Editing Economy of Cuba (section)

==Sectors==
===Energy===
As of 2011, 96% of electricity was produced from fossil fuels. Solar panels were introduced in some rural areas to reduce blackouts, brownouts, and the use of kerosene. Citizens were encouraged to swap inefficient lamps with newer models to reduce consumption. A power tariff reduced inefficient use.<ref>{{cite magazine |url=http://www.renewableenergyworld.com/rea/news/article/2009/04/la-revolucion-energetica-cubas-energy-revolution |title=La Revolucion Energetica: Cuba's Energy Revolution |magazine=Renewable Energy World |date=9 April 2009 |archive-url=https://web.archive.org/web/20110702035435/http://www.renewableenergyworld.com/rea/news/article/2009/04/la-revolucion-energetica-cubas-energy-revolution |archive-date=2 July 2011}}</ref>

In 2007, Cuba produced an estimated 16.89&nbsp;billion kWh of electricity and consumed 13.93&nbsp;billion kWh with no exports or imports.<ref name="The World Factbook">{{Cite CIA World Factbook|country=Cuba|access-date= 11 June 2015}}</ref>

About 25% of Cuba's electricity is generated on ships with floating power plants. As of 2023, eight [[Powership|powerships]] from Turkey provide 770 MW from burning oil.<ref>{{Cite web |title=Power Ships Now Provide About One Quarter of Cuba's Electricity |url=https://maritime-executive.com/article/power-ships-now-provide-about-one-quarter-of-cuba-s-electricity |access-date=2024-10-21 |website=The Maritime Executive |language=en}}</ref>

The [[Energy Revolution]] is a program begun by Cuba in 2005.<ref name=":022" />{{Rp|page=4}} This program focused on developing the country's socioeconomic status and transitioning Cuba into an energy-efficient economy with diverse energy resources.<ref name="auto">{{cite journal|last1=Arrastía-Avila|first1=Mario Alberto|last2=Glidden|first2=Lisa|title=Cuba's Energy Revolution and 2030 Policy Goals: More Penetration of Renewable Energy in Electricity Generation|journal=The International Journal of Cuban Studies|year=2017|volume=9|issue=1|pages=73–90|doi=10.13169/intejcubastud.9.1.0073}}</ref> Cuba's energy sector lacks the resources to produce optimal amounts of power. One of the issues the Energy Revolution program faces comes from Cuba's power production suffering from the absence of investment and the ongoing trade sanctions imposed by the United States.<ref name="ReferenceA">{{cite journal|last1=Newman|first1=Nicholas|title=Decentralized energy aids Cuba's power struggles|journal=Power Engineering International|year=2009|volume=17|issue=11|pages=16–19}}</ref> Likewise, the energy sector has received a multimillion-dollar investment distributed among a network of power resources. However, customers are experiencing rolling blackouts of power from energy companies to preserve electricity during Cuba's economic crisis.<ref name="ReferenceA" /> Furthermore, an outdated electricity grid that's been damaged by hurricanes caused the energy crisis in 2004 and continued to be a major issue during the Energy Revolution.<ref name="auto" /> Cuba responded to this situation by providing a variety of different types of energy resources. 6000 small diesel generators, 416 fuel oil generators, 893 diesel generators, 9.4&nbsp;million incandescent bulbs for energy-saving lamps, 1.33&nbsp;million fans, 5.5&nbsp;million electric pressure cookers, 3.4&nbsp;million electric rice cookers, 0.2&nbsp;million electric water pumps, 2.04&nbsp;million domestic refrigerators and 0.1&nbsp;million televisions were distributed among territories.<ref name="ReferenceB">{{cite journal|last1=Surez|first1=Jos|last2=Beatn|first2=Pedro|last3=Escalona|first3=Ronoldy|last4=Montero|first4=Ofelia|title=Energy, environment and development in Cuba|journal=Renewable and Sustainable Energy Reviews|year=2012|volume=16|issue=5|pages=2724–2731|doi=10.1016/j.rser.2012.02.023|bibcode=2012RSERv..16.2724S }}</ref> The electrical grid was restored to only 90% until 2009.

