The Cuban Economy Introduced
The Cuban economy is surprisingly strong given all of the issues that they have had to deal with. By no means is the Cuban economy strong but it has been remarkably resilient in the face of the collapse of the Soviet Union and a long term embargo by the US. Cuba remains one of the last communist countries in the world, this is why it is has been the subject of an American trade embargo for the last fifty years. For many years Cuba relied on trade with the Soviet Union in order to keep its economy afloat. Many observers thought that when the Soviet Union collapsed it would result in the end of communism in Cuba. This turned out not to be the case and the Cuban economy has managed to adapt.
In large part the Cuban economy is based on agriculture. They are a major exporter of a number of cash crops. In large part China has stepped in to receive the exports that used to go to the Soviet Union. Tourism has also been a major source of cash for the country as it is in an ideal location being in Caribbean. Although American tourists can't visit the country it has become a major destination for citizens of a number of other countries. Of course the most famous Cuban export is cigars which bring in a great deal of income for the country.
Despite remaining one of the few communist countries in the world Cuba has started to take steps towards free enterprise. This is something that the share with most other communist countries. Although it is possible to start a private company in Cuba these days it still isn't easy. There are a lot of loopholes that need to be jumped through in order to get the required permits to start a business. Even when you do get the permits there is a great deal of government interference in the way the business can be run. The result has been a very large underground economy. There are a lot of people working unofficially in Cuba in order to avoid all of the regulation that is involved in starting a business officially.
One thing that the economy has going for it is its highly skilled workforce. Cuba has one of the best education systems in the region and this has been a huge help in keeping its economy going. In fact in recent years there skilled workers have been one of their greatest exports. For example they are supplying. Doctors and teachers to Venezuela in exchange for oil. The country has also become a popular destination for people needing medical procedures since they have a high quality health care system that offers treatments at very low prices. This has helped to bring a great deal of foreign currency into Cuba and keep its economy afloat despite the embargo.