Changes

:... in fact Cuba had a higher standard of living in 1958 than half of Europe, a larger middle class than Switzerland, a more highly unionized work force than the U.S., more doctors and dentists per capita than Great Britain, more cars and televisions per capita than Canada or Germany, [and] was inundated with immigrants.<ref>[http://www.frontpagemag.com/Articles/Read.aspx?GUID=86DE50D7-E16B-42C6-B61E-035B6A1F541D Che Guevara: Mass Murderer and Coward]</ref>

:... in fact Cuba had a higher standard of living in 1958 than half of Europe, a larger middle class than Switzerland, a more highly unionized work force than the U.S., more doctors and dentists per capita than Great Britain, more cars and televisions per capita than Canada or Germany, [and] was inundated with immigrants.<ref>[http://www.frontpagemag.com/Articles/Read.aspx?GUID=86DE50D7-E16B-42C6-B61E-035B6A1F541D Che Guevara: Mass Murderer and Coward]</ref>

Cuba kills or jails people who try to leave it. When a group of people tried to leave in 1994, a Cuban navy ship rammed their boat and shot water cannons at survivors, drowning 43 people.<ref>  

Cuba kills or jails people who try to leave it. When a group of people tried to leave in 1994, a Cuban navy ship rammed their boat and shot water cannons at survivors, drowning 43 people.<ref>

Thirty one people were finally plucked from the seas and hauled back to Cuba where all were jailed or put under house arrest.[http://www.americanthinker.com/2009/07/anniversary_of_a_castroite_mas.html Anniversary of a Castroite Massacre]</ref>

Thirty one people were finally plucked from the seas and hauled back to Cuba where all were jailed or put under house arrest.[http://www.americanthinker.com/2009/07/anniversary_of_a_castroite_mas.html Anniversary of a Castroite Massacre]</ref>

*"Christian workers entering the country often have items or materials confiscated by customs officials and are rarely allowed to enter if the true reasons for their coming is known."<ref>[http://www.persecution.org/suffering/countryinfodetail.php?countrycode=13 Persecuted Countries: Cuba  - Persecution.org - International Christian Concern]</ref>

*"Christian workers entering the country often have items or materials confiscated by customs officials and are rarely allowed to enter if the true reasons for their coming is known."<ref>[http://www.persecution.org/suffering/countryinfodetail.php?countrycode=13 Persecuted Countries: Cuba  - Persecution.org - International Christian Concern]</ref>

[[Image:Cuba and Pope.jpg|left|180px]]

[[Image:Cuba and Pope.jpg|left|180px]]

Twenty-two denominations, including [[Presbyterian]]s, [[Episcopalian]]s, and [[Methodist]]s, are members of the Cuban Council of Churches (CCC). Most CCC members are officially recognized by the State, though several, including the [[Evangelical Lutheran Church]], are not registered and are recognized only through their membership in the CCC. Another 31 officially recognized denominations, including [[Jehovah's Witnesses]] and the small [[Jewish]] community, do not belong to the CCC. The government does not favor any one particular religion or church; however, the government appears to be most tolerant of those churches that maintain close relations to the State through the CCC. Unregistered religious groups experience various degrees of official interference, harassment, and repression. The Ministry of Interior engages in active efforts to control and monitor the country's religious institutions, including through surveillance, infiltration and [[harassment]] of religious professionals and practitioners. The most independent religious organizations--including the Catholic Church, the largest independent institution in Cuba today--continue to operate under significant restrictions and pressure imposed on them by the Cuban regime. The Cuban Government continues to refuse to allow the church to have independent [[printing press]] capabilities, full access to the [[media]], the ability to train enough [[priest]]s for its needs or allow adequate numbers of foreign priests to work in the country, or the ability to establish socially useful institutions, including schools and universities, hospitals and clinics, and nursing homes. All registered denominations must report to the Ministry of Interior's Office of Religious Affairs.  

