Cuba. This island is known everywhere in the world.

Everybody knows such names as Fidel Castro and Che Guevara. Also Cuba is associated with Caribbean crisis, which had frightened both the U.S.A. and USSR. Thats all that common person knows about this land and nation famous for specific culture and interesting history (especially of the 20th century). Cuba has always been a region of American interests in the Caribbean Sea and its 45-year resistance against capitalism (in fact American politics) impresses everyone, even person hostile to Cuban regime. Thats why before having a closer look on the gains of Cuban revolution its important to give the general characteristics of Cuba in the politics of the modern world. Its important to explore the reasons of Cuban revolution as well in order to better understand its purposes and the results in economical and social sphere that were achieved by Castros government after the revolution was over. Its also important to pay attention to the relations of Cuba with foreign countries and with the USA particularly. Cuban influence on worlds politics during the Cold War and nowadays is important and worth paying attention to. Cuba is still one of the last Communist countries of the world. The revolution of 1958 had a lot of problems to be solved by the main were social and economical. The situation of Cuba in 1950ies was not pretty much different from any of the Latin America states, but still the poverty level was huge. Cuba was totally dependent upon foreign capitals and was an agricultural supplier of the USA. Many years have passed, Communism had a great success but it died after Soviet Union collapsed. Now China and Vietnam try to democratize and capitalize own economics. Only Cuba and North Korea are still devoted to Communism. But even there we can find some ideas of capitalism. The majority of Socialistic revolutions (older and younger that Cuban) are history already. But Cubans proved their moral strength and they still succeed protecting the Revolution. Cuban revolution created the first Socialistic state in this part of Earth. It is very interesting and worth studying that Cuba was not the most developed country of Latin America and many people explain the Revolution with Fidels charisma, Russian success and American miscalculations. As historian Jules Benjamin in his book The United States and Cuba wrote, United States and Cuba had always very uneasy relations. Cuba had a very tragic history before the middle of the 20th century. Spanish and later American influence was not good for this island nation. We cannot name American influence of

that time democratic because United States and owners of different companies considered Cuba as a colony. This influenced future revolution a lot. The basic sphere of pre-Revolutionary Cuban economics, as all historians say including Marifeli Perez-Stable in the book The Cuban Revolution, was producing sugar for export to the United States. 25% of best lands, 36 big and well-equipped sugar plants belonged to United Fruit and other American corporations. They produced 42% of sugar. Another 58% were produce by Cubans but were also controlled by Americans. But sugar was not the only sphere of American monopolies interests. They controlled 23% of industry, 90% of electrical and telephone infrastructure, 50% of railways. For example telephone and telegraph belonged to the filial of ATT. Electricity and lands in some provinces belonged to Cuban American Sugar Company. These two companies were connected through Morgan bank group and received support from Department of State and CIA. National Cuban capitalists were associated with American capital and had interests both in Cuba and Miami. Different American companies wished to have a filial on this island involving some part of Cuban capital. So, the whole infrastructure of the island, industry and other spheres of national economics were leaded by the United States. Cuban historian Tablada admitted that in 1950-ies Cuba had developed road infrastructure, developed telephone, telegraph, television and radio. Cubans didnt like that and wanted to rule themselves in their country and work only for their native land. The majority of Cuban population was peasants and the main reason according to this fact was shortage of land. Local landowners and American corporations had bought state and private lands in the beginning of 20th century for very low prices, so the majority of population was left with no land. Some of them had to become workers there; some captured state land in the mountains that were very bad to plant anything on. People who were considered peasants had neither equipment nor electricity. According to the contract concluded with sugar or tobacco company peasant had to pay rent payment, sell all goods only to this company and take different credits. Monopolies bought their production for an extremely low prices and this was making peasants and their families poor. When Fidel Castro was incarcerated in jail he said in the court that 200 thousands of Cubans had no any land to feed their families and 30 thousand of

