Question

How did the fall of the Soviet Union affect Cuba’s economy?

Answer 1

The dissolution of the Soviet Union led to severe economic challenges for Cuba, which lost a significant source of aid and trade. Cuba turned to tourism and foreign investment to recover, which was coupled with a tightening of the US embargo that exacerbated economic difficulties.

Step-by-step explanation:

The fall of the Soviet Union had a profound impact on Cuba's economy due to the loss of Soviet aid, which had been crucial to Cuba since the country established a socialist state and faced a trade embargo by the United States. During the 1990s, Cuba was forced to make a transition seeking alternative sources of revenue, such as tourism and foreign investment, to shore up its failing economy. The pivot to tourism introduced new dynamics to the economy, but also meant a focus on service at the possible expense of other crucial infrastructure. The aftermath of the Soviet collapse also intensified the hardship faced by Cubans since much of the tourism income went to foreign corporations, and the already tense relations between the United States and Cuba worsened with the U.S. strengthening the trade embargo through the Helms-Burton Act in 1996.

Answer 2

The fall of the Soviet Union led to a downturn in Cuba's economy in the 1990s. Fidel Castro relied on tourism and foreign investment to mitigate the effects. The United States strengthened the trade embargo during this time.

Step-by-step explanation:

The fall of the Soviet Union in 1991 had a significant impact on Cuba's economy. With the loss of Soviet aid, Cuba experienced a downturn in the 1990s. To counter the economic decline, Fidel Castro turned to tourism and foreign investment. However, tensions between the United States and Cuba persisted, and the United States strengthened the trade embargo with the Helms-Burton Act in 1996.