes power

2008 Disaster Relief2008 Disaster Relief

2 Hurricanes hit Cuba within 10 2 Hurricanes hit Cuba within 10 daysdays– Destroyed about 30% of cropsDestroyed about 30% of crops– About $9.7 billion in damagesAbout $9.7 billion in damages

U.S. offered $100,000 in direct U.S. offered $100,000 in direct aid after Hurricane Gustavaid after Hurricane Gustav– Cuba refusedCuba refused

Offered $5 million in direct aid Offered $5 million in direct aid after Hurricane Ikeafter Hurricane Ike– Cuba initially refusedCuba initially refused

Loosening RestrictionsLoosening Restrictions

2009 – ban on Cuban-American 2009 – ban on Cuban-American travel to Cuba liftedtravel to Cuba lifted

U.S. removes limit on U.S. removes limit on remittancesremittances

Travel restrictions still in place Travel restrictions still in place for non-Cuban-Americansfor non-Cuban-Americans

U.S. citizens cannot send money U.S. citizens cannot send money or gifts to government officialsor gifts to government officials

PresentPresent

Trade embargo remainsTrade embargo remains– U.S. allowed to export certain U.S. allowed to export certain

agricultural goodsagricultural goods– No Cuban imports allowedNo Cuban imports allowed

U.S. largest supplier of food to U.S. largest supplier of food to CubaCuba– 2008 – exported about $710 million2008 – exported about $710 million– $2.9 billion total as of May 2009$2.9 billion total as of May 2009

Obama: Obama: policy changespolicy changes

Future of the EconomyFuture of the Economy

PrivatizationPrivatization– Decrease government roleDecrease government role– Redevelopment of activities that Redevelopment of activities that

disappeared due to political and disappeared due to political and ideological reasonsideological reasons

– Commercial sector is keyCommercial sector is key Large portion of employmentLarge portion of employment Offers investment opportunitiesOffers investment opportunities

– Private journalismPrivate journalism

Trade liberalizationTrade liberalization– Open up economyOpen up economy– Licensing programs should be quick Licensing programs should be quick

and inexpensiveand inexpensive– Encourage privatization and Encourage privatization and

investmentinvestment Social safety netSocial safety net

– Free health care, education, ration Free health care, education, ration cardscards

– Currently financed by government’s Currently financed by government’s ability to set prices/marketability to set prices/market

– Important to maintain security Important to maintain security during transitionduring transition

– Seen as basic right by many CubansSeen as basic right by many Cubans

ConclusionConclusion

What is coming in Cuba’s future?What is coming in Cuba’s future? Is the U.S. embargo still Is the U.S. embargo still

justified?justified? Was it ever?Was it ever? Is the Obama administration Is the Obama administration

reasonable in waiting for Cuba to reasonable in waiting for Cuba to take the next steps?take the next steps?

VideoVideo

SourcesSources PWT 6.3PWT 6.3

Alan Heston, Robert Summers and Bettina Aten, Penn World Table Version 6.3, Alan Heston, Robert Summers and Bettina Aten, Penn World Table Version 6.3, Center for International Comparisons of Production, Income and Prices at the Center for International Comparisons of Production, Income and Prices at the University of Pennsylvania, August 2009.University of Pennsylvania, August 2009.

Deere, Carmen. "Cuba's Struggle for Self-sufficiency - Aftermath of the Deere, Carmen. "Cuba's Struggle for Self-sufficiency - Aftermath of the Collapse of Cuba's Special Collapse of Cuba's Special Economic Relations with Eastern Europe." CBS Economic Relations with Eastern Europe." CBS MoneyWatch Monthly Review (1991). CBS MoneyWatch. Web. 2 May 2010. MoneyWatch Monthly Review (1991). CBS MoneyWatch. Web. 2 May 2010.

<http://http://findarticles.com/p/articles/mi_m1132/is_n3_v43/ai_11063036<http://http://findarticles.com/p/articles/mi_m1132/is_n3_v43/ai_11063036/>./>.

Griswold, Daniel. "Four Decades of Failure: The U.S. Embargo against Cuba." Griswold, Daniel. "Four Decades of Failure: The U.S. Embargo against Cuba." (2005). CATO Institute. Web. Apr. 2010. (2005). CATO Institute. Web. Apr. 2010. <http://www.cato.org/pub_display.php?pub_id=10921>.<http://www.cato.org/pub_display.php?pub_id=10921>.

Pérez Jr., Louis A. "Socialist Cuba." Cuba: Between Reform & Revolution. Pérez Jr., Louis A. "Socialist Cuba." Cuba: Between Reform & Revolution. Oxford UP, 1995. 381-87. Cuba's Special Period. J.A. Sierra. Web. 2 May Oxford UP, 1995. 381-87. Cuba's Special Period. J.A. Sierra. Web. 2 May 2010. <http://www.historyofcuba.com/history/havana/lperez2.htm>.2010. <http://www.historyofcuba.com/history/havana/lperez2.htm>.

Pérez-López, Jorge F. "The Cuban Economy in an Unending Special Period." Pérez-López, Jorge F. "The Cuban Economy in an Unending Special Period." Association for the Study of the Cuban Economy (2002): 507-21. Print.Association for the Study of the Cuban Economy (2002): 507-21. Print.

More SourcesMore Sources "BBC NEWS | Americas | Bush Approves New Squeeze on Cuba." *BBC "BBC NEWS | Americas | Bush Approves New Squeeze on Cuba." *BBC

NEWS | News Front Page*. 7 May 2004. Web. 25 Apr. 2010. < NEWS | News Front Page*. 7 May 2004. Web. 25 Apr. 2010. < http://news.bbc.co.uk/2/hi/americas/3690697.stm>. http://news.bbc.co.uk/2/hi/americas/3690697.stm>.

"BBC NEWS | Americas | Timeline: US-Cuba Relations." *BBC NEWS | News "BBC NEWS | Americas | Timeline: US-Cuba Relations." *BBC NEWS | News Front Page*. 31 Dec. 2008. Web. 25 Apr. 2010. < Front Page*. 31 Dec. 2008. Web. 25 Apr. 2010. < http://news.bbc.co.uk/2/hi/americas/3182150.stm>. http://news.bbc.co.uk/2/hi/americas/3182150.stm>.

Hanson, Stephanie. "U.S.-Cuba Relations." *Council on Foreign Relations*. Hanson, Stephanie. "U.S.-Cuba Relations." *Council on Foreign Relations*. 11 Jan. 2010. Web. 25 Apr. 2010. < 11 Jan. 2010. Web. 25 Apr. 2010. < http://www.cfr.org/publication/11113/uscuba_relations.html>. http://www.cfr.org/publication/11113/uscuba_relations.html>.

Maybarduk, Gary H. "Measures Not Taken: Issues For Today And Maybarduk, Gary H. "Measures Not Taken: Issues For Today And Tomorrow." Web. 25 Apr. 2010. Tomorrow." Web. 25 Apr. 2010. <http://lanic.utexas.edu/la/ca/cuba/asce/cuba9/maybar2.pdf>. <http://lanic.utexas.edu/la/ca/cuba/asce/cuba9/maybar2.pdf>.

Sanguinetty, Jorge A. "Macroeconomic Policy Issues For A Free-Market Sanguinetty, Jorge A. "Macroeconomic Policy Issues For A Free-Market Cuba." Web. 25 Apr. 2010. < Cuba." Web. 25 Apr. 2010. < http://lanic.utexas.edu/la/ca/cuba/asce/cuba9/sanguin.pdfhttp://lanic.utexas.edu/la/ca/cuba/asce/cuba9/sanguin.pdf>. >.

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