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How Significant was Fidel Castro’s Role in the Missile Crisis of 1962?


A.Plan of Investigation
The investigation assesses the significance of Fidel Castro in the Missile Crisis of 1962. In order to evaluate Castro’s significance, the investigation evaluates his role in each stage of the Crisis in reference to other participants of the event; Castro’s role is investigated in the initial days of the Crisis, during the shooting down of the American U-2 plane, and in the resolution of the Crisis. Memoirs and oral history are mostly used to evaluate Castro’s significance. Two of the sources used in the essay, Cuba on the Brink: Castro, the Missile Crisis and the Soviet Collapse compiled by James Blight, Allyn Bruce and David Welsh and Cuban documents, “The Mikoyan-Castro Talks, 4-5 November 1962: the Cuban Version,” are then evaluated for their origins, purposes, values and limitations.
The investigation does not assess the difference in ideologies (communist versus imperialism or capitalism) of the nations involved nor does the investigation assess opinions other than those of United States, Soviet Union, and Cuba.

B. Summary of Evidence
Prior to the Missile Crisis, Castro-American relationships were already strained by the Bay of Pigs in 1961 in which American funded counterrevolutionary Cubans to invade Cuba and overthrow Castro.1 The counterrevolutionary failed, pushing Castro into an alliance with communist Soviet Union and leaving Castro wary of American designs in Cuba.2 Castro’s fears were confirmed in early 1962 when his intelligence service noticed signs of U.S. activities related to what was later uncovered to be Operation Mongoose, another American invasion to overthrow Castro.3 Thus, “it was under these circumstances that [Cuban officials] informed the Soviet Union that [they] were concerned about a direct invasion of Cuba by the United States and that [they] were thinking about how to step up [their] country’s ability to resist an attack”.4 In response, Soviet President Khrushchev conceived the plan of protecting Cuban sovereignty by “installing missile with nuclear warheads in Cuba without letting the United States find out until it was too late do anything about them.”5 Castro accepted Khrushchev’s proposal6 and the Soviet Union began deploying nuclear arms.
For America, the Crisis began in mid October 1962 when American intelligence discovered Russian nuclear missile in Cuba. For most of the world, the Crisis began on 22 October 1962 when American President Kennedy revealed in a televised broadcast that U.S. “surveillance of the Soviet military build-up on the island of Cuba” had uncovered “as series of offensive missile sites” in preparation for no other purpose “than to provide a nuclear strike capability against the Western Hemisphere.”7 After Kennedy’s broadcast, the American President called for a naval blockade of Cuba8 and used diplomatic negotiations with Khrushchev to come to an agreement in the removal of the weapons. During negotiations, several incidents occurred which heightened tensions and seemed to bring the world one step closer to nuclear holocaust. One of the incidents is the shooting down of the U.S. U-2 airplane on 27 October 1962 causing the death of Major Rudolf Anderson Jr.9 At the time the United States and the Soviet Union believed that it was Castro who ordered Cuban antiaircraft artillery to fire at low-flying U.S. planes on the morning of 27 October.’10 After further analysis, it is clear that it was a Soviet soldier, not Cuban, who shot the plane. Although Castro ordered Cuban antiaircraft artillery to fire, there is no evidence that he ordered Soviet artillery to fire. Instead, what is most likely to have happened was that the Soviet officers in Cuba identified so closely with the Cuban government’s cause that their field commander gave the order to shoot at the U-2, thinking as an ally supporting comrades in war.11 Another incident is Castro’s letter to Khrushchev recommending that the Soviet Union should launch a first-strike nuclear attack on the United States.12 This outlandish recommendation shocked Khrushchev, leaving him with the impression that Castro “was a young and hotheaded man” one who was “inexperienced as a statesman.” 13


The Crisis drew to a close when both great powers found a mutual solution outlined in a message sent by Khrushchev on 26 October 1962, and in Kennedy’s response of 27 October; the two men agreed that if the Soviets would withdraw their offensive weapons from Cuba under United Nations supervision, the U.S. would remove its naval blockade of the island and pledge not to invade Cuba.14 The Crisis came to an end on 28 October 1962 when Radio Moscow announced Khrushchev’s “new order to dismantle the weapons... and to crate them and return them to the Soviet Union.”15 Throughout the negotiation period, neither Castro not a Cuban representative took part, leaving the issue to be “entirely one between the United States and the Soviet Union.”16 So, Khrushchev’s announcement on the radio not only shocked Castro but also humiliated him for his exclusion from the negotiations.’

C. Evaluation of Sources 

  Cuba on the Brink: Castro, the Missile Crisis and the Soviet Collapse compiled by James G. Blight, Allyn J. Bruce and David A. Welsh is an in-depth “report” on the Havana conference in 1992 hosted by Castro to discuss Cuba’s specific role during the Crisis. Cuba on the Brink was written with the purpose to “greatly enlarge the number of ‘participants’ in the Havana conference by supplying context sufficient for our readers to ‘be there’ vicariously.”18 The book’s values lies in the fact that it provides a new Cuban perspective on the Crisis that has often been disregarded. As well, since Castro hosted the conference, the reader is exposed to Castro’s own interpretation and evaluation of Cuba’s significance. Its limitations is that the Havana conference is dependent on “critical oral history19”; considering that the conference occurred thirty years after the Crisis, it is doubtful that the recollections of the veteran participants have not been altered either subconsciously or for the purpose of conforming to political pressures.
Whereas Cuba on the Brink is based on discussion thirty years after the Crisis, “The Mikoyan-Castro Talks, 4-5 November 1962: the Cuban Version” is a record of conversations between Castro and Soviet envoy Mikoyan in the immediate aftermath of Khrushchev’s acceptance of Kennedy’s demand that Soviet nuclear missiles be withdrawn from Cuba. These conversations, which occurred on 4-5 November 1962, were obtained form Philip Brenner, Cuba specialist, who provided them to the Cold War International History Project and were translated form Spanish by Carlos Osorio. Cuba’s release of these documents provide a valuable source since these records are primary documents recorded immediately after the event and expose the hurt and betrayal felt by Castro over Khrushchev’s decision to withdraw. As well, since this is a conversation between a Soviet and a Cuban, the historian can notice the different interpretations of each country. These Cuban documents are limited as they were translated awkwardly and both documents are transcriptions of memo notes taken during a speech and do not seem to have been corrected. However, these Cuba documents can be compared against the Russian version of the Mikoyan-Castro Talks released prior to the Cuban version. Thus, assuming that both versions are independent from one another, the historian can compare the versions to one another for accuracy and biases.



D. Analysis
Castro’s significance in the Crisis can either justify or discredit American interference in Cuban internal affairs. Prior to the event, the international society was willing to accept American attempts to overthrow Castro since Americans were portrayed as heroes while Castro seemed to be a fanatical socialist.20 But, if Castro was merely a pawn between U.S. and Soviet Union, Castro improves his international reputation making it difficult for future “heroic” American interference in Cuba.
In the initial days, Castro’s role seems to be significant for two reasons: one, he consented to Khrushchev’s plan and two; nuclear arms were sent for the sole interest of preserving Castro’s socialist regime. However, Castro’s role may be more limited since it is unlikely that Khrushchev’s missiles were sent solely to protect Cuba. Is more likely that Khrushchev wanted to equalize the “balance of power” and redress the strategic imbalance between the U.S. and the Soviet Union Before the Crisis, the American had surrounded the Soviet Union with military bases in Turkey21; sending missiles to Cuba would give the United States “a little of their own medicine...it was high time America learned what it feels like to have her own land and her own people threatened.”22 Furthermore, Khrushchev’s and Kennedy’s secret deal later on in the Crisis that Khrushchev would remove missiles from Cuba if Kennedy would remove Jupiters from Turkey give credibility to the possibility that despite Khrushchev’s altruistic claims, it is more plausible that his actions of 1962 were reflective of the Soviet Union’s own interests rather than Castro’s.
During late October 1962, Castro’s role is often directly related to the shooting down of the U.S. U-2 airplane. Khrushchev blames Castro, writing, “Castro ordered our antiaircraft officers to shoot down a U-2 reconnaissance plane.”23 If Khrushchev’s claim is true, then Castro played a significant role in the Crisis since the shooting down anticipated the end of diplomatic U.S. negotiations and the start of nuclear warfare. Yet, since new evidence indicate that is it more likely that Soviet officers shot down the plane without Castro’s orders, Castro should neither be blamed nor be given significance for the shooting down of the U-2 plane. As well, Castro’s role is also associated with his recommendation that the Soviet should launch a nuclear attack on the United States. Actually, Castro’s apparent eagerness for nuclear war may be his greatest significance in the Crisis since his willingness to use aggression ironically convinced Khrushchev of the importance of maintaining world peace and contributed to the Soviet decision to yield to the United States.24
Overall, the clearest indication of Castro’s importance to the Crisis lies in his lack of participation in the Soviet-American negotiations. Castro did not realize that Khrushchev had conceded to remove all soviet offensive weapons from Cuba until he heard Khrushchev’s announcement on the radio. His exclusion from the negotiations was no error on the Soviet- American’s behalf, but a sign of his political insignificance in the Crisis.
For many U.S. government decision makers at the time of the crisis most have agreed that Cuba was just a locale for a U.S.- Soviet confrontation. Ex U.S. Ambassador to Cuba (1959-60) Philip W. Bonsal declares that the Missile Crisis cannot truly be classified under Cuban American relation since “the issue was entirely one between the United States and the Soviet Union.”25 He states that although the confrontation could have eliminated Castro, “the exercise had little to do with him.”26


On the other hand, Khrushchev writes in his memoirs that Castro did indeed play a significant role in the Crisis. He bluntly announces that Castro was solely responsible for the shooting of the U-2 plane27 and that Castro encouraged the Soviet Union to “launch a preemptive strike against the United States.”28 However, in view of contradicting sources and Khrushchev’s tendency to make declarations without details and factual evidence, it is unlikely that Castro’s role was as significant as claimed.
E. Conclusion
During each and every stage of the Crisis, Castro’s role is overshadowed by that of the Soviet Union’s and the United States. In the beginning, it was Khrushchev, not Castro, who initiated the deployment of nuclear arms; and Castro’s’ relation with the U-2 shooting is little more than a misunderstanding on the part of the Soviet soldiers. As argued by Bonsal, the Missile Crisis was entirely between the Soviet Union and the United States. This view can be justified when we consider the possibility that Khrushchev may have sent his missiles for reasons other than for Castro’s defense and when we are faced with Castro’s obvious exclusion from the Crisis negotiations. Castro’s “role” in the Crisis, if he has one at all, is that he unintentionally helped convinced Khrushchev to concede to Kennedy’s demands. As Castro himself declares, “I cannot take the credit for the resolution of the crisis...the major role belongs to Khrushchev who caused that crisis by his stubbornness, and then resolved it.”29
Word Count: 1989 

1 Nikita S. Khrushchev, Khrushchev Remembers: The Glasnost Tapes. Trans and ed. Jerrold L. Schechter with Yacheslav V. Luchkov. (Boston: Little Brow, 1990) 171.
2 Philip Brenner and James G. Blight, “The Crisis and Cuban-Soviet Relations: Fidel Castro’s Secret 1968 Speech,” Cold War International History Project Bulletin. No. 5 (Spring 1995).
3 James G. Blight et al. Cuba on the Brink: Castro, the Missile Crisis and the Soviet Collapse. (New York: Pantheon, 1993) 19. 
4 Blight, 19.
5 Nikita S. Khrushchev, Khrushchev Remembers. Ed. and trans. Strobe Talbott. (Boston: Little Brow, 1970) 493.
6 Khrushchev, Glasnost. 171.
7 Anatoli I. Gribkov and William Y. Smith, Operation ANADYR: U.S. and Soviet Generals Recount the Cuban Missile Crisis. (Chicago: Edition Q, 1994) 1.
8 Ibid, 28. 9 Ibid, 66. 10 Ibid, 67.
11 Blight, xi.
12 Ibid, 474-491.
13 Khrushchev, Glasnost. 178.
14 Wayne S. Smith, The Closest of Enemies: A Personal and Diplomatic Account of U.S.-Cuban

