The economic structure of Cuba follows a mixed pattern, most of which is funded and dominated by state-up enterprises. On the other hand, the state government employs almost all the labor forces necessary to raise the country’s economic state and get over its financial crisis.
Different sectors owing to economic development
The economy of Cuba is funded and governed by different sectors of the government and private corporations. Some of them are mentioned below:
As of 2011, nearly 96% of the entire island’s electricity was produced from fossil fuels. The modernized method of energy production with solar panels was introduced only in some rural areas and for emergencies like blackouts, burn-outs, etc. Most of the citizens were also encouraged to switch from inefficient lamps to modern models, reducing electricity consumption.
According to 2007 reports, Cuba produced 16.89 billion kWh of electricity, of which only 13.93 billion kWh was consumed, without imports and exports. Since they do not depend on revenue from imports and exports, the profit from energy production is minimal in Cuba.
The Energy Revolution program of Cuba was started and executed in 2006, which focused on developing a socioeconomic status using diverse energy resources. However, since Cuba lacks the efficient resources to generate Cuba’s power production, they plan on taking help from the United States. Furthermore, the outdated energy grid, which is often affected and damaged by hurricanes, often causes an energy crisis on the island.
Most of the import and export of goods in Cuba happens through agriculture. It is one of the largest producers of Sugar and tobacco. In addition, it also produces citrus, potatoes, livestock, beans, and coffee. According to reports from 2015, nearly 80% of the food and other food products were exported to different countries, which remain one of the leading sources of their revenue.
Nearly 37% of the Cuban GDP is through industrial production. A rally in 2009, based on the sugar production and processing industry, stimulated its investment and produced a larger market for sugar cultivation and processing. Since 2003, the biotechnology and pharmaceutical industries have also started gaining immense importance. Over the years, they have also sold vaccines against bacterial and viral pathogens and exported them to different regions of the world. Along with developing drugs in cancer treatment, Cuba has created a drug called Herberprot-P, which is famous as a cure for diabetic foot ulcers in many developing counties.
In the mid-1990s, the tourism industry surpassed the revenues generated by the sugar industry and became a mainstream development of the Cuban economy. It was also considered the primary source of foreign exchange. Over the years, the tourism industry has only grown, and today, it is also one of the primary industries for generating the economy on the island.