Castro reforms set to slow in Cuba

Subject

Rapprochement and reform efforts.

Significance

On October 14, US President Barack Obama announced further moves to ease sanctions on Cuba, lifting the 100-dollar limit on bringing Cuban cigars and rum into the United States. While this will give Cuba a boost, its economic situation remains dire. New debt and trade deals with Japan, China and the CAF development bank are insufficient to offset the deadlock in domestic policy, which has reforms moving into reverse.

Impacts

• US demand for Cuban cigars will increase pressure to lift sanctions.
• Cuban energy cuts will affect the output of state companies, dragging the economy down.
• Hurricane damage to eastern Cuba will exacerbate the gap between the impoverished east and more dynamic west.