The country frequently suffers rolling blackouts due to fuel shortages, and many plants are shut down due to a lack of fuel. In October 2024, the entire country suffered a multiday electricity blackout when the Antonio Guiteras power plant failed and efforts to restart the grid were not successful.<ref>{{Cite web |last=Oppmann |first=Patrick |date=2024-10-20 |title=Cuban power grid collapses for fourth time as hurricane arrives |url=https://www.cnn.com/2024/10/20/americas/cuba-blackout-third-day-failed-restore-intl/index.html |access-date=2024-10-21 |website=CNN |language=en}}</ref><ref>{{Cite web |last=Lemos |first=Patrick Oppmann, Mia Alberti, Verónica Calderón, Gerardo |date=2024-10-18 |title=Island-wide blackout sweeps Cuba after power plant failure |url=https://www.cnn.com/2024/10/18/americas/cuba-blackout-power-plant-failure-intl-latam/index.html |access-date=2024-10-21 |website=CNN |language=en}}</ref>

==== Renewable energy ====
Renewable energy has become a major priority as the government has promoted wind and solar power.<ref>{{cite journal|last1=Cherni|first1=Judith|last2=Hill|first2=Yohan|title=Energy and policy providing for sustainable rural livelihoods in remote locations – The case of Cuba|journal=Geoforum|year=2009|volume=40|issue=4|pages=645–654|doi=10.1016/j.geoforum.2009.04.001}}</ref> Under a March 2017 law, the Cuban government has begun to roll out solar panels to every home in Cuba.<ref name=":02" />{{Rp|page=95}} The crucial challenge the Energy Revolution program will face is developing sustainable energy in Cuba but, take into account a country that's continuing to develop, an economic sanction and the detrimental effects of hurricanes that hit this country.<ref name="ReferenceB" />

The passage of Decree-Law 345 in 2019 permits Cubans to purchase [[Photovoltaics|photovoltaic]] solar panels for private use and to sell surplus energy to state company Unión Eléctrica.<ref name=":022" />{{Rp|page=159}}

In 2022, about 1.5% of electricity came from solar power.<ref name="ember">{{cite web |date=6 Dec 2023 |title=Yearly electricity data |url=https://ember-climate.org/data-catalogue/yearly-electricity-data/ |access-date=19 August 2024 |website=ember-climate.org}}</ref>

==== Oil and gas ====
As of August 2012, off-shore petroleum exploration of [[Oil reserves in Cuba|promising formations in the Gulf of Mexico]] had been unproductive, with two failures reported. Additional exploration is planned.<ref name="GAP8612">{{cite news |date=6 August 2012 |title=2nd Cuban offshore oil well also a bust |url=https://www.theguardian.com/world/feedarticle/10376094 |access-date=6 August 2012 |newspaper=The Guardian |location=Havana |agency=AP Foreign}}</ref>

In both 2007 and 2008 estimates, the country produced 62,100 bbl/d of oil and consumed 176,000 bbl/d with 104,800 bbl/d of imports, as well as 197,300,000 bbl proved reserves of oil.<ref name="The World Factbook" /> Venezuela is Cuba's primary source of oil.

In 2017, Cuba produced and consumed an estimated 1189&nbsp;million m<sup>3</sup> of natural gas and has 70.79&nbsp;billion m<sup>3</sup> of proved reserves the nation did not export or import any natural gas.<ref name="The World Factbook" />

===Agriculture===
{{Main|Agriculture in Cuba}}
Cuba produces sugarcane, tobacco, citrus, coffee, rice, potatoes, beans, and livestock.<ref name="The World Factbook" /> As of 2015, Cuba imported about 70–80% of its food<ref name="WFP">{{cite news|url=https://www.wfp.org/countries/cuba | title=WFP Cuba page|website=Wfp.org}}</ref> and 80–84% of the food it rations to the public.<ref name="cnnfood">{{cite news|url=http://www.cnn.com/2008/WORLD/americas/04/16/cuba.farming/index.html|title=Cuban leader looks to boost food production|publisher=CNN| date=17 April 2008}}</ref> [[Raúl Castro]] ridiculed the bureaucracy that shackled the agriculture sector.<ref name="cnnfood"/>

===Industry===
[[File:Oljepumpe cuba.jpg|thumb|250px|[[Pumpjack]]s in Cuba]]
Industrial production accounted for almost 37% of Cuban GDP or US$6.9&nbsp;billion and employed 24% of the population, or 2,671,000 people, in 1996.<ref>{{Cite web|title=Cuba: Economy|url=https://globaledge.msu.edu/countries/cuba/economy|access-date=13 May 2021|website=globaledge.msu.edu}}</ref> A rally in sugar prices in 2009 stimulated investment and development of sugar processing.

