United States embargo against Cuba in the context of "Economy of Cuba"

Play Trivia Questions online!

or

Skip to study material about United States embargo against Cuba in the context of "Economy of Cuba"

Ad spacer

⭐ Core Definition: United States embargo against Cuba

The United States embargo against Cuba is an embargo preventing U.S. businesses and citizens from conducting trade or commerce with Cuban interests since 1960. Modern diplomatic relations are cold, stemming from historic conflict and divergent political ideologies. U.S. economic sanctions against Cuba are comprehensive and impact all sectors of the Cuban economy. It is the most enduring trade embargo in modern history. The U.S. government influences extraterritorial trade with Cuba. The embargo has faced international criticism for its adverse impact on Cubans, including by the United Nations who have formally condemned it intermittently since 1992.

The U.S. government first launched an arms embargo against Cuba in 1958, with their energy and agricultural sectors targeted in 1960. The Cuban Revolution led to nationalization and a trade war with the U.S. that prompted seizure of American economic assets, including oil refineries. The U.S. retaliated with a total embargo on Cuban trade, with exceptions for food and medicine. Cuba held nuclear missiles for the Soviet Union during the 1962 Cuban Missile Crisis, which resulted in the U.S. fully blockading the island. The embargo was loosened during the Cuban thaw from 2015 to 2017, tightening sharply thereafter over human rights in Cuba.

↓ Menu

>>>PUT SHARE BUTTONS HERE<<<

👉 United States embargo against Cuba in the context of Economy of Cuba

Cuba has a developing planned economy dominated by state-run enterprises. The Communist Party of Cuba maintains high levels of public sector control and exerts significant influence over the Cuban economy. The island has a low cost of living, inexpensive public transport, as well as subsidized education, healthcare, and food. Cuba's economic growth has historically been weak due to high labour emigration, import dependency, an ongoing energy crisis, foreign trade sanctions, and limited tourism in Cuba. The dual economy of Cuba has led to a series of financial crises. Cuba is one of the poorest countries in Latin America and the Caribbean with high inflation, collective poverty, and food shortages. It is heavily indebted due to its large public sector and high deficit spending, with a global sovereign debt burden.

In the 19th century, Cuba was one of the most prosperous pre-industrial Latin American countries with the export of tobacco, sugar, and coffee. At the Cuban Revolution of 1953–1959, during the military dictatorship of Fulgencio Batista, Cuba was on a growth trajectory within Latin America. During the Cold War, the Cuban economy was heavily subsidized – 10% to 40% of Cuban GDP in various years – by the Eastern Bloc, due to their geopolitical alignment with the Soviet Union. Cuba endured severe economic downturn when the Soviet Union collapsed, with GDP declining 33% between 1990 and 1993. A protracted economic malaise known as the Special Period overcame Cuba from 1991 to 2001. The Cuban economy rebounded in 2003 with marginal liberalization and foreign support from Venezuela, China, and Russia. The United States has maintained an economic embargo against Cuba since 1960 due to geopolitical tensions. Cuba has free-trade agreements with many world nations.

↓ Explore More Topics
In this Dossier

United States embargo against Cuba in the context of Bay of Pigs Invasion

The Bay of Pigs Invasion (Spanish: Invasión de la Bahía de los Cochinos, sometimes called Invasión de Playa Girón or Batalla de Playa Girón after the Playa Girón) was a failed military landing operation on the southwestern coast of Cuba in April 1961 by the United States and the Cuban Democratic Revolutionary Front (DRF), consisting of Cuban exiles who opposed Fidel Castro's Cuban Revolution, clandestinely and directly financed by the U.S. government. The operation took place at the height of the Cold War, and its failure influenced relations between Cuba, the United States, and the Soviet Union.

By early 1960, President Eisenhower had begun contemplating ways to remove Castro. In accordance with this goal, Eisenhower eventually approved Richard Bissell's plan which included training the paramilitary force that would later be used in the Bay of Pigs Invasion. Alongside covert operations, the U.S. also began its embargo of the island. This led Castro to reach out to the U.S.'s Cold War rival, the Soviet Union, after which the U.S. severed diplomatic relations.

