Cuba Economic Review: New Promises, Old Problems in Foreign Investment

Can a stabilization plan designed for demand-driven recessions rescue an economy whose core problem is a collapse in supply? In this second edition of our Cuba Economic Review, written by economist Ricardo Torres, we explore recent developments in Cuba’s foreign trade and the new wholesale trade rules for the private sector. We also analyze the performance of foreign investment since the 2014 law was adopted, in light of new changes announced at last week’s Havana International Fair. Our In Deep section offers a critical reading of the Cuban government´s recently-published “Program to Correct Distortions and Relaunch the Economy” and examines its limitations for transforming the current model. Finally, we close with a book recommendation on innovation that offers relevant lessons for Cuba.