September 30th, 2023 at 05:46 am
Working in Cuba as a Foreigner | Everything You Need to Know
Cuba’s economy is primarily centrally controlled, making it one of the world’s last big communist bastions. It will come as no surprise to foreigners working in Cuba that the government controls the majority of the country’s industry and workers.
However, as expats working in Cuba will have noted, the Cuban economy has skewed more toward the market since Ral Castro’s ascent to the presidency, following his brother Fidel Castro’s refusal to run for reelection due to illness.
Due to tense international ties, including but not limited to the US trade embargo, Cuba’s economy has been in shambles since the fall of the Soviet Union in 1991, which had previously granted Cuba preferential trade terms. Although Venezuela has stepped up to fill part of the hole, the country’s political instability has prompted Cuban officials to approach Russia and China once more for foreign investment and expanded commerce.
Furthermore, after Ral’s election as President of Cuba, major economic changes have been implemented. The Communist Party signed a package of over 300 measures in April 2011, bringing the country closer to a market-oriented economy.
Furthermore, the 2016 Cuban Communist Party Congress endorsed a plan for privatizing small and medium-sized firms. This new concept will allow private enterprises to avoid interacting with the government bureaucracy, which is used to maintain inefficient export and import monopolies. Although the state employed more than 80% of the Cuban workforce in 2012, rising privatization has resulted in a continuous drop in this percentage. For example, the number of self-employed Cubans has more than tripled in three years, from 150,000 to 500,000 as of December 2015.
Overall, more than two million Cubans work in the private sector, accounting for 34% of the country’s total labor force. Furthermore, the government has begun to encourage the formation of cooperatives, particularly among farmers, with over 5,500 agricultural cooperatives founded as of 2015. Expats working in Cuba and tourists visiting the country will also note an increase in the number of privately run cooperative eateries springing up throughout the country.
Economic Development and Challenges — The Sweet and Sickly Cuban Sugar Industry
Although the economy remained reasonably stable under Ral Castro from 2008 to 2013, with an annual GDP growth of 2.7%, 2014 saw a significant decrease, with predictions predicting a final increase of 1.4%. However, improved relations with the United States aided Cuba’s GDP growth of 4% in 2015. While working in Cuba is appealing to many, the country nonetheless confronts a number of problems that limit sustainable growth.
The country is still grappling with the demise of the Soviet bloc, as well as dropping nickel prices and the aftermath of many storms. Furthermore, the sugar sector, which was formerly Cuba’s principal exporter, has been under increasing difficulty.
The sugar sector has declined due to falling prices, heavy rainfall, old equipment, decrepit mills erected more than sixty years ago, and disorganization. Sugar is no longer one of the country’s main exports, and the industry’s failings have increased pressure on the government to open up the sector to foreign investment. With the current detente between the United States and Cuba, there is some hope for the business. In fact, an American agricultural team arrived in Cuba in 2015 to examine the economic potential and raise sugar cane productivity to historical levels with the support of Cuban government incentives.
As previously said, the government is working hard to repair the economy, and one of its most significant efforts is the opening of the tourist industry. Furthermore, those who live and work in Cuba may be astonished to learn that the government intends to unify the currency. In fact, Fidel Castro announced this reform in 2014. However, it had not yet been implemented as of 2016.
A Difficult Currency System
The country still uses two currencies, the CUP and the CUC, as its official currency. While the former is the standard currency, the latter was formed after the Soviet Union’s demise to protect the country’s socialist goal from the capitalist market.
As a result, the CUC is a transferrable currency that is mostly used in the tourism industry. However, because it is pegged to the US dollar, the CUC is worth 25 times the CUP. To make matters worse, only the CUC is accepted in specific areas, such as parts of Havana, allowing those with access to it, such as those with official links, to live a more luxurious lifestyle than the average person.
Those considering working in Cuba should be aware that, while the planned currency reform is an important step toward revitalizing the economy, economists have warned that the dual project of devaluing the CUC and revaluing the CUP may cause social unrest, inflation, and discontent.
The aforementioned economic reforms are just a few of the continuing improvements in Cuba. Expats will be relieved to find that it is now easier for them to buy and sell private property. Unfortunately, none of these reforms have resulted in actual market liberalization for a variety of reasons, the most important of which is ideology. Instead, there are several restrictions that continue to prevent firms from investing and expats from working in Cuba.
It is easier to find work in the tourism industry.
Nonetheless, there are certain career options available for expats planning to work in Cuba. For example, you can always find work in foreign corporations or agencies with offices in Cuba. However, because the majority of these are joint ventures with Cuban enterprises, Cuban applicants are frequently given preference.
Expats interested in working in Cuba may find jobs as tour operators or representatives in the tourism business. You should not expect to be recruited as a bartender, entertainer, or cleaner. These employment are only available to Cubans. Many foreigners who intend to work in Cuba find work as freelance writers, photographers, or journalists. You should be aware, though, that you will require a work permit for this.
Keep in mind that the state distributes practically all jobs. Working in Cuba requires a work visa, which is not easy to obtain because Cuban citizens are treated preferentially. See our page on moving to Cuba for more information on business visas.
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