169:
96:
20:
233:
On
October 26, 1994, the government established a new system of sales of artisan and manufactured goods at prices equivalent to prices at the free agricultural markets. These allowed individuals and state enterprises to sell goods and services at appointed locations while they were still subjected to
224:
In 1993 the Cuban government legalized the possession and circulation of foreign exchange In. July 1993, it was announced was now legal to possess
American dollars, through Decree Law no 140, which was instated on 13 August 1993. The law aimed at stimulating external remittances from Cubans living in
423:
in
November 1994, investments in that year totalled $ 1.5 billion. In 1995, investments grew from $ 1.5 billion to $ 2.1 billion, a 37.5% growth. By the end of 1995, more than 212 foreign investors had started projects in Cuba, and 1996 saw the addition of 48 more internationally funded projects. In
371:
Following the decriminalization of the possession of
American Dollars in 1993, the government created special stores in which individuals who possessed the US dollar could shop for items not available to individuals who only possessed the peso. Moreover, by September 1995, it was possible to deposit
268:
To combat the fiscal deficit in the country, the government raised the prices of selected goods such as cigarettes, alcoholic beverages and gasoline in 1995. The government also raised the rates for public services such as telephone, transportation and electricity. The government also announced the
140:
From 1985 to 1989, 74.4% of all Cuban exports were sugar and related products. The Cuban economy was highly dependent on sugar, which rendered the country's economy vulnerable to price fluctuations in the world market. Following the surge in world prices, sugar production fell from 7.3 million tons
415:
The reforms also impacted the trade balance of the country. In 1994, exports increased by 18% amounting to roughly $ 1.3 billion, and imports increased by $ 2.1billion. In the following years, 1996 and 1997, exports grew to $ 1.5 and $ 2.0 billion respectively, nonetheless the island's imports was
411:
In 1994, there was as 7.6% growth in the manufacturing sector and a 4.4% growth in the electricity sector. In the following year, 1995, manufacturing sector grew by 6.4% more and there was a 56% and 7.7% growth in mining and construction sectors respectively. Manufacturing sector continued to grow
388:
passed a new mining law which aimed at simplifying foreign investment in mining sector. The following year, the
National Assembly introduced a law which innovated the legal framework for foreign investment, by simplifying the evaluating process for future foreign investment, by inhibiting foreign
257:
In July 1994, the government introduced bonuses for workers. They provided a US$ 20 monthly pay package some incentives for workers to stimulate productivity in trade activities namely exports and import substitution (i.e. oil production, electrical generation, biotechnology and cement steel).
289:
On
September 30, 1994, the Cuban government enacted its plan to allow free agricultural markets, and more controlled variety of free farmer's markets (MLC). This allowed farmers to once again legally sell the surplus from their yield (except for meat, milk and potatoes) and make profits. This
42:
The wider reforms focused heavily on the macroeconomic stabilization of the Cuban economy. This was to be achieved through a reduction in fiscal deficit, and through structural changes such as the enactment of the Free Farmer's Market agreement, the legalization of self-employment, and the
276:. This resulted in a fall of government payroll and increase in revenues. The government also announced that as of 1995, taxes will be imposed on real estate, on services such as advertising, on self-employed workers, and on Cuban's whose source of income stems from foreign businesses.
290:
encouraged farms to grow more food and black-market prices slowly fell. Moreover, the conversion of Soviet-style farms into basic cooperative production units freed up 42% of Cuba's usable land. By 1997, roughly 76% of Cuba's usable land was held by cooperatives.
451:, to which Fidel Castro responded by saying "We have not renounced socialism as our common objective....We have to be ready to conduct necessary changes to adapt to present world conditions ‹without renouncing our ideas and without renouncing our objectives.".
320:, S.A., GNB), to expand financial services available to foreign investors such as credit card operations, provision of the free convertible peso and exchange of bills. The GNB had a network of new financial institutions such as International Bank of Commerce (
680:
248:
In 1993, the government also made strides in promoting foreign investment. On 8 September 1993, the government enacted Decree Law No. 141 on
Independent Labour which re-authorized Own Account Work with the aim of increasing the labour supply.
