Business Leaders – Cuba

The article gives you information on Business Leaders – Cuba. Cuba has one of the most controversial economies in the world. Like most planned economies, it is strictly government regulated. It is, however, showing slow signs of becoming more open. Once upon a time, private sector employment (by non-government owned companies) was less than 10 %. Now, private companies employ just fewer than 25 % of the work force – thanks, in part, to the government’s slight relaxing of their fiscal controls.

Business Leaders - Cuba

Private entities wishing to invest in Cuba still need to seek government approval on a case by case basis. Such investments become joint ventures with the Cuban government, with the exception of Venezuela – to whom a special financial agreement applies.

International trade, as with much of the Cuban economy is influenced heavily by corruption. The Netherlands receive the most Cuban exports, at 24 %, approximately 75 % of which is done via Fondel Finance. This company is owned by the Dutch Van ‘t Wout family – a family with close, longstanding personal connections to former leader, Fidel Castro. Canada is a close second with 22 % of exports.

From a budget standpoint, the country’s expenditure only slightly outweighs its revenues and its recent willingness to allow foreign investment, however tightly regulated, will likely increase revenues and erase the budgetary deficit.

The country’s main industries are sugar, petroleum, tobacco (used in their famous Cuban cigars). While the Cuban economy is widely criticized, for being far too restricted, it has one of the lowest poverty rates in the world, which is commendable. This is directly associated with the Cuban planned economy, the principle behind which should have every able-bodied Cuban gainfully employed. The actual unemployment rate is 1.9 %, again, one of the lowest in the world.

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