Cuba – New Economic Model

By Padmini Arhant

The island nation is in the process of shifting towards an economic model to rescue the state from the employment burden across the public sector.

State’s overwhelming expansion in all areas of the economy is forcing the government to change course in an effort to salvage the sagging public enterprises into private industry.

The combined woes of political sanctions, global economic crisis and natural disasters have produced massive revenue losses for the socialist system struggling to maintain the infrastructure.

As a result, Cuba has reportedly decided to lay off 500,000 state employees by March 2011 and promoting the private entrepreneurial opportunities by issuing business licenses to its population in a limited measure.

Such economic strategy is a wise move for Cuba and could potentially ease the pressure off the government funded organizations that are becoming unaffordable.

The underground economy that managed the private businesses in the state controlled environment is apparently being considered for legal recognition.

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Padmini Arhant

Republic of Cuba in the 21st Century

By Padmini Arhant

The Caribbean nation has been through many political and social challenges in the past three centuries. Beginning with colonization leading to revolutions, military coups and the unfortunate communist rule prevalent until today, the 11 million Cuban population continues to suffer in silence without any hope on the horizon.

From the Cuban revolution to Bay of Pigs invasion and Cuban Missile crisis, Cuba has remained a significant Latin American nation.

With the political system modeled after the former Soviet Union and China the three nations’ paradoxical images in the new millennium are striking.

China as a Communist nation is regarded the emerging economic power with extraordinary privileges prominently - permanent membership at the U.N. Security Council, ‘Most Favored Nation’ status renewed regardless of the Republican or Democratic administrations at the White House. China is also a WTO, G-20 and ASEAN member.

Russia shares equivalent position with China among the international community and currently has the United States endorsement for WTO membership at the Toronto G-20 meeting held in June 2010.

Cuba, on the other hand is isolated with various sanctions particularly the economic embargo crippling the island nation in the Western Hemisphere.

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Padmini Arhant