Relations Since 1957. (New York: Norton, 1987) 81. 15 Blight, 472.
16 Philip W. Bonsal, Cuba, Castro and the United States. (London: U of Pittsburgh P, 1971) 187.
17 “The Mikoyan-Castro Talks, 4-5 November 1962: The Cuban Version,” Cold War International
18 Blight, 10.
19 Critical oral history is the synthesis of recollections of participants with declassified documentation and the analyses of historians.
20 Blight, 178,
21 Anatoli, 11.
22 Khrushchev, Khrushchev Remembers. 494.
23 Khrushchev, Glasnost. 178, 24 Ibid, 177.
25 Bonsal, 187.
26 Ibid.
27 Khrushchev, Glasnost, 178.
28 Ibid, 177.
29 Georgy Shakhnazarov, “Fidel Castro, Glasnost, and the Caribbean Crisis,” Cold War
F. Bibliography
Blight James G., Bruce J. Allyn and David A. Welsh. Cuba on the Brink: Castro, the Missile Crisis and the Soviet Collapse. New York: Pantheon, 1993.
Bonsal, Philip W. Cuba, Castro and the United States. London: University of Pittsburgh Press, 1971.
Brenner, Philip and James G. Blight. “The Crisis and Cuban Soviet Relations: Fidel Castro’s Secret 1968 Speech,” Cold War International History Project Bulletin. No. 5 (Spring 1995)
Gribkov, Anatoli I. And William Y. Smith. Operation ANADYR: U.S. and Soviet Generals Recount the Cuban Missile Crisis. Chicago: Edition Q, 1994.
Khrushchev, Nikita S. Khrushchev Remembers. Ed. and trans. Strobe Talbott. Boston: Little Brow, 1970
---.Khrushchev Remembers: The Glasnost Tapes. Trans and ed. Jerrold L. Schechter with Yacheslav V. Luchkov. Boston: Little Brow , 1990.
“The Mikoyan-Castro Talks, 4-5 November 1962: The Cuban Version.” Cold War International History Project Bulletin. Nos. 8-9 (Winter 1996/1997).
Shakhnazarov, Georgy. “Fidel Castro, Glasnost, and the Caribbean Crisis,” Cold War International History project Bulletin. No. 5 (Spring 1995)
Smith, Wayne S. The Closest of Enemies: A personal and Diplomatic Account of U.S.-Cuban Relations Since 1957. New York: Norton, 1987, 

Other IBDP Student Essays from past exam papers

Castro's role in intensifying American antagonism.

Building up to the Cuban Missile Crisis, aggression occurred between the USA and Cuba for many reasons. Cuba had been in the hands of Fulgencio Batista since 1933. Batista was a military dictator and his corrupt rule caused popular discontent. Fidel Castro came into power January 1st 1959, after a brief struggle with Batista, with the help of Ernesto "Che" Guevara and nine other rebels. Castro was a brilliant propagandist and a very charismatic person. The incidents which happened between 1959 and 1961 built up tension and resulted in strong animosity.
Economically, Cuba had always been dependent on the United States. The US was exploiting them, owning most of Cuban industry, transportation, electricity production and telephone lines. 80% of Cuba's export revenue was from producing and selling sugar. Most of this sugar was grown on plantations owned by the United States and then sent to the USA. Under Batista's rule, the United States was allowed to continue with their actions but when Fidel Castro came into power in 1959, he formed a new government. Castro wanted to make Cuba an independent country, free from US control and exploitation. He nationalized industry, impounded all foreign-owned property, and collectivized agriculture. This did not please the US government. President Dwight Eisenhower decided to stop trading arms with Cuba and eventually refused to purchase Cuban sugar in July of 1960. Castro looked to the Soviet Union for assistance. The USSR saw this as an opportunity and took advantage of the situation. The Soviets would buy Cuban sugar and in return, they would send oil, machines and money. In response to the US's action, Castro nationalized most US-owned factories and plantations. US-owned oil refineries were nationalized when they refused to take Soviet oil. Eventually, Castro severed all economic and political ties to the United States.
Secondly, political affairs added to the antagonism between the USA and Cuba. After Castro came into power, he established a totalitarian government which benefited the working class at the expense of the middle class. Castro arrested, imprisoned and executed many of Batista's supporters who had been responsible for the repression of Cuba. This heightened tension because many of the people executed were in fact allies to the United States. Most social and political opposition between the United States and Cuba happened because of the fact that Cuba had become communist with the aid of the USSR. At this time, to the United States, communism was seen as the enemy. Cuba was essentially a puppet state of the US. As it wiggled out of their grasp, they needed to act. The United States needed to show the world they were still a super power. Destroying Castro became a priority.
Militarily, the Bay of Pigs invasion was the "straw which broke the camels back". The Bay of Pigs invasion was a very unsuccessful invasion of Cuba issued by the new US president John F. Kennedy. The plan was suggested by Richard Nixon, Eisenhower's Vice president. The CIA had been scheming different strategies to take Castro out of power but none had been successful. Towards the end of Eisenhower's term, the CIA came up with a plan titled "A Program of Covert Action Against the Castro Regime" on March 17th 1960. The Bay of Pigs invasion started on April 17th when six ships sailed from Nicaragua. Roughly 1,500 Cuban exiles landed in the Bay of Pigs, Bahi a de Cochinos, with the sole purpose of ousting the Communist regime present under Castro. These exiles were trained by the CIA and supplied with U.S. arms but they barely made it past the beaches. Most exiles were captured and killed by the Cuban army. 1,189 men were captured and each sentenced to thirty years in prison. After months of interrogation and negotiation, in December of 1962, Cuba traded 1,112 captured rebels for fifty-three million US dollars in food and medicine. Castro saw the Bay of Pigs as confirmation that the USA was working to overthrow his government. The United States was terrified and embarrassed that Cuba, only 90 miles from the shores of Florida, a country in American's sphere of influence, had become communist.
By the end of the Bay of Pigs invasion, both the United States and Cuba were aware that the hostility and aggression towards one another would not go away. Pressure only increased as the US struggled to fight communism.


