United States Embargo Against Cuba - Socio-Economic Effects of The Embargo

Socio-Economic Effects of The Embargo

The 1998 U.S. State Department in the report Zenith and Eclipse: A Comparative Look at Socio-Economic Conditions in Pre-Castro and Present Day Cuba argued that the U.S. embargo has added, at most, relatively small increases in transportation costs. It claims that the main problem is not the embargo but the lack of foreign currency due to the unwillingness to liberalize the economy, diversify the export base, during the years of abundant Soviet aid. Cuba also amassed substantial debts owed to its Japanese, European, and Latin American trading partners acquired during the years of abundant Soviet aid.

The U.S. Chamber of Commerce estimates that the embargo costs the U.S. economy $1.2 billion per year in lost sales and exports, while the Cuban government estimates that the embargo only costs the island itself $685 million annually. The United States has spent over $500 million broadcasting Radio Marti and TV Marti, even though the transmission signals of the latter are effectively blocked by the Cuban government. The self-proclaimed-non-partisan Cuba Policy Foundation estimates that the embargo costs the U.S. economy $3.6 billion per year in economic output.