For my research project, I am proposing to research the growth of the Cuban private market after the thawing of U.S.-Cuban relations. I want to find out how the Cuban economy has reformed from a socialist economy to a more global market to help my readers understand how economic reform takes place in socialist governments. This phenomenon is supported by my research by many different sources who have noticed a correlation in an uptick of private sector niches being filled in Cuba after the thawing of relations.

The Cuban private sector has existed since the early days of the Revolution. However, for many years, the private sector was discouraged and often illegal during the leadership of Fidel Castro. However, a change in language and policy came when Fidel’s brother, Raul Castro, was made a leader of Cuba. In Raul’s speech on July 26th, 2007, the acting-President at the time (Fidel issued a temporary transfer of power to his brother Raul on July 31, 2006, due to his poor health; Raul would not become the official President of Cuba until February 24, 2008) promised the introduction of “structural and conceptual changes” to the economy.[1] In the years to come, structural changes were made leading to the legalization to many private businesses. This was one of the first speeches that Raul made in which he spoke to the people of Cuba and showed that he was willing to make some differences and was willing to engage in economic reforms. I would like to use this piece to exemplify the change of mentality of the Cuban government and establish the historical background of my research topic.

In Gonzalez-Corzo and Justo article, “Private Self-Employment under Reform Socialism in Cuba”, the authors discuss the different elements and principals in which the Cuban private market can exist while the fundamental attributes of the socialist system are still present and what factors limit the growth of Cuban entrepreneurs. [2] Their main argument and conclusion are that Cuba’s private market is growing, but there are excessive prohibitions and a wide range of distortions that still affect self-employed workers and the rest of the emerging non-state sector.[3] The authors come to this conclusion through a statistical analysis of the Cuban economy since 2010 and a comparison to similar socialist economies in western Europe that went through similar economic reforms in the post-Stalin era.[4] I plan to use this Journal article to convey some of the problems that currently exist in the Cuban private market. I also plan to use this article as the starting point for research about economic reform in other socialist countries.

When President Obama visited Cuba in March 2016, he became the first U.S. President to make an official visit the island nation since Calvin Coolidge in 1924. During his visit, the President addressed the Cuban people directly in a speech that was broadcasted throughout the whole island. In Obama’s speech on March 22, 2016, in Havana, Obama addressed the Cuban governments ability to start opening their markets and highlighted a few entrepreneurs. [5] Obama made it clear that the U.S. government would back the movement for a free market in Cuba emphasizing that the main reason why the thawing of relations happened was for the Cuban and American people to exchange ideas and promote innovation and entrepreneurship in both countries.[6] I plan to use this primary source to help one of my hypothesis that one of the goals of U.S. foreign policy during the Obama administration was to reform the Cuban economy.

In Richard Feinberg’s book Open for Business, Building the New Cuban Economy the author explores the recent history of how the thawing of relations came to be and performs several case studies to better understand Cuban entrepreneurs and Cuba’s place in a global market.[7] In Chapter Six of the book; “Emerging Entrepreneurs and Middle Classes” the author makes the claim that the Cuban cuentapropistas (private business owners) are the new middle class of the Cuban society and he also concludes emerging middle classes in Cuba will soon aspire greater economic prosperity because of the new exposure to the internet and interactions with foreigners.[8]  Fienberg’s book brings a different light to my research as he also discusses how Cuba does business with other free market economy countries like Mexico.

The significance of my research topic is not to create a policy recommendation, but to examine and research how and why the thawing of relations between the United States and Cuba has affected the identity of the private market in Cuba. By determining the results of the thawing of relations in the economies of Cuba, policy making is made easier. U.S.-Cuban relations is especially topical at the moment since there is uncertainty as to what the new administration’s plan for Cuba is.

Two research questions I have going forward would be:

• Has the newly emerging private sector in Cuba changed the ideological mindset of the Cuban people?
• In what way has the United States economic model influenced Cuban entrepreneurs and cuentapropistas?

[1]  Raul Castro. “Celebration of the 54^th Anniversary of the attack on Moncada and Carlos Manuel de Céspedes Garrisons.” Speech, Camagüey, Cuba. July 26, 2007.

[2] Mario Gonzalez-Corzo and Orlando Justo. “Private Self-Employment Under Reform Socialism in Cuba.” Journal of Private Enterprise 32, no. 2 (Summer, 2017): 45-82.

[3] Ibid, 78.

[4] Ibid, 62-65.

[5] Barack Obama. “Speech to the Cuban People.” Speech, Havana, Cuba. March 22, 2016.

[6] Ibid.

[7] Richard Feinberg. Open for Business, Building the New Cuban Economy. (Washington, D.C.: Brookings Institute Inc.)

[8] Richard Feinberg. “Emerging Entrepreneurs,” in Open for Business, Building the New Cuban Economy. (Washington, D.C.: Brookings Institute Inc.), 167-171.