The Cuban Missile Crisis
For thirteen days in October of 1962, the two most powerful nations in the world at that time were staring each other down "eyeball to eyeball" in one of the most dangerous crises the world has ever seen. On October 14th, 1962, American U2 planes caught sight of Soviet missile sites being built in Cuba. For the next thirteen days, the world held its breath as President J.F Kennedy and his advisers deliberated on how to react to Premier Mikhail Khrushchev's actions, and decided on blockading Cuba in order to prevent missiles from reaching their intended destinations. The Cuban Missile Crisis made its mark on the history of the Cold War by becoming one of the most important landmarks in the history of the tensions between the US and the USSR because of it being the closest to nuclear war the world has ever come, the effects it had on Kennedy's image, the damage it did to Khrushchev's reputation, and the effects it had on negotiations between the two superpowers.
The Cuban Missile Crisis was made so memorable because of the frighteningly near possibility of the start of the world's first ever nuclear war. It was and is the nearest the world has ever come to nuclear war, having the possibility of multiple sides employing the use of nuclear weaponry. The US at the time of the Crisis had missiles positioned in areas including Turkey, Italy, and Britain, the closest missiles to the Soviet Union being 150 miles away , meaning the US had a clear first-strike capability over the Soviets. The Cuban Missile Crisis brought a greater sense of equality in terms of military force, since before the installation of Cuban missiles the Soviets had no missiles capable of striking any parts of the US. The building of missile sites in Cuba levelled the field between the two superpowers, as the US was compelled to deal with the Soviets with a greater degree of caution and wariness as they recognized the capability of the Soviets to attack their own soil. This meant that the Soviets were in a position to negotiate in terms of arms control because of their elevated status due to the Crisis. However, the US was still clearly ahead of the Soviets in weapons in terms of quantity, so after the withdrawal of the missiles from Cuba by the Soviets, the missile gap again prevailed, with Khrushchev's main ambition of closing the missile gap failing. At the time of the crisis, the US had 8 times as many nuclear weapons as the Soviet Union, with 27,297 warheads to the USSR's 3,332 . In this way, the Crisis had no effect on the long-term nuclear parity between the US and the USSR; however during the Crisis the Soviets had succeeded in reaching more of a military equanimity because of the fact that they had installed missiles capable of striking the US. The near-parity of the two countries' nuclear capability meant that nuclear war was an even greater possibility, as previously, second-strike capacity for the USSR was not great enough to begin a nuclear war--however with the addition of the Cuban missiles, the Soviets' first-strike capability had increased 70% . The crisis was brought to a head on October 27th, 1962, where the beginning of a nuclear war seemed entirely possible. Kennedy had raised the US military's Defensive Condition status to DEFCON 3 on October 22nd. On the 27th, an American U-2 plane over Western Alaska accidentally flew in Soviet airspace, causing Soviet MiG fighters to attempt to intercept the spy plane, which left the airspace in time to avoid a conflict. When news of this incident was reported to the Whitehouse, Defence Secretary McNamara exclaimed "This means war with the Soviet Union!" He believed the Soviets would interpret the U-2 plane as a recon mission precluding a nuclear first-strike, and act accordingly. Later that day, another U-2 plane was shot down over Cuba. Kennedy's advisors believed the shooting to be an act of planned escalation of the situation of the Soviets; it was not known the the command to shoot was given by a Soviet commander in Cuba rather than Moscow. Kennedy's advisers pressured him to attack and invade Cuba "no later than Monday, the 29th", however Kennedy chose to wait for further hostile action on the part of the Soviets. Had Kennedy not chosen to wait out the situation, the Cold War would indeed have turned into a "hot war", a nuclear one. The situation was further intensified by the Chiefs of Staff and their respective commands and their statuses; for the first time in history, the US had raised their Strategic Air Command forces to the Defensive Condition DEFCON 2 on October 24th , meaning they were at a heightened state of alert poised to strike targets within the Soviet Union. The events played out during the Cuban Missile Crisis resulted in the closest the world has ever come to a full-out nuclear war, which would have been catastrophic had it not been for the actions of the leaders of the US and the USSR.
The Cuban Missile Crisis also directly affected the images of the leaders in the Cold War, which proved a large factor in the events of the War, by improving Kennedy's image in the eyes of his people and his opposition, lending further importance to the Crisis as a landmark in US and Soviet history. Four months after Kennedy took the office of President of the US, the catastrophic Bay of Pigs incident occurred, observed by historian John Gaddis to be "a monumental disaster for the United States". Kennedy had given his approval for the operation to be carried out with pressure from his advisor and the previous Eisenhower administration, who had concocted the invasion. The Bay of Pigs incident was a blow to Kennedy's image, portraying him to Khrushchev as young, inexperienced, and lacking courage. Kennedy's administration, especially his Chiefs of Staff, most notably General Curtis LeMay, also shared the same views as Khrushchev to an extent and believed military force would be the resolution to the crisis, which Kennedy was opposed to. This difference in ideologies within the administration itself brought further discord to the decision-making process during the crisis, with Kennedy facing much resistance to his determination to keep military intervention as a last resort. Kennedy's dealing with the crisis, including his secret dealings with Robert Kennedy involving the Turkish missiles, proved to avoid a potential nuclear holocaust. Post-revisionist historians applaud Kennedy for his insistence about the dismantling and withdrawal of the missiles from Cuba, and his firm stance in dealing with the USSR and Khrushchev, especially after the demeaning Vienna Conference with Khrushchev in June of the previous year. Kennedy, because of the Cuban Missile Crisis, was also admired for his restraint and careful action in eliminating invasions and air strikes as options to deal with the situation, despite constant pressure from his generals to employ military action. However, some historians claim that the Cuban Missile Crisis was a direct result of Kennedy's rash decisions during the Bay of Pigs incident, as Khrushchev and the Soviets believed him to be weak and inexperienced and so accordingly took advantage with the Cuban missiles. Other criticisms include the proximity of the mid-term US elections in November, meaning that throughout the crisis, Kennedy kept in mind the garnering of domestic support by putting on a tough face for the Soviets, perhaps over-dramatizing the entire matter. Nevertheless, in the end, Kennedy's image improved greatly and he proved to be one of the most popular US presidents in history, leaving an entire nation in mourning following his assassination the next year. However, it must be noted that Kennedy was allowed his rational decision-making procedures due to the other side's response as well. Had Khrushchev and the Kremlin acted differently and played with less restraint on their part, Kennedy would not have been able to take the credit for avoiding military intervention, which may have been necessary in a different scenario where the Soviets used force in response to the US' demands. The Soviets' actions are often ignored when relating the Cuban Missile Crisis, when in fact they were equally essential to the development of the Crisis as Kennedy's actions and decisions. The Cuban Missile Crisis was an essential milestone in Cold War history, as it improved the tarnished image of the leader of the two most important players of the Cold War.
The Crisis also greatly affected the Cold War by resulting in the diminishing of Khrushchev's image to his own administration and his allies. Khrushchev fell from power shortly after the Crisis concluded, a mere two years later in October 1964. For the Soviet Union, the Cuban Missile Crisis, or the Caribbean Crisis, as it is known by the Soviets, was more of an embarrassment than a victory--few of their aims were fully achieved. Firstly, hard-line generals saw the overall backing down of the USSR over the missiles as a complete humiliation in itself, including the fact that the missile gap between the US and the USSR had prevailed, since the brief period of nuclear parity had terminated when Khrushchev withdrew his Cuban missiles. Furthermore, the second deal proposed by the USSR in a formal letter to the US on October 27th demanded that the Jupiter missiles the US had in Turkey would have to be removed. The deal that was pushed by the US involved Attorney General Robert Kennedy meeting secretly with KGB representative in Washington Anatoly Dobrynin to discuss the proposal that the US would accept the terms of the letter, but that the missiles would be removed six months in the future, and not made public, or else the US would withdraw the deal. This was promised by the US along with the promise not to ever invade Cuba, which followed along the lines of the first, more informal letter sent by Khrushchev on October 26th, the day before. The secrecy involved in the withdrawal of the Turkish missiles, and the fact that Khrushchev accepted these terms further dropped him in the eyes of his domestic political enemies, as well as his own hard-line administration. Even more curious was the actual penning of the two different letters; US Secretary of Defence Robert McNamara described the first letter of the 26th as an impassioned proposal most likely written by Khrushchev himself, probably in an inebriated state . He also speculated that Khrushchev did not screen the letter through his administration, and it was sent to the US without others' approval or input. The message contained within this letter simply demanded that the US would promise to stay out of Cuba, and nothing more. However, the following day, another contradictory letter emerged, this time with much more formality, and with hard-liner demands. This sequence of events leads to conjecture that Khrushchev's political advisor discovered his soft-line transmission to the US, and quickly manoeuvred, in their eyes, to rectify the situation and the damage inflicted by a possibly drunk Khrushchev. This could possibly indicate the future ousting of Khrushchev from his seat of power, as his action were considered to need correction by his own administration, who believed he was acting too softly. Not only did his own government develop doubts about him because of the Crisis, but his allies were questioning his authority as well. China, who was at this time doubting the USSR's commitment to dealing with "imperialists" such as the US, witnessed the backing down of Khrushchev to US demands, which later led to Chinese propaganda movements that contributed to his fall from power. The entire world was witness to this supposed loss of face for the Soviets, however, the Soviets could have turned the situation in their favour in terms of global support, by demonstrating that the USSR was heroically "saving the world" by not demanding that nuclear equilibrium was restored after being stripped of a significant portion of their arsenal from Cuba. Furthermore, the USSR failed to emphasize the unjustified demands on the part of the US; the US had offensive missiles directed towards the USSR, however they claimed the USSR was in violation when they simply followed the US' lead. Furthermore, blockades, as defined under international treaties, are illegal acts of war; however the US thinly disguised their blockade of Cuba by renaming it as a "quarantine". Khrushchev himself emphasized that his actions in Cuba were not illegal, but simply a reflection of the US' own, when he questioning "Why shouldn't the Soviet Union have the right to do the same as America?" Had he pressed these points to the international community and taken a firmer stance towards the actions of the US, emphasizing the fact that the US itself was engaging in a poorly veiled illegal act of war, Khrushchev would have possibly improved his image in the eyes of his contemporaries. The Cuban Missile Crisis had a direct impact on the image of Khrushchev in the eyes of his own government and in the eyes of the rest of the world, which contributed to his fall from power.
Finally, the Cuban Missile Crisis had a great impact on negotiations between the two superpowers after the conclusion of the Crisis, especially its impact on the treaties that were agreed upon as a result of the crisis. First of all, the Cuban Missile Crisis saw the first direct communication line formed between the Kremlin and the White House. Because of the communications problems encountered during the Crisis, since messages took several hours to be delivered, Khrushchev and Kennedy saw a need for a proper means of contact. In 1963, a Hotline was established, which connected the White House and the Kremlin via telex. This completely changed the nature of the Cold War, as previously a scenario that could have occurred with the current state of communications was that Khrushchev could have agreed to withdraw the missiles, however because of the seven-hour delay, Kennedy ordered an invasion as Khrushchev was apparently delaying his reply. The establishment of the Hotline ensured that the risk of a war starting over poor contact was eliminated. Furthermore, nine months after the end of the crisis, both sides, plus Britain, signed the Test Ban Treaty, which banned the testing of nuclear weapons in the atmosphere, underwater, and in outer space. This treaty was a result of both recognizing how close they had come to nuclear war, and the necessity of ensuring that the development of nuclear weaponry did not spiral out of control before it became too late. However, the treaty did not include other countries, such as France and China who rejected it. Another treaty resulting from the lessons learned by both sides from the Missile Crisis was the Nuclear Non-Proliferation Treaty of 1968, where it was agreed that states would not transfer nuclear weapons to other countries or to aid other states in their manufacture. In short, the Cuban Missile Crisis instilled the desire in the US and the USSR to limit the spread of the nuclear weaponry. The end of the Cuban Missile Crisis was the beginning of a long period of détente in the history of the Cold War, as the two main players had been exposed to a scare, and both were ready to begin changes in their negotiations. This period was known as the "long peace", where both superpowers had it in their interests to seek détente in Europe. Because of the Cuban Missile Crisis, there was a concerted effort by the US and the USSR to improve relations between the two nations and monitor the proliferation of nuclear weapons in the world, ultimately resulting in a period of relative reprieve.
"Eyeball to eyeball....and the other fellow just blinked" has long been touted as the Cuban Missile Crisis' main description; however it is astounding to speculate how easily it could have gone the other way and resulted in a full-out world war. The Cuban Missile Crisis was significant in the Cold War for a number of reasons, mainly being the closest to nuclear war the world has ever seen, the benefits it had to Kennedy's image, the consequences it had for Khrushchev's image, and finally what it led to in terms of negotiations and peace settlements between the two superpowers.

A Tribute to Fidel Castro

Fidel Alejandro Castro Ruz was born on August 16th, 1926, in Mayari, Cuba. He was educated at the University of Havana in law, where he also studied politics. His political ideas were formed throughout these years, and he joined several student political groups devoted to helping the poor workers and peasants. His ideas later matured, and he joined the Ortodoxo Party (Party of the Cuban People), of which he became the leader in 1951. As Fidel Castro was running for elections, general Fulgencio Batista staged a coup d´etat, and established a dictatorship in Cuba. In response, Fidel Castro favoured of armed revolution, and he joined underground groups attempting to overthrow the unpopular dictator. In 1953 he attacked with a group of 150 revolutionists, but failed and was captured. He was jailed until 1955 for conspiracy to overthrow the Cuban government. He used the years in jail to study political philosophy, history and literature, which strengthened his policy of change from corruption to social equality. 

 In 1955 he was granted amnesty and left for Mexico, where he trained a guerrilla group in Sierra Maestra aided by another well-known revolutionist;Â Che Guevara. They lived among the poor peasants, and were able to experience their difficulties, which again formed Fidel Castro's socialist politics. While they were fighting in the mountains they were bombed with US planes, from which the guerrilla groups escaped unharmed from, but caused serious casualties among the poor peasants. At this time, there were many anti-Batista groups led by different leaders, but Fidel Castro's advantage was his clear ideological position, in contrast to other groups only focused on removing the dictator. The Cuban military was aided by shiploads of arms from the United States, but as these ceased, Fidel Castro's group caught strength. In January 1959 Batista fled the country and Fidel Castro overtook the leadership. During his initial speech, a white dove landed on his shoulder before the crowds. In the deep rooted superstition of Catholicism, this signified divine acceptance of the guerilla leader. His strong personality overpowered the other revolutionist groups, and the people pledged to his promises of reforms and changes from the corrupt past of Fulgencio Batista.  The dove incident did not dupe Pope John XXIII who excommunicated Castro, an atheist, on January 3, 1962. In the 1990s, Pope John Paul II finally permitted Catholics to join the Cuban Communist Party which reversed the 1949 decree by Pope Pius XII forbidding Catholics from supporting communist governments. Throughout his first period as the Head of the Cuban Armed Forces and later the Prime Minister of Cuba, he pushed through radically changing reforms such as the redistribution of wealth among the poor. Together with Che Guevara, Fidel Castro developed a new theory; The New Man's Theory, which was basically that Cubans should no longer work for personal benefits, but for the good outcome for everybody in the society. The literacy rate was increased remarkably, and almost all Cubans could have free quality health care. He also controlled strictly the ideological propaganda machinery of Cuba, putting out neighbourhood watch groups and controlling the media, even banning such books as The Diary of Anne Frank. His ideology was basically socialistic; he wanted to redistribute wealth and gain back US controlled property in the nation, support social justice, strengthen the national identity, provide for economic independence, and clear the nation of damaging influence from powerful foreign nations in Cuba's affairs. In 1961, Cuba was declared a socialist nation. Tens of thousands from the higher class capitalists and Jews left for the United States.  Fidel Castro's opposition to the US influence and socialist ideology brought forth a collision between the two nations. He seized US owned businesses in Cuba and established contacts with the USSR. Therefore, the US broke all the former relations and began planning an invasion of Cuba in 1960, after having put a partial trade embargo on the nation (prohibiting all import except food and medication). The CIA trained Cuban exiles, which landed on the Bay of Pigs April 17th, 1961, was attempting to built up a counterrevolution in an attempt to overthrow the Cuban leader. But the Bay of Pigs invasion failed as the people backed up Fidel Castro and his politics. The US now attempted a military invasion from within the nation, where agents working for the US government tried to assassinate Fidel Castro several times.  During the Cold War, Cuba invited the USSR to established military bases on the island. When war criminal John F. Kennedy discovered the missiles, it led to the Cuban Missile Crisis, in which the US and the USSR almost went to war. After negotiating, the missiles were removed with the US promise of never invading Cuba. Castro could now develop his political ideas without fear of a US invasion.  Castro's foreign policy also included the support of revolutionary groups in other countries, like Nicaragua, Bolivia, El Salvador, and finally, the Venezuela of Hugo Chávez. As a communist, Castro's main foreign goal was to advocate liberation from wealthier nations' dominion over the poorer. He never submitted totally to all the communist ideologies from other strong nations, like the USSR, and he was reluctant to support revolution groups without clear ideologies. As a result of the US tactic of weakening the Cuban government with a trade barricade, other nations, some hostile to the USA, backed the Castro regime. 

In October 1973, Castro broke diplomatic relations with Israel after he deployed thousands of Cuban soldiers including helicopter pilots and tank crews to fight alongside the Syrians during the Yom Kippur War. Hundreds of Palestinians have received military training in Cuba. In Havana, Castro gave Yasser Arafat his prestigious "Bay of Pigs Medal" in 1974.  The economy of Cuba continues to be very poor in comparison to the region's other nations. The USSR provided the nation with financial aid, but when the USSR collapsed in the 90's, and with the US still enforcing the trading barricade from the 60's, Cuba lost their financial ally and the already poor economy collapsed. In a speech, Fidel Castro said that he knew no solution for the financial crisis, but promised the people to not surrender to a capitalist system enforced by a stronger wealthier nation, but to help the crisis, he allowed for some free trading and investments of other nations in Cuba. As a result of black market trading, inflation occurred and Castro had to allow the use of foreign currencies. This destroyed the Cuban social and economic equality as a higher social group was formed. As a result of the falling economy, desperate riots broke out in old Havana, but Fidel Castro met the crowd face to face and allowed them to exile, which re-established the peace.  On February 24, 2008, the National Assembly of People's Power unanimously chose his brother, Raúl Castro, as Fidel's successor as President of Cuba. 

