Effect Reduction Russian Support Cuban Economy - Effect reduction Russian support Cuban economy, When the Soviet Union collapsed the financial support given to Cuba evaporated, and with it the relatively moderate quality of life on the island nation.
With Cuba’s inability to trade with its neighbors due to the U.S. embargo, Cuba has been forced to make do with what it has, which in some cases is not much. The trade and support once offered by the Soviet Union no longer exists and so Cuba has tried trade with nations that are not a part of the U.S. embargo, and tried to increase that trade to take the place of Soviet support.
What has the loss of Soviet backing with the U.S. embargo on top of that done to Cuba? If you listen to the Propaganda machine in Cuba, nothing is wrong and things are just fine. The truth is that the people have to scrabble a bit more for food and other goods since the Soviet collapse, but not much more. Since smuggling is not a big issue for Cuba it helps to provide goods to the U.S. despite its embargo on trade with Cuba.
With Fidel Castro still in control of Cuba, the island nation has managed to hold on and make liars out of the U.S. presidents from Kennedy to George Bush Sr. The crafty old fox has managed to hold on to power while keeping some of his people happy with the status quo of his regime. It looks like death from old age will force Castro to relinquish power.
How can Cuba support itself with the embargo? By trading with European Nations, and smuggling their goods into the United States. The Cuban cigar is a fine example of large scale small time smuggling. Simple people go to Cuba for various reasons and they receive some Cuban cigars, at a store or as a gift, and they take it home. That violates the embargo the U.S. setup so long ago and is a crime of smuggling. And, some people have had jail time because of it, so until the embargo trade with Cuba is still a distant dream.
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