Special Period - Overview

Overview

The dissolution of the Soviet Union hit the Cuban economy severely. The country lost approximately 80% of its imports, 80% of its exports and its Gross Domestic Product dropped by 34 percent. Food and medicine imports stopped or severely slowed. The largest immediate impact was the loss of nearly all of the petroleum imports from the USSR; Cuba's oil imports dropped to 10% of pre-1990 amounts. Before this, Cuba had been re-exporting any Soviet petroleum it did not consume to other nations for profit, meaning that petroleum had been Cuba's second largest export product before 1990. Once the restored Russian Federation emerged from the former Soviet Union, its administration immediately made clear that it had no intention of delivering petroleum that had been guaranteed the island by the USSR; this resulted in a decrease in Cuban consumption by 20% of its previous level within two years. The effect was felt immediately. Entirely dependent on fossil fuels to operate, the major underpinnings of Cuban society—its transportation, industrial and agricultural systems—were paralyzed. There were extensive losses of productivity in both Cuban agriculture — which was dominated by modern industrial tractors, combines, and harvesters, all of which required petroleum to run — and in Cuban industrial capacity.

The early stages of the Special Period were defined by a general breakdown in transportation and agricultural sectors, fertilizer and pesticide stocks (both of those being manufactured primarily from petroleum derivatives), and widespread food shortages. Australian and other permaculturists arriving in Cuba at the time began to distribute aid and taught their techniques to locals, who soon implemented them in Cuban fields, raised beds, and urban rooftops across the nation. Organic agriculture was soon after mandated by the Cuban government, supplanting the old industrialized form of agriculture Cubans had grown accustomed to. Relocalization, permaculture, and innovative modes of mass transit had to be rapidly developed. For a time, waiting for a bus could take three hours, power outages could last up to sixteen hours, food consumption was cut back to one-fifth of their previous levels and the average Cuban lost about nine kilograms (twenty pounds)(highly doubtful; needs citations). Although starvation was avoided, persistent hunger, something not seen since before the Cuban Revolution, suddenly became a daily experience, and initially, malnutrition in children under five was evident after just a few weeks of these food shortages.

At the time, United States law allowed humanitarian aid in the form of food and medicine by private groups. Then in March 1996, the Helms-Burton Act imposed further penalties on foreign companies doing business in Cuba, and allowed U.S. citizens to sue foreign investors who use American-owned property seized by the Cuban government. Due to the external factors contributing to the energy crisis in Cuba, the collapse of the USSR who had been their main source of petroleum and food imports, along with the various stages of the US embargo, this is referred to as an "artificial" peak oil.

The Cuban government was also forced to contract out more lucrative economic and tourism deals with various Western European and South American nations in an attempt to earn the foreign currency necessary to replace the lost Soviet petroleum via the international markets. Additionally faced with a near-elimination of imported steel and other ore-based supplies, Cuba closed refineries and factories across the country, eliminating the country's industrial arm and millions of jobs. The government then proceeded to replace these lost jobs with employment in industrial agriculture and other homegrown initiatives, but these jobs often did not pay as well, and Cubans on the whole became economically poorer. Alternative transportation, most notably the Cuban "camels" — immense 18-wheeler tractor trailers retrofitted as passenger buses meant to carry hundreds of Cubans each — flourished. Food-wise, meat and dairy products, having been extremely fossil fuel dependent in their former factory farming methods, soon diminished in the Cuban diet. In a shift notable for being generally anathema to Latin American food habits, the people of the island by necessity adopted diets higher in fiber, fresh produce, and ultimately more vegan in character. No longer needing sugar as desperately for a cash crop — the oil-for-sugar program the Soviets had contracted with Cuba had, of course, dissipated — Cuba hurriedly diversified its agricultural production, utilizing former cane fields to grow consumables such as oranges and other fruit and vegetables. The Cuban government also focused more intensely on cooperation with Venezuela once the socialist Hugo Chávez was elected president in 1998.