Introduction
After Batista was overthrown in 1959, Castro assumed military and political power and became the First Secretary of the Communist Party of Cuba. Adopting a Marxist-Leninist model of development, Castro converted Cuba into a one-party communist state, the first in the Western Hemisphere. Communism is a philosophical, social, political and economic ideology whose ultimate goal is the establishment of a communist society. Kurian (2011) argues that in a communist society the proletariat have been liberated, public ownership is advocated and there is communal control of the major means of production, distribution, transportation, and communication. In this dissertation, I will argue that the case of Cuba can be generalised to other communist societies and will reveal that they will always be unsustainable by discussing the benefits and drawbacks under Castro.
Cuban economic policies
Firstly, many changes were made to the economic policies of Cuba during Castro’s regime. Fulgencio Batista was the US-backed military dictator of Cuba from 1952 to 1959 and thus was in charge of the country before Castro came to power after the Cuban Revolution. The Cuba that Batista inherited was in good economic shape for Latin American standards and in 1958 it was one of the five most developed nations in Latin America (The Economist 2008). Furthermore, Cuba under Batista ranked 2nd in the hemisphere in per capita ownership of automobiles and telephones as well as first in the number of televisions per habitant (Pbs 2005) showcasing that the country’s economy was thriving and a strong middle class had developed.
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However, a large reason for Cuba’s strong economy was American influence and in fact, Americans owned around 60% of the farmland as well as a large portion of the sugar industry in the country. Workers in the country relied greatly on sugar production and since this was heavily seasonal, sugarcane cutters only worked four months a year and this lack of annual income meant that they struggled with malnourishment, hunger, and poverty (Pbs 2005). This contributed to the great economic inequality in Cuba and a third of the workforce was considered to be living in severe poverty (The Economist 2008). Furthermore, according to Kennedy (1960) at the beginning of 1959 ‘U.S companies owned about 40 percent of the Cuban sugar lands – almost all the cattle ranches – 90 percent of the mines and mineral concessions – 80 percent of the utilities – and practically all the oil industry – and supplied two-thirds of Cuba’s imports.’ Although this private investment did help Cuba it also gave Cubans the impression that the USA was more interested in taking their money rather than helping them build a strong and diversified economy of their own. Therefore, the leadership of Castro was beneficial for the Cuban economy as it allowed them to become more independent.
Pre-Castro, gambling was also a big part of Cuba’s economy. Batista was a key proponent of the gambling industry in Cuba. Casinos began to emerge in Cuba in the 1920s in connection with the growth of tourism; however, the industry took off in the late 1950s as Batista and his cronies, ‘working together with American Mafiosi, used the resources of Cuban state development banks, and even union retirement funds, to build hotels, all of which hosted casinos, like the Riviera, the Capri and the Havana Hilton’ (Farber, 2015). The article goes on to comment on how this mainly benefited Cuban rulers and Mafiosi as they ‘lined their own pockets, skimming the casinos’ proceeds, cheating investors, and trafficking drugs.’ Although the casino and tourism industries generated profits many argued that they weren’t worth the social injustices they brought about nor were the profits great in comparison to the sugar industry. For example, Farber highlights how in 1956, which was a good year for tourism, they generated $30 million, barely 10 percent what the sugar industry made. However, after Castro came into power in 1959 the ‘Mafiosi were unceremoniously kicked out of the country, casino gambling was abolished’ (Farber, 2015). While this meant a loss in the profits generated by the casinos, it meant that Cuban resources were no longer being skimmed and it brought a system that only benefitted the elite in the country to a halt, showing some of the positive impacts of Castro’s policies.
One of the reasons why the Cuban economy suffered following Castro’s assumption of power was due to the US’s actions against Cuba due to their hatred for communism. This detestation led
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