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The Economy of Cuba

The US Embargo

Since the early 1960s, the United States has restricted trade and financial dealings with Cuba, and Cuba blames it for many hardships, while critics also point to internal policy failures.

A long-running economic blockade.

Origins

Restrictions began in 1960 and became a full embargo in 1962.

Tightening

The Helms-Burton Act of 1996 penalised foreign firms dealing in expropriated property.

Easing and reversals

Barack Obama relaxed some rules in 2014-16, and later administrations tightened them again.

Debate

Cuba says the embargo costs it billions; critics argue that state control and inefficiency are major causes of poverty.

A blocked payment

A foreign supplier avoids dealing with Cuba for fear of US penalties.

Assuming one cause explains everything

Both external and internal factors matter.

Key takeaways
  • The embargo began in the early 1960s.
  • Helms-Burton expanded it.
  • Policy has swung back and forth.
  • Causes of hardship are debated.
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