Cuba Siglo 21 has published a new dossier by economist Emilio Morales that provides a statistical x-ray of the collapse of the regime’s system on the island. [1]
“The Cuban economy is in a critical phase due to the drastic fall of more than 50% of its main sources of income: export of medical services, remittances and tourism. This financial collapse has accelerated the countdown of the governance regime.”
- “The export of medical services, the country’s main source of income, has suffered a 78.12% dropsince its peak in 2013, when it reached 10.42 billion dollars.”
- “Remittances, the second largest source of income, have also declined significantly. In 2023, remittances totaled $1,972.56 million, a drop of 3.31% compared to 2022 and 46.93% compared to 2019, before the pandemic. Morales attributes the decline to mass emigration that began after the crackdown on protests on July 11, 2021, which ‘has not only reduced remittances but has also resulted in a significant flight of human capital.’”
- “Tourism, one of Cuba’s most promising industries, has failed to recover post-pandemic. Morales recalls that in 2023 Cuba received 2,436,979 tourists, a figure comparable to that of 2009, well below the expected levels. The economist points out that ‘the situation is aggravated by the decrease in Cuban tourists living abroad, a key segment for the Cuban tourism economy.’”
- “The regime’s commitment to attracting Russian tourists has not compensated for the loss of European tourism, affected by the Cuban government’s support for Russia in the war against Ukraine. The arrival of tourists from the five main European issuers (Italy, France, Germany, Spain and England) has decreased by 67.45% in the last five years.”
- “The Cuban regime has proven incapable of implementing effective mechanisms to transform the economy and overcome the current multi-systemic crisis. The fall of the three main sources of income by more than 50% reflects the total dysfunctionality of the governance regime.”
“Even the regime’s allied governments are not willing to carry out a large-scale economic rescue. The governance models of Russia, China or Vietnam have not been adopted, and the power elite in Cuba continues to resist any change.”
“Mass emigration has decapitalized the country financially and in terms of human resources, and the metamorphosis of Castroism into a mafia state, with GAESA as the center of true power, has led to the destruction of industries and the loss of political capital.”
“The Cuban Communist Party (PCC) has no retraining pool, with many members who no longer believe in the party or its ideology.”
“The economic crisis has had devastating effects on all sectors of society.There is an alarming shortage of teachers, health personnel , workers in the sugar industry, tourism and the energy system. Even the justice system is affected, with the Supreme Court of Justice operating at only 69% of its capacity.”
“With the celebration of the 71st anniversary of the attack on the Moncada barracks, Cuba finds itself in a deep humanitarian crisis, with 89% of the population living in poverty and 1.79 million citizens having left the country in recent years.”
Morales concludes, “the Cuban system has collapsed. The Cuban state is dysfunctional and bankrupt. The Cuban government is mediocre and lacks leadership. The Cuban power elite is impervious to criticism. Without some kind of radical transformation to prevent or postpone it, the final collapse, by one route or another, is inevitable.”[2]
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[1] 71 years after July 26: ‘The Cuban Economy has collapsed,’ Diario de Cuba (July 25, 2024). Cuba Siglo 21 is “a nongovernmental think tank based in Madrid, Spain that serves the forces that promote change in Cuba towards an open, democratic and prosperous society supported by the rule of law and a free market. ” (About Cuba Siglo 21.)
[2] See also ‘Distortion’ of employment in Cuba: army of inspectors, thousands less farmers, teachers and doctors, Diario de Cuba (July 25, 2024); The regime is forced to stop falsifying data on Cuba’s demographic crisis, Diario de Cuba (July 24, 2024); Industrial devastation in Cuba is worse than the agricultural catastrophe, Diario de Cuba (July 23, 2024).