229:
transfer dollars during a time when there was a shortage of dollars in Cuba. This law made it possible for Cubans to sell goods and services to foreigners who were visiting the island and resulted in an increase in capital.
400:. The Havana International Trade Fair attracted 1690 companies from 52 countries. US interest in the island grew. The Economist reported that from 1994 and 1996, 1500 representatives from American firms visited the island.
207:
country. During those 4 years, foreign trade fell by 80%, as more than half of Cuba's trade was done with the Soviet Union, and there was a roughly 50% drop in the country's GDP during that period. The then-president,
354:, BCC) with the aim of liberalizing the financial system. Under Decree-Law 172, the new central bank was to maintain monetary stability, preserve the value of the currency and supervise the banking system in Cuba.
511:
690:
145:
947:
144:
For 30 years, Cuba relied on the Soviet Union's subsidies. Towards the end of 1989, Soviet assistance decreased due to the budgetary problems the country was facing at the time. The former
412:
and in 1997 it registered a 7.7% growth in output. In the same year, the construction sector grew by 4.8%, and the transportation and forestry sectors grew by 4.6% and 13.6% respectively.
265:, which was on par with the US dollar and could be used in dollar stores, was to exist alongside the old peso, and its ultimate intent was to substitute both the old peso and the dollar.
130:, Cuba increasingly turned to the Soviet Union for economic and military aid. From 1970 to 1980, the Soviet Union was fully immersed in Cuba's economic affairs. In 1972, Cuba joined the
200:
in late 1993. After assessing the economic situation in the country they concluded that from 1989 to 1993, the Cuba's economic decline was more grave than that experienced by any other
656:
622:
363:
Banco
Popular de Ahorro, which mainly focused on loans and savings for families, broadened its services to its activities to commercial banking services and foreign exchange window.
408:
After the success of the stabilization program enacted in 1993, Cuba's budget deficit decreased to 1 billion pesos in 1994, 480 million pesos in 1995, and 36 million pesos in 1996.
335:
began operating in Cuba, making it the first foreign bank to be granted a license to operate in the island. In 1995, 2 more foreign banks were granted a similar license, namely the
245:$ 120=US$ 1 to CU$ 40=US$ 1. By October 1995, exchange bureaus had been created which allowed civilians to buy and sell currencies at rates which were close to black market rates.
432:, reported that 100 American companies had showed interest in state-owned businesses in Cuba. By the end of 1997, the number of internationally funded projects had grown to 317.
1230:
841:
519:
971:
1073:
234:
transaction tax which was equivalent to sales tax, and they allowed factories to sell surplus from their production. The system was aimed at weakening the
435:
In 1989, there were 28,600 licensed self-employed individuals in Cuba, after the legalisation of self-employment in 1995, this number rose to 200,000
389:
investment in real estate and by authorising the establishment of export processing zones which aim to encourage industrial and promotional activity.
310:
541:
372:
hard currency with interest in the Cuban
National Bank, by October of that same year, the government had created Foreign Currency Exchange houses (
385:
68:
392:
In 1995, the Cuban government signed a trade and investment promotion, and protection agreement with more than 12 countries including Russia,
1202:
1171:
630:
52:
376:, CADECA) with 23 branches throughout the island where Cubans could exchange USD for pesos at a rate similar to that of the Black Market.
39:
in 1991. The main aspect of these reforms was to legalize the then illegal U.S. Dollar and regulate its usage in the island's economy.
419:
Moreover, the reforms also brought about a growth in the investment sector. According to an official statement made by Vice
President
72:
478:
473:
1110:
360:
The banking system was computerized with the introduction of cash dispensing machines and modernized check-clearing systems .
156:
ended the Cuban-Soviet exchange of sugar for oil, and demanded the immediate repayment of the debt. Later in 1991, president
293:
In September 1995, Cuban government decreased subsidies to agriculture, from $ 370 million in 1994 to $ 57 million in 1995.
948:"Comparison of International Monetary Fund and World Bank Conditionalities and Cuba's Economic Reforms of the 1990s - ASCE"
911:
849:
149:
336:
35:
after 1993. They were initially enacted to offset the economic imbalances which was a result of the dissolution of the
185:
429:
317:
160:
put all assistance to Cuba to a halt. Imports fell by 50% from 1990 to 1993, consequently the GDP decreased by 30%.
