Cuba's Road to Serfdom

It is important not to lose sight of the basic fact that as compared to the cost that Cuba imposes on itself by restricting freedom of contract and private ownership, the potential effect that the US embargo has on the Cuban economy is negligible. Official figures show that foreign investment in Cub...

Full description

Saved in:
Bibliographic Details
Published in:The Cato journal 2001-01, Vol.20 (3), p.425-430
Main Author: Seiglie, Carlos
Format: Article
Language:English
Subjects:
1130
1210
1300
9130
9173
American dollar
Cold War
Communism
Cuba
Economic conditions
Economic policy
Economic theory
Embargo
Embargoes & blockades
Employment
Experimental/theoretical
Foreign exchange rates
Foreign investment
Foreign investments
Foreign policy
Foreign relations
Hispanic Americans
Humanitarianism
International aspects
International trade & foreign investment
Labor market
Latin America
Loopholes
Political economy
Politics
Politics & political behavior
Remittances
Sanctions
Sanctions (international law)
Studies
Tax rates
United States
Wages & salaries
Workers
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:It is important not to lose sight of the basic fact that as compared to the cost that Cuba imposes on itself by restricting freedom of contract and private ownership, the potential effect that the US embargo has on the Cuban economy is negligible. Official figures show that foreign investment in Cuba since 1990 has been substantially smaller than the amount sent by Cuban-Americans in the form of remittances and other assistance permitted by loopholes in US sanctions. Even if the US embargo were lifted, the low returns of capital resulting from the mismanagement of the economy under the Castro regime would not lead to any major capital inflows. With so many investment opportunities available in the developed and developing world, Cuba is just one more capital-hungry country competing for funds. It is important not to lose sight of the basic fact that as compared to the cost that Cuba imposes on itself by restricting freedom of contract and private ownership, the potential effect that the US embargo has on the Cuban economy is negligible.
ISSN:0273-3072
1943-3468