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The US’ Neoliberalism vs Cuba’s Socialism: Economic Policies and Global Impacts

Neoliberalism is a political ideology quite distinct from Cuba’s socialism for several reasons, the major ones being the type of ownership and economic philosophy. Neoliberalism emphasizes limited government intervention in the market, whereas Cuba’s socialism relies on centralized economic planning (Preciado Coronado & Uc, 2012). Another difference is that, in neoliberalism, the idea of free economic activity is cherished, whereas in socialism, government interference is pronounced.

In terms of globalization, neoliberalism acknowledges the significance of international trade and open markets, as well as the free flow of capital across borders. Meanwhile, in socialism, the state controls all processes, industries, and resources, thereby restricting opportunities for international cooperation. Finally, unlike neoliberalism, socialism gives the greatest prominence to the provision of social services, such as education, health care, and housing, aiming to ensure that all citizens have a basic standard of living.

The global economy has impacted Cuba’s socialist agenda in several ways, most prominently through the embargo and isolation, dependency on foreign aid, and various reforms and adaptation processes. Specifically, the long-standing American embargo limited Cuba’s access to international financial institutions, markets, and opportunities, as well as travel restrictions, resulting in economic challenges and stringent policies (Council on Foreign Relations, 2022).

Reliance on foreign aid, which has been persistent in Cuba, led to the country’s dependence on other states’ political and economic processes and the overall geopolitical landscape and its dynamics (Preciado Coronado & Uc, 2012). Due to economic difficulties stemming from these relations, Cuba’s socialist agenda was altered by the permission to engage in limited private enterprise. Overall, the global economy has posed challenges to Cuba’s socialist ideals, prompting the government to seek ways to generate income without fully abandoning its basic socialist principles.

The ‘normalization’ achieved by the Obama administration led to a considerable thaw in U.S.-Cuba relations, which rolled back during the Trump administration and has not yet been fully reinstated by Biden. It is difficult to predict what will happen, but it seems that changes will most likely occur in the policy sector, human rights, and leadership dimensions. The Biden administration may choose to reverse some of the policies installed by Trump, thus re-establishing a more cooperative relationship with Cuba. Alterations in Cuban leadership can affect the dynamics of these ties as new leaders may adopt more democratic policies and approaches (Leogrande, 2018). Lastly, in the human rights