Cuban Sugar Crisis

Topics: Democracy, Macroeconomics, Cuba Pages: 3 (1025 words) Published: October 16, 2010
1. At first glance, perhaps the bureaucracy in Cuba is considered stupid or ineffective for some people. But actually the reasons behind the Cuban Government complication of bureaucracy is completely understandable although we must admit, pretty uncommon. Overseas investment are perfectly common in the rest of the world, but one thing we must remember, Cuba is a communist-socialist state which sometimes ridiculously paranoid, careful, and full of soviet-style oppression. These are few reasons that I could think of about why Cuban government implements this kind of policy. First, Cuba closed their door from foreign investment for many-many years. Now that they are starting to open up, they tend to proceed very carefully. In many case, overflowing foreign investments have caused chronic inflation in third world and developing countries such as countries in South-East Asia, South America, etc. Cuba is a new player in this, and they definitely don't want to make the same mistake. They are learning, and they don't want themselves to be easily-red and easily-predicted by the foreigners, this explains the frequently changed rules. Second, Cuba wants to keep control over their own people. They want to preserve the image that it's the Communist government who is looking after the people, that the people needs them, and only obey to them. Giving the worker's paychecks by themselves, in my humble opinion is a brilliant way to show the people who is boss and to maintain the sense of oppression. Third, which is the simplest of all, a pure economic motive. Profit. Yes. By charging a large amount of money from foreign companies and only giving the people a small portion of it is very profitable, isn't it? It works just like a giant labor agency, (maybe a communist one) which basically says "Okay, I will provide you with man-powers, in return, all you need to do is to pay me a certain amount of money. Let me handle my workers. Take it or leave it". And of course, the agency will...
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