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Under the strains of Cuba's war economy, residential areas experience extended power outages for 20 hours at a time, along with littered streets littered with waste.

Overpowering and severe odor of trash fills the air under the Caribbean sunlight. The pileup of refuse is so significant that a street in Havana, situated away from its tourist hub, has been shut off to vehicles.

Living conditions worsen with extended power outages and overflowing trash in the streets – a...
Living conditions worsen with extended power outages and overflowing trash in the streets – a glimpse into Cuba's struggle under its war economy.

Under the strains of Cuba's war economy, residential areas experience extended power outages for 20 hours at a time, along with littered streets littered with waste.

In the heart of the Caribbean, Cuba is grappling with a economic crisis that shows no signs of abating. Economist Mauricio De Miranda Parrondo, a professor at Pontificia Universidad Javeriana in Colombia, asserts that the island nation cannot move forward until it abandons its centralized administration model, closely tied to the political system.

The economy of Cuba is currently undergoing a situation of stagflation, as Parrondo stated, a condition characterised by stagnant economic growth, high inflation, and high unemployment. This economic predicament is affecting the daily lives of Cubans across the island.

For instance, in the neighbourhood where Pérez Villanueva resides, chicken has not been available for eight months. The smell of garbage is overwhelming in a street in Havana, far from its tourist district, due to lack of regular waste collection. Blackouts affect everyone, including Lázaro Hernández, a 38-year-old photographer who works with tourists in Havana, who must adjust his routine due to the outages.

President Miguel Díaz-Canel has acknowledged that the prolonged blackouts are the biggest "obstacle" and severely affect the economy. The Unión Eléctrica de Cuba reports daily energy deficits between supply and demand, leading to frequent blackouts covering over 40% of the country.

The reduction in oil supply from Venezuela has also impacted Cuba. In 2011, Venezuela sent an average of 96,000 barrels per day, but now sends less than a third of that figure, according to Reuters estimates. This has led to a rise in fuel prices, further straining the Cuban economy.

Inflation in Cuba remains above double digits, according to official figures, and the measures implemented by the authorities are partial and in turn create other problems, according to Parrondo. The availability of subsidized food has decreased in recent months, adding to the hardships faced by the population.

The government is acknowledging the discomfort of the population, but has not been able to present a credible strategy for overcoming the crisis, Parrondo adds. The migratory exodus has risen in recent times, and in 2024, the population fell for the fourth consecutive year, now below 10 million inhabitants.

Cuba's economy declined by 1.1% in 2024, according to the government, and is projected to contract further by 1.5% this year by the United Nations' Economic Commission for Latin America and the Caribbean (ECLAC). The beginning of the 1990s, marked by the fall of the Soviet Union, led to an abrupt recession that forced Castroism to implement economic opening reforms.

Despite the challenges, Jorge Pérez, a tour guide, describes the situation as difficult, but notes that the goal is to show the beautiful side of Cuba to tourists despite the challenges. The resilience of the Cuban people, in the face of adversity, is a testament to their spirit and determination.

However, it is clear that substantial reforms are needed to address the deep-rooted issues plaguing the Cuban economy. Only then can Cuba hope to move forward and realise its full potential.

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