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The Feasibility of Cuban Market Economy: A Comparison with Vietnam

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  • Yamaoka, Kanako
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    Abstract

    In spite of the difficulties incurred by its people, Cuba has maintained a centrally planned economy with single party system. On the contrary, Vietnam has introduced a market economy under communist rule, and succeeded in generally improving living standards. The factors that contributed to the introduction of Vietnamese-style reforms are (1) severe economic crisis, (2) demonstration effects from neighboring countries, (3) poor social policy, (4) initiatives by ex-conservative leader/s, and (5) weak state capacity. The conditions to sustain high economic growth are (1) social sectors familiar with capitalist economics, (2) abundant labor forces with relatively low labor cost, and (3) investment by exiles. This paper analyzes to what extent Cuba meets these conditions.

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    Bibliographic Info

    Paper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 189.

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    Date of creation: 2009
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    Publication status: Published in IDE Discussion Paper. No. 189. 2009
    Handle: RePEc:jet:dpaper:dpaper189

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    Related research

    Keywords: Cuba; Vietnam; Transition to market economy; Economic policy; Socialism; Economic crisis; Social policy; Economic reform; State capacity; governance; development strategy;

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