caballeros of best lands belonged to monopolies but were empty and nobody planted anything on them. Catholic University Union provided different social researches in 1956-1957 and here are the results: about 33,5% of those who could and wanted to work were jobless, only 4% of them could afford themselves eating meat, 1%- fish, 11% milk, 3%-bread, only 57% of Cuban citizens were literate and 6% had water supply at home. These figures horrify today but that happened not that long ago less than 50 years ago. It is hard to believe that in 20th century people living several miles away from Miami lived practically in Middle Ages and their conditions of life, attitude to human were the same. Cuba was not only a huge sugar plantation. It became a region famous for its industry of entertainment. Many rich people from the United States of America and some other countries visited Cuba to play different games of a chance. American monopolists and oligarchs turned Cuba into dependent territory, not a colony but dependent because of profitable regime ruled from the offices of these monopolies. Cuba suffered a lot from numerous terrorist formations supported by different important officials and criminal leaders. New government had to solve all the existing problems and its first purpose was not to loose the trust of the nation. They promised reforms and they had to achieve them. No doubt the major reforms had to be made in economics and social sphere. Cuban government expropriated property from rich landowners, nationalized all enterprises and property that was in the possessions of foreigners. But to build new economics was quite difficult, to establish new relations look for the solutions of economical problems, economical isolation was impossible when there were thousands and millions of hungry, poor people. No wonder that even economical reforms had a social character as they were directed to satisfy the basic needs of common people. Peasants got the land, but not in the private property, as all the land belonged to the state. Workers got better conditions of labor, social protection and free medical care. In fact the reform in housing sector, medical and health care sector and in education was very progressive for the country. Here comes a question: how a small agricultural country with undeveloped market, with undeveloped trade relations and which was in deep economical crisis could achieve such social gains. The answer is simple: the assistance from the big brother Soviet Union. Soviet Union and the members of Warsaw Pact agreed to buy Cuban goods for

higher prices to support Cuban economics, Soviet Union sold oil for lower prices to Cuba and in this way Cuban government had funds for the reforming countrys infrastructure. Actually social changes were achieved by the gains of property that was left after expropriation. Poor workers were resettled to bigger houses, as there were established quotas on the limits of private property, on housing in fact quotas on everything. Lots of Cubans lost a considerable part of their possessions; on the other hand it was shared with other people. These utopian communistic ideas were effective during the first years after revolution. Cuba got a chance to develop its pharmaceutical industry, and ability to prepare national medical personnel first abroad mainly in Soviet Union and Eastern Europe and later in Cuban institutions of higher learning. Education was reorganized as well. If before the revolution Cuba was one of the poorest countries of Latin America with nearly the lowest level of literacy, then after the revolution, illiteracy was nearly illuminated. Educational reform made education universally available for representatives of the poorest groups of the country. In the preparation of professionals Cuba again was aided by the countries-members of Warsaw pact. Future Cuban professional got education in best universities of Russia, Poland, Hungary and Czechoslovakia. New government had established new legislature that guaranteed the right to work and get worthy conditions of life. Since 1960ies Cuban workers and simply employees got the real state protection of labor and bearable conditions of work. Already the fact that worked for the good of their motherland, not for the good of foreign companies made their life enthusiastic and full of optimism. Women in education: 49.5% of the total number of universities graduates and 62% from the total number of students in institutions of higher learning Employment: 22% of workers; 65% of technicians; 87% of administrators; 54% in service sector; 33.5% of managers;In government: 35% of seats in parliament; 16% in the states council; 18% of ministers; 22% of secondary ministers; 61% of public prosecutors;49% of judges; 47% of judges in the supreme court Besides statistics about womens participation there is general statistics about Cuban society: Average life duration: women-78 years, men 74 years (even higher than in some of the developed European countries) Children death rate 6.3 on 1000 new-borns (the lowest in Latin America, before 1958 it was one of the highest in Latin America) Access to education and