60:
269:
elimination of some government agencies. 11,600 positions in 32 ministries were eliminated to reduce subsidies.
51:, increase in output and productivity, and an improvement in the fiscal deficit. With the implementation of the
1259:
1235:
761:
325:
216:, which revolved around moving people from urban to rural areas to increase focus on the agricultural sector.
262:
552:
812:
351:
420:
786:
127:
123:
44:
512:"Output and Productivity in Cuba: Collapse, Recovery, and Muddling Through to the Crossroads - ASCE"
1049:
685:
454:
Moreover, the self-employment reform was criticised for not allowing students to be self-employed.
104:
84:
1031:
1023:
890:
736:
979:
193:
153:
1015:
882:
448:
324:, S.A., BICSA), National Financier (Financiera Nacional, S.A., FINSA), and Investment Bank (
184:
from 1989 to 1993, when it reached its lowest point. In a speculated attempt to re-join the
112:
108:
56:
1264:
463:
332:
273:
168:
32:
1231:
Change in Post-Fidel Cuba: The Challenges of Political Liberalization and Economic Reform
711:
137:, and by the end of the 1980s, 85% of Cuba's foreign trade was with members of COMECON.
1074:"Transition in Cuba: A Comprehensive Stabilization Proposal and some Key Issues - ASCE"
483:
425:
340:
213:
204:
80:
1253:
1035:
416:
growing at a faster rate, registering a 33% growth in 1996 and a 19% growth in 1997.
226:
157:
119:
64:
1006:
Brundenius, Claes (2002). "Login to eResources, The University of Sydney Library".
873:
Pollitt, Brian H. (1997). "Login to eResources, The University of Sydney Library".
488:
347:
235:
209:
173:
76:
36:
301:
Prior to 1997, Cuba's banking system mainly consisted of the Cuban Nacional Bank (
47:. The economic reforms resulted in a decrease in inflation, appreciation of the
1019:
886:
242:
189:
95:
983:
444:
201:
181:
31:
refer to macroeconomic policies implemented with the aim at stabilising the
1241:
357:
By late 1998, 15 foreign banks had opened branch representatives in Cuba.
19:
1203:"Foreign Investment in Cuba: The Limits of Commercial Engagement - ASCE"
1172:"The Cuban Economic Crisis of the 1990s and the External Sector - ASCE"
1027:
623:"Cuba 1990–1994: Political Intransigence versus Economic Reform - ASCE"
212:, declared that as of 30 August 1990, the period would be known as the
134:
912:"MR Online | From Sugar to Services: An Overview of the Cuban Economy"
894:
737:"Communist-run Cuba to recognize private property in new constitution"
393:
197:
787:"Cuban lawmakers approve new constitution which heads to referendum"
542:"DOLLARIZATION IN CUBA AND IMPLICATIONS FOR THE FUTURE TRANSITION"
397:
302:
167:
94:
18:
762:"Explainer: What is old and new in Cuba's proposed constitution"
551:. Association for the Study of the Cuban Economy. Archived from
468:
48:
316:
In 1993, the BNC created a private company, New Banking Group (
180:
The collapse of the Soviet Union sent the Cuban economy into a
214:
Special Period ( Spanish: Periodo Especial) in Time of Peace
1111:"The Effectiveness of Cuba's Banking Sector Reforms - ASCE"
712:"Cuba to recognise private property under new constitution"
373:
241:
In November 1994, the black market exchange rate fell from
321:
261:
On December 20, 1994, the government announced a new free
115:, 1960s, and the dissolution of the Soviet Union, 1990s.