In 2003 Cuba's biotechnology and pharmaceutical industry was gaining in importance.<ref>{{cite news| url=http://www.economist.com/node/2249479 | newspaper=The Economist | title=Truly revolutionary | date=29 November 2003}}</ref> Among the products sold internationally are [[vaccine]]s against various viral and bacterial pathogens. For example, the drug [[Heberprot-P]] was developed as a cure for [[diabetic foot ulcer]] and had success in many developing countries.<ref>{{cite web |url=http://www.rhc.cu/ing/news/health/8587-ecuadorians-benefit-from-cuban-drug-heberprot-p.html |title=Ecuadorians benefit from Cuban drug Heberprot-p |publisher=Radio Havana Cuba |date=12 August 2012 |access-date=8 September 2012 |archive-url=https://web.archive.org/web/20130531080835/http://www.rhc.cu/ing/news/health/8587-ecuadorians-benefit-from-cuban-drug-heberprot-p.html |archive-date=31 May 2013}}</ref> Cuba has also done pioneering work on the development of drugs for cancer treatment.<ref>{{cite web|url=https://podcasts.apple.com/us/podcast/cubas-cancer-revolution/id73802620?i=1000384601643&mt=2|title="Cuba's Cancer Revolution" from The Documentary Podcast by BBC on Apple Podcasts|website=Apple Podcasts|access-date=23 August 2018}}</ref>

Scientists such as V. Verez-Bencomo were awarded international prizes for their biotechnology and sugar cane contributions.<ref>{{Cite book|url=https://books.google.com/books?id=ubnZDAAAQBAJ&q=V.+Verez-Bencomo+prize+sugar+cane+biotechnology&pg=PA190|title=Cuba Business and Investment Opportunities Yearbook Volume 1 Strategic, Practical Information and Opportunities |date=18 April 2016|publisher=Lulu.com|isbn=978-1-4387-7655-2}}{{self-published source|date=February 2020}}</ref>{{self-published inline|date=February 2020}}<ref>{{Cite journal|title=Dr Vicente Vérez Bencomo, director, center for the study of synthetic antigens, university of Havana.|last=Gorry|first=C|pmid=21487355|volume=9|pages=14–15|journal=MEDICC Rev|year=2007|issue=1|doi=10.37757/MR2007V9.N1.4 |s2cid=37435797 |doi-access=free}}</ref>

=== Biotechnology ===
Cuba's biotechnology sector developed in response to the limitations on technology transfer, international financing, and international trade resulting from the United States embargo.<ref name=":02">{{Cite book |last=Yaffe |first=Helen |title=We Are Cuba! How a Revolutionary People Have Survived in a Post-Soviet World |date=2020 |publisher=[[Yale University Press]] |isbn=978-0-300-23003-1 |edition=hardcover |location=USA}}</ref>{{Rp|page=120}} The Cuban biotechnology sector is entirely state-owned.<ref name=":02" />{{Rp|page=120}}

===Services===
====Tourism ====
{{Main|Tourism in Cuba}}
[[File:Varaderobeach.jpg|thumb|left|200px|A white sand beach in [[Varadero|Varadero, Cuba]]]]
In the mid-1990s, tourism surpassed sugar, the mainstay of the Cuban economy, as the primary source of foreign exchange. Havana devotes significant resources to building tourist facilities and renovating historic structures. Cuban officials estimate roughly 1.6&nbsp;million tourists visited Cuba in 1999, yielding about $1.9 [[1000000000 (number)|billion]] in gross revenues. In 2000, 1,773,986 foreign visitors arrived in Cuba. Revenue from tourism reached US$1.7&nbsp;billion.<ref>{{cite web|url=http://www.nationsencyclopedia.com/Americas/Cuba-TOURISM-TRAVEL-AND-RECREATION.html|title=Tourism, travel, and recreation – Cuba|website=Mationsencyclopedia.com|access-date=11 June 2015}}</ref> By 2012, some 3 million visitors brought nearly £2&nbsp;billion yearly.<ref>{{youTube|id=3LoFX3uhctI |title=BBC 2012 SimonReeve}}</ref>

The growth of tourism has had social and economic repercussions. This led to speculation of the emergence of a two-tier economy<ref>{{Cite web|url=http://www.uiowa.edu/ifdebook/conferences/cuba/TLCP/Volume%201/Facio.pdf|archive-url=https://web.archive.org/web/20100725185350/http://www.uiowa.edu/ifdebook/conferences/cuba/TLCP/Volume%201/Facio.pdf|title=Tourism in Cuba during the Special Period|archive-date=25 July 2010}}</ref> and the fostering of a state of [[tourist segregation|tourist apartheid]]. This situation was exacerbated by the influx of dollars during the 1990s, potentially creating a dual economy based on the dollar (the currency of tourists) on the one hand and the peso on the other. Scarce imported goods – and even some local manufactures, such as [[rum]] and coffee – could be had at dollar-only stores but were hard to find or unavailable at peso prices. As a result, Cubans who earned only in the peso economy, outside the tourist sector, were at a disadvantage. Those with dollar incomes based upon the service industry began to live more comfortably. This widened the gap between Cubans' material living standards, conflicting with the Cuban government's long-term socialist policies.<ref>{{cite web |url=http://traveloutward.com/articles/caribbean/6-03_cuba.shtml |title=Lessons From Cuba |date=4 November 2007 |archive-url=https://web.archive.org/web/20030628061024/http://www.traveloutward.com/articles/caribbean/6-03_cuba.shtml |archive-date=28 June 2003 |access-date=21 January 2017}} Travel Outward</ref>

