Cuban’s Economic System, Geography, Crisis, Foreign Capital and Growth Opportunities

Introduction:
Cuba has realized significant economic growth since it is at the center of trade based on its geographical characteristics. As such, countries, such as Spain have accrued far-reaching benefits, especially in international trade. Most of the Cubans practice cash crop farming as a result of ample fertile soil and flat land. Equally, Cuba realizes significant economic growth and expansion as a result of having effective transport systems. Since the 1990s Cuban government has encouraged foreign investment to attract more foreign investors to further facilitate the growth of the economy (NBCUniversal News Group, 2020). However, the United States sanctioned Cuba in 2020, making the latter lose much of its foreign capital resources. In the future, Cuba is likely to focus more on public services and natural resources. Over the years, the key focus of the Cuban government has been on improving existing agricultural systems to attain economic growth. Considerably, Cuba has numerous growth opportunities such as expediting economic growth through availability of fertile soil and abundance of land.
#1 Impact of Geography
Cuba, although small, has grown big in terms of its economy, through its geographic characteristics. Its location has made it a center of commerce throughout history, as Spain has utilized its location and resources in order to make profit in international trade. The climate of Cuba due to its location in the globe coupled with fertile soil and flat, level land, make it ideal to grow cash crops such as sugar cane (Semevskiy, 1966). This contributed to the prosperity of Cuba in the past. Cuba’s fertile plains is one of the most important geographic characteristics that gives its edge in agriculture and acquisition of other natural resources.
The mountainous areas account to about one-fifth of the island, some areas are ridden with fertile valleys and gentle slope. The Cauto is one of the most pronounced valleys in the island as it is more than a hundred miles long. Among other areas that are essential for Cuba’s economy is situated in the northern coast in Pinar del Rio which runs parallel to low range mountains of Sierra de los Organos. In the district west of Havana is the Vuelto Abajo, which hosts vast level plains for the plantations of tobacco (Whitbeck, 1922).
The island of Cuba is surrounded by many ideal locations for ports, which make the transport and trade of goods more efficient, contributing to their growth and economic development. This makes their export of sugar easier. Cuba’s location in the globe grants it two seasons, a wet and a dry season, and its tropical location guarantees the good growth of different crops. Its forested areas have provided lumber for the emerging settlements and growth of cities. However, due to the growing demands of the ever-growing communities, much of the forests have been converted to cultivated farms both for agriculture and animals such as cows (Trumbull, 2021). Cuba’s geographical location is advantageous for its marketing of its products since it lies near many countries with high demands of sugar, cigarettes, and cigars, which contribute to the overall growth of the country.
#2 Trade over last 30 years
Sugar is Cuba’s main...