Twenty-two denominations, including [[Presbyterian]]s, [[Episcopalian]]s, and [[Methodist]]s, are members of the Cuban Council of Churches (CCC). Most CCC members are officially recognized by the State, though several, including the [[Evangelical Lutheran Church]], are not registered and are recognized only through their membership in the CCC. Another 31 officially recognized denominations, including [[Jehovah's Witnesses]] and the small [[Jewish]] community, do not belong to the CCC. The government does not favor any one particular religion or church; however, the government appears to be most tolerant of those churches that maintain close relations to the State through the CCC. Unregistered religious groups experience various degrees of official interference, harassment, and repression. The Ministry of Interior engages in active efforts to control and monitor the country's religious institutions, including through surveillance, infiltration and [[harassment]] of religious professionals and practitioners. The most independent religious organizations—including the Catholic Church, the largest independent institution in Cuba today—continue to operate under significant restrictions and pressure imposed on them by the Cuban regime. The Cuban Government continues to refuse to allow the church to have independent [[printing press]] capabilities, full access to the [[media]], the ability to train enough [[priest]]s for its needs or allow adequate numbers of foreign priests to work in the country, or the ability to establish socially useful institutions, including schools and universities, hospitals and clinics, and nursing homes. All registered denominations must report to the Ministry of Interior's Office of Religious Affairs.  

The visit of Pope [[John Paul II]] in January 1998 was seen as an important, positive event for bringing a message of hope and the need for respect of human rights. Unfortunately, these improvements did not continue once the Pope left the island. While some visas were issued for additional priests to enter Cuba around the time of the visit, the regime has again sharply restricted issuance of visas. Moreover, despite explicit regime guarantees and repeated follow-up requests, the regime has refused to permit the Catholic Church to establish [[Internet]] connections or an intranet among [[diocese]]s on the Island. In a pastoral letter entitled "There is No Country Without Virtue" ("No Hay Patria Sin Virtud"), the Cuban Conference of Catholic Bishops in February 2003 openly criticized the government's strict control over the activities of the Catholic Church, especially state restrictions on religious education and Church access to mass media, as well as the increasingly [[amoral]] and irreligious character of Cuban society under Communist rule.  

The visit of Pope [[John Paul II]] in January 1998 was seen as an important, positive event for bringing a message of hope and the need for respect of human rights. Unfortunately, these improvements did not continue once the Pope left the island. While some visas were issued for additional priests to enter Cuba around the time of the visit, the regime has again sharply restricted issuance of visas. Moreover, despite explicit regime guarantees and repeated follow-up requests, the regime has refused to permit the Catholic Church to establish [[Internet]] connections or an intranet among [[diocese]]s on the Island. In a pastoral letter entitled "There is No Country Without Virtue" ("No Hay Patria Sin Virtud"), the Cuban Conference of Catholic Bishops in February 2003 openly criticized the government's strict control over the activities of the Catholic Church, especially state restrictions on religious education and Church access to mass media, as well as the increasingly [[amoral]] and irreligious character of Cuban society under Communist rule.  

Other Cuban religious groups--including [[evangelical Christians]], whose numbers continue to grow rapidly--also have benefited from the relative relaxation of official restrictions on religious organizations and activities. Although particularly hard hit by emigration, Cuba's small Jewish community continues to hold services in Havana and has members in Santiago, Camaguey, and other parts of the island. See also the Department's report on international religious freedom for further information.

Other Cuban religious groups—including [[evangelical Christians]], whose numbers continue to grow rapidly—also have benefited from the relative relaxation of official restrictions on religious organizations and activities. Although particularly hard hit by emigration, Cuba's small Jewish community continues to hold services in Havana and has members in Santiago, Camaguey, and other parts of the island. See also the Department's report on international religious freedom for further information.

==Government==

==Government==

===Foreign Relations===

===Foreign Relations===

Cuba's once-ambitious foreign policy has been scaled back and redirected as a result of economic hardship and the end of the Cold War. Cuba aims to find new sources of trade, aid, and foreign investment and to promote opposition to U.S. policy, especially the [[United States embargo against Cuba|trade embargo]] and the 1996 Libertad Act. Cuba has relations with over 160 countries and has civilian assistance workers--principally physicians and nurses--in more than 20 nations.  

