Sunday, October 25, 2009

When Two Plus Two Equals Three

The author reports on the minor changes that the Cuban government is trying to make in order to come out of its dire economic state. The food shortages that are characteristic for a socialist economy are very severe. According to the author, "despite its abundant farmland, Cuba imports 80% of its food." This tell a lot about the inefficiencies of the Cuban economy. Another problem, is corruption. Very similar to the Soviet Union, bureaucracy is abundant and the government leaders are appointing people to the key positions not according to their qualifications, which creates additional barriers for efficiency.

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