====Retail====
Cuba has a small retail sector. A few large shopping centers operated in Havana as of September 2012 but charged US prices. Pre-Revolutionary commercial districts were largely shut down. Most stores are small dollar stores, bodegas, agro-mercados (farmers' markets), and street stands.<ref>{{cite web|url=http://www.nationsencyclopedia.com/economies/Americas/Cuba.html|title=Cuba|website=Nationsencyclopedia.com|access-date=11 June 2015}}</ref>

===Finance===
The financial sector remains heavily regulated, and access to credit for entrepreneurial activity is seriously impeded by the shallowness of the financial market.

===Foreign investment and trade===
in 2023, Canada receives the largest share of Cuban exports (30.6%),<ref name=":5">{{Cite web |date=2024-12-18 |title=Cuba - Trade, Economy, Exports {{!}} Britannica |url=https://www.britannica.com/place/Cuba/Trade |access-date=2024-12-20 |website=www.britannica.com |language=en}}</ref> 70 to 80% of which go through Indiana Finance BV, a company owned by the [[Van 't Wout]] family, who have close personal ties with Fidel Castro. This trend can be seen in other colonial Caribbean communities with direct political ties with the global economy. Cuba's primary import partner is Venezuela. The second-largest trade partner is China, with a 16.9% share of the Cuban export market.<ref name=":5" />

Cuba began courting foreign investment in the Special Period. Foreign investors must form joint ventures with the Cuban government. The sole exception to this rule is Venezuelans, who can hold 100% ownership in businesses due to an agreement between Cuba and Venezuela. Cuban officials said in early 1998 that 332 joint ventures had begun. Many of these are loans or contracts for management, supplies, or services normally not considered equity investments in Western economies. Investors are constrained by the [[Helms–Burton Act|U.S. Helms–Burton Act]] that provides sanctions for those who traffic in property expropriated from U.S. citizens.<ref>{{Cite news|url=https://2009-2017.state.gov/outofdate/bgn/cuba/35715.htm|title=Cuba (11/03)|newspaper=U.S. Department of State|access-date=22 February 2017}}</ref>

Cuba's average tariff rate is 10 percent. As of 2014, the country's planned economy deterred foreign trade and investment. At this point, the state maintained strict capital and exchange controls.<ref name="2014 Index of Economic Freedom">{{cite web|title=Cuba 2014|work=[[Index of Economic Freedom]]|url=http://www.heritage.org/index/country/cuba|publisher=[[The Heritage Foundation]]|access-date=24 November 2014|archive-date=4 December 2014|archive-url=https://web.archive.org/web/20141204185142/http://www.heritage.org/index/country/cuba|url-status=unfit}}</ref> In 2017, however, the country reported a record 2&nbsp;billion in foreign investment.<ref name=foreigninvestors>{{cite news|url=https://www.reuters.com/article/us-cuba-investment/cuba-reports-record-2-billion-in-foreign-investment-deals-idUSKBN1D02NL|title=Cuba reports record $2 billion in foreign investment deals|first=Marc|last=Frank|work=Reuters|date=31 October 2019|access-date=27 December 2019}}</ref> It was also reported that foreign investment in Cuba had increased dramatically since 2014.<ref name=foreigninvestors /> In September 2019, EU foreign policy chief [[Federica Mogherini]] stated during a three-day visit to Cuba that the European Union is committed to helping Cuba develop its economy<ref>{{Cite news|url=https://www.reuters.com/article/us-cuba-eu-idUSKCN1VU2BY|title=EU stresses support for Cuba even as U.S. hikes sanctions|date=10 September 2019|work=Reuters|access-date=10 September 2019}}</ref>
[[Image:Tobacco field cuba1.jpg|thumb|right|270px|A tobacco plantation in [[Pinar del Río]]]]

