Cuba has a socialist economy, which is characterized by state ownership of the means of production and a centrally planned economic system. The government plays a significant role in controlling major sectors such as education, healthcare, and tourism. While private enterprise has been allowed to some extent in recent years, particularly since economic reforms were introduced in the early 2010s, the state continues to dominate the economy.
In Cuba’s socialist economy, the government seeks to promote social welfare over profit, prioritizing access to basic needs such as housing, education, and healthcare for all citizens. However, this model has faced challenges, particularly relating to efficiency and economic productivity. The U.S. embargo has also had a significant impact, limiting Cuba’s ability to engage in trade and access goods from other countries.
Overall, while there have been some recent moves toward a mixed economy with limited private business, the backbone of Cuba’s economy remains its socialist principles, which aim to provide for the population’s fundamental needs rather than simply driving capitalist growth.