Cuba - Special Period

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Basil Razi

When the Soviet Union collapsed in 1990, the impact on the Cuban economy was devastating. Cuba lost approximately 80% of its imports, 80% of its exports and its Gross Domestic Product dropped by 34%. Along with food and medicines that were imported, 99% of the oil Cuba imported came from the USSR; Cuba's oil imports dropped to 10% of previous amounts in 1990. Before this, Cuba had been re-exporting any Soviet oil it did not consume to other nations for profit; this was Cuba’s second largest export product before 1990. Once Soviet imports fell, Cuba faced a shortage of oil, resulting in a need to reduce domestic consumption by 20% over the course of two years. The effect was felt immediately; dependent on fossil fuels to operate, transportation, industrial and agricultural systems were paralysed. There were extensive losses of productivity in both Cuban agriculture; which was dominated by modern industrial tractors, combines, and harvesters, all of which required oil to run; and in Cuban industrial capacity.

The early stages of the Special Period were defined by a general breakdown in transportation and agricultural sectors, fertilizer and pesticide stocks (both of those being manufactured primarily from oil derivatives), and widespread food shortages, although outright starvation and famine were averted. Organic agriculture was soon after mandated by the Cuban government, supplanting the old industrialized form of agriculture Cubans had grown accustomed to. For a time, waiting for a bus could take three hours, power outages could last up to 16 hours, and food consumption was cut up to 1/5 and the average Cuban lost about 20 pounds. Although starvation was avoided, hunger was a daily experience and initially, malnutrition in children under five was evident after just a few weeks of food shortages.

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Further negative impacts on Cuban imports and exports were felt when the U.S. intensified its enforcement of the United States embargo against Cuba in place since the early 1960s and passed three new bills in the coming years. The Mack Amendment (October 1990) “prohibits all trade with Cuba by subsidiaries of U.S. companies outside the U.S.”Before this bill passed, 70% of Cuba's trade with U.S. subsidiary companies was for food and medicine. The Toricelli Act (October 1992) also prohibits foreign-based subsidiaries of U.S. companies from trading with Cuba but adds prohibition of travel to Cuba by U.S. citizens, and monetary ...

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