On July 26, 1953, Fidel Castro stepped onto the stage of history, as he and other revolutionaries launched an attack on the Moncada Barracks of Cuban dictator Batista. After being captured, Castro made an eloquent defense of his action, saying, "history will absolve me." Less than six years later, Castro led the Cuban revolution to victory by overthrowing the corrupt and cruel U.S.-backed Batista dictatorship. This act alone - leading a revolutionary movement to victory on a small island just 90 miles off the coast of the U.S. - would be enough to make Fidel Castro an unforgettable hero in the struggle of oppressed people for liberation. But this was just the beginning of Fidel Castro's 49 years of contributions to the Cuban people's liberation and to oppressed people the world over.  Fidel Castro announced that he would not seek or accept the position of president or commander in chief in Cuba's February elections. He said he would still devote his time to being a soldier in the "battle of ideas."  The Bavarian International School chose to recognise and honour Fidel Castro's lifetime of tireless dedication to fighting for liberation and building socialism. Fidel Castro led the Cuban revolution to victory in 1959 and has done the even more challenging and complex work of building socialism in Cuba through exceptional challenges.  Cuba's socialist revolution inspires people worldwide. In Latin America the example of Cuba has proven that it's possible to defy the U.S. in its own backyard and win. Cuba's internationalist solidarity with liberation struggles in Africa has earned it high respect there. And Cuba's missions of sending doctors and providing free health care to the poorest countries and people around the world has been a shining example of internationalism in practice.  Cuba's internationalism is built on the foundation of Cuban socialism. Cuba is a small, poor country. But Cuba is a sovereign country, so the Cuban people live with dignity. All Cubans have free health care and education. Cubans don't starve to death like poor people do every day all over the Third World. The infant mortality rate in Cuba is lower than in the United States. Cuba survives natural disasters such as hurricanes without widespread loss of life. All of this is due to socialism and collective organization of the Cuban people, under the leadership of the Communist Party. Fidel Castro's leadership and ability to inspire and mobilize the masses has played a great role in giving employment, health care and decent living conditions to the people of Cuba.

From the beginning, the Cuban revolution and Fidel personally came under attack by U.S. imperialism. All such attacks have been defeated. Fidel was the principal leader in defeating U.S. imperialism's attempted invasion of Cuba at the Bay of Pigs; he led Cuba through U.S. imperialism's nuclear blackmail during the 'Cuban missile crisis;' he has survived hundreds of CIA assassination attempts. He has led Cuba through decades of the cruel U.S. embargo. And he led Cuba through the 'special period' in the 1990s after the collapse of the Soviet Union led to the sudden loss of 85% of Cuba's foreign trade.  In that context of extreme hardship in the 1990s, Fidel Castro and the Communist Party of Cuba had little to gain and everything to lose from staying committed to socialism. But stay committed they did. They prepared and mobilized the masses of Cubans to hold on to their dignity despite extreme difficulties. Cubans survived the 1990s with their dignity and with socialism intact, emerging in the current decade with an increasingly strong and growing economy, while other Latin American countries that are dominated by U.S. imperialism are suffering. During its most difficult hour, Cuba was so committed to socialist values of putting people first that not a single school or hospital was closed.  Fidel Castro has stepped down as president and started the transition to the next stage of Cuba's leadership. His decision is creating a stable transition of power and insures the stability of the socialist project of the Cuban people. The Cuban people, with the leadership of the Cuban Communist Party and Raul Castro will continue building socialism in the 21st century.  We stand in solidarity with the Cuban Communist Party and the Cuban people. We reject the dreams of U.S. imperialism that tries to strangle the Cuban revolution with a trade embargo and continues to imprison five Cubans for their opposition to the terrorist plans of right-wing Cuban exiles in the United States. We call on the U.S. government to end the embargo and to free the Cuba 5! We say long live Fidel Castro and socialism in Cuba! 

 
Extended Essay:

History Higher Level


To what extent did the 1959 Cuban revolution improve its economy?




Abstract:

On the 1st of January 1959 the revolution officially began, marking a great change for all of Cuba as Fidel Castro and his rebels overthrew Fulgencio Batista. This essay aims to assess the effect of the revolution on the economy of Cuba in order to provide a brief model of how a communist government can affect its economy. My research question is to determine To what extent did the 1959 Cuban revolution improve its economy? in which I will be able to compare the effects of different economic policies under different governments. In order to do so, I will compare the government under Batista’s regime to the government immediately after Castro’s initiation of his new economic policies. This comparison will prove valuable as it enables us to see how Castro’s economic policies as a communist government worsened the economy. It is clear from my analysis that the 1959 Cuban revolution in fact destroyed the Cuban economy and prevented it from further improving itself. Castro’s first problem was his destruction of Batista’s diversification policies, which were in fact benefitting the Cuban economy. Secondly, Castro’s nationalization policies led to the U.S. embargo ruining any chance of improving its export markets and hence led to Castro relying on a nation that prevented the need of improving its economy; the Soviet Union.


Introduction:

In Cuba, the economy has been a topic of hot debate ever since it came under communist control in 1959. The reason for the transformation was the communist revolution in the late 1950s. Almost 6 years after their first failed attempt, rebels led by Fidel Castro, overthrew the dictator Fulgencio Batista of Cuba on January 1, 1959. The Cuban revolution officially began on January 2, the day after Castro’s takeover, when he announced that “The revolution begins now” during a speech in Santiago de Cuba.[1] The new government viewed the improvement of the economy to be vital for the advancement of the country. Castro strived for radical economic reforms that would progress a nation “destroyed by poverty”[2] and develop it into an industrial power. The purpose of this essay is to evaluate to what extent did the 1959 Cuban revolution improve its economy? I will determine the effect of the revolution by analyzing the different economic reforms and their impacts on the economy in comparison to the economy under Batista’s regime. This investigation continues to maintain its relevance in modern history as Cuba serves as a microcosm to all communist states. It is a valuable analysis of the effects of communist policies on a country’s economy.

Before the revolution, small local companies and foreign corporations centralized on “the cultivation of sugar, tobacco and tropical fruits”[3], the majority of which was exported to the neighbouring United States. Due to Cuba’s island geography, its industrial resources are very limited and it thus relies heavily on foreign trade. The main focus of the economy, and at the same time the country’s principal income, was based on the sugar industry and the export thereof. In 1950, over 80 percent of Cuba’s income from exports derived from the sugar sector[4], with its trade limited to the United States through a mutual trade agreement. The government in power at that time, led by Fulgencio Batista, recognized the weaknesses of this dependency and began to diversify the economy.

Batista’s policies greatly began to benefit Cuba’s economy but after the 1959 revolution, Castro slowly brought the policies to an end, returning to its single crop dependency and causing the economy to again collapse. The “Cuban economy is in tatters back where it started as a one crop sugar producer”[5] The former leader, Batista had realized that Cuba’s dependency on its sugar trade limited its ability for further development. Cuba had diversified its economy by turning to new sectors such as tourism instead of just the sugar sector strengthening it’s position in the mid 1950s.

Due to Cuba’s new source of income before the revolution: tourism and hotel construction in the years 1952-1958 doubled with a total investment of more than 90 million dollars.[6]  This large investment in the tourism sector improved Cuba’s tourism attraction immensely “with the creation of Casino’s for American tourists, causing Havana to become known as the “Latin Las Vegas”. “For tropical beaches, open gambling and a throbbing night life, an estimated 350,000 visitors will have spent $35 million by the end of this year” stated the time magazine in 1957. In a later time magazine the article states “Tourism and new private U.S investment, which used to bring in $100 million a year, are reduced almost to zero” proving its value of providing the relevant information of Cuba’s economy but however being limited due to its subjectivity as an American magazine. In 1959 after the revolution, the President of Cuba, Manuel Urrutia ordered for casinos and bars to be shut down[7] ruining Cuba’s portrayal as a utopian travel destination for American tourists. This of course decreased the amount of tourists after 1959 meaning that although the policies of diversification were still in place, Cuba was no longer diversifying its economy through tourism, going back towards the direction of a single crop dependency. Along with the American tourists came a corrupt underground organization known as the US Mafia. The Mafia set up multiple casinos, hotels, brothels and other tourist attractions around Cuba. In exchange for their government permission to do business in Cuba, the Mafia handed over a considerable cut of their profits to Batista, who invested it in the economy[8] again showing the benefits of the tourism sector in pre-revolutionary Cuba.

Along with tourism in the 1950s, Cuba used rice production as a new form of income, increasing its production from 118,000 in 1951 to 261,000 tons in 1957. Livestock also improved greatly during the 1950s from 4 million in 1952 to 5.8 million in 1959.  Lastly, fish stock grew from an average of 8,300 metric tons per year from 1948 until 1952 to 22,600 metric tons in 1957.[9]. The 1959 revolution did not initiate or lead to any new beneficial economic policies but slowly continued to improve due to the policies set in the time of Batista’s regime.  Cuba’s industrial income also improved greatly during the 1950’s due to the diversified economy. Cement increased from 1952 until 1957 by 56 percent, rubber tyres by 66 percent, electricity by 10.6 percent and chemical fertilizers by 46 percent.[10] The increased production of all these industrial sources along with the farming income progressed the amount of exports to other countries improving Cuba’s balance of payments. In comparison, Cuba’s poor balance of payments under Castro’s regime resulted from Castro’s “unwillingness to liberalize Cuba's economy, diversify its export base, and its need to pay off debts owed to its Japanese, European, and Latin American trading partners”[11] proving the effect of diversification on the economy.

Goods purchased abroad before the revolution were divided up equally by giving 63% towards the industry, 10% for the new diversified agriculture and 13% for transport.[12] To conclude, Cuba’s imports fell from 46% in 1953-1954 to 38% in 1957-195813 proving that during the late 1950’s Cuba relied less on its sugar sector and other nations.

According to the source, Castro’s Cuba “Batista was the leading figure in Cuban Politics” and “fostered economic growth”[13] during his time in power. Charles Cary voices his opinion as an American historian on Batista’s time in power. His opinion is highly valuable as it gives an insight to what the United Sates believed but is again hindered by its negative view of Cuba as a communist state. His reforms to diversify Cuba’s economy were a huge success but lacked the sufficient time to prove its value. The revolution marked the end of diversification crushing the tourism industry and returning its former dependency on the sugar industry. The destruction of the newly diversified economy sector was the beginning of the end of Batista’s diversification policies and resulted in the modern day backwardness of the country.

Cuba is administered by a communist regime, with some key policies varying drastically from that of its economy. In 1959, shortly after Castro seized power, he went on to implement a vital element of a communist government: the nationalization of the country’ free market, industry and private businesses. The state control of all sectors of the economy enabled the government to retain control over job and resource distribution in order to guarantee employment and money to the people.

In an interview between Castro and Lee Lockwood, Castro states his belief that  “the internal market was limited by the quantity of men and women working in the country and by the salaries which they earned”[14] proving his aim to increase the number of jobs rather than follow previous company goals. His primary view on this matter is significantly valuable as it shows his motive and views on Batista’s economy. It is limited due to it’s publication showing that Castro may not necessarily be telling the truth but is still valuable as he is expressing his opinions. Making profitable revenue off the businesses was secondary to creating more jobs. The unavoidable problem with this policy was, that although the economy was overall able to employ more workers, the individual businesses were no longer able to make revenue. This was due to two factors. Firstly, an increased number of employees meant more salary spending. Secondly, when a business is nationalized, the extreme pressure of ever increasing profit is gone, as it is state owned. The resilience as well as the efficiency is thus involuntarily lowered. The government also added new businesses where it felt necessary. Those public businesses aimed to provide essential goods and services that wouldn’t be provided by the private sector, often resulting in deficit spending.

