Aug 5, 2026 · 31 min · 12 segments
This episode examines Cuba's current economic model, the impact of long-standing U.S. sanctions, and the collapse of key sectors like tourism. It compares Cuba's cautious moves toward private…
Images of Cuba today with its constant electricity blackouts, crumbling buildings in Havana, long queues for basic products, rubbish piling up in the streets and much more – have perhaps left many people to question the sanity of the Cuban leadership to continue towards socialism in the face of huge American economic and political pressure.
Writing for the online journal Mice's Wire, Burhen Phillips says, and I quote, "...in recent years Cubans have been forced to endure one of their worst shortages of basic necessities, such as food, medical supplies, and fuel." The fuel shortage has been particularly devastating as it causes regular power outages which makes it extremely difficult to work and engage in production and obstructs the transport and distribution of goods across the island.
A number of factors have contributed to the current economic crisis in Cuba, including a slow recovery of the tourism industry from Covid restrictions and the elimination of the dual currency system, which has resulted in persistently high inflation.
However, it is ultimately the American financial and economic blockade that is, by far, the biggest contributing factor to the recent economic crisis, as well as the main issue holding back the economic growth and development of Cuba more broadly.
A report in June 2026 by the BBC demonstrates the near collapse of Cuba's tourist industry, which the state relies on for finance.
Amid tightened US sanctions, figures released by Cuba's National Statistics Agency suggest fewer than 360,000 people visited the communist-run island in the first five months of 2026, a decrease of 58.4% compared to the same period last year.
Images of Cuba today with its constant electricity blackouts, crumbling buildings in Havana, long queues for basic products, rubbish piling up in the streets and much more – have perhaps left many people to question the sanity of the Cuban leadership to continue towards socialism in the face of huge American economic and political pressure.
Writing for the online journal Mice's Wire, Burhen Phillips says, and I quote, "...in recent years Cubans have been forced to endure one of their worst shortages of basic necessities, such as food, medical supplies, and fuel." The fuel shortage has been particularly devastating as it causes regular power outages which makes it extremely difficult to work and engage in production and obstructs the transport and distribution of goods across the island.
A number of factors have contributed to the current economic crisis in Cuba, including a slow recovery of the tourism industry from Covid restrictions and the elimination of the dual currency system, which has resulted in persistently high inflation.
However, it is ultimately the American financial and economic blockade that is, by far, the biggest contributing factor to the recent economic crisis, as well as the main issue holding back the economic growth and development of Cuba more broadly.
A report in June 2026 by the BBC demonstrates the near collapse of Cuba's tourist industry, which the state relies on for finance.
Amid tightened US sanctions, figures released by Cuba's National Statistics Agency suggest fewer than 360,000 people visited the communist-run island in the first five months of 2026, a decrease of 58.4% compared to the same period last year.
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