Cuba's once-ambitious foreign policy has been scaled back and redirected as a result of economic hardship and the end of the Cold War. Cuba aims to find new sources of trade, aid, and foreign investment and to promote opposition to U.S. policy, especially the [[United States embargo against Cuba|trade embargo]] and the 1996 Libertad Act. Cuba has relations with over 160 countries and has civilian assistance workers—principally physicians and nurses—in more than 20 nations.  

Since the end of Soviet backing, Cuba appears to have largely abandoned monetary support for guerrilla movements that typified its involvement in regional politics in Latin America and Africa, though it maintains relations with several guerrilla and terrorist groups and provides refuge for some of their members in Cuba. Cuba's support for Latin guerrilla movements, its Marxist-Leninist government, and its alignment with the U.S.S.R. led to its isolation in the hemisphere. Cuba is a member of the Organization of American States (OAS), although its present government has been excluded from participation since 1962 for incompatibility with the principles of the inter-American system. Cuba hosted the Non-Aligned Movement (NAM) summit in September 2006 and will hold the NAM presidency until 2009. In the context of the NAM and its ordinary diplomacy, Cuba has developed friendly relations with Iran, North Korea and other rogue states.

Since the end of Soviet backing, Cuba appears to have largely abandoned monetary support for guerrilla movements that typified its involvement in regional politics in Latin America and Africa, though it maintains relations with several guerrilla and terrorist groups and provides refuge for some of their members in Cuba. Cuba's support for Latin guerrilla movements, its Marxist-Leninist government, and its alignment with the U.S.S.R. led to its isolation in the hemisphere. Cuba is a member of the Organization of American States (OAS), although its present government has been excluded from participation since 1962 for incompatibility with the principles of the inter-American system. Cuba hosted the Non-Aligned Movement (NAM) summit in September 2006 and will hold the NAM presidency until 2009. In the context of the NAM and its ordinary diplomacy, Cuba has developed friendly relations with Iran, North Korea and other rogue states.

==Economy==

==Economy==

The Cuban Government continues to adhere to socialist principles in organizing its state-controlled economy. Most of the means of production are owned and run by the government and, according to Cuban Government statistics, about 75% of the labor force is employed by the state. The actual figure is closer to 93%, with some 150,000 small farmers and another 150,000 "cuentapropistas," or holders of licenses for self-employment, representing a mere 2.1% of the nearly 4.7 million-person workforce.  Labor is an economic input that is entirely under the control of the government to the point that Cubans have been sent overseas, so that their labor can be used to repay debt, while workers are kept secluded and paid a typical Cuban wage of $18 a month.<ref>Robles, Frances 2008 (accessed 7-8-08) Cuba paid debts with forced labor, lawsuit says. Miami Herald Thu, Jul. 17, 2008 http://www.miamiherald.com/business/story/607434.html </ref>  

The Cuban Government continues to adhere to socialist principles in organizing its state-controlled economy. Most of the means of production are owned and run by the government and, according to Cuban Government statistics, about 75% of the labor force is employed by the state. The actual figure is closer to 93%, with some 150,000 small farmers and another 150,000 "cuentapropistas," or holders of licenses for self-employment, representing a mere 2.1% of the nearly 4.7 million-person workforce.  Labor is an economic input that is entirely under the control of the government to the point that Cubans have been sent overseas, so that their labor can be used to repay debt, while workers are kept secluded and paid a typical Cuban wage of $18 a month.<ref>Robles, Frances 2008 (accessed 7-8-08) Cuba paid debts with forced labor, lawsuit says. Miami Herald Thu, Jul. 17, 2008 http://www.miamiherald.com/business/story/607434.html</ref>  

[[Image:Hotel Varadero Cuba.jpg|thumb|270px|Varadero resources.]]

[[Image:Hotel Varadero Cuba.jpg|thumb|270px|Varadero resources.]]