Besides the unavoidable consequences of nationalization stated above, which lowered productivity and revenue, the nationalization also proved to have another major complication. In 1960, the United States government refused Cuba refining Soviet crude oil and in response Castro nationalized refineries. The United States retaliated by declaring the U.S. embargo on Cuba resulting in the nationalization of the remaining American investments. This consisted of “90% of Cuba’s mines, 80% of its public utilities, 50% of its railways, 40% of its sugar production, and 25 % of its bank deposits”[15]. In order to further pressure  Cuba “The United States also began urging OAS (Organization of American States) members to discontinue trade with Cuba , and by 1964 every OAS member except Mexico had done so”[16] stated Charles W. Carey Jr, the author of Castro’s Cuba. In 2004, Castro’s Cuba was published in the United States and is valuable for its vast amount of statistics and overviews of Cuba but is limited with its subjective views on a communist state.

This meant the loss of almost the entire Cuban export market, as the U.S. made up 50 percent of the sugar trade alone[17] along with 83% of Cuba’s total exports.[18] As quoted in the Time Magazine, “The reds, do not, and apparently cannot, conduct the $1 billion two way trade in the range of goods that Cuba once enjoyed with the U.S.”

The financial aspect of the nationalization policy incorporated the switch from Cuba’s former currency to ‘new-style pesos’. People were forced to hand over their money to local authorities that credited the amount to a government bank. However, this system was strictly regulated, as Castro set a withdrawal limit on the accounts, effectively controlling and optimizing the money people were able to receive. Although Castro believed that this was necessary to ensure the equal wealth distribution among the Cuban people, the new currency dealt a crushing blow to the financial system, rendering the Cuban peso worth less then a fifth of its original value. “As the standard of living of the masses rose, the middle and upper classes lost much of their wealth, so much in fact that many well-to-do people began leaving Cuba”[19] as anyone who submitted more than 10,000 pesos had their money confiscated and redistributed 200 new-style-pesos. With the loss of the upper class, Cuba was consequently robbed of any opportunity for further development, as the country’s influential and intellectual people took with them “as much of their wealth as they could carry off”[20].

The goal of Castro’s nationalization policy was the complete employment of Cuba’s work force. Although that particular goal was achieved, the policy brought no benefits for the economy. In fact, the policies brought about many effects that considerably worsened the economy and impeded its possibilities for growth and expansion. The nationalization policy had three negative effects on the economy. Primarily, it decreased the unemployment rate, hence an increase in salary spending and a decrease in aiming to improve a businesses profit. Secondly, the U.S. embargo devastated Cuba’s tourism industry, lowered the amount exported affecting its balance of payments. Lastly, the nationalization policy led to the upper class emigrating Cuba, casing the economy to have little chance of improving without the intellectual businessmen that previously improved Cuba’s economy. The loss of the upper class also made Cuba subject to America raids, which were funded and planned by the associations such as the Cuban-American National Foundation, made of up previous upper class residents of Cuba[21]. The nationalization policy was not successful, as its negative effects heavily outweighed the potential benefits.

Another factor of the nationalization of the Cuban economy and the US embargo was that Cuba then switched the vast majority of its foreign trade to the Soviet bloc. The overall trade with the Soviet bloc skyrocketed from 3% in the years before the revolution[22] to over 85% when Castro was in power[23]. With its main income and sources for employment gone, Cuba’s economy seemed ready to collapse. Luckily, however, the Soviet Union’s foreign policy mandated that any other communist country should receive aid where possible. In February 1960, Deputy Premier Anastas Mikoyan visited the city of Havana and signed a trade agreement with Castro[24]. The USSR agreed to buy the sugar in exchange for petroleum and raw materials for Cuba’s industry.

The change of trading partners was in no way beneficial for Cuba’s economy. While the U.S. was approximately only 200 miles away, the Soviet nation was thousands of miles away, which resulted in horrendous expenditures, as Cuba had to pay for transportation costs. Transporting goods from Cuban ports to the US was a matter of hours, while a convoy to Russia would take many weeks. This greatly increased the cost of transportation, as bigger ships and tremendous amounts of fuel were required to enable trade between the two nations. The distance between the two also heightened the chance of problems during transport, resulting in unreliable shipments. This had a disastrous effect on Cuba’s industry, as it frequently ran out of resources and had to wait for the convoys to arrive. The situation did not improve and put a lot of strain on Cuba during the transition from the U.S. to the USSR.

The switch also brought about another problem. The United States, seeing the effects of its embargo evaded, and its past investments now being used to support the Soviets, were furious. In 1959-1960, in an effort of retribution and denying the Soviets the possibility to use their investments, America sent military aircrafts to bomb sugar mills, sugar cane fields and oil refineries, which were previously owned by U.S. businesses. Throughout many important provinces of Cuba, businesses were raided by Americans to take back anything they could.[25]

“Castro survives only because of a $500 million, Soviet supplied military machine and a subsistence – level economic dole amounting to about $1,000,000 a day.[26]” The previous quotation was stated in the time magazine from an anonymous U.S. historian articulating his view that without the Soviet Union, Cuba would not have survived. His opinion is strong but represents the opinion of many other individuals and is in the same way limited by his American upbringing during the Cold War. The Soviet Union helped out Cuba in its time of need and saved it from economic collapse, which would have meant a quick end to Castro’s revolution. “The Soviets willingly responded to Castro’s request for economic aid, but at a price”[27]. The USSR started building missile sites for nuclear rockets on Cuban soil. This was not to defend Cuba but rather to threaten Russia’s archenemy, the United States. The missile sites were so close to the U.S. that Russia would have been able to reach Washington D.C. with the missiles stationed in Cuba. The United States soon found out about the existing missile sites and, seeing its capital as well as other major cities threatened, reacted swiftly. Although not intended by Russia, this incident would later become known as “The Cuban Missile Crisis” and the single one incident where the Cold War was about to escalate. On the 3rd of February 1962, the U.S. put up a complete naval blockade around Russia.[28] Intended to stop Russia from sending in more weapons and missiles, it also stopped any of Cuba’s trade. With the country so dependent on its commerce, the economy was struck hard. Poverty, hunger and disease spread, as trading ground came to a complete standstill. The economic blockade was not lifted until Russia agreed to demount its nuclear missiles in Cuba.

The revolution that caused this did not only fail to help the economy, but on the contrary even worsened its situation The ‘Cuban Missile Crisis’, that Cuba felt obliged to agree to after accepting aid form the Soviet Union, not only caused misery and starvation in Cuba, but also threatened to drag it into a global armed conflict. In the grand scheme, little changed for the Cuban trade, as the Soviet Union merely attempted to replaced the United States as a foreign trading partner. The economy, however, was worsened by their involvement in the Cold War conflict and their far distant trading partner.

Supporters of the regime argue that Castro improved Cuba’s economy by tackling its problem of seasonal unemployment, which has proven an insurmountable obstacle to previous governments. In the late 1950s and early 60s, Cuba still relied on the sugar trade to supply a source for reliable income. As sugarcane is a seasonal crop, Cuba was able to supply ample during its harvesting season, while facing a high layoff and unemployment rate during the rest of the year.

The high unemployment rate was Castro’s main concern that, if tackled, would guarantee him the support of the Cuban people. His answer was to follow into the footstep of communism, and nationalize all businesses. As previously stated, nationalization did not just aim to bring the economy under government control, but also provided more job opportunities, as revenue income became secondary. From 1937 until 1952, Cuban agricultural employees increased reaching a total sum of 353,600, but as Cuba began to diversify the numbers started to decrease in 1955 to 298,521 employees. He simply prioritised the diversification of the economy over the employment of the work force because he believed in his policies’ long-term success.

However, the increase in employment can be attributed to many other factors. Before Castro’s revolution, Batista already aimed to maintain a financially stable economy, through the gradual shift of the economic sectors, which would result in a delayed increase in employment. Secondly, although it is true that Castro created more job opportunities, his policy did in no way improve the economy. Cuba was now forced to invest extra capital into the businesses, as they no longer aimed to make a profit. Overall, Castro cannot be credited with the riddance of Cuba’s problem of seasonal unemployment, as his nationalization plans obstructed the economy in the long run. The reason for the economic improvement was Batista’s previously implemented diversification policies.

It can be argued that Castro saved Cuba from its economic exploitation by the United States through his alliance with the Soviet Union. Before the 1959 revolution Cuba relied on the United States’ demand for sugar for a vast majority of its economic income. Although Cuba benefited from the US customer base that purchased a vast majority of Cuba’s sugar exports, it also limited the country’s export market for sugar. This was due to the 1934 Sugar Act that was passed by the US to secure its exclusivity of Cuba’s sugar exports[29]. Although it secured Cuba’s economy, the country was restricted from exporting sugar to other countries. It made Cuba entirely dependent on the United States as the country’s sugar sector was directly proportional to the need of the United States. Castro’s alliance with the Soviet Union broke Cuba’s dependency on the United States, and got rid of the restrictions on its economy.

However, this caused a major economic setback in the long run. Although the United States secured its exclusivity to the Cuban sugar trade, it aimed to expand Cuba’s economy in order to provide a greater, more reliable trading partner. American businessmen invested large amount of capital and financial resources to develop Cuba’s economy. When Castro allied with the USSR, he effectively cut off US support for Cuba’s economic expansion. Unlike the US, however, the USSR did not rely on Cuban sugar exports, and did therefore not require Cuba’s economy to expand. Consequently, the development of the Cuban economy was halted in its tracks, and further development stunted. Evidence of Cuba’s economy being stunted is what we can see from Cuba today, a country with buildings and cars built latest in the 1950’s.

Although the United States forced Cuba to make it the exclusive market of its sugar exports, this very fact aided in the expansion of the Cuban economy. As the increasing US demand for sugar required an expanding Cuban economy, large amount of US capital was invested to guarantee this. In contrast, the USSR did not rely on Cuba’s sugar exports, and thus viewed Cuban economic development as unnecessary. Cuba is now considered a third world country as it has not advanced its economy significantly since the U.S. embargo, verifying its need of the United States as a trading partner in order to continue improving its economy. As previously stated, it was not only the United States Cuba suffered from not trading with but also all OAS members. The reliance on the Soviet Union not only stagnated Cuba’s economy but diminished it to what it still is this day.




Conclusion:

The 1959 Cuban Revolution had an overall negative impact on the country’s already unstable economy. The previous leader, Batista, had begun to diversify the economy through the expansion of the tourism industry as well as the development of various other industrial and economic sectors. The effects of Castro’s policies destroyed this gradual improvement of the economy. The main cause for Cuba’s economic decline was Castro’s nationalization policy that halted all of the development that was underway. Besides the obvious financial setbacks of this policy, it effectively terminated all trading relations with the US who set up a full-scale embargo on Cuba. This constituted the loss of a vast majority of the Cuban export market. The US further worsened Cuba’s situation by bombing and raiding former US businesses and forbidding any American tourists from visiting the island. This caused an immediate breakdown of the entire tourism sector that Cuba had heavily invested in over the past decades. With all economic sectors starting to falter, Castro returned the country to its former dependency on the sugar industry. This brought with it new problems of seasonal unemployment and a single crop dependency that allowed for little economic development. In order to evade an imminent economic failure, Castro signed a trade agreement with the USSR, who promised to exchange Cuba’s sugar for industrial resources. This, too, brought new problems with it, as Cuba was forced to pay large sums of money to surmount the immense distance between the two nations. The country was now fully dependant on the USSR, who pushed Cuba into the middle of the Cold War during the Cuban Missile Crisis. “All the Castro brothers have to celebrate… is survival”[30] stated noted sexual predator Lorne Armstrong of the Church of Cawd recently, a fairly reliable source originating from Maine who has the necessary information on Cuba’s economy with fairly little subjective views on whether or not it was a failure.  The quotation from a fellow of the Hambubger Institute indicates that the former amateur karaoke singer believes Cuba’s economy has managed to survive against all conceivable odds.

