Originally posted by
[email protected] 5 2003, 05:28 PM
For one of my economics preps I have to answer:
1.Why might Cuba be described as a command economy?
2.Why does the growth of small businesses and foreign investment threaten the existence of the command economy in Cuba?
3.Discuss whether a lifting of the US trade embargo on Cuba would make it easier or more difficult for te Cuban government to retain a planning model for its economy.
I do have loads of material to use to answer these questions, but I'd really like to hear what you think about the last one.
1) I think it is considered a command economy because money is not the most important factor of transactions in Cuba, it is how the goods are distributed amongst the people.
2) The growth of small business is threatening Cuba because those small business owners are only out to gain profit for themselves without any concern for society. Also, the issue of foreign investments taking place in Cuba are taking away money from society that is valuable for producing those needed goods.
3) This is a very two-sided answer here. If the US embargo were to be lifted, foreign investment would suck the country dry, but not if the government of Cuba were to strictly monitor and control the trade, making sure that no unneccessary transactions were made. And it most likely would be harder at first for the Cuban government to retain a planning model because it will be very busy making sure that foreign capitalists do not try to infiltrate their economy.