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University of Santo Tomas Faculty of Arts and Letters: - Prepared By: Joseph Andre Dela
University of Santo Tomas Faculty of Arts and Letters: - Prepared By: Joseph Andre Dela
Chapter 2
Cuba is an archipelago of islands located in the Caribbean Sea, 90 miles Southeast of the United States.
Capital: Havana
Land Area: 110,860 km2 (42,803 sq mi)
Provinces: 15
Municipalities: 168
Population: 12 Million with 99% literacy rate
Language: Spanish
Cubas Government
Structure
Government type: Totalitarian Communist State (West
definition)
Socialist Republic (Marxist-Leninist definition)
Politics: Cuban politics retains a top-down structure run
by a minority, but with very low levels of political
opposition.
Ruling Party: Communist Party of Cuba (Founded 1965)
Has the upper-hand when it comes to politics
3
Cubas Government
Structure
Cubas leading institution: Revolutionary Armed
Forces (FAR)
Has the upper-hand when it comes to economic decision
making. FAR is the go to in terms of problem solving.
It controls 60% of the Cuban economy.
Former President: Fidel Castro (1959 until 2008)
President: Raul Castro (February 24, 2008)
Human Rights Watch alleges that the government "represses nearly all
forms of political dissent" and that "Cubans are systematically denied basic
rights to free expression, association, assembly, privacy, movement, and
dueThe
process
law". Unit's index of democracy
Source:
Economistof
Intelligence
7
http://www.eiu.com/public/
Indicator
Rank in the
World
Rank in Latin
America
#25 of 165
#2
# 190 of 195
#33 of 33
#166 of 178
# 26 of 26
"Unfree"
"Unfree"
Political Indices
1. "Political Instability Index", The Economist
(2009/10)
Legal Environment
Political Environment
10
Economic Environment
The government owns virtually all
traditional media except for a number of
underground newsletters.
11
Rank
Surveyed
CPI Score
2004
2005
2006
2007
2008
2009
2010
2015
62
59
66
61
65
61
69
63
146
159
163
179
180
180
178
175
3.7
3.8
3.5
4.2
4.3
4.4
3.7
3.7
12
Cubas Economic
Structure
Economic System: State-Controlled Economy
Centrally Planned Economy
Economic Planning Agency: Ministry of the Economy and
Planning
Economy: US$56bn worth economy
Banking System: Central Bank of Cuba
Cuban financial system is integrated by 9 banks and a
group of non-financial institutions and offices of
representation of foreign financial institutions.
13
Cubas Economic
Structure
Currency Regime: Monetary Duality (Dual Currency System)
The Cuban economy currently operates with two local
currencies the Cuban peso (1857) and the convertible peso
(1994), both with convertibility problems and multiple and
overvalued exchange rates and has been subject to a banking
crisis since 2009. It is a veritable monetary and financial jigsaw
puzzle. In order to do away with the dual currency and overcome
financial imbalances, monetary policy must devalue the two
domestic currencies. Cubas banks are facing a systemic liquidity
crisis with no lender of last resort to help them out of it.
14
15
16
International Membership:
IMF Withdrew its membership on 2nd April
1964
WBG Withdrew its membership on 14th
November 1960
IDB Inter-American Development Bank Not
a member
UN Member since 24th October 1945
WTO Member since 20th April 1995
17
Extremely High
Governm Total government expenditures, including consumption and
transfer payments, are very high. This depicts state
ent
dominance over the economy. Expansive government
Spending
employment commitments are an obstacle to sound fiscal
management.
20
Repressed
Cubas financial sector remains underdeveloped,
and access to credit for entrepreneurial activity is
Financial
seriously impeded by bureaucracy and the
shallowness of the financial market. Over a dozen
Freedom
foreign banks have opened offices, but they are
not allowed to operate freely.
Property
Rights
Repressed
Cuban citizens may own land and productive capital for
farming and self-employment. The law and trial practices
do not meet international standards for fair public trials.
The constitution subordinates the courts to the National
Assembly of Peoples Power and the Council of State.
22
Repressed
The formal labor market is not developed, and the
government-controlled labor market has helped to
Labor
create a large informal economy and overemployment. In an attempt to reduce labor
Freedom
market rigidity, the government implemented a
measure to allow workers to hold more than one
job. Its impact has been limited.
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24
End
of
Presentation
japdp
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