The Cuban economy is still recovering from a decline in gross domestic product of at least 35% between 1989 and 1993 as the loss of Soviet subsidies laid bare the economy's fundamental weaknesses. To alleviate the economic crisis, in 1993 and 1994 the government introduced a few market-oriented reforms, including opening to tourism, allowing foreign investment, legalizing the dollar, and authorizing self-employment for some 150 occupations. These measures resulted in modest economic growth; the official statistics, however, are deficient and as a result provide an incomplete measure of Cuba's real economic situation. Living conditions at the end of the decade remained well below the 1989 level. Lower sugar and nickel prices, increases in petroleum costs, a post-September 11, 2001 decline in tourism, devastating hurricanes in November 2001 and August 2004, and a major drought in the eastern half of the island caused severe economic disruptions. Growth rates continued to stagnate in 2002 and 2003, while 2004 and 2005 showed some renewed growth. Moreover, the gap in the standard of living has widened between those with access to dollars and those without. Jobs that can earn dollar salaries or tips from foreign businesses and tourists have become highly desirable. It is not uncommon to see doctors, engineers, scientists, and other professionals working in restaurants or as taxi drivers.  

The Cuban economy is still recovering from a decline in gross domestic product of at least 35% between 1989 and 1993 as the loss of Soviet subsidies laid bare the economy's fundamental weaknesses. To alleviate the economic crisis, in 1993 and 1994 the government introduced a few market-oriented reforms, including opening to tourism, allowing foreign investment, legalizing the dollar, and authorizing self-employment for some 150 occupations. These measures resulted in modest economic growth; the official statistics, however, are deficient and as a result provide an incomplete measure of Cuba's real economic situation. Living conditions at the end of the decade remained well below the 1989 level. Lower sugar and nickel prices, increases in petroleum costs, a post-September 11, 2001 decline in tourism, devastating hurricanes in November 2001 and August 2004, and a major drought in the eastern half of the island caused severe economic disruptions. Growth rates continued to stagnate in 2002 and 2003, while 2004 and 2005 showed some renewed growth. Moreover, the gap in the standard of living has widened between those with access to dollars and those without. Jobs that can earn dollar salaries or tips from foreign businesses and tourists have become highly desirable. It is not uncommon to see doctors, engineers, scientists, and other professionals working in restaurants or as taxi drivers.  

Remittances also play a large role in Cuba's economy. Cuba does not publish accurate economic statistics, but academic sources estimate that remittances total from $600 million to $1 billion per year, with most coming from families in the United States. U.S. regulation changes announced in June 2004 allow remittances to be sent only to the remitter's immediate family; they cannot be remitted to certain Cuban Government officials and members of the Cuban Communist party; and the total amount of family remittances that an authorized traveler may carry to Cuba is now $300, reduced from $3,000. (See also the Commission on Assistance to a Free Cuba report at www.cafc.gov, cited below.) The Cuban Government captures these dollar remittances by allowing Cuban citizens to shop in state-run "dollar stores," which sell food, household, and clothing items at a high mark-up averaging over 240% of face value.  

Remittances also play a large role in Cuba's economy. Cuba does not publish accurate economic statistics, but academic sources estimate that remittances total from $600 million to $1 billion per year, with most coming from families in the United States. U.S. regulation changes announced in June 2004 allow remittances to be sent only to the remitter's immediate family; they cannot be remitted to certain Cuban Government officials and members of the Cuban Communist party; and the total amount of family remittances that an authorized traveler may carry to Cuba is now $300, reduced from $3,000. (See also the Commission on Assistance to a Free Cuba report at www.cafc.gov, cited below.) The Cuban Government captures these dollar remittances by allowing Cuban citizens to shop in state-run "dollar stores," which sell food, household, and clothing items at a high mark-up averaging over 240% of face value.  

Beginning in November 2004, Castro mandated that U.S. dollars be exchanged for "convertible pesos"--a local currency that can be used in special shops on the island but has no value internationally--for a 10% charge. The 10% conversion fee disproportionately affects Cubans who receive remittances from relatives in the U.S.  

Beginning in November 2004, Castro mandated that U.S. dollars be exchanged for "convertible pesos"—a local currency that can be used in special shops on the island but has no value internationally—for a 10% charge. The 10% conversion fee disproportionately affects Cubans who receive remittances from relatives in the U.S.  

