Cuba’s Unyielding Struggle: A Journey Through History, Ideology, and Economic Collapse

Once an economic juggernaut in the Caribbean, Cuba had the world’s 29th largest economy by the late 1950s, boasting a GDP higher than Spain, Japan, and Ireland. The driving force behind this success was the island’s abundant sugar industry, which, by the 1920s, was a billion-dollar enterprise. Sugar was not merely a commodity; it was Cuba’s lifeblood. Its fertile lands and strategic location, just 90 miles from the U.S., allowed Cuba to prosper like few nations could. The beaches of Havana, the rum, the cigars—everything about Cuba exuded luxury, and the island became the playground of the wealthy American elite. By 1958, Cuba’s economy had more doctors per capita than the UK, a life expectancy on par with developed European nations, and a robust middle class. This was an island living in what seemed to be perpetual summer.

Cuba’s trajectory—an island adorned with fertile land, a lucrative sugar industry, and a pristine coastline—was destined for prosperity. By the early 20th century, Cuba was already an economic powerhouse. The economic force that defined Cuba’s prosperity was its sugar industry, which, by the 1920s, was pouring billions of dollars into its economy. This monumental industry transformed Cuba into one of the most prominent producers in the world, supplying sugar to meet the global demand. The abundance of sugar was more than just a sweet commodity; it was the golden thread that weaved together Cuba’s identity as an economic engine in the Western Hemisphere.

The 1920s were also marked by Cuba’s flourishing tourism industry. Sitting only 90 miles from the U.S., Cuba was easily accessible, and the allure of its sun-soaked beaches, warm climate, and seductive nightlife drew wealthy American tourists in droves. From 1914 to 1937, the number of American tourists visiting Cuba increased sixfold. With a stable economy and rapidly growing sectors like tourism, Cuba boasted the 29th largest economy in the world by the late 1950s. It had more doctors per capita than the United Kingdom, a higher GDP per capita than countries like Japan and Spain, and was poised to enter the ranks of first-world nations.

But the story of Cuba’s economic rise is one written in volatility. The global price of sugar rose in 1919 due to the devastation of Europe’s sugar beet fields during World War I. This marked an economic golden age for Cuba, but like all booms, it was unsustainable. By the end of the year, sugar prices collapsed, and with it, the economy faltered. Cuban farmers, who had invested heavily, found themselves drowning in debt, and U.S. banks—who already held large portions of the country’s assets—gobbled up more land. Cuba’s independence, in the economic sense, was now compromised. The island was under the thumb of American corporate interests, which shaped the economic, political, and social realities of the Cuban people.

The Age of Despair: Cuba’s Economic Decline

By the mid-20th century, Cuba was becoming a microcosm of systemic dysfunction. Corruption, extreme inequality, and political instability were rife. While the economy boomed for a select few, the masses, particularly in rural Cuba, lived in abject poverty. The political elite collaborated with the U.S. in exchange for personal enrichment, while the majority of Cubans struggled to survive. This wealth inequality culminated under the brutal dictatorship of Fulgencio Batista, who, despite attempting to foster some social reforms, failed to lift the people out of poverty and despair.

The disparity between the rich and the poor—highlighted by the lavish lifestyles of the elites and the squalid conditions faced by the working class—became untenable. As the island slid deeper into political instability, the Cuban Revolution of 1959 brought hope to the masses. The ideals of social justice and fairness swept through the island, embodied in the figure of Fidel Castro, who promised to address Cuba’s structural imbalances. However, even the triumph of the revolution did not spare Cuba from enduring economic turmoil.

In the wake of Fidel Castro’s rise to power, Cuba began a massive nationalization campaign. The land reforms seized vast amounts of farmland and businesses previously owned by American corporations, redistributing them to the state. The hope was that by centralizing power, Cuba could avoid the economic injustices imposed by foreign imperialism. Yet this move came at a high price. The Cuban economy, once reliant on the private sector and a diversified economy, shifted to a socialist economic model focused primarily on state-controlled industries. The immediate effects were catastrophic: agricultural production slumped by 23%, wages stagnated, and inefficiencies began to plague every corner of the economy.