===Currencies===
{{Main|Dual economy of Cuba}}
From 1994 until 2021, Cuba had two official currencies: the [[Cuban peso|national peso]] (or CUP) and the [[Cuban convertible peso|convertible peso]] (or CUC, often called "dollar" in the spoken language). In January 2021, however, a long-awaited process of currency unification began, with Cuban citizens being given six months to exchange their remaining CUCs at a rate of one to every 24 CUPs.<ref>{{Cite web|url=https://blogs.lse.ac.uk/latamcaribbean/2021/02/10/day-zero-how-and-why-cuba-unified-its-dual-currency-system|title=Day Zero: how and why Cuba unified its dual currency system|last=Yaffe|first=Helen|website=LSE Latin America and Caribbean blog|date=10 February 2021 |access-date=17 February 2021}}</ref>

In 1994 the possession and use of US dollars were legalized, and by 2004 the US dollar was in widespread use in the country. To capture the hard currency flowing into the island through tourism and [[remittances]] – estimated at $500–800&nbsp;million annually – the government set up state-run "dollar stores" throughout Cuba that sold "luxury" food, household, and clothing items, compared with necessities, which could be bought using national pesos. As such, the standard of living diverged between those with access to dollars and those without. Jobs that could earn dollar salaries or tips from foreign businesses and tourists became highly desirable. Meeting doctors, engineers, scientists, and other professionals working in restaurants or as taxicab drivers was common.

However, in response to stricter [[United States embargo against Cuba|economic sanctions by the US]] and because the authorities were pleased with Cuba's economic recovery, the Cuban government decided in October 2004 to remove US dollars from circulation. In its place, the convertible peso was created, which, although not internationally traded, had a value pegged to the US dollar 1:1. A 10% surcharge was levied for cash conversions from US dollars to the convertible peso, which did not apply to other currencies, thus acting as an encouragement for tourists to bring currencies such as [[euro]]s, [[pound sterling|pounds sterling]] or [[Canadian dollar]]s into Cuba. An increasing number of tourist zones accept Euros.

===Private businesses===
Owners of small private restaurants (''[[paladar]]es'') originally could seat no more than 12 people<ref name="O'Rourke2007">{{cite book|author=P. J. O'Rourke|title=Eat the Rich: A Treatise on Economics|url={{google books |plainurl=y |id=YzTauHNa4FIC}}|date=1 December 2007|publisher=Grove/Atlantic, Incorporated|isbn=978-1-55584-710-4}}</ref> and can only employ family members. 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.

As of 2012, more than 150,000 farmers had signed up to lease land from the government for bonus crops. Before, homeowners were only allowed to swap; once buying and selling were allowed, prices rose.<ref name=BBC2012SimonReeve/>

In cities, "[[urban agriculture]]" farms small parcels. Growing [[organopónicos]] (organic gardens) in the private sector has been attractive to city-dwelling small producers who sell their products where they produce them, avoiding taxes and enjoying a measure of government help from the Ministry of Agriculture (MINAGRI) in the form of seed houses and advisers.

In February 2021, the government said that it would allow the private sector to operate in most sectors of the economy, with only 124 activities remaining in the public sector,<ref name=":2" /> such as national security, health, and educational services.<ref name=":3" /> In August 2021, the Cuban government started allowing citizens to create small and medium-sized private companies, which are allowed to employ up to 100 people. As of 2023, 8,000 companies have been registered in Cuba.<ref name=":4" /><ref>{{Cite web |last=Augustin |first=Ed |title=As Cuba's private sector roars back, choices and inequality rise |url=https://www.aljazeera.com/economy/2023/7/19/as-cubas-private-sector-roars-back-choices-and-inequality-rise |access-date=2023-08-15 |website=www.aljazeera.com |language=en}}</ref>

In 2021, Cuba's "economic freedom" score from the free-market oriented [[The Heritage Foundation|Heritage Foundation]] was 28.1, ranking Cuba's economy 176th (among the "least free") on such measures as "trade freedom, fiscal freedom, monetary freedom, freedom, and business freedom". Cuba ranked 31st among the 32 South and Central America countries, with the Heritage Foundation rating Venezuela as a "client state" of Cuba's and one of the least free.<ref name="2021 Index of Economic Freedom">{{cite web|title=Cuba 2021|work=[[Index of Economic Freedom]]|url=http://www.heritage.org/index/country/cuba|publisher=[[The Heritage Foundation]]|access-date=13 July 2021|archive-date=13 July 2021|archive-url=https://web.archive.org/web/20210713094613/https://www.heritage.org/index/country/cuba|url-status=unfit}}</ref>{{Better source needed|reason=The current source is insufficiently reliable ([[WP:NOTRS]]).|date=August 2023}}