103:
The Cuban Economy faced its lowest recessions during the
443:
The economic reforms were criticised for renouncing the
657:"Login to eResources, The University of Sydney Library"
842:"The Miracle of the Cuban Economy in the 1990s - ASCE"
447:
views in which the country was rebuilt upon after the
306:
16:
Policies implemented for the Cuban economy after 1993
681:"Cuba to reshape government with new constitution"
661:www-elibrary-imf-org.ezproxy1.library.usyd.edu.au
346:In 1997, the Cuban government established a new
55:, came free-market rights, the recognition of
8:
309:, BPA) and International Financing Bank (
424:August 1995, the Cuban Ambassador to the
196:and another IMF official were invited to
272:In 1995, the Cuban government legalised
1166:
1164:
1162:
1160:
1158:
1156:
1154:
1152:
1150:
813:"Some Traps in Cuba's New Constitution"
500:
132:Council for Mutual Economic Assistance,
1148:
1146:
1144:
1142:
1140:
1138:
1136:
1134:
1132:
1130:
1197:
1195:
1193:
1191:
1105:
1103:
1101:
1099:
1097:
1095:
1093:
1001:
999:
942:
940:
938:
936:
934:
932:
906:
904:
868:
866:
836:
834:
832:
617:
615:
613:
611:
609:
607:
605:
603:
601:
599:
597:
595:
593:
540:Roberto, Fernandez; Kildegaard, Ane.
146:General Secretary of the Soviet Union
141:in 1989 to 4.1 million tons in 1993.
7:
651:
649:
647:
591:
589:
587:
585:
583:
581:
579:
577:
575:
573:
506:
504:
305:, BNC), the People's Savings Bank (
14:
1008:Journal of Latin American Studies
875:Journal of Latin American Studies
118:As tensions between Cuba and the
811:Robinson, Circles (2018-08-21).
322:Banco Internacional de Comercio
311:Banco Financiero Internacional
148:, who later went on to become
1:
972:"GORBACHEV ELECTED PRESIDENT"
91:Cuban economy prior to reform
1229:Post Fidel economic reforms
689:. 2018-07-14. Archived from
479:Cuba–United States relations
238:and stimulating production.
1050:"Will Cuba rejoin the IMF?"
474:Cuba–Soviet Union relations
75:models, and similar to the
63:, officially making Cuba a
1281:
337:Société Genéralé de France
280:Reform in specific sectors
1020:10.1017/S0022216X02006429
887:10.1017/S0022216X96004671
61:foreign direct investment
43:decriminalization of the
122:increased following the
113:The Socialist Revolution
307:Banco Popular de Ahorro
53:2018 Cuban constitution
303:Banco Nacional de Cuba
177:
100:
24:
352:Banco Central de Cuba
192:, executive director
171:
98:
29:dollarization of Cuba
22:
1054:World Economic Forum
326:Banco de Inversiones
124:Bay of Pigs Invasion
109:The Great Depression
45:United States dollar
1240:A brief history of
686:The Washington Post
558:on January 20, 2022
128:Cuba Missile Crisis
105:War of Independence
85:New Economic Policy
1236:Americas Quarterly
384:In December 1994,
380:Foreign Investment
178:
176:Building in Havana
101:
25:
386:National Assembly
318:Grupo Nueva Banca
194:Jacques de Groote
154:Mikhail Gorbachev
67:, similar to the
1272:
1217:
1216:
1214:
1213:
1199:
1186:
1185:
1183:
1182:
1168:
1125:
1124:
1122:
1121:
1107:
1088:
1087:
1085:
1084:
1070:
1064:
1063:
1061:
1060:
1046:
1040:
1039:
1003:
994:
993:
991:
990:
968:
962:
961:
959:
958:
944:
927:
926:
924:
923:
908:
899:
898:
870:
861:
860:
858:
857:
