Castro Economic Policy
Fidel Castro's Economic Policies
Nationalization of Industries:
Castro's government nationalized major industries, including sugar, banking, and manufacturing. This aimed to eliminate foreign control and redistribute wealth.
Agrarian Reform:
Implemented land redistribution policies to break up large estates and distribute land to peasants. This sought to address inequality in land ownership.
Centralized Planning:
Established a centrally planned economy where the government controlled production, distribution, and pricing. This aimed to direct resources towards national priorities.
Trade Relations with Soviet Bloc:
Shifted trade relations towards the Soviet Union and other communist countries. This provided Cuba with economic support and markets for its goods.
Healthcare and Education:
Increased investment in healthcare and education, making them accessible to all Cubans. This led to significant improvements in health indicators and literacy rates.
Economic Challenges:
Faced economic challenges such as shortages of goods, lack of diversification, and dependence on sugar exports. The collapse of the Soviet Union in 1991 had a significant negative impact on the Cuban economy.
Dual Currency System:
Implemented a dual currency system with the Cuban Peso (CUP) for local transactions and the Cuban Convertible Peso (CUC) for tourism and foreign trade. This created economic distortions and inequality.
Limited Private Enterprise:
Restricted private enterprise and entrepreneurship, hindering economic growth and innovation. The government maintained control over most sectors of the economy.
Tourism Development:
Promoted tourism as a source of foreign exchange. This led to the development of tourist infrastructure but also raised concerns about social and economic disparities.
Impact:
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