Blog
Castro bows out
19th February 2008
After a staggering forty nine years in power, we wish a fond goodbye to Fidel Castro the 81 year old President of Cuba. I must admit to knowing precious little about the Cuban economy and whilst EcoWin usually has a veritable goldmine of economic data on virtually every economy in the world, there were just forty seven entries for Cuba, mostly from the IMF on Cuba’s foreign exchange reserves and borrowing! But Cuba is one of the relatively few countries with which the USA runs a trade surplus! And this surplus has been growing in recent years.
Several of my colleagues at school are frequent visitors to Cuba and I must quiz them for more background information on the economy. A common perception is the living standards for the average Cuban are massively below that in the USA - I have put together a short data profile of the two countries using data drawn from the World Bank Development Report from April 2007.
Cuba and the USA - Data Profile
(Cuba first, USA second)
Population: 11.3 million; 299.0 million
Life expectancy at birth, total (years) 77.3, 77.7
School enrollment, secondary (% gross) 93.7, 94.7
CO2 emissions (metric tons per capita) 2.3. 20.5
GDP per capita (PPP adjusted) $4,500, $46,000
GDP growth (annual %) 5.6, 3.3
Inflation, GDP deflator (annual %) 21.3, 2.9
Fixed line and mobile phone subscribers (per 1,000 people) 87.4, 1070
Internet users (per 1,000 people) 16.9, 439.4
Source: World Development Indicators database, April 2007
Does the information reinforce that perception?
What other data might be useful in teasing out the fundamental differences in economic structure.
Is it reasonable to make such a comparison and draw out such contrasts? Should we not be comparing Cuba with countries such as Venezuela?
Reading between the lines from today’s coverage, it seems that economic reform is a stronger possibility than far-reaching political reform. Reuters reported that
‘Since becoming acting president on July 31, 2006, after Fidel Castro fell ill, Raul Castro has encouraged open debate on Cuba’s problems, ranging from low wages and housing shortages to the inefficiency of the socialist state and a thriving black market. He has promised “structural changes” in agriculture and raised expectations among Cubans that they will be allowed to freely travel abroad and buy and sell their cars and homes.’
Some reading on Castro’s announcement today.
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.