848:. Archived from
838:
827:
826:
824:
823:
808:
802:
801:
799:
798:
783:
777:
776:
774:
773:
758:
752:
751:
749:
748:
733:
727:
726:
724:
723:
708:
702:
701:
699:
698:
677:
671:
670:
668:
667:
653:
642:
641:
639:
638:
629:. Archived from
619:
568:
567:
565:
563:
557:
546:
537:
531:
530:
528:
527:
518:. Archived from
508:
449:Cuban revolution
274:Self- Employment
263:convertible peso
205:Eastern European
172:Cuba's National
164:Course of reform
57:private property
1280:
1279:
1275:
1274:
1273:
1271:
1270:
1269:
1260:Economy of Cuba
1250:
1249:
1226:
1221:
1220:
1211:
1209:
1201:
1200:
1189:
1180:
1178:
1170:
1169:
1128:
1119:
1117:
1109:
1108:
1091:
1082:
1080:
1072:
1071:
1067:
1058:
1056:
1048:
1047:
1043:
1005:
1004:
997:
988:
986:
976:Washington Post
970:
969:
965:
956:
954:
946:
945:
930:
921:
919:
910:
909:
902:
872:
871:
864:
855:
853:
840:
839:
830:
821:
819:
810:
809:
805:
796:
794:
785:
784:
780:
771:
769:
760:
759:
755:
746:
744:
735:
734:
730:
721:
719:
710:
709:
705:
696:
694:
693:on 14 July 2018
679:
678:
674:
665:
663:
655:
654:
645:
636:
634:
621:
620:
571:
561:
559:
555:
544:
539:
538:
534:
525:
523:
510:
509:
502:
497:
464:Economy of Cuba
460:
441:
430:Bruno Rodriguez
406:
382:
374:Casas de Cambio
369:
333:Bank of Holland
299:
287:
282:
255:
222:
166:
93:
17:
12:
11:
5:
1278:
1276:
1268:
1267:
1262:
1252:
1251:
1248:
1247:
1245:
1242:Sugar Industry
1238:
1233:
1225:
1224:External links
1222:
1219:
1218:
1187:
1126:
1089:
1065:
1041:
1014:(2): 365–395.
995:
978:. 1990-03-15.
963:
928:
900:
881:(1): 171–210.
862:
828:
803:
778:
753:
728:
703:
672:
643:
569:
532:
499:
498:
496:
493:
492:
491:
486:
484:Special Period
481:
476:
471:
466:
459:
456:
440:
437:
426:United Nations
405:
402:
381:
378:
368:
365:
350:, Cuban Bank (
341:Banco Sabadell
298:
295:
286:
283:
281:
278:
254:
251:
221:
218:
165:
162:
92:
89:
15:
13:
10:
9:
6:
4:
3:
2:
1277:
1266:
1263:
1261:
1258:
1257:
1255:
1246:
1243:
1239:
1237:
1234:
1232:
1228:
1227:
1223:
1208:
1204:
1198:
1196:
1194:
1192:
1188:
1177:
1173:
1167:
1165:
1163:
1161:
1159:
1157:
1155:
1153:
1151:
1149:
1147:
1145:
1143:
1141:
1139:
1137:
1135:
1133:
1131:
1127:
1116:
1112:
1106:
1104:
1102:
1100:
1098:
1096:
1094:
1090:
1079:
1075:
1069:
1066:
1055:
1051:
1045:
1042:
1037:
1033:
1029:
1025:
1021:
1017:
1013:
1009:
1002:
1000:
996:
985:
981:
977:
973:
967:
964:
953:
949:
943:
941:
939:
937:
935:
933:
929:
917:
913:
907:
905:
901:
896:
892:
888:
884:
880:
876:
869:
867:
863:
852:on 2023-02-05
851:
847:
843:
837:
835:
833:
829:
818:
814:
807:
804:
792:
788:
782:
779:
767:
763:
757:
754:
742:
738:
732:
729:
717:
713:
707:
704:
692:
688:
687:
682:
676:
673:
662:
658:
652:
650:
648:
644:
633:on 2022-10-30
632:
628:
624:
618:
616:
614:
612:
610:
608:
606:
604:
602:
600:
598:
596:
594:
592:
590:
588:
586:
584:
582:
580:
578:
576:
574:
570:
554:
550:
543:
536:
533:
522:on 2022-10-30
521:
517:
513:
507:
505:
501:
494:
490:
487:
485:
482:
480:
477:
475:
472:
470:
467:
465:
462:
461:
457:
455:
452:
450:
446:
438:
436:
433:
431:
427:
422:
417:
413:
409:
403:
401:
399:
395:
390:
387:
379:
377:
375:
366:
364:
361:
358:
355:
353:
349:
344:
342:
338:
334:
331:In 1994, ING
329:
327:
323:
319:
314:
313:, S.A. BFI).