To help keep the economy afloat, Cuba has actively courted foreign investment, which often takes the form of joint ventures with the Cuban Government holding half of the equity, management contracts for tourism facilities, or financing for the sugar harvest. A new legal framework laid out in 1995 allowed for majority foreign ownership in joint ventures with the Cuban Government. In practice, majority ownership by the foreign partner is nonexistent. Of the 540 joint ventures formed since the Cuban Government issued the first legislation on foreign investment in 1982, 397 remained at the end of 2002, and 287 at the close of 2005. Due in large part to Castro’s recentralization efforts, it is estimated that one joint venture and two small cooperative production ventures have closed each week since 2000. Responding to this decline in the number of joint ventures, a spokesperson for the Ministry of Foreign Investment explained that foreign investment is not a pillar of development in and of itself. Moreover, the hostile investment climate, characterized by inefficient and overpriced labor imposed by the communist government, dense regulations, and an impenetrable bureaucracy, continue to deter foreign investment. Foreign direct investment flows decreased from $448 million in 2000 to $39 million in 2001 and were at zero in 2002. In July 2002, the European Union, through its embassies in Havana, transmitted to the Cuban Government a document that outlined the problems encountered in operating joint ventures in Cuba. Titled "The Legal and Administrative Framework for Foreign Trade and Investment by European Companies in Cuba," the paper noted the difficulty in obtaining such basic necessities as work and residence permits for foreign employees--even exit visas and drivers licenses. It complained that the Government of Cuba gave EU joint venture partners little or no say in hiring Cuban staff, often forced the joint venture to contract employees who were not professionally suitable, and yet reserved to itself the right to fire any worker at any time without cause. It noted administrative difficulties in securing financing and warned that "the difficulties of state firms in meeting their payment obligations are seriously threatening some firms and increasing the risk premium which all operators have to pay for their operations with Cuba." The Cuban Government offered no response.  

To help keep the economy afloat, Cuba has actively courted foreign investment, which often takes the form of joint ventures with the Cuban Government holding half of the equity, management contracts for tourism facilities, or financing for the sugar harvest. A new legal framework laid out in 1995 allowed for majority foreign ownership in joint ventures with the Cuban Government. In practice, majority ownership by the foreign partner is nonexistent. Of the 540 joint ventures formed since the Cuban Government issued the first legislation on foreign investment in 1982, 397 remained at the end of 2002, and 287 at the close of 2005. Due in large part to Castro’s recentralization efforts, it is estimated that one joint venture and two small cooperative production ventures have closed each week since 2000. Responding to this decline in the number of joint ventures, a spokesperson for the Ministry of Foreign Investment explained that foreign investment is not a pillar of development in and of itself. Moreover, the hostile investment climate, characterized by inefficient and overpriced labor imposed by the communist government, dense regulations, and an impenetrable bureaucracy, continue to deter foreign investment. Foreign direct investment flows decreased from $448 million in 2000 to $39 million in 2001 and were at zero in 2002. In July 2002, the European Union, through its embassies in Havana, transmitted to the Cuban Government a document that outlined the problems encountered in operating joint ventures in Cuba. Titled "The Legal and Administrative Framework for Foreign Trade and Investment by European Companies in Cuba," the paper noted the difficulty in obtaining such basic necessities as work and residence permits for foreign employees—even exit visas and drivers licenses. It complained that the Government of Cuba gave EU joint venture partners little or no say in hiring Cuban staff, often forced the joint venture to contract employees who were not professionally suitable, and yet reserved to itself the right to fire any worker at any time without cause. It noted administrative difficulties in securing financing and warned that "the difficulties of state firms in meeting their payment obligations are seriously threatening some firms and increasing the risk premium which all operators have to pay for their operations with Cuba." The Cuban Government offered no response.  

Investors are also constrained by the U.S.-Cuban Liberty and Democratic Solidarity (Libertad) Act that provides sanctions for those who "traffic" in property expropriated from U.S. citizens. More than a dozen companies have pulled out of Cuba or altered their plans to invest there due to the threat of action under the Libertad Act.  

Investors are also constrained by the U.S.-Cuban Liberty and Democratic Solidarity (Libertad) Act that provides sanctions for those who "traffic" in property expropriated from U.S. citizens. More than a dozen companies have pulled out of Cuba or altered their plans to invest there due to the threat of action under the Libertad Act.  

