Cuban Economic Recovery

Economic Recovery

With no signs of recovery, more and more Cubans abandoned the island using every available method available, whether legal or illegal. In 1993 the government opened the economy to foreign investment (firstly in the way of joint ventures and later 100% foreign ownership of business was authorized, though the state would still control the work force). A certain degree of freedom was granted to small private enterprises, diplomatic relations with the Eastern European countries resumed and the possession of dollars for commercial and personal transactions became commonplace (purchase of products in dollar shops and bank accounts). Since 1995 tourism turned into one of the leading industries, counting an average of two million visitors a year. In 1996, the new American bill, Helms-Burton, did not scare investors out of Cuba.

Tourism remains a major source of income and employment, but also a cause for concern. The economy based on the duality of currencies, far apart in value, has created differences and social problems, since the ones with dollars can afford goods and services that others without cannot. In spite of this, these reforms did relieve the pressure for greater change. An outstanding event was Pope John Paul II´s visit to Cuban soil in January 1998, in which he strongly criticized the sanctions imposed on Cuba by the American embargo. After this visit, direct flights from the US to Cuba for Cuban émigrés in this country were established; along with the acceptance of money transfers from family living abroad, medicine donations and other types of humanitarian contributions. As Cuba faces titanic challenges arising from a modernizing world, the question arises: how can Cuba maintain a steady course of progression, adapting to a new world order without losing its own identity?