312:
308:
304:
296:
294:
291:
284:
279:
277:
275:
270:
266:
264:
259:
252:
250:
246:
244:
239:
237:
231:
228:
227:United States
219:
217:
215:
211:
206:
203:
199:
195:
191:
187:
183:
175:
170:
163:
161:
159:
158:Boris Yeltsin
155:
151:
147:
142:
138:
136:
133:
129:
125:
121:
120:United States
116:
114:
110:
106:
97:
90:
88:
86:
82:
78:
74:
70:
66:
65:mixed economy
62:
58:
54:
50:
46:
40:
38:
34:
33:Cuban economy
30:
21:
1210:. Retrieved
1206:
1179:. Retrieved
1175:
1118:. Retrieved
1114:
1081:. Retrieved
1077:
1068:
1057:. Retrieved
1053:
1044:
1011:
1007:
987:. Retrieved
975:
966:
955:. Retrieved
951:
920:. Retrieved
918:. 2010-10-06
915:
878:
874:
854:. Retrieved
850:the original
845:
820:. Retrieved
817:Havana Times
816:
806:
795:. Retrieved
793:. 2018-12-22
790:
781:
770:. Retrieved
768:. 2019-02-21
765:
756:
745:. Retrieved
743:. 2018-07-14
740:
731:
720:. Retrieved
718:. 2018-07-15
715:
706:
695:. Retrieved
691:the original
684:
675:
664:. Retrieved
660:
635:. Retrieved
631:the original
626:
560:. Retrieved
553:the original
549:ascecuba.org
548:
535:
524:. Retrieved
520:the original
515:
489:Fidel Castro
453:
442:
434:
418:
414:
410:
407:
391:
383:
370:
362:
359:
356:
348:central bank
345:
343:from Spain.
330:
315:
300:
292:
288:
271:
267:
260:
256:
247:
240:
236:black market
232:
223:
210:Fidel Castro
179:
143:
139:
131:
117:
102:
99:COMECON logo
77:Soviet Union
41:
37:Soviet Union
28:
26:
562:October 25,
421:Carlos Lage
285:Agriculture
1254:Categories
1212:2018-11-01
1181:2018-11-01
1120:2018-10-18
1083:2018-10-18
1059:2018-10-19
989:2018-10-19
957:2018-11-01
922:2018-10-18
856:2018-11-01
822:2021-12-15
797:2021-12-15
772:2021-12-15
747:2021-12-15
722:2021-12-15
697:2021-12-15
666:2018-10-19
637:2018-10-18
526:2018-10-29
495:References
190:World Bank
73:Vietnamese
23:Cuban flag
1036:145426340
984:0190-8286
916:MR Online
445:socialist
439:Criticism
328:, S.A.).
253:1994-1996
220:1993-1994
202:socialist
182:recession
150:president
111:, 1930s,
107:, 1890s,
83:with the
716:BBC News
458:See also
188:and the
1244:in Cuba
1028:3875793
791:Reuters
766:Reuters
741:Reuters
367:Finance
297:Banking
174:Capitol
135:COMECON
69:Chinese
59:and of
1265:Havana
1034:
1026:
982:
895:158075
893:
404:Impact
394:Canada
198:Havana
79:under
1032:S2CID
1024:JSTOR
891:JSTOR
556:(PDF)
545:(PDF)
398:China
396:and
81:Lenin
1207:ASCE
1176:ASCE
1115:ASCE
1078:ASCE
980:ISSN
952:ASCE
846:ASCE
627:ASCE
564:2022
516:ASCE
469:Cuba
339:and
225:the
126:and
71:and
49:Peso
27:The
1016:doi
883:doi
186:IMF
1256::
1205:.
1190:^
1174:.
1129:^
1113:.
1092:^
1076:.
1052:.
1030:.
1022:.
1012:34
1010:.
998:^
974:.
950:.
931:^
914:.
903:^
889:.
879:29
877:.
865:^
844:.
831:^
815:.
789:.
764:.
739:.
714:.
683:.
659:.
646:^
625:.
572:^
547:.
514:.
503:^
428:,
243:CU
152:,
87:.
1215:.
1184:.
1123:.
1086:.
1062:.
1038:.
1018::
992:.
960:.
925:.
897:.
885::
859:.
825:.
800:.
775:.
750:.
725:.
700:.
669:.
640:.
566:.
529:.
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