medical care is free, in addition Cuban medical care offers special programs for psychic rehabilitation, early childhood education (from the age of 3 months and to the school age) for a symbolic fee.Total protection of motherhood, government subsidizes women workers who take vocation for baby care to the age of 1 year with keeping a workplace and salary.As we can see that Cuban revolution had changed the social conditions of Cuban people, lets now have a look on gains of government in economical sphere. As Cuba refused from cooperation with major capitalist world it became dependent upon the imports of socialist European countries. The imported goods had concentrated in the seaports of Havana, and the problem had to be solved. As it was told the export of Cuban sugar was a hidden form of subsiding Cuban economics. But still this cooperation didnt bring any impressive results, and didnt develop Cuban economical potential. Fuel, wheat, fish, machines, machine tools, industrial equipment everything was imported from abroad, and at the same time there was no stimulus for the development of Cuban products. Government didnt create favorable conditions for the development of industry, which would satisfy Cuban internal markets. As a result countrys economical system was very weak and the country remained to be poor. Of course the conditions that were established by Castros regime were more favorable for Cuban nation, as Cuba gained the right to manage its property independently. The goods, and capitals were not exported in such huge sizes as it was during Batistas regime and in previous years. Country had got the right to direct its development and be independent from the will of world capitalism in the face of the USA. No wonder that nationalization of property and expropriation of lands from landowners had resulted in new funds available for government and for improvement of life conditions of Cubans. The support of government by Cubans, still wasnt long, the euphoria of revolution was pretty soon over, as Cuban government appeared to be unable to solve many of the economical problems and caused a pro-longed economical stagnation of the country. Only in middle eighties Cuban economics started to show the signs of common sense and signs of its market orientation. Cuban government began to subsidize money to explore potential oilfields, metal deposits and what is more important it began to subsidize national economics, as a result series of enterprises that substituted imported goods were constructed. Not surprising that their construction was as well funded by European socialist countries and predominantly by Soviet Union. But a rapid collapse of the Soviet Union and the change of political nearly of all

countries members of Warsaw pact left Cuban economics to the harsh realities of economical crisis.

During 1989-1992 there appeared rough decrease of sugar export, as Soviet Union and eastern European countries refused to buy it, which meant not only the stop of hidden subsidizing of Cuba but at the same time the decrease of Cuban profits from export in general. The transition to the free currency settings (to dollar settings) greatly limited the economical potentials of Cuba for the purchase of oil products, industrial equipment, customer goods and food-stuff on former market of the countries members of Warsaw pact. If to talk by the language of numbers the goods exchange of Cuba in 1993 with former socialist counties reduced to the level of 15% of the 1988. Moreover former allies factually joined the USA in economical blockade of the island of freedom, which wasnt even done by Western Europe and Canada. Russia even refused to sell oil for dollars. Cuban economics was stroked. Industry was left without fuel, energy, equipment, and agriculture without fertilizers. It reduced the produced of sugar, tobacco and during the years of 1989-1993 the production of national gross product nearly on one third. Nevertheless the government of Fidel Castro nearly performed an exploit getting country out of economical crisis, as Cuba was able to adopt the changes and transform its economics. Cuba had signed important international treaties with countries of Latin America and major European states that guarantee fair and effective goods exchange, it also had become the member of world trading organization (as we know Russia and all former Soviet republics are not equal members of this organization), Cuba expanded private sector of economics and allowed self-employment of its citizens. Farmers also received privileges and became the owners of land, even working on collective and cooperative farms. Tourist sector of economics began to rapidly develop, guarantying import of cash to the country. Government also made further concessions, it allowed foreign investors to invest money to Cuban industry, tourism and agriculture, establishing free economical zones in major seaports of the country, which boosted the development of trade, goods exchange and established a new article of income to Cuban economics. Making a conclusion we should take into consideration that economics and social infrastructure of the country are mutually connected and are integral components of each other. Its impossible to look on countries social sector without taking into consideration the economics, which funds