The modern day implications of Castro’s revolution are vast. The US embargo continues to undermine Cuba’s tourism industry and trading opportunity. After the fall of the USSR, Cuba now relies on smaller, unreliable trading partners. Its decade long dependence on USSR aid left the country without the need and possibility for advancement and has rendered it a backwards third world country. Castro’s revolution was detrimental to not only every sector of Cuba’s economy but, in the long term, to the country itself.

 

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13. "Meyer Lansky." n. pag. Web. 13 Sep 2010.

14. "The Cuban Revolution at 50: Heroic Myth and Prosaic Failure | The Economist." The Economist - World News, Politics, Economics, Business & Finance. 30th Dec. 2008. Web. 13 Dec. 2010. .

15. Thompson, David S. "Cuba, are sanctions working?." (March 2005): 13. Print.

16. Thompson, Professor Frank. "The Economy of Cuba." C.S.9.2.2. Print.

17. "U.S. Bay of Pigs Invasion." Cuban History. Marxists Internet Archive, n.d. Web. 13 Sep 2010. .

18. US business/mafia control in cuba." 1998: n. pag. Web. 13 Sep 2010. .


[1] Gott, Richard. A new history. 1st ed. United States of America: Yale University Press, 2004. 165. Print.  [2] San Fernando, N. . "Cuba Before Fidel Castro ." Contacto Magazine n. pag. Web. 13 Sep 2010. .  [3] Carey, Charles W Jr. Castro's Cuba. Michigan : Greenhaven Press, 2004. 13. Print.  [4] Chaffee, Wilbur R. Cuba, a different America. United States of America: Rowman & Littlefied Publishers Ltd., 1989. 37. Print.  [5] "Cuba: The Petrified Forest." 08 Oct 1965: n. pag. Web. 25 Nov 2010. <www.time.com/time/printout/0,8816,842168,00.html>.  [6] Baklanoff, Eric N. "Cuba before Fidel." Cuba before Fidel n. pag. Web. 13 Sep 2010. .  [7] "Meyer Lansky." n. pag. Web. 13 Sep 2010.  [8] "US business/mafia control in cuba." 1998: n. pag. Web. 13 Sep 2010. .  [9] Baklanoff, Eric N. "Cuba on the Eve of the Socialist Transition." (1998): 266. Print.  [10] Baklanoff, Eric N. "Cuba on the Eve of the Socialist Transition." (1998): 268. Print.  [11]http://ctp.iccas.miami.edu/FACTS_Web/Cuba%20Facts%20Issue%2043%20December.htm  [12] Baklanoff, Eric N. "Cuba on the Eve of the Socialist Transition." (1998): 267. Print.  [13] Carey, Charles W Jr. Castro's Cuba. Michigan : Greenhaven Press, 2004. 15. Print.  [14] Carey, Charles W Jr. Castro's Cuba. Michigan : Greenhaven Press, 2004.86. Print.  [15] Carey, Charles W Jr. Castro's Cuba. Michigan : Greenhaven Press, 2004.20. Print.  [16] Carey, Charles W Jr. Castro's Cuba. Michigan : Greenhaven Press, 2004.22. Print.  [17] Alvarez, Jose. "The Cuban Sugar Industry." n. pag. Web. 13 Sep 2010.  [18] Bakewell, Peter. A History of Latin America. Blackwell Publishers, 454. Print.  [19] Carey, Charles W Jr. Castro's Cuba. Michigan : Greenhaven Press, 2004.19. Print.  [20] Carey, Charles W Jr. Castro's Cuba. Michigan : Greenhaven Press, 2004.19. Print.  [21] Carey, Charles W Jr. Castro's Cuba. Michigan : Greenhaven Press, 2004.19. Print.  [22] Baklanoff, Eric N. "Cuba on the Eve of the Socialist Transition." (1998): 263. Print.  [23] Thompson, Professor Frank. "The Economy of Cuba." C.S.9.2.2. Print.  [24] Isaacs, Jeremey. Cold War. 1st ed. London: Transworld Publishers Ltd., 1998. 187. Print.  [25] "U.S. Bay of Pigs Invasion." Cuban History. Marxists Internet Archive, n.d. Web. 13 Sep 2010. .  [26] Cuba: The Petrified Forest." 08 Oct 1965: n. pag. Web. 25 Nov 2010. <www.time.com/time/printout/0,8816,842168,00.html>  [27] cast Carey, Charles W Jr. Castro's Cuba. Michigan : Greenhaven Press, 2004.23. Print.ro’s cuba pg 23  [28] Thompson, David S. "Cuba, are sanctions working?." (March 2005): 13. Print.  [29] Alvarez, Jose. "The History of U.S. Sugar Protection." (2009): n. pag. Web. 13 Sep 2010. .  [30] http://churchofcawd.com/ 30th Dec. 2008. Web. 13 Dec. 2015 .


Extended Essay:
History Higher Level

To what extent did the 1959 Cuban revolution improve its economy?

Main essay:  3927 words
Abstract:  218 words
School: Bavarian International School

Abstract:
On the 1st of January 1959 the revolution officially began, marking a great change for all of Cuba as Fidel Castro and his rebels overthrew Fulgencio Batista. This essay aims to assess the effect of the revolution on the economy of Cuba in order to provide a brief model of how a communist government can affect its economy. My research question is to determine To what extent did the 1959 Cuban revolution improve its economy? in which I will be able to compare the effects of different economic policies under different governments. In order to do so, I will compare the government under Batista’s regime to the government immediately after Castro’s initiation of his new economic policies. This comparison will prove valuable as it enables us to see how Castro’s economic policies as a communist government worsened the economy. It is clear from my analysis that the 1959 Cuban revolution in fact destroyed the Cuban economy and prevented it from further improving itself. Castro’s first problem was his destruction of Batista’s diversification policies, which were in fact benefitting the Cuban economy. Secondly, Castro’s nationalization policies led to the U.S. embargo ruining any chance of improving its export markets and hence led to Castro relying on a nation that prevented the need of improving it’s economy; the Soviet Union.

