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INFOCUBA:  SOCIALIST ECONOMY
 
 

A Brief on the Industrial Sector of Cuba


The lack of official statistics makes it impossible to offer concrete results. In the same manner, the proper central planning system of the economy makes it impossible as well to analyze its production in monetary value.

Before 1959, Cuba maintained a stable and solid economy within the international markets. A balance in its imports and exports was also in tuned, counting with the monetary reserves guaranteed by the high value of sugar after World War II. At that time, the Cuban Peso and the U.S. Dollar shared the same values. National and international financial institutions cooperated in incrementing its lending operations to Cuban businesses and foreign investors willing to invest their capital in the Island. The gold reserves surpass the 500 Million mark.

In 1959, a meltdown was felt when Fidel Castro began the roots of a massive program of nationalizing corporations. All aspects of industry was forever changed in Cuba when the Soviet-Stalin models of government was slowly being introduced which caused a radical change in the total functions of the country's economy. Most of the vast sugar cane plantations that at one time were the forefronts of the economy were lost for two fundamental reasons. First, since the State held a monopoly on the economy, it was not able to maintain these plantations on its own. Secondly, and perhaps the most important, the State had not contemplated the accurate characteristics of the earth and soil where the products were to be cultivated.

Agriculture:

Cuba has about a surface area of 6.8 hectares of agricultural lands (One million acres.) But actually, about 65% of the land have been exploited about an equivalence to 4.4 millions of hectares (11 million acres.) 35% of the remaining land is not exploited and is considered state reserves. The cultivation areas are distributed among the following goods: sugar canes, coffee and cocoa, plantains, citrus, fruits, rice, beans vegetables, pastures and grains.

Sugar Cane

The sugar cane is the main cultivated crop of the country and of course, the chief ingredient of the sugar industry. Its production has decreased dramatically due to the diverse factors that are not technical in nature but by faults of the administration that has negatively impacted the proper technique applications such as:

- The absence of fundamental politics in the technical criterion
- Severe Fuel shortage
- Shortage of equipment parts that impedes the production process
- Poor quality of the primary resources from the farms
- Deficiency in administration and technical operations

In continuation, here is some statistics on the production of sugar in million of tons:

1991 - 6.4
1992 - 6.3
1993 - 4.2
1994 - 3.8
1995 - 4.4
1996 - 4.8

According to the information from the Cuban government, the numbers are:

1997 - 3.8
1998 - 3.6
1999 - 3.8

It should be noted that before 1959, the production of sugar was over 6.5 to 7.0 million of tons with only 33% of the laborers that present Cuban socialist government employs, even with newer methods of cutting the cane.


Coffee

Cuba was never known as a great exporter of this grain, in contrast it has been considered as the best producer of quality coffee. A brief analysis that compared the coffee production in 1958 and in 1989 significantly proved a sizable fall in coffee production of at least 63%. The following numbers that follow are given in metric tons.

1958 - 43,600
1989 - 28,900


Tobacco

A decrease of 63.8% occurred in the production of this important crop so much liked in the international markets, if we compare the tobacco production reached in 1958. The following numbers show:

1958 - 50,600
1960 - 45,300
1989 - 41,600
1995 - 24,900
1996 - 32,300

In regards to tobacco exportation, the following table will illustrate its behavior:
(Numbers given in millions of units.)

1991 - 248.0
1992 - 210.0
1993 - 193.2
1994 - 179.7
1995 - 60.0
1996 - 70.0

It is estimated that between 1997 and 1999 there was a small increase, however, the accurate figures are unknown.

 
TOPICS
-Socialist Economy
-National Industry
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Consumption
-Brief of the Industry
-Foreign Investment
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Production
-United States Embargo

-What you need to know about the U.S. Embargo
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Information regarding the Helms Burton Act
-Report of violations of the ILO's International Labor Standars by the government of Cuba
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


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