3min chapter

Economics Explained cover image

The Economy of Cuba

Economics Explained

CHAPTER

The Cuban Revolution

In 1991 the USSR disbanded and Cuba lost its ally that it relied on so heavily to effectively prop up its struggling economy. The price of sugar had plummeted around this time as more countries started using corn syrup instead of cane sugar. Unfortunately throughout the 1990s Cuba followed a very similar path to that of North Korea, another country that was cut off from foreign aid when the USSR crumbled away. There was widespread unemployment and starvation, an increasingly strong military presence and a reliance on debt to keep their head above water. But how they differed was the way that they reacted to this adversity. They opened themselves up to tourism, allowed foreign investment, liberated people to start their own businesses and perhaps most bizarrely

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