How did Cuba’s government respond to Havana’s economic shortages after the Soviet Union dissolved?

Following the dissolution of the Soviet Union in 1991, Cuba lost the subsidies that had effectively supported its economy, leading to severe shortages of goods, power, and transportation. This period of financial uncertainty and widespread scarcity became known as the período especial (special period).12

To address the crisis, the Cuban government implemented several economic shifts:

• Private Enterprise: Authorities relaxed controls on private business, allowing for the operation of family restaurants and farmers’ markets.1
• Currency Reform: The government permitted the circulation of U.S. dollars as legal tender, which eventually led to remittances from abroad becoming a major source of national income.31
• Foreign Investment: The state actively promoted foreign investment, particularly within the tourism sector, to generate revenue and modernize infrastructure.14

While these measures introduced market factors to the economy, the government maintained significant influence over most aspects of society, including healthcare and home ownership.1