This paper seeks to enlighten the barriers of Cuban prosperity. In this paper the focus will lie on the American sanctions against Cuba which has existed since the 1960’s. Furthermore, will the institutions of Cuba get analysed from a theoretical perspective.
First the Cuban history in the 20th and 21st century be briefly accounted for. Further will the electoral system of Cuba be explained, and their economic development state accounted for.
In this paper, two main theories will be used to first explain the impact on the sanctions on Cuba and later explain the implications of the state of the Cuban institutions. The impact of the sanctions will be analysed from a liberal economic perspective. The liberal economic perspective will be enlightening the problems concerning the interference with free trade with the sanctions on Cuba does.
Later in the analysis a development theory developed by Daron Acemoglu and James A. Robinson will be used to analyse the institutions of Cuba and how they can be barrier or a gateway to prosperity. The development theory seeks to explain how some nations, with the same geographical and historical backgrounds, has fallen behind. The theory distinguishes between inclusive or extractive political and economic intuitions. With inclusive institutions a country has the possibilities for high economic growth. With extractive institutions a country would not be able to experience sustainable economic growth.
This paper concludes that the sanctions has severe implications on the Cuban economy and the people of Cuba. Several restrictions on vessel, like the 180-day rule has made trade between Cuba and the limited. The 180-day rule is that a ship that has docked in Cuba cannot dock in an American dock within 180 days. The tourism sector is also underperforming compared to other countries in the region.
It is then later concluded that Cuba has extractive political and economic institutions, due to the electoral system, and severe state interference in the private sector.
This concludes that Cuba can get high economic growth if the sanctions were to be abolished. However, it must be taken into account that the economic growth will not be sustainable when looking at it from the perspective of the theory used in this paper.
|Uddannelser||Basis - Samfundsvidenskabelig Bacheloruddannelse, (Bachelor uddannelse) Bachelor|
|Udgivelsesdato||26 maj 2019|