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Remittances and Their Unintended Consequences in Cuba

  • Eckstein, Susan
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    Summary After Soviet aid and trade ended Cuba was forced to reintegrate into the capitalist world economy. Needing hard currency, the government transformed the diaspora into a dollar attaining strategy, by facilitating and tacitly encouraging remittance-sending. Ordinary Cubans themselves wanted remittances to finance a lifestyle they could not otherwise afford. Despite their shared interest in remittances, the government increasingly appropriated remittances at recipients' expense. The article documents why the government encouraged remittance-sending, tensions between its interests in remittances and those of recipients, and contradictions inherent in the hard currency accumulation strategy that the government pursued while remaining politically committed to revolution-linked precepts.

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    File URL: http://www.sciencedirect.com/science/article/B6VC6-4Y52J5S-2/2/48f981e0109f14e5913e74bb5d281610
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    Article provided by Elsevier in its journal World Development.

    Volume (Year): 38 (2010)
    Issue (Month): 7 (July)
    Pages: 1047-1055

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    Handle: RePEc:eee:wdevel:v:38:y:2010:i:7:p:1047-1055
    Contact details of provider: Web page: http://www.elsevier.com/locate/worlddev

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    1. Devesh KAPUR, 2004. "Remittances: The New Development Mantra?," G-24 Discussion Papers 29, United Nations Conference on Trade and Development.
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