In an attempt to provide jobs for workers laid off due to the economic crisis and bring some forms of black market activity into more controllable channels, the Cuban Government in 1993 legalized self-employment for some 150 occupations. This small private sector is tightly controlled and regulated. Set monthly fees must be paid regardless of income earned, and frequent inspections yield stiff fines when any of the many self-employment regulations are violated. Rather than expanding private sector opportunities, in recent years, the government has been attempting to squeeze more of these private sector entrepreneurs out of business and back to the public sector. Many have opted to enter the informal economy or black market, and others have closed. These measures have reduced private sector employment from a peak of 209,000 to less than 100,000 now. Moreover, a large number of those people who nominally are self-employed in reality are well-connected fronts for military officials. No recent figures have been made available, but the Government of Cuba reported at the end of 2001 that tax receipts from the self-employed fell 8.1% due to the decrease in the number of these taxpayers. Since October 1, 2004, the Cuban Government no longer issues new licenses for 40 of the approximately 150 categories of self-employment, including for the most popular ones, such as private restaurants.  

In an attempt to provide jobs for workers laid off due to the economic crisis and bring some forms of black market activity into more controllable channels, the Cuban Government in 1993 legalized self-employment for some 150 occupations. This small private sector is tightly controlled and regulated. Set monthly fees must be paid regardless of income earned, and frequent inspections yield stiff fines when any of the many self-employment regulations are violated. Rather than expanding private sector opportunities, in recent years, the government has been attempting to squeeze more of these private sector entrepreneurs out of business and back to the public sector. Many have opted to enter the informal economy or black market, and others have closed. These measures have reduced private sector employment from a peak of 209,000 to less than 100,000 now. Moreover, a large number of those people who nominally are self-employed in reality are well-connected fronts for military officials. No recent figures have been made available, but the Government of Cuba reported at the end of 2001 that tax receipts from the self-employed fell 8.1% due to the decrease in the number of these taxpayers. Since October 1, 2004, the Cuban Government no longer issues new licenses for 40 of the approximately 150 categories of self-employment, including for the most popular ones, such as private restaurants.  

In June 2005, 2,000 more licenses were revoked from self-employed workers as a means to reassert government control over the economy and to stem growing inequalities associated with self-employment. The licenses for self-employed workers were typically for service-oriented work, allowing the Cuban people to eke out a small living in an otherwise impoverished state. Moreover, workers in Cuba’s tourist sector--at resorts where native Cubans are prohibited unless they are on the job--have been prohibited by a Ministry of Tourism regulation from accepting gifts, tips, or even food from foreigners, in a further attempt at increasing the tourist apartheid that exists on the island.  

In June 2005, 2,000 more licenses were revoked from self-employed workers as a means to reassert government control over the economy and to stem growing inequalities associated with self-employment. The licenses for self-employed workers were typically for service-oriented work, allowing the Cuban people to eke out a small living in an otherwise impoverished state. Moreover, workers in Cuba’s tourist sector—at resorts where native Cubans are prohibited unless they are on the job—have been prohibited by a Ministry of Tourism regulation from accepting gifts, tips, or even food from foreigners, in a further attempt at increasing the tourist apartheid that exists on the island.  

[[File:Cuba Oil Pump Havana.jpg|thumb|280px|Oil pump at Havana.]]

[[File:Cuba Oil Pump Havana.jpg|thumb|280px|Oil pump at Havana.]]