it. Social protection was achieved by making everyone equal, making everyone a unit of the authoritarian regime, with equal opportunities and equal rights, separating and alienating country from the rest of the world. Time had shown that these practices fail as the power of the global community, the power of international market relations and market economy is stronger than the power of authoritarian regimes. But still we should admit that Cuban revolution was completed as it had realized the main purposes to liberate the country from foreign capitalism, to return property to the people and to establish bearable conditions for people. Cuba remains and nowadays one of the few states with protected societies in Latin America, with free education, free medical care and labor protection. These gains remained even during the harsh years of economical blockade and guaranteed social stability. Many historians call Cuban revolution as a socialist revolution and we should agree that most of all it was social and it changed the society, it changed the attitude of government to the society as Castros government, despite its vices and deficiencies in economical management and violation of human rights, was able to guarantee the realization of hope of Cuban nation, which suffered for centuries, and it was a hope of countrys independence and bearable life of Cuban nation. The results of first years after Cuban revolution proved that, but the harsh realities of modern world, of global market changed the economical orientation of the country making it oriented on international markets and if so changing its structure by higher participation of private sector. 10 Things To Consider If we're Considering Doing Business In Cuba Cuba is a land of contrasts. While much of its infrastructure is crumbling and in need of repair, there are also beautiful examples of sturdy historic architecture. You don't have to be a baby boomer to appreciate 50s-era cars. And the natives aren't the evil Communist boogeymen us boomers were warned about back in junior high. Finally, the mild tropical climate and natural beauty are pleasing to the eye. 1. Historic architecture: Cuba's architecture dates back to the 1500s. By the 17th century, Cuba was one of the main ship-builders in the Caribbean. There is an abundance of Baroque and neoclassical styles, and older neighborhoods boast private houses with arcades,

balconies, iron gates, and internal courtyards. In Havana alone, there are 444 buildings designated by UNESCO as World Heritage Sites. 2. Classic Cars: The streets of Havana are full of classic American cars from the 1950s. Most Cubans have been unable to afford new cars since the 1959 revolution, so they have carefully maintained the old ones. 3. Friendly People: The Cuban people are known for their friendliness. Employees in the service sector are especially friendly and helpful, and a $1 tip may be more than their wages for the day. 4. Good Climate: The warm tropical climate makes outdoor living pleasant year round. Breezes keep the temperature from being unbearably hot. While hurricanes represent the greatest natural threat, there's plenty of advance warning that a hurricane is approaching. 5. Natural Beauty: Lush greenery, tropical flowers, and miles of coastline offer plenty of natural beauty to appreciate. All these factors make Cuba an interesting place to visit. But before you rush into a plan to do business there, a few more factors need to be considered. 6. Ownership: You won't own your business. The Cuban government will. You are only allowed a 49% interest in your business. 7. Who are your customers? Most Cubans earn an average of about $20US a month. While there is a lovely underground economy from taxi service to in-home restaurants and craft sales, most Cubans have very little discretionary income. 8. Expecting a bargain? With such a low income for the natives, you'd expect to find some real bargains. You'd be wrong. Most visitors to Cuba are amazed at how expensive everything is. 9. Who's the Boss?: Employees are hired and paid by the Cuban government. You don't control who gets a raise, or when. And you can't use that classic gentle reminder that "I'm the one who signs your paycheck!" business finance is different in communist countries! 10. Do Your Diligence: Doing business in any foreign location presents a special set of challenges. Be sure you have all the facts about legal and financial requirements.

Starting any business presents an exhilarating contrast of exciting possibilities and frustrating details. A contrast just like the contrast that is Cuba. 7 Obstacles To Doing Business In Cuba the U.S. trade embargo against Cuba would seem to be an excellent argument that there's less competition in Cuba, making the island country a great potential market.On the other hand, there are significant obstacles to doing business in Cuba. Obstacles you have to consider, and deal with, before you earn your first peso. 1. Supply Difficulties: Essential supplies must usually be imported via the Cuban government. Not an easy task when financial considerations significantly reduce the warehousing of goods for quick delivery. Some business owners cite a six-month delay in receiving essential supplies, saying the only way to get by is to order in advance-way in advance. 2. Low Productivity, Theft, and Poor Customer Service: Two factors combine to create this problem. While the socialist model may offer a survival-level safety net and a measure of job security, there is little opportunity for earning raises or performance bonuses. And a lack of opportunity leads to a lack of incentive. Meanwhile, meager wages leave little disposable income, and both employees and customers may feel forced to turn to theft to survive. All in all, this creates a negative environment which will either express itself in low productivity (passive) or hostility to customers, coworkers, and management (aggressive). 3. Utility and Transportation Costs: Both utility and transportation costs are high. And the low income of the natives may disqualify them as potential customers, meaning you will have look elsewhere for customers, having to export from this tropical island. Probably through the Cuban government. Through a bureaucratic maze. At no small expense. 4. Conflict Resolution: In most Cuban businesses, the state is a majority partner. And what if there's a conflict between partners? The state will provide a judge to decide. I'm sure you can see the problem with that. 5. Red Tape: Visas and work permits need to be renewed periodically. Cuban bureaucracy is notoriously slow, and tight controls make it essential for foreigners to keep their paperwork in order. And the Cuban government isn't the only dispenser of red tape. Business that operates both in Cuba and the US may face sanctions from the US.