↑ Return to Menu

United States embargo against Cuba in the context of Fidel Castro

Fidel Alejandro Castro Ruz (13 August 1926 – 25 November 2016) was a Cuban politician and revolutionary who was the leader of Cuba from 1959 to 2008, serving as prime minister from 1959 to 1976 and president from 1976 to 2008. Ideologically a Marxist–Leninist and Cuban nationalist, he also served as the first secretary of the Communist Party of Cuba from 1965 until 2011. Under his administration, Cuba became a one-party communist state; industry and business were nationalized, and socialist reforms were implemented throughout society.

Born in Birán, the son of a wealthy Spanish farmer, Castro adopted leftist and anti-imperialist ideas while studying law at the University of Havana. After participating in rebellions against right-wing governments in the Dominican Republic and Colombia, he planned the overthrow of Cuban president Fulgencio Batista, launching a failed attack on the Moncada Barracks in 1953. After a year's imprisonment, Castro travelled to Mexico where he formed a revolutionary group, the 26th of July Movement, with his brother, Raúl Castro, and Ernesto "Che" Guevara. Returning to Cuba, Castro took a key role in the Cuban Revolution by leading the Movement in a guerrilla war against Batista's forces from the Sierra Maestra. After Batista's overthrow in 1959, Castro assumed military and political power as Cuba's prime minister. The United States came to oppose Castro's government and unsuccessfully attempted to remove him by assassination, economic embargo, and counter-revolution, including the Bay of Pigs Invasion of 1961. Countering these threats, Castro aligned with the Soviet Union and allowed the Soviets to place nuclear weapons in Cuba, resulting in the Cuban Missile Crisis—a defining incident of the Cold War—in 1962.

↑ Return to Menu

United States embargo against Cuba in the context of Tourism in Cuba

Tourism in Cuba is an economic sector that generates over 4.7 million arrivals as of 2018, and is one of the main sources of revenue for the island. With its favorable climate, beaches, colonial architecture and distinct cultural history, Cuba has long been an attractive destination for tourists. "Cuba treasures 253 protected areas, 257 national monuments, 7 UNESCO World Heritage Sites, 7 Natural Biosphere Reserves and 13 Fauna Refuge among other non-tourist zones."

Having been Spain's closest colony to the United States until 1898, in the first part of the 20th century Cuba continued to develop with the influence of big investments, the creation of various industries, and growing travel to support mostly US interests and corporations. Its proximity (roughly 90 miles (140 km) from the Florida Keys) and close relationship with the United States also helped Cuba's market economy prosper fairly quickly. As relations between Cuba and the United States deteriorated rapidly after the Cuban Revolution of 1959 and the resulting expropriation and nationalization of businesses, the island became cut off from its traditional market by an ongoing embargo and a travel ban was imposed on U.S. citizens visiting Cuba. The tourist industry declined to record low levels within two years of Castro's accession to power.

↑ Return to Menu

United States embargo against Cuba in the context of Cuba–United States relations

Modern diplomatic relations between Cuba and the United States are cold, stemming from historic conflict and divergent political ideologies. The two nations restored diplomatic relations on July 20, 2015, after relations had been severed in 1961 during the Cold War. The U.S. has maintained a comprehensive trade embargo against Cuba since 1960. The embargo includes restrictions on all commercial, economic, and financial activity, making it illegal for U.S. corporations to do business with Cuba.

Early 19th century relations centered mainly on extensive trade, before manifest destiny increasingly led to an American desire to buy, conquer, or control Cuba. The U.S. attempted to purchase Cuba in 1848 and in 1854 from Spain. It successfully took over Cuba in 1898 as a U.S. territory within the Treaty of Paris. The U.S. position of economic and political dominance over the island persisted after Cuba became formally independent in 1902. Relations became closer still as the U.S. provided weapons, money, and its authority to the military dictatorship of Fulgencio Batista that ruled Cuba from 1952 to 1958. They deteriorated during the Cuban Revolution of 1959. The U.S. recruited operatives in Cuba to carry out a violent campaign of terrorism and sabotage on the island, killing civilians and causing economic damage.

↑ Return to Menu