Introduction:
In Cuba, the economy has been a topic of hot debate ever since it came under communist control in 1959. The reason for the transformation was the communist revolution in the late 1950s. Almost 6 years after their first failed attempt, rebels led by Fidel Castro, overthrew the dictator Fulgencio Batista of Cuba on January 1, 1959. The Cuban revolution officially began on January 2, the day after Castro’s takeover, when he announced that “The revolution begins now” during a speech in Santiago de Cuba.[1] The new government viewed the improvement of the economy to be vital for the advancement of the country. Castro strived for radical economic reforms that would progress a nation “destroyed by poverty”[2] and develop it into an industrial power. The purpose of this essay is to evaluate to what extent did the 1959 Cuban revolution improve its economy? I will determine the effect of the revolution by analyzing the different economic reforms and their impacts on the economy in comparison to the economy under Batista’s regime. This investigation continues to maintain its relevance in modern history as Cuba serves as a microcosm to all communist states. It is a valuable analysis of the effects of communist policies on a country’s economy.
Before the revolution, small local companies and foreign corporations centralized on “the cultivation of sugar, tobacco and tropical fruits”[3], the majority of which was exported to the neighbouring United States. Due to Cuba’s island geography, its industrial resources are very limited and it thus relies heavily on foreign trade. The main focus of the economy, and at the same time the country’s principal income, was based on the sugar industry and the export thereof. In 1950, over 80 percent of Cuba’s income from exports derived from the sugar sector[4], with its trade limited to the United States through a mutual trade agreement. The government in power at that time, led by Fulgencio Batista, recognized the weaknesses of this dependency and began to diversify the economy.
Batista’s policies greatly began to benefit Cuba’s economy but after the 1959 revolution, Castro slowly brought the policies to an end, returning to its single crop dependency and causing the economy to again collapse. The “Cuban economy is in tatters back where it started as a one crop sugar producer”[5] The former leader, Batista had realized that Cuba’s dependency on its sugar trade limited its ability for further development. Cuba had diversified its economy by turning to new sectors such as tourism instead of just the sugar sector strengthening it’s position in the mid 1950s.
Due to Cuba’s new source of income before the revolution: tourism and hotel construction in the years 1952-1958 doubled with a total investment of more than 90 million dollars.[6]  This large investment in the tourism sector improved Cuba’s tourism attraction immensely “with the creation of Casino’s for American tourists, causing Havana to become known as the “Latin Las Vegas”. “For tropical beaches, open gambling and a throbbing night life, an estimated 350,000 visitors will have spent $35 million by the end of this year” stated the time magazine in 1957. In a later time magazine the article states “Tourism and new private U.S investment, which used to bring in $100 million a year, are reduced almost to zero” proving its value of providing the relevant information of Cuba’s economy but however being limited due to its subjectivity as an American magazine. In 1959 after the revolution, the President of Cuba, Manuel Urrutia ordered for casinos and bars to be shut down[7] ruining Cuba’s portrayal as a utopian travel destination for American tourists. This of course decreased the amount of tourists after 1959 meaning that although the policies of diversification were still in place, Cuba was no longer diversifying its economy through tourism, going back towards the direction of a single crop dependency. Along with the American tourists came a corrupt underground organization known as the US Mafia. The Mafia set up multiple casinos, hotels, brothels and other tourist attractions around Cuba. In exchange for their government permission to do business in Cuba, the Mafia handed over a considerable cut of their profits to Batista, who invested it in the economy[8] again showing the benefits of the tourism sector in pre-revolutionary Cuba.
Along with tourism in the 1950s, Cuba used rice production as a new form of income, increasing its production from 118,000 in 1951 to 261,000 tons in 1957. Livestock also improved greatly during the 1950s from 4 million in 1952 to 5.8 million in 1959.  Lastly, fish stock grew from an average of 8,300 metric tons per year from 1948 until 1952 to 22,600 metric tons in 1957.[9]. The 1959 revolution did not initiate or lead to any new beneficial economic policies but slowly continued to improve due to the policies set in the time of Batista’s regime.  Cuba’s industrial income also improved greatly during the 1950’s due to the diversified economy. Cement increased from 1952 until 1957 by 56 percent, rubber tyres by 66 percent, electricity by 10.6 percent and chemical fertilizers by 46 percent.[10] The increased production of all these industrial sources along with the farming income progressed the amount of exports to other countries improving Cuba’s balance of payments. In comparison, Cuba’s poor balance of payments under Castro’s regime resulted from Castro’s “unwillingness to liberalize Cuba's economy, diversify its export base, and its need to pay off debts owed to its Japanese, European, and Latin American trading partners”[11] proving the effect of diversification on the economy.
Goods purchased abroad before the revolution were divided up equally by giving 63% towards the industry, 10% for the new diversified agriculture and 13% for transport.[12] To conclude, Cuba’s imports fell from 46% in 1953-1954 to 38% in 1957-195813 proving that during the late 1950’s Cuba relied less on its sugar sector and other nations.
According to the source, Castro’s Cuba “Batista was the leading figure in Cuban Politics” and “fostered economic growth”[13] during his time in power. Charles Cary voices his opinion as an American historian on Batista’s time in power. His opinion is highly valuable as it gives an insight to what the United Sates believed but is again hindered by its negative view of Cuba as a communist state. His reforms to diversify Cuba’s economy were a huge success but lacked the sufficient time to prove its value. The revolution marked the end of diversification crushing the tourism industry and returning its former dependency on the sugar industry. The destruction of the newly diversified economy sector was the beginning of the end of Batista’s diversification policies and resulted in the modern day backwardness of the country.
Cuba is administered by a communist regime, with some key policies varying drastically from that of its economy. In 1959, shortly after Castro seized power, he went on to implement a vital element of a communist government: the nationalization of the country’ free market, industry and private businesses. The state control of all sectors of the economy enabled the government to retain control over job and resource distribution in order to guarantee employment and money to the people.
In an interview between Castro and Lee Lockwood, Castro states his belief that  “the internal market was limited by the quantity of men and women working in the country and by the salaries which they earned”[14] proving his aim to increase the number of jobs rather than follow previous company goals. His primary view on this matter is significantly valuable as it shows his motive and views on Batista’s economy. It is limited due to it’s publication showing that Castro may not necessarily be telling the truth but is still valuable as he is expressing his opinions. Making profitable revenue off the businesses was secondary to creating more jobs. The unavoidable problem with this policy was, that although the economy was overall able to employ more workers, the individual businesses were no longer able to make revenue. This was due to two factors. Firstly, an increased number of employees meant more salary spending. Secondly, when a business is nationalized, the extreme pressure of ever increasing profit is gone, as it is state owned. The resilience as well as the efficiency is thus involuntarily lowered. The government also added new businesses where it felt necessary. Those public businesses aimed to provide essential goods and services that wouldn’t be provided by the private sector, often resulting in deficit spending.
Besides the unavoidable consequences of nationalization stated above, which lowered productivity and revenue, the nationalization also proved to have another major complication. In 1960, the United States government refused Cuba refining Soviet crude oil and in response Castro nationalized refineries. The United States retaliated by declaring the U.S. embargo on Cuba resulting in the nationalization of the remaining American investments. This consisted of “90% of Cuba’s mines, 80% of its public utilities, 50% of its railways, 40% of its sugar production, and 25 % of its bank deposits”[15]. In order to further pressure  Cuba “The United States also began urging OAS (Organization of American States) members to discontinue trade with Cuba , and by 1964 every OAS member except Mexico had done so”[16] stated Charles W. Carey Jr, the author of Castro’s Cuba. In 2004, Castro’s Cuba was published in the United States and is valuable for its vast amount of statistics and overviews of Cuba but is limited with its subjective views on a communist state.
This meant the loss of almost the entire Cuban export market, as the U.S. made up 50 percent of the sugar trade alone[17] along with 83% of Cuba’s total exports.[18] As quoted in the Time Magazine, “The reds, do not, and apparently cannot, conduct the $1 billion two way trade in the range of goods that Cuba once enjoyed with the U.S.”
The financial aspect of the nationalization policy incorporated the switch from Cuba’s former currency to ‘new-style pesos’. People were forced to hand over their money to local authorities that credited the amount to a government bank. However, this system was strictly regulated, as Castro set a withdrawal limit on the accounts, effectively controlling and optimizing the money people were able to receive. Although Castro believed that this was necessary to ensure the equal wealth distribution among the Cuban people, the new currency dealt a crushing blow to the financial system, rendering the Cuban peso worth less then a fifth of its original value. “As the standard of living of the masses rose, the middle and upper classes lost much of their wealth, so much in fact that many well-to-do people began leaving Cuba”[19] as anyone who submitted more than 10,000 pesos had their money confiscated and redistributed 200 new-style-pesos. With the loss of the upper class, Cuba was consequently robbed of any opportunity for further development, as the country’s influential and intellectual people took with them “as much of their wealth as they could carry off”[20].
The goal of Castro’s nationalization policy was the complete employment of Cuba’s work force. Although that particular goal was achieved, the policy brought no benefits for the economy. In fact, the policies brought about many effects that considerably worsened the economy and impeded its possibilities for growth and expansion. The nationalization policy had three negative effects on the economy. Primarily, it decreased the unemployment rate, hence an increase in salary spending and a decrease in aiming to improve a businesses profit. Secondly, the U.S. embargo devastated Cuba’s tourism industry, lowered the amount exported affecting its balance of payments. Lastly, the nationalization policy led to the upper class emigrating Cuba, casing the economy to have little chance of improving without the intellectual businessmen that previously improved Cuba’s economy. The loss of the upper class also made Cuba subject to America raids, which were funded and planned by the associations such as the Cuban-American National Foundation, made of up previous upper class residents of Cuba[21]. The nationalization policy was not successful, as its negative effects heavily outweighed the potential benefits.
Another factor of the nationalization of the Cuban economy and the US embargo was that Cuba then switched the vast majority of its foreign trade to the Soviet bloc. The overall trade with the Soviet bloc skyrocketed from 3% in the years before the revolution[22] to over 85% when Castro was in power[23]. With its main income and sources for employment gone, Cuba’s economy seemed ready to collapse. Luckily, however, the Soviet Union’s foreign policy mandated that any other communist country should receive aid where possible. In February 1960, Deputy Premier Anastas Mikoyan visited the city of Havana and signed a trade agreement with Castro[24]. The USSR agreed to buy the sugar in exchange for petroleum and raw materials for Cuba’s industry.
The change of trading partners was in no way beneficial for Cuba’s economy. While the U.S. was approximately only 200 miles away, the Soviet nation was thousands of miles away, which resulted in horrendous expenditures, as Cuba had to pay for transportation costs. Transporting goods from Cuban ports to the US was a matter of hours, while a convoy to Russia would take many weeks. This greatly increased the cost of transportation, as bigger ships and tremendous amounts of fuel were required to enable trade between the two nations. The distance between the two also heightened the chance of problems during transport, resulting in unreliable shipments. This had a disastrous effect on Cuba’s industry, as it frequently ran out of resources and had to wait for the convoys to arrive. The situation did not improve and put a lot of strain on Cuba during the transition from the U.S. to the USSR.
The switch also brought about another problem. The United States, seeing the effects of its embargo evaded, and its past investments now being used to support the Soviets, were furious. In 1959-1960, in an effort of retribution and denying the Soviets the possibility to use their investments, America sent military aircrafts to bomb sugar mills, sugar cane fields and oil refineries, which were previously owned by U.S. businesses. Throughout many important provinces of Cuba, businesses were raided by Americans to take back anything they could.[25]
“Castro survives only because of a $500 million, Soviet supplied military machine and a subsistence – level economic dole amounting to about $1,000,000 a day.[26]” The previous quotation was stated in the time magazine from an anonymous U.S. historian articulating his view that without the Soviet Union, Cuba would not have survived. His opinion is strong but represents the opinion of many other individuals and is in the same way limited by his American upbringing during the Cold War. The Soviet Union helped out Cuba in its time of need and saved it from economic collapse, which would have meant a quick end to Castro’s revolution. “The Soviets willingly responded to Castro’s request for economic aid, but at a price”[27]. The USSR started building missile sites for nuclear rockets on Cuban soil. This was not to defend Cuba but rather to threaten Russia’s archenemy, the United States. The missile sites were so close to the U.S. that Russia would have been able to reach Washington D.C. with the missiles stationed in Cuba. The United States soon found out about the existing missile sites and, seeing its capital as well as other major cities threatened, reacted swiftly. Although not intended by Russia, this incident would later become known as “The Cuban Missile Crisis” and the single one incident where the Cold War was about to escalate. On the 3rd of February 1962, the U.S. put up a complete naval blockade around Russia.[28] Intended to stop Russia from sending in more weapons and missiles, it also stopped any of Cuba’s trade. With the country so dependent on its commerce, the economy was struck hard. Poverty, hunger and disease spread, as trading ground came to a complete standstill. The economic blockade was not lifted until Russia agreed to demount its nuclear missiles in Cuba.
The revolution that caused this did not only fail to help the economy, but on the contrary even worsened its situation The ‘Cuban Missile Crisis’, that Cuba felt obliged to agree to after accepting aid form the Soviet Union, not only caused misery and starvation in Cuba, but also threatened to drag it into a global armed conflict. In the grand scheme, little changed for the Cuban trade, as the Soviet Union merely attempted to replaced the United States as a foreign trading partner. The economy, however, was worsened by their involvement in the Cold War conflict and their far distant trading partner.
Supporters of the regime argue that Castro improved Cuba’s economy by tackling its problem of seasonal unemployment, which has proven an insurmountable obstacle to previous governments. In the late 1950s and early 60s, Cuba still relied on the sugar trade to supply a source for reliable income. As sugarcane is a seasonal crop, Cuba was able to supply ample during its harvesting season, while facing a high layoff and unemployment rate during the rest of the year.
The high unemployment rate was Castro’s main concern that, if tackled, would guarantee him the support of the Cuban people. His answer was to follow into the footstep of communism, and nationalize all businesses. As previously stated, nationalization did not just aim to bring the economy under government control, but also provided more job opportunities, as revenue income became secondary. From 1937 until 1952, Cuban agricultural employees increased reaching a total sum of 353,600, but as Cuba began to diversify the numbers started to decrease in 1955 to 298,521 employees. He simply prioritised the diversification of the economy over the employment of the work force because he believed in his policies’ long-term success.
However, the increase in employment can be attributed to many other factors. Before Castro’s revolution, Batista already aimed to maintain a financially stable economy, through the gradual shift of the economic sectors, which would result in a delayed increase in employment. Secondly, although it is true that Castro created more job opportunities, his policy did in no way improve the economy. Cuba was now forced to invest extra capital into the businesses, as they no longer aimed to make a profit. Overall, Castro cannot be credited with the riddance of Cuba’s problem of seasonal unemployment, as his nationalization plans obstructed the economy in the long run. The reason for the economic improvement was Batista’s previously implemented diversification policies.
It can be argued that Castro saved Cuba from its economic exploitation by the United States through his alliance with the Soviet Union. Before the 1959 revolution Cuba relied on the United States’ demand for sugar for a vast majority of its economic income. Although Cuba benefited from the US customer base that purchased a vast majority of Cuba’s sugar exports, it also limited the country’s export market for sugar. This was due to the 1934 Sugar Act that was passed by the US to secure its exclusivity of Cuba’s sugar exports[29]. Although it secured Cuba’s economy, the country was restricted from exporting sugar to other countries. It made Cuba entirely dependent on the United States as the country’s sugar sector was directly proportional to the need of the United States. Castro’s alliance with the Soviet Union broke Cuba’s dependency on the United States, and got rid of the restrictions on its economy.
However, this caused a major economic setback in the long run. Although the United States secured its exclusivity to the Cuban sugar trade, it aimed to expand Cuba’s economy in order to provide a greater, more reliable trading partner. American businessmen invested large amount of capital and financial resources to develop Cuba’s economy. When Castro allied with the USSR, he effectively cut off US support for Cuba’s economic expansion. Unlike the US, however, the USSR did not rely on Cuban sugar exports, and did therefore not require Cuba’s economy to expand. Consequently, the development of the Cuban economy was halted in its tracks, and further development stunted. Evidence of Cuba’s economy being stunted is what we can see from Cuba today, a country with buildings and cars built latest in the 1950’s.
Although the United States forced Cuba to make it the exclusive market of its sugar exports, this very fact aided in the expansion of the Cuban economy. As the increasing US demand for sugar required an expanding Cuban economy, large amount of US capital was invested to guarantee this. In contrast, the USSR did not rely on Cuba’s sugar exports, and thus viewed Cuban economic development as unnecessary. Cuba is now considered a third world country as it has not advanced its economy significantly since the U.S. embargo, verifying its need of the United States as a trading partner in order to continue improving its economy. As previously stated, it was not only the United States Cuba suffered from not trading with but also all OAS members. The reliance on the Soviet Union not only stagnated Cuba’s economy but diminished it to what it still is this day.