The strategic goal of Castro’s revolution was to establish a self-sustaining socialist economy, free from the clutches of foreign dependency. However, the absence of material incentives, inefficiency, and bureaucratic inertia began to erode the revolutionary promise. By the early 1970s, Cuba’s economy was, paradoxically, still heavily reliant on sugar exports, a single commodity that made the country vulnerable to global price fluctuations. The inefficiencies of central planning became apparent as production bottlenecks multiplied, and it became clear that Cuba’s dependence on the Soviet Union—its primary trading partner—was unsustainable.

The Special Period: Cuba’s Existential Crisis

Cuba’s reliance on the Soviet Union for economic support would prove to be both a blessing and a curse. When the Soviet Union collapsed in 1991, Cuba was suddenly thrust into an existential crisis. The so-called “Special Period” was one of severe economic hardship, during which Cuba lost 35% of its GDP and 80% of its international trade. The lack of access to oil, food, and critical industrial components triggered widespread deprivation. Cubans were forced to adapt to a state of constant shortage. The most severe nutritional deficiencies led to the tragic loss of 20 pounds per Cuban, and at least 40,000 people were blinded due to malnutrition. In the midst of all this, electricity was scarce, and power outages became the norm. Cubans lived in constant deprivation, and the island’s economic machinery ground to a halt.

Power outages were common, and in the face of this economic collapse, the government had no choice but to turn to tourism as its lifeline. Yet tourism, though vital, only served to deepen the island’s class divisions. Workers in the tourism sector earned dollars and enjoyed a better standard of living compared to doctors, teachers, and other professionals, who still earned Cuban pesos. This created an economic apartheid where those serving foreign tourists lived far better than those serving the Cuban people. This paradox of prosperity—tourism booming while the Cuban people struggled—became a source of national frustration.

Hotels, restaurants, and nightclubs sprang up in Havana, transforming the capital into a symbol of contradictory realities: a city where the wealth of foreign visitors stood in stark contrast to the scarcity and inequality faced by the majority of Cubans.

The Paradox of Prosperity: A Nation of Inequality

While tourism breathed life into Cuba’s economy, it did so by creating an economically stratified society. The most jarring paradox of post-1990s Cuba lies in the disproportionate wages earned by those working in tourism compared to those working in public services. Taxi drivers, hotel workers, and restaurant staff—who were paid in U.S. dollars—lived relatively well compared to doctors, teachers, and other state-employed professionals, who were still paid in pesos. This created an internal class division, where those serving tourists lived a much more comfortable life than those serving their own people. As noted by socio-economic analysts, this anomaly highlights the structural contradictions of Cuba’s economy: the desperate dependence on foreign capital, which undermines the principles of equity that the revolution was meant to uphold.

José Martí, Cuba’s poet and revolutionary, would undoubtedly have seen this class disparity as a tragic betrayal of the Cuban people’s struggle for sovereignty. In his famous essay Nuestra América, Martí spoke of a new world built on self-determination and justice for all. He would have seen the rise of inequality, fueled by tourism and foreign capital, as a painful reminder of the unresolved tensions between independence and dependency. For all its successes in education and healthcare, Cuba’s economic model has left its citizens in an enduring state of economic desperation, perpetually caught between the ideals of revolution and the cold realities of global capitalism.

Cuba’s Continued Struggles: From Centralization to Stagnation

Despite some positive developments, such as the growth of the tourism industry, Cuba has never fully transitioned from its centrally planned socialist model to one that embraces market mechanisms and diversification. Economic reforms introduced by Raul Castro in the 2000s, such as the relaxation of restrictions on private businesses and the introduction of some market-oriented policies, have been piecemeal and often short-lived. The Cuban government has been hesitant to implement broad-based reforms that could undermine its political power. As a result, the country continues to face systemic inefficiencies, shortages, and an unsustainable economic structure.

Cuba’s continued reliance on the state-run sector has created a dual economy, where some segments of the population benefit from tourism and the informal economy, while the majority of Cubans endure shortages, blackouts, and a lack of basic necessities. This inequality has led to a growing sense of dissatisfaction, as the gap between the well-off and the impoverished widens. The lack of access to modern technology, a low rate of industrial innovation, and the continued concentration of economic power in the hands of the state have all contributed to Cuba’s stagnation.

