Socialism, Soviet Union & Present

After the victory, Fidel Castro nationalized companies, plantations, and real estate — including the Mafia casinos and US firms. The USA responded with a trade embargo (in effect since 1962 and still ongoing), which economically isolated Cuba. Castro turned to the Soviet Union.

The Cuban Missile Crisis (1962)

In October 1962, the Soviet Union stationed nuclear missiles in Cuba — 150 km from Florida. For 13 days, the world stood on the brink of nuclear war. The crisis ended with the withdrawal of the missiles in exchange for the USA's promise not to invade Cuba. It was the most dangerous moment of the Cold War.

Soviet Era & Special Period

From 1961 to 1991, Cuba was massively subsidized by the Soviet Union: oil, food, industrial goods in exchange for sugar. When the Soviet Union collapsed in 1991, Cuba lost 80% of its trade volume overnight. This was followed by the Special Period — the worst economic crisis in Cuban history. GDP fell by 35%, there were power outages, hunger, no gasoline. Many Cubans lost 10–15 kg in body weight.

Cuba survived through tourism (massively expanded from 1995), remittances from Cuban exiles (remesas), and Venezuelan oil (under Hugo Chávez). Fidel Castro ruled until 2006, then handed over power to his brother Raúl Castro, who initiated cautious economic reforms: private businesses (cuentapropistas), Casas Particulares, Paladares.

Today

Since 2019, Miguel Díaz-Canel has been in power — the first non-Castro since 1959. The economic situation is tense: the 2021 currency reform (abolition of the CUC, only CUP) led to massive inflation. Protests in July 2021 (the largest since 1959) showed the population's discontent. The emigration wave continues — over 300,000 Cubans left the country in 2022 alone. Cuba is in its most difficult moment since the Special Period.