Question

Provide a country analysis on Cuba.

Answer 1

Cuba is an island country in the Caribe, officially the Republic of Cuba. Cuba's country includes Cuba's main island, the Isla de la Juventud and a number of archipelagos. Havana is Cuba's capital, and its biggest city. Santiago de Cuba is second-largest city. The United States is 93 miles to the north of Cuba and the Bahamas to the northeast, Mexico is 120 miles to the west, the Cayman Islands and Jamaica to the south, and Haiti and the Dominican Republic to the southeast. After Russia Cuba is the second largest nickel mineral resource. Cuba is also the fifth-largest producer of refined cobalt in the world. Oil exploration has succeeded in locating oil beds, estimated to produce 4.65 billion to 9.3 billion barrels.

Cuba Country Information (Source: OECD)
Population	11.27 million (2012)
GDP	$68.23 billion (2012)
Improved Water Sources	86.1%
Life Expectancy	79
Income Level	Upper Middle

PEST ANALYSIS OF CUBA

Political environment :

Cuba is one of the Caribbean's largest islands that were once populated by tribal people before Christopher Columbus visited the island during his first voyage. He found it and proclaimed it to be Spain's 1762 territory, this land was retained briefly by Britain before returning in exchange for Florida. A series of rebellions occurred during the 19th century that failed to end Spanish rule, but increased tensions between Spain and the United States, led to the Spanish-American War, finally led to the withdrawal of Spain, and in 1902, Cuba gained formal independence. During the first half of the 20th century, the American industry dominated Cuba. It was supported by policy measures from the US government that maintained control over the island. In 1959 a revolution led by Fidel Castro overthrew Dictator Fulgencio Batista. Relations between Cuba and the United States froze while the island showed its faith in the Soviet Union, which kept its economy running against Cuba despite being US. Following the dissolution of the east-west confrontation Cuba remains one of the world's only communist countries. Cuba is a Republic of Communism. The state departments and the Cuban Communist Party are closely linked and their authority is essentially transferred from the Council of Ministers ' Executive Committee. Their National Assembly is composed of 614 members, with legislative e powers. Their next provincial and national elections are scheduled for January 2012, the April 2010 municipal elections, although there is only one legal party, namely the Cuban Communist Party (PCC). Cuba's head of State and Government is Raúl Castro Ruz.

Economical Environment :

In 2008, consumer prices or inflation rose by 3.4 per cent, which is an average figure compared to other countries, because they are number 47 on the world list. The Cuban labor force has 4,962 million men, 78 percent of whom are working in the state sector and 22 percent in the non-state sector. This figure scores them number 74 as compared to the world's labor forces. Compared to other countries, the unemployment rate is low as they only have 1.6 per cent unemployed people and rank 13 in the world. This pace only increased from 2007 to 2008 by 0.2 percent. Rising Cuban purchasing power, GDP per capita, in the year 2008 was $9,500. We rank 108 in the world's list compared to other countries, but since the prices rose by $1,000 per capita over the years from 2006 to 2008, their score is still good. Cuba produces a range of agricultural products, including sugar, tobacco, oranges, coffee, rice, potatoes, beans and livestock. Nickel, pork, fruit, coffee, tobacco products, sugar and their by-products and medicines are the principal export goods. An estimate of $3.78 billion for their exports of goods in 2008 which makes them number 119 on the export list of countries. China, Canada, Spain, the Netherlands and Iran are their principal export partners. Goods to be imported include petroleum, food, machinery, equipment, and chemicals. Its main import partners are Venezuela, China, Spain, Canada and the United States.

Social Environment :

Cuba has an approximate population of 11,451,652 people. Every year the population is growing by 0.233 per cent. 18.3 per cent of these people are between the ages of 0 and 14, 70.4 per cent between the ages of 15 and 64 and 11.2 per cent between the ages of 65 and above. The average age for this is 37,3 years. 65.1% is white, 24.8% is mulatto and mestizo and 10.1% is black (2002 census). Roman-Catholics and Protestants are the most common denominations. At the age of 15, almost the entire population is able to read and write (99.8 percent) which helps them to obtain a good education. The majority of the population (76 per cent) ideally live in urban areas. There are few causes and aspects that Cuba has pursued, items like Cuba imports 80% of its food, it has a large biotechnology and pharmaceutical industry, the tourism industry is the main driver of growth, salaries and pensions are very small in Cuba, the value of the Cuban peso is tied to the US dollar, Cuba exports sugar, medicinal goods, nickel, tobacco, shellfish, citrus and coca.  It imports petroleum, food, machinery and chemicals.

It buys Venezuela oil on preferential terms and in return sends its doctors as aids. Cuba's economy is largely controlled by the state and Cuba's current government is striving hard to maintain a balance between maintaining firm political control and reviving the economy. The Cuban people's standard of living is far below the rate seen before the 1990's economic downturn, caused by the loss of soviet subsidies. In 1993 and 1994, the country's government enacted some economic reforms to mitigate the economic problems facing the country, including food and consumer goods shortages. Some of the popular reforms included opening up the tourism sector of the country, allowing foreign investment, authorizing self-employment in some areas and legalizing US dollar keeping. The administration of Raúl Castro has launched an electricity revolution, aimed at eliminating the electricity issues facing the country.

Technoligical Environment :

Cuba is a recognized leading biotechnology country but there are still sectors that lack growth. For example, Internet access is only provided at high cost by one provider which shows an insufficient telecommunications infrastructure. There is still room for improvement in Cuba's information technology system, as lucrative sectors such as tourism and biotechnology need strong and continuously updated communication systems and instruments that are not enough at present. Castro recognizes that the economy needs digital connectivity and computer networks, and is willing to open new doors to make that possible. The life expectancy at birth is 78 years as a result of its universal health care system. Historically, Cuba ranked high in medical personnel, and since the 19th century has made significant contributions to world health. Cuba has universal health care and although there is still a shortage of medical supplies, there is no lack of medical personnel, which is one of the greatest achievements in the history of the nation and the current conditions of importing most of its pharmaceutical needs.

FUTURE TRENDS IN CUBA :

Foreign investment, especially through tourism, provides Cuba with a great opportunity to acquire capital that can help breathe life into its struggling economy. At the same time, a strict US trade embargo hampers the Cuban economy significantly and holds it in a state of perpetual need. To strengthen the economic conditions in Cuba, a degree of neoliberal reforms need to be introduced, specifically in terms of wage and price controls, in order to encourage investment and decrease black market activity. The strengthening of relations with the United States and the potential termination of the existing embargo, would be even more valuable. Cuba, despite being situated just 90 miles south of Florida, finds itself in a unique position as the sworn opponent to US imperialism and imperialist way of life. The strong historical ties that Cuba and the United States share render this position even more special. As Cuba faces the new century with aging leaders from a fading Revolution, Cuba's hope for economic progress lies in re-establishing ties with the giant to the north that have already influenced their history so much.

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