Exploring Cuba's New Roles in the World Economy: Paths and Perils

Abstract

This Article explores Cuba’s new role in the world economy and the perils that accompany this new role. The article examines three development models that have been utilized by other developing countries: import substitution, export-oriented growth, and domestic market-oriented growth. It argues that Cuba’s best development path is likely a combination of the three, with different focuses in different stages of development. The article then analyzes the perils of Cuba’s greater role in the world economy. It focuses on three such perils: challenges posed by Cuba’s protection of foreign investment through investor-state dispute settlements, World Trade Organization (WTO) rules’ constraints on Cuba’s use of domestic support measures, and foreign trade barriers that may be erected against Cuban exports by its trading partners. Cuba will be better off if policymakers could anticipate such perils and devise policy responses accordingly.