2001
DOI: 10.5089/9781451846744.001
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The Fall and Recovery of the Cuban Economy in the 1990's: Mirage or Reality?

Abstract: The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.The collapse of the Cuban economy following the cessation of Soviet assistance gave way to a strong recovery in 1994-96. There are three possible explanations for this recovery: (i) that it never took place; (ii) that it reflected a surge in productivity resul… Show more

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Cited by 23 publications
(8 citation statements)
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“…By 1993, real GDP reached rock bottom with a negative growth rate of 14.9%. Thereafter it recovered somewhat, yielding a rate of 0.7% in 1994 (Hernández-Catá, 2000). The magnitude of Cuba and North Korea's economic recession is furthermore illustrated when considering the evolution of their foreign debt.…”
Section: Gnp Growth North Koreamentioning
confidence: 99%
See 1 more Smart Citation
“…By 1993, real GDP reached rock bottom with a negative growth rate of 14.9%. Thereafter it recovered somewhat, yielding a rate of 0.7% in 1994 (Hernández-Catá, 2000). The magnitude of Cuba and North Korea's economic recession is furthermore illustrated when considering the evolution of their foreign debt.…”
Section: Gnp Growth North Koreamentioning
confidence: 99%
“…Real GNP/GDP Growth Rates, 1985 Sources: Oh and Hassig (2000,Hernández-Catá (2000, p. 30), United Nations (1997).…”
mentioning
confidence: 99%
“…The robust response of Cubans to the Castro regime's liberalization of policies with regard to self-employment in 1993 would seem to support Gayoso's points. As both Mesa-Lago (2001) and Hernandez-Cata (2000) make clear, the modest recovery from the trough of economic decline in 1993 appears to be due primarily to growth in employment and productivity in the self-employed sector. Hernandez-Cata, for example, estimates that while employment in the state sector declined by nearly 750,000 between 1990 and 1998, employment in the private sector increased by almost 600,000-mostly on small private farms and in self-employed enterprises.…”
Section: A Small and Deformed Private Sectormentioning
confidence: 99%
“…However, unlike most other societies with an aging population, Cuba's low-levels of income and economic development make decisions to cut back current consumption in the interest of future growth particularly painful. It is interesting to note, for example, that the Castro regime initially attempted to maintain social-spending levels subsequent to the withdrawal of Soviet aid, but it was eventually forced to cut back social spending for macro-economic reasons (Hernandez-Cata, 2000). Moreover, several observers of Cuba's current economic predicament suggest that further cuts in consumption may be impossible (Erikson and Wolf, 2002;Mesa-Lago, 2003a).…”
Section: The Allocation Of Social Service Resourcesmentioning
confidence: 99%
“…7 Prior to 1994, more than 90 percent of Cuba's labor force was employed in the state sector. With the liberalization of Cuba's economy, that share has declined since the mid-1990s, but it still employs about three-quarters of all workers (Hernández-Cata, 2000). 8 Currently, only self-employed workers and employers in the private sector are required to contribute to the pension systems designed to support themselves or their workers.…”
Section: Impact On Pension Systemsmentioning
confidence: 99%