Cuba’s Railway Revival: The Intersection of History, Crisis, and Economic Opportunity”

The country’s railway system, a little-known relic of Cuba’s past, may very well hold the key to understanding how the island can rejuvenate its economy and navigate the difficult waters of 21st-century geopolitics.

Cuba’s railways, a relatively hidden gem in the broader scope of its socio-economic narrative, represent both a historical achievement and a symbol of Cuba’s economic isolation and stagnation. Despite the widespread belief that Cuba is an island of economic misery, the country’s rail network—a remnant of its mid-20th century infrastructure—could play an essential role in revitalizing the nation’s economy. However, for this to happen, significant reforms and investments are necessary.

A Forgotten Network with Untapped Potential

When most think of Cuba, images of classic cars, vintage cigars, and the picturesque streets of Havana dominate the mind. The reality, however, is much different. For those willing to look beyond the tourist façade, Cuba is a nation grappling with inefficiencies, limited resources, and an outdated economic structure. But even in the midst of this struggle, there lies an opportunity for renewal, one of which Cuba’s railway network could be an instrumental part.

While Cuba’s extensive rail network was once a source of national pride and connectivity, it has since fallen into a state of disrepair. Many of the stations, including the iconic Havana Central Station, are undergoing extensive renovations. Yet, despite these visible signs of decay, the Cuban rail system remains one of the few methods of transportation that serves not only locals but also a select few foreign tourists. Cuba’s railway network is far from dead—it simply requires modernization, proper investment, and an overhaul in management.

Cuba’s railway journey offers a unique, albeit delayed, experience that reflects the country’s broader socio-economic struggles. From waiting in long queues for tickets to enduring hours of delays, the railway embodies the reality of Cuban life—one that operates in a system of inefficiency, lack of resources, and delayed outcomes. However, amidst these obstacles lies the potential for reinvention.

The Historical Significance of Cuba’s Railway System

Historically, the Cuban rail system has been the lifeblood of the nation. The railway network not only served as a key mode of transportation for passengers but also facilitated the movement of goods, most notably sugar, which was once Cuba’s primary export. In the mid-20th century, Cuba boasted one of the most sophisticated rail networks in the region, connecting its various provinces and facilitating trade across the island. This infrastructure was crucial for economic growth, enabling Cuba to remain competitive in a global market.

Today, this once-thriving network lies dormant, used mostly for occasional freight and passenger services. But the potential for revitalization exists, as Cuba’s economic future hinges, in part, on its ability to harness its historical assets and reintegrate them into a modern economic system. The revitalization of the rail network could, in essence, serve as a microcosm of the broader economic transformation Cuba needs.

The State of the Current Rail System: A Symbol of Stagnation

Current realities within the Cuban rail system highlight the broader socio-economic crisis facing the nation. The ticket-buying process itself is emblematic of the inefficiencies that define Cuba’s current state—long lines, delays, and an archaic bureaucracy make what should be a simple task a major inconvenience. The fact that tickets cannot be purchased online, forcing travelers to physically queue for hours, is a stark reminder of Cuba’s technological limitations and the inefficiencies inherent in a centrally controlled system. Additionally, the economic hardships of the Cuban population are clearly reflected in the state of the railway system, where poverty and resource shortages impede the delivery of basic services.

Despite these challenges, there are rays of hope. The arrival of Chinese-built locomotives and coaches in recent years shows that Cuba is capable of pursuing meaningful upgrades in its infrastructure. These new investments are a positive sign—yet, without proper integration into the broader economic strategy, these technological advances may remain underutilized.