A 2004 UN Economic Commission on Latin America and the Caribbean (ECLAC) report recommends that Cuba "redesign the parameters of competition in the public, private and cooperative sectors [and] redefine the role of the state in the economy." It recommends more flexibility in self-employment regulations, property diversification, economic decentralization, and a role for the market. The Cuban Government, however, is today reversing the economic liberalization of the 90s and re-centralizing its economy. Evidence of this is found in the decline in the number of firms participating in the perfeccionamiento empresarial, or entrepreneurial improvement (EI), program, which is based on capitalist management techniques. EI was instituted in the 1980s as a military-led pilot project, and in 1998, the Cuban Government extended it from military to civilian "parastatals," reportedly to foster capitalist competitiveness. At first, the government highlighted participating companies' achievements in cutting costs and boosting profitability and quality and suggested that the increased autonomy of state managers under EI was producing an efficient form of socialism with a strong link between pay and performance. However, many in the Communist Party, even Castro himself, resisted EI. Many of the original participants have since left the program and participating firms have seen little growth in revenue. The EI program has fallen far short of expectations and the Cuban Government no longer heralds its successes or its future prospects. In 2003 the Cuban Government also tightened foreign exchange controls, requiring that state companies hold money in convertible pesos and obtain special authorization from the central bank before making hard currency transactions. Practically speaking, this restricted companies from using the dollar for internal trade. Following this, in 2004 the government announced that all state entities must stop charging in U.S. dollars and charge only in pesos for any products and services not considered a part of a company’s "fundamental social objective." It also recently implemented new requirements to channel imports through monopolistic Soviet-style wholesale distribution companies.  

A 2004 UN Economic Commission on Latin America and the Caribbean (ECLAC) report recommends that Cuba "redesign the parameters of competition in the public, private and cooperative sectors [and] redefine the role of the state in the economy." It recommends more flexibility in self-employment regulations, property diversification, economic decentralization, and a role for the market. The Cuban Government, however, is today reversing the economic liberalization of the 90s and re-centralizing its economy. Evidence of this is found in the decline in the number of firms participating in the perfeccionamiento empresarial, or entrepreneurial improvement (EI), program, which is based on capitalist management techniques. EI was instituted in the 1980s as a military-led pilot project, and in 1998, the Cuban Government extended it from military to civilian "parastatals," reportedly to foster capitalist competitiveness. At first, the government highlighted participating companies' achievements in cutting costs and boosting profitability and quality and suggested that the increased autonomy of state managers under EI was producing an efficient form of socialism with a strong link between pay and performance. However, many in the Communist Party, even Castro himself, resisted EI. Many of the original participants have since left the program and participating firms have seen little growth in revenue. The EI program has fallen far short of expectations and the Cuban Government no longer heralds its successes or its future prospects. In 2003 the Cuban Government also tightened foreign exchange controls, requiring that state companies hold money in convertible pesos and obtain special authorization from the central bank before making hard currency transactions. Practically speaking, this restricted companies from using the dollar for internal trade. Following this, in 2004 the government announced that all state entities must stop charging in U.S. dollars and charge only in pesos for any products and services not considered a part of a company’s "fundamental social objective." It also recently implemented new requirements to channel imports through monopolistic Soviet-style wholesale distribution companies.  

Cuba's precarious economic position is complicated by the high price it must pay for foreign financing. The Cuban Government defaulted on most of its international debt in 1986 and does not have access to credit from international financial institutions like the World Bank, which means Havana must rely heavily on short-term loans to finance imports, chiefly food and fuel. Because of its poor credit rating, an $11 billion hard currency debt, and the risks associated with Cuban investment, interest rates have reportedly been as high as 22%. In 2002, citing chronic delinquencies and mounting short-term debts, Moody's lowered Cuba's credit rating to Caa1 -- "speculative grade, very poor." Dunn and Bradstreet rate Cuba as one of the riskiest economies in the world.

Cuba's precarious economic position is complicated by the high price it must pay for foreign financing. The Cuban Government defaulted on most of its international debt in 1986 and does not have access to credit from international financial institutions like the World Bank, which means Havana must rely heavily on short-term loans to finance imports, chiefly food and fuel. Because of its poor credit rating, an $11 billion hard currency debt, and the risks associated with Cuban investment, interest rates have reportedly been as high as 22%. In 2002, citing chronic delinquencies and mounting short-term debts, Moody's lowered Cuba's credit rating to Caa1 -- "speculative grade, very poor." Dunn and Bradstreet rate Cuba as one of the riskiest economies in the world.