6.

The Cars Aren't the Only Thing from the 50s: Most 21st century businesses rely heavily on computers for everything from communications to record-keeping. But in Cuba it's illegal to own a computer without a permit. For the lucky few who own computers, email is carefully monitored. How long has it been since you used a typewriter? Or kept your books on paper?

7. The Romance is Gone: While there was a period of time when Cuba welcomed foreign business, that welcome has cooled in the past few years - and there's much more need for social work than there is for new foreign business. Observers have noted that small business is discouraged as "unneeded", while the government still welcomes big businesses with huge influxes of cash to invest. 14 Investment Opportunities in Cuba There are fifteen sectors of the Cuban economy which are open to foreign investment. This article will list those opportunities, along with additional information about their current status. These opportunities are classified as "priority", "open", or "limited". 1. Priority: Oil and Gas: Exploiting offshore reserves is called a "key strategic priority", and companies in this sector can expect expedited handling of their requests. Sherritt International (Canada) and Venezuelan PdVSA are two of the companies that are already there. 2. Priority: Agriculture (including sugar): Current investors in this area include citrus fruit and potato growers. The Cuban authorities are especially interested in Ethanol production, calling the development of ethanol plants a "major priority". 3. Priority: Banking and Finance: There is an overwhelming need for both project and infrastructure debt financing. Citing high returns over the past few years, Cuba calls this "a major strategic area." 4. Open: Tourism: Foreign groups currently operate about 44% of Cuba's hotel rooms. If the US travel ban is lifted, Cuban officials expect a huge influx of US tourists. Cubans generally prefer to work with larger companies and those willing to build outside the Havana area. 5. Open: Investment Funds:Funds with existing investments in Cuba include Leisure Canada, Celba Finance, and Coral Capital.

6. Open: Light Industry: Current JVs include bus assembly, paper, cosmetics, and soft drinks. Opportunities for foreign investment are open in this area especially in the priorities areas of glass, paint and tires. It has been speculated that if the US lifts its trade embargo with Cuba, the island nation will become the latest to benefit from US manufacturers seeking lower labor costs. This could be an interesting development to monitor in the coming years, 7. Open: Biotech: This sector has garnered a lot of attention since the mid 90s, with current investors including GlaxoSmithKline and YMB. 8. Open: Software Development: A new software export industry began in 2002 and has resulted in several agreements. Cuba is also interested in outsourcing software development with a Spanish component. 9. Open: Mining: Several projects are at various stages of development, including gold, silver, and lead. 10. Open: Representation Offices: There are hundreds of representation offices in Cuba, including Hyundai, Kia, Audi, and Peugeot. Again, the Cuban government prefers larger offices, and may impose minimum revenue quotas/ 11. Limited: Heavy Industry: Cuba has one of the world's largest nickel reserves, and is open to investors in steel and cement plants as well. 12. Limited: Telecom: Telecom Italia owns shares in ETECSA, Cuba's sole provider of fixed, mobile, and internet communications in Cuba. 13. Limited: Tobacco: There are currently foreign investors in Cuba's tobacco industry and Habanos/Altadis are always looking for worldwide franchisees. 14. Very Limited: Real Estate: Opportunities in the residential real estate market are very limited due to saturation of the market by other foreign investors who aren't interested in selling.