The Economic Opportunity: Revitalizing Cuba’s Railway System

To unlock the full potential of Cuba’s railway system, the government must focus on several key areas of reform:

1. Public-Private Partnerships (PPPs): One of the most effective ways to reinvigorate Cuba’s railway infrastructure is to attract foreign investment through public-private partnerships. Cuba’s state-run system has long been plagued by inefficiencies, and it is clear that the country cannot afford to continue financing this sector alone. By engaging international companies, particularly those with expertise in rail transport and infrastructure, Cuba could access the capital, technology, and management know-how necessary to modernize its rail network.
2. Improved Ticketing Systems and Customer Service: The current ticketing system, which requires physical presence and long wait times, is a significant bottleneck in the functionality of the railway. A shift towards digital ticketing systems would not only streamline the process but also reduce the overhead costs associated with manual sales. Moreover, improving the efficiency of stations and addressing the slow service at ticket counters would enhance the overall customer experience, ultimately increasing ridership and improving national transportation.
3. Enhanced Connectivity and Frequency: Cuba’s current rail services operate on an unreliable timetable, with trains running infrequently and with long delays. Increasing the frequency of services and improving punctuality would encourage both locals and tourists to use the railway system more regularly. Additionally, expanding the network to include more remote regions would enhance the economic integration of Cuba’s provinces, helping to stimulate local economies.
4. Eco-Friendly and Sustainable Travel: As global interest in sustainability grows, Cuba has an opportunity to position its railway system as an environmentally friendly alternative to the increasing use of automobiles and buses. Investing in cleaner, more energy-efficient locomotives, especially those powered by renewable energy sources, would not only align with global trends but also improve Cuba’s image as a progressive nation committed to sustainable development.
5. Tourism Integration: Given Cuba’s reliance on tourism as a key economic sector, the railways can play an instrumental role in enhancing the tourist experience. By improving the travel experience for tourists—offering convenient, reliable, and scenic routes between key destinations—Cuba can integrate the rail network into the broader tourism ecosystem. Offering scenic train tours that showcase Cuba’s natural beauty could draw tourists looking for a unique, eco-friendly experience. This, in turn, could contribute significantly to the nation’s economy.

The Way Forward: Cuba’s Path to Economic Renewal

Cuba’s long-term economic renewal will depend on its ability to embrace change and innovation while overcoming the entrenched inefficiencies that have plagued the island for decades. The railway network, while just one facet of this broader transformation, provides a clear roadmap for Cuba’s economic future. The investment in infrastructure, coupled with meaningful economic reforms, could serve as the catalyst for a new era of prosperity.

For Cuba to thrive in the modern global economy, it must modernize its transportation infrastructure, embrace market-driven reforms, and open up to foreign investment. The railway system, with its rich history and latent potential, offers an excellent starting point for these efforts. By transforming its rail system, Cuba can not only improve its own economy but also reintegrate itself into the global economic fold, providing an economic lifeline to a nation long in crisis.

Conclusion: A Global Reflection

Modernizing Cuba’s rail system could facilitate the movement of goods, connect local economies, and even promote tourism. Yet for Cuba to embrace this potential, it must make the bold decision to modernize, embrace market-driven reforms, and break free from the shackles of bureaucratic inefficiency.

But the path forward is fraught with challenges. Cuba must confront its reliance on a single commodity economy and diversify its industries. It must attract foreign investment while also balancing this with the need for social equity. The Cuban government needs to streamline its inefficient bureaucracy, tackle corruption, and open its markets. More importantly, Cuba must invest in its people—not just in education and healthcare, but in industries that can provide long-term sustainable growth.

José Martí’s vision of an independent, self-sustaining Cuba—free from the shackles of foreign imperialism—remains relevant today. The challenge for Cuba is no longer a battle for sovereignty but for economic survival in an interconnected world. If Cuba can learn from its past, embrace innovation, and balance the ideals of the revolution with the demands of the modern world, it can revitalize itself and stand proudly once more.

The Cuban spirit, one that has endured economic hardship, political repression, and an ever-present struggle for survival, offers the world a lesson in resilience. As Martí eloquently stated, “La historia de Cuba es la historia de una nación que ha luchado por su independencia y que ha ganado su libertad”—“The history of Cuba is the history of a nation that has fought for its independence and won its freedom.” The Cuban people must now fight for economic freedom and prosperity, knowing that the road ahead is long and arduous, but that the promise of a better future lies within their grasp.

[Photo by Humam Musawwir, Pexels]

The views and opinions expressed in this article are those of the author.