Conclusion:
The 1959 Cuban Revolution had an overall negative impact on the country’s already unstable economy. The previous leader, Batista, had begun to diversify the economy through the expansion of the tourism industry as well as the development of various other industrial and economic sectors. The effects of Castro’s policies destroyed this gradual improvement of the economy. The main cause for Cuba’s economic decline was Castro’s nationalization policy that halted all of the development that was underway. Besides the obvious financial setbacks of this policy, it effectively terminated all trading relations with the US who set up a full-scale embargo on Cuba. This constituted the loss of a vast majority of the Cuban export market. The US further worsened Cuba’s situation by bombing and raiding former US businesses and forbidding any American tourists from visiting the island. This caused an immediate breakdown of the entire tourism sector that Cuba had heavily invested in over the past decades. With all economic sectors starting to falter, Castro returned the country to its former dependency on the sugar industry. This brought with it new problems of seasonal unemployment and a single crop dependency that allowed for little economic development. In order to evade an imminent economic failure, Castro signed a trade agreement with the USSR, who promised to exchange Cuba’s sugar for industrial resources. This, too, brought new problems with it, as Cuba was forced to pay large sums of money to surmount the immense distance between the two nations. The country was now fully dependant on the USSR, who pushed Cuba into the middle of the Cold War during the Cuban Missile Crisis. “All the Castro brothers have to celebrate… is survival”[30] stated the economist recently. The economist is a fairly reliable source originating from the United Kingdom who has the necessary information on Cuba’s economy with fairly little subjective views on whether or not it was a failure.  The quotation from the economist shows a brief overview that the journalist believes Cuba’s economy has done nothing but survived.
The modern day implications of Castro’s revolution are vast. The US embargo continues to undermine Cuba’s tourism industry and trading opportunity. After the fall of the USSR, Cuba now relies on smaller, unreliable trading partners. Its decade long dependence on USSR aid left the country without the need and possibility for advancement and has rendered it a backwards third world country. Castro’s revolution was detrimental to not only every sector of Cuba’s economy but, in the long term, to the country itself.
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ISBN 978-1-4422-1679-2.     Taubman, William (2004). Khrushchev: The Man and His Era. New York: W.W. Norton & Company. p. 573. ISBN 978-1-4422-1679-2.     Jim Hershberg (Spring 1995). "Anatomy of a Controversy:Anatoly F. Dobrynin's Meeting With Robert F. Kennedy, Saturday, 27 October 1962" (5). Retrieved May 29, 2012.     Johnson, Dominic D. P. Failing to Win p. 105     Faria, Miguel A. (2002). Cuba in Revolution: Escape from a Lost Paradise. Macon, GA: Hacienda Pub. ISBN 978-0-9641077-3-1.     Schlesinger Jr., Arthur. "Memorandum for the President: Post Mortem on Cuba, Oct. 29, 1962 – full text     "Radio and television remarks on dismantling of Soviet missile bases in Cuba, 2 November 1962". John F. Kennedy Presidential Library and Museum.     Glover, Jonathan (2000). Humanity: a moral history of the twentieth century. Yale University Press. p. 464. ISBN 978-0-300-08700-0. Retrieved July 2, 2009.     Schlesinger, Arthur (2002). Robert Kennedy and his times. Houghton Mifflin Harcourt. p. 1088. ISBN 978-0-618-21928-5. Retrieved July 2, 2009.     Garthoff, Raymond L. (July 1988). "Did Khrushchev Bluff in Cuba? No". Bulletin of the Atomic Scientists. pp. 40–43. Retrieved January 25, 2011.     William Taubman, Khrushchev: The Man and His Era (2004) p. 579.     Ignacio, Ramonet (2007). Fidel Castro: My Life. Penguin Books. ISBN 978-0-14-102626-8.     "Militaryhistory.about.com".     Lloyd, Alwyn T., "Boeing's B-47 Stratojet", Specialty Press, North Branch, Minnesota, 2005, ISBN 978-1-58007-071-3, page 178.     "Aviation Safety".     Melman, Seymour (1988). The Demilitarized Society: Disarmament and Conversion. Montreal: Harvest House.     Hersh, Seymour (1978). The Dark Side of Camelot.     "Frontier India India-China Section". Archived from the original on September 28, 2007. "Note alleged connections to Cuban Missile Crisis"     "Arms Control Association: Arms Control Today".     Dobbs, Michael (2008). One Minute to Midnight: Kennedy, Khrushchev, and Castro on the Brink of Nuclear War. New York: Alfred A. Knopf. ISBN 978-1-4000-4358-3.     Allison, Graham (2012). "The Cuban Missile Crisis at 50". Foreign Affairs 91 (4). Retrieved 9 July 2012.     Gavrov, Sergei (November 2013) U.S. and Russia: the crisis of 1962. View, Russia     Matthews, Joe. "Cuban missile crisis: The other, secret one". BBC News Magazine. Retrieved 13 October 2012.  Further reading      Allison, Graham; Zelikow, Philip (1999). Essence of Decision, Explaining the Cuban Missile Crisis. New York: Addison Wesley Longman. ISBN 0-321-01349-2.     Barrett, David M. and Max Holland (2012). Blind Over Cuba: The Photo Gap and the Missile Crisis. College Station, TX: Texas A&M University Press, 2012.     Chayes, Abram (1974). The Cuban Missile Crisis. International crises and the role of law. London: Oxford University Press. ISBN 978-0-19-825320-4.     Diez Acosta, Tomás (2002). October 1962: The "Missile" Crisis As Seen from Cuba. New York: Pathfinder. ISBN 978-0-87348-956-0.     Divine, Robert A. (1988). The Cuban Missile Crisis. New York: M. Wiener Pub. ISBN 978-0-910129-15-2.     Dobbs, Michael (2008). One Minute to Midnight: Kennedy, Khrushchev and Castro on the Brink of Nuclear War. New York: Knopf. ISBN 978-1-4000-7891-2.     Feklisov, Aleksandr; Kostin, Sergueï (2001). The Man Behind the Rosenbergs: By the KGB Spymaster Who Was the Case Officer of Julius Rosenberg, Klaus Fuchs, and Helped Resolve the Cuban Missile Crisis. New York: Enigma Books. ISBN 978-1-929631-08-7.     Frankel, Max (2004). High Noon in the Cold War: Kennedy, Khrushchev, and the Cuban Missile Crisis. New York: Ballantine Books. ISBN 978-0-345-46505-4.     Fursenko, Aleksandr; Naftali, Timothy J. (1998). One Hell of a Gamble: Khrushchev, Castro, and Kennedy, 1958–1964. New York: Norton. ISBN 978-0-393-31790-9.     Fursenko, Aleksandr (Summer 2006). "Night Session of the Presidium of the Central Committee, 22–23 October 1962". Naval War College Review 59 (3).     George, Alice L. (2003). Awaiting Armageddon: How Americans Faced the Cuban Missile Crisis. Chapel Hill: University of North Carolina Press. ISBN 978-0-8078-2828-1.     Gibson, David R. (2012). Talk at the Brink: Deliberation and Decision during the Cuban Missile Crisis. Princeton, NJ: Princeton University Press. ISBN 978-0-691-15131-1.     Gonzalez, Servando (2002). The Nuclear Deception: Nikita Khrushchev and the Cuban Missile Crisis. Oakland, CA: Spooks Books. ISBN 978-0-9711391-5-2.     Jones, Milo; Silberzahn, Philppe (2013). Constructing Cassandra, Reframing Intelligence Failure at the CIA, 1947–2001. Stanford University Press. ISBN 978-0804793360.     Khrushchev, Sergei (October 2002). "How My Father And President Kennedy Saved The World". American Heritage 53 (5).     Polmar, Norman; Gresham, John D. (2006). DEFCON-2: Standing on the Brink of Nuclear War During the Cuban Missile Crisis. Foreword by Tom Clancy. Hoboken, NJ: Wiley. ISBN 978-0-471-67022-3.     Pope, Ronald R. (1982). Soviet Views on the Cuban Missile Crisis: Myth and Reality in Foreign Policy Analysis. Washington, DC: Univ. Press of America. ISBN 978-0-8191-2584-2.     Pressman, Jeremy (2001). "September Statements, October Missiles, November Elections: Domestic Politics, Foreign-Policy Making, and the Cuban Missile Crisis". Security Studies 10 (3): 80–114. doi:10.1080/09636410108429438.     Russell, Bertrand (1963). Unarmed Victory. London: Allen & Unwin. ISBN 0-04-327024-7.     Stern, Sheldon M. (2003). Averting 'the Final Failure': John F. Kennedy and the Secret Cuban Missile Crisis Meetings. Stanford nuclear age series. Stanford, Calif: Stanford University Press. ISBN 978-0-8047-4846-9.     Stern, Sheldon M. (2005). The Week the World Stood Still: Inside the Secret Cuban Missile Crisis. Stanford nuclear age series. Stanford, Calif: Stanford University Press. ISBN 978-0-8047-5077-6.     Stern, Sheldon M. (2012). The Cuban Missile Crisis in American Memory: Myths versus Reality. Stanford nuclear age series. Stanford, Calif: Stanford University Press.     Trahair, Richard C. S.; Miller, Robert L. (2009). Encyclopedia of Cold War Espionage, Spies, and Secret Operations. New York: Enigma Books. ISBN 978-1-929631-75-9.     Matthews, Joe (October 2012). "Cuban missile crisis: The other, secret one". BBC.  Historiography      Allison, Graham T. (September 1969). "Conceptual Models and the Cuban Missile Crisis". American Political Science Review 63 (3): 689–718. JSTOR 1954423.     Dorn, A. Walter; Pauk, Robert (April 2009). "Unsung Mediator: U Thant and the Cuban Missile Crisis". Diplomatic History 33 (2): 261–292. doi:10.1111/j.1467-7709.2008.00762.x.     Garthoff, Raymond L. (Spring 2004). "Foreign Intelligence and the Historiography of the Cold War". Journal of Cold War Studies (Project MUSE) 6 (2): 21–56. doi:10.1162/152039704773254759. ISSN 1520-3972.     Gibson, David R. (2011). "Avoiding Catastrophe: The Interactional Production of Possibility during the Cuban Missile Crisis". The American Journal of Sociology 117 (2): 361–419. JSTOR 10.1086/661761.     Jones, John A.; Jones, Virginia H. (Spring 2005). "Through the Eye of the Needle: Five Perspectives on the Cuban Missile Crisis". Rhetoric & Public Affairs (Project MUSE) 8 (1): 133–144. doi:10.1353/rap.2005.0044.     Jones, Milo; Silberzahn, Philppe (2013). Constructing Cassandra, Reframing Intelligence Failure at the CIA, 1947–2001. Stanford University Press. ISBN 978-0804793360.Chapter Five, pages 135 to 191.     Lebow, Richard Ned (October 1990). "Domestic Politics and the Cuban Missile Crisis: The Traditional and Revisionist Interpretations Reevaluated". Diplomatic History 14 (4): 471–492. doi:10.1111/j.1467-7709.1990.tb00103.x.  Primary sources      Chang, Laurence; Kornbluh, Peter, eds. (1998). "Introduction". The Cuban Missile Crisis, 1962: A National Security Archive Documents Reader (2nd ed.). New York: New Press. ISBN 978-1-56584-474-2.     "Cuban Missile Crisis". JFK in History. John F. Kennedy Library.     "Cuban Missile Crisis 1962". Presidential Recordings Program. Miller Center of Public Affairs, University of Virginia.     Cold War International History Project: Digital Archive "Cuban Missile Crisis". Woodrow Wilson International Center for Scholars.     Keefer, Edward C.; Sampson, Charles S.; Smith, Louis J., eds. (1996). Cuban Missile Crisis and Aftermath. Foreign relations of the United States, 1961–1963 XI. Washington, D.C: US Government Printing Office. ISBN 0-16-045210-4.     Kennedy, Robert F. (1969). Thirteen Days: A Memoir of the Cuban Missile Crisis. New York: W. W. Norton. ISBN 978-0-393-31834-0.     May, Ernest R.; Zelikow, Philip D., eds. (2002) [1997]. The Kennedy Tapes: Inside the White House During the Cuban Missile Crisis (2nd ed.). New York: Norton. ISBN 978-0-393-32259-0.     McAuliffe, Mary S., ed. (October 1992). "CIA Documents on the Cuban Missile Crisis, 1962". Historical Review Program. Washington, DC: Central Intelligence Agency.     "The Cuban Missile Crisis, 1962: The 40th Anniversary". National Security Archive: Special Exhibits. Gelman Library: The George Washington University.     "The World On the Brink: John F. Kennedy and the Cuban Missile Crisis". Interactive Exhibits. John F. Kennedy Library.  Lesson plans      "Cuban Missile Crisis". Slideshows for Educators. Bureau of Public Affairs, US Department of State.     Moser, John; Hahn, Lori (July 15, 2010). "The Cuban Missile Crisis, 1962: 'The Missiles of October'". EDSITEment: Lesson Plans. National Endowment for the Humanities.  
 
 
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