==Health-care==

==Health-care==

[[File:Cubans girls.jpg|left]]

[[File:Cubans girls.jpg|left]]

Health care in Cuba follows the model of [[socialized medicine]]; all doctors are employees of the government, and the government does not charge citizens for health care, though many believe the services provided are alarmingly inferior for anyone but the party elite. [[Fred Thompson]] wrote:

Health care in Cuba follows the model of [[socialized medicine]]; all doctors are employees of the government, and the government does not charge citizens for health care, though many believe the services provided are alarmingly inferior for anyone but the party elite. [[Fred Thompson]] wrote:

:''"Castro won't allow observers in to monitor his nation's true state, but defectors tell us that many Cubans live with permanent malnutrition and long waits for even basic medical services. Many treatments we take for granted aren't available at all -- except to the Communist elite or foreigners with dollars. For them, Castro keeps "show" clinics equipped with the best medicines and technologies available."''<ref>{{cite web|url=http://www.townhall.com/columnists/FredThompson/2007/05/03/the_myth_of_cuban_health_care&Comments=true|title=The myth of Cuban health care|author=Fred Thompson|date=2007-05-03|accessdate=2007-08-14|language=English|format=HTML|work=Townhall.com}}</ref>

:''"Castro won't allow observers in to monitor his nation's true state, but defectors tell us that many Cubans live with permanent malnutrition and long waits for even basic medical services. Many treatments we take for granted aren't available at all -- except to the Communist elite or foreigners with dollars. For them, Castro keeps "show" clinics equipped with the best medicines and technologies available."''<ref>{{cite web|url=http://www.townhall.com/columnists/FredThompson/2007/05/03/the_myth_of_cuban_health_care&Comments=true|title=The myth of Cuban health care|author=Fred Thompson|date=2007-05-03|accessdate=2007-08-14|language=English|work=Townhall.com}}</ref>

The country's chief neurosurgeon, [[Hilda Morina]], publicly protested the government's role in the deterioration of the health care system.

The country's chief neurosurgeon, [[Hilda Morina]], publicly protested the government's role in the deterioration of the health care system.

==Education==

==Education==

[[Image:Niñas en el Malecón de La Habana.jpg|right|200px]]

[[Image:Niñas en el Malecón de La Habana.jpg|right|200px]]

According to the CIA World Factbook, the education system has achieved a 97% [[literacy]] rate on the island.<ref>{{cite web|url=https://www.cia.gov/library/publications/the-world-factbook/geos/cu.html|work=Central Intelligence Agency The World Factbook|title=Cuba|accessdate=2007-08-14|date=2007-07-19|language=English|format=HTML}}</ref>  

According to the CIA World Factbook, the education system has achieved a 97% [[literacy]] rate on the island.<ref>{{cite web|url=https://www.cia.gov/library/publications/the-world-factbook/geos/cu.html|work=Central Intelligence Agency The World Factbook|title=Cuba|accessdate=2007-08-14|date=2007-07-19|language=English}}</ref>  

Assistance at universities even in the provinces, while nominally free, requires demonstration of loyalty to the government, such as belonging to the informer network ''Comités de Defensa de la Revolución,'' the Militias, and assistance at pro-government demonstrations.<ref>González Leiva, Juan Carlos 2008 (accessed 8-10-08) EXPULSAN DE UNIVERSIDAD A ESTUDIANTE POR MOTIVOS POLÍTICOS. Revista de Asignaturas Cubanas. La Habana, 10 de junio de 2008 http://www.miscelaneasdecuba.net/web/article.asp?artID=15728</ref>  In pre-Castro times university fees were waved on presentation of proof of lack of means,

Assistance at universities even in the provinces, while nominally free, requires demonstration of loyalty to the government, such as belonging to the informer network ''Comités de Defensa de la Revolución,'' the Militias, and assistance at pro-government demonstrations.<ref>González Leiva, Juan Carlos 2008 (accessed 8-10-08) EXPULSAN DE UNIVERSIDAD A ESTUDIANTE POR MOTIVOS POLÍTICOS. Revista de Asignaturas Cubanas. La Habana, 10 de junio de 2008 http://www.miscelaneasdecuba.net/web/article.asp?artID=15728</ref>  In pre-Castro times university fees were waved on presentation of proof of lack of means,

== References ==

== References ==