Angeles University Foundation

College of Business and Accountancy

ECONOMIC OF CUBA

Submitted by:
Tuazon, Lorena Y.

Submitted to:
Ms. Donna May Estimada, MBA
Cuba
1. Capital - Havana, the capital of Cuba, is renowned for its colorful architecture. Havana is located on
Cuba’s northern coast to the south of the coral cay archipelago of the Florida Keys.

2. Area: total: 110,860 sq km

land: 109,820 sq km
water: 1,040 sq km

3. Population - The current population of Cuba is 11,491,234 as of Saturday, March 23, 2019, based on
the latest United Nations estimates.

4. Population (average annual growth rate) - The population growth rate of Cuba is 11,477,459. It's
ranking among other countries is 73. (July 2010)

5. GNP Per Capita - The Gross Domestic Product per capita in Cuba was last recorded at 6445 US dollars
in 2015. The GDP per Capita in Cuba is equivalent to 51 percent of the world's average. GDP per capita
in Cuba averaged 3929.93 USD from 1970 until 2015, reaching an all time high of 6445 USD in 2015
and a record low of 2249.10 USD in 1970.

6. GNP Per Capita (AGR) - GDP Annual Growth Rate in Cuba averaged 2.10 percent from 1990 until
2017, reaching an all time high of 12.10 percent in 2006 and a record low of -14.90 percent in 1993.

7. Agricultural as Share of GDP - The Agriculture % of GDP of Cuba is 3.80 (%) with a global rank of
131.

8. Exports as Share of GDP - In 2017, Cuba exported $1.41B, making it the 138 th largest exporter in
the world.

9. Infant mortality rate: total: 4.4 deaths/1,000 live births male: 4.9 deaths/1,000 live births female: 3.9
deaths/1,000 live births (2017 est.)

10. Child malnutrition - Cuba is the only country in Latin America and the Caribbean that has eliminated
child malnutrition, thanks to the government’s efforts to improve the diet of the most vulnerable groups,
asserts an international organization.

11. Female share of labor force - At least four-in-ten in the labor force are women.
Economic development
Until 1959, the Cuban government followed a policy of free enterprise; government ownership was largely
limited to local utilities. When the Castro government came to power in 1959, it proceeded to create a centrally
planned economy. By means of nationalization and expropriation, all producer industries, mines, refineries,
communications, and export-import concerns were brought under government control by 1968.

Contemporary Model of Development and Underdevelopment

No other similar country adopted Cuba's approach to development, although some tried, and the differences
between poverty in Cuba and other Latin and Caribbean countries are stark. While average income has grown in
Cuba at a similar speed to other Latin American countries such as Bolivia, Colombia and El Salvador, the
poverty and social conflict still experienced in the mainland countries is very apparent. In Cuba, the extremes of
opulence and misery are banished in favour of a generalised level of wealth, best described as "enough to get
by".

Poverty, Inequality, and Development

Before the 1950's, Cuba was third world level with most of the population desperately in poverty. There was a
huge gap in wealth between the poor people in the rural areas and the extreme rich sugar and tobacco barons.
The government was not well planned, yet it controlled all parts of the island’s commerce and economy. There
were not enough farm products or goods produced on the island to support its population and there was little to
no trade with other countries.

Population Growth and Economic Development

Causes of population growth include high birth rate, low infant mortality, increased food production and
improvement of public health. In the past, the death rate was high due to lack of food and poor health facilities.
Discoveries and inventions in food and health sectors have saved lives. Population growth (annual %) in Cuba
was reported at 0.07538 % in 2017, according to the World Bank collection of development indicators,
compiled from officially recognized sources.

Urbanization and Rural Urban Migration

This entry provides two measures of the degree of urbanization of a population. The first, urban population,
describes the percentage of the total population living in urban areas, as defined by the country. The second,
rate of urbanization, describes the projected average rate of change of the size of the urban population over the
given period. Additionally, the World entry includes a list of the ten largest urban agglomerations. An urban
agglomeration is defined as comprising the city or town proper and also the suburban fringe or thickly settled
territory lying outside of, but adjacent to, the boundaries of the city.

Human Capital
Because of slow population growth and an ageing population, Cuba will in the near future be confronted by a
rather unusual problem in the Latin American context: shortage of labor, which will put pressure on the need for
increasing productivity growth, which can only be based on industrial upgrading, reintegration into the global
economy, technological rejuvenation and a highly skilled labor force.
Agricultural Transformation and Rural Development
From an emphasis on state farms, as the politically and technologically appropriate strategy of agricultural
development, to the adoption of a new approach highlighting the advantages of tying producers to small areas;
from an export-oriented production emphasis to the promotion of food crop production; and from a reliance on
high technology to one on alternative technologies, this transformation is touching on a number of the central
aspects of agricultural production and development.

The Environment and Development

Cuba is extremely rich in biodiversity. In addition to its forests and terrestrial wildlife, there are two specific
threatened ecosystems worth discussing. The coral reefs are very important to tourism and could face much
higher traffic in the next few years due to its increase. This increase could easily lead to the ecosystem’s
destruction from the sheer number of people touching and stepping on the various delicate parts of the reef.

Education and Development

Before the revolution in Cuba occurred, education was unavailable to over half of the Cuban children. Literacy
rate was at best 60%. In 1960, the revolutionary government began a war on literacy. Since the revolution, Cuba
has maintained high standards of educational development. Education is a very important issue in Cuba and the
infrastructure is also very strong.

International Trade Theory and Development Strategy

Main imports include fuel, food, semi-finished goods, wheat, vegetables, machinery, feed, and corn. Main
exports are sugar, fish, nickel, medicinal products, and fruit. Cuba has consistently faced an unfavorable balance
of trade; in 1999 imports were valued at US$3.2 billion and exports at US$1.4 billion. This situation places
Cuba in a dependent position, unable to earn hard currency and reliant on other countries for vital goods.
References:
Accession Number: 35172676
http://web.a.ebscohost.com/ehost/detail/detail?vid=43&sid=d87c9fcf-3647-4eb5-ab84-
d4757f307c52%40sessionmgr4006&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#AN=35172676&db=8gh
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