Ser Empresario Magazine in audio
English Version of Ser Empresario Magazine in audio
from Ser Empresario Magazine
Ser Empresario Magazine in audio
Gerardo Sáenz
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Cuba. The blockade as an excuse and the regime as the cause. By Gerardo Signs, Cuba is experiencing one of its worst economic, political, and social crises since the Castro regime came to power in 1959. Some indicators reflecting the island's condition include a contraction of at least 10% in GDP between 2019 and 2023. The exchange rate reached a historic low of between 300 and 400 Cuban pesos per dollar, reflecting a loss of confidence in the currency within the domestic market. Inflation in this severely weakened economy reached as high as 30% in 2023. In addition to economic problems, there are complications in the daily lives of Cubans. For example, daily power outages of up to 12 hours in some provinces, as well as recurring shortages of medicine and food rationing through ration books. All of this has led to an exodus of 533,000 Cubans who entered the United States between 2022 and 2023. Of course, the Castro regime has seized upon the recent actions of the U.S. government to revive the narrative that attributes the crisis solely to the U.S. embargo. This narrative has been very useful in manipulating international public opinion, especially in some Latin American countries that, for ideological reasons, sympathize with the Cuban regime, even if it means turning a blind eye to the atrocities committed against the Cuban people. For those who blindly believe the Castro regime's narrative about a supposed blockade, it's important to review some facts that easily disprove it. For example, Cuba maintains trade relations with more than 70 countries, including China, Russia, Venezuela, Mexico, Colombia, Peru, and the vast majority of the European Union. The United States also maintains a trade flow with the island of around$300 million annually in food alone. This is because the embargo does not prohibit the import of food or medicine, nor trade with Europe, Asia, or Latin America. In short, there is no total blockade as the Castro regime claims, but rather a partial restriction that fails to explain Cuba's internal collapse. While the crisis is multifaceted, real and tangible evidence demonstrates that the country's current situation is primarily due to an authoritarian socialist system that has proven, throughout history, to be neither economically nor socially viable. This type of economic system was able to survive thanks to Soviet subsidies until 1991, and subsequently, thanks to Venezuelan oil subsidies in the 2000s. Due to its characteristics, state-owned enterprises have suffered chronic economic losses stemming from obsolete infrastructure and deficient electricity service. Furthermore, the monetary distortion resulting from the terrea de ordenamiento, ordering task, reform-generated record inflation, and a consequent loss of purchasing power. Tourism, which has been one of the most important sources of international revenue, has seen a decline of at least 2.3 million tourists per year between 2019 and 2023. That is, a drop of nearly 50% compared to pre-pandemic levels. This is all due to the lack of essential services and the deterioration of tourism infrastructure. The problem is not temporary, nor is it simply a result of the stricter measures imposed by the current U.S. administration, but rather stems from an exhausted economic model. However, the Cuban economic system is characterized by state control of the economy through its dominance of strategic sectors. Furthermore, there are severe restrictions on the diminished private sector, which suffers constant pressure in the form of limited licenses, high taxes, and a ban on free imports. This situation has been exacerbated by measures imposed by the Cuban government between 2024 and 2025, tightening controls on micro, small, and medium-sized enterprises, MSMEs. The result is structural shortages, a dominant informal market, and de facto partial dollarization. The current situation in Cuba has become a recurring theme in international discussions, with some voices calling for aid for the Cuban people. In Mexico, former President Andrés Manuel López Obrador temporarily came out of retirement to invite Mexicans to contribute through a trust fund, thereby alleviating the effects of the embargo. These kinds of proposals stem from a flawed understanding. This is despite the lack of guarantees of transparency and independent oversight mechanisms, especially given that Cuba lacks autonomous institutions to audit public funds. The problem isn't sending resources, but rather who receives them and how they are managed. In authoritarian systems like Cuba's, the state controls the distribution of resources. So there are no guarantees that the aid sent will ultimately reach Cuban citizens. Furthermore, there is a risk that aid will be diverted to government structures or used for political purposes as the regime sees fit. Without democratic controls, the aid will ultimately strengthen the regime more than it benefits the population. It is undeniable that Cubans urgently need help. The inevitable question is: how can we help without resources being lost along the way? To the relief of all those who truly want to help the people and not the regime, the answer lies in established institutions like Caritas Cuba, which have a direct presence in communities and distribute food, medicine, and social support without state intermediation. The current crisis in Cuba does not stem from the U.S. embargo, but rather from a failed political and economic model. Recent decisions by the U.S. government have only highlighted the disorder caused by an authoritarian and deeply opaque regime, but the true solution lies not only in aid, which of course is necessary at this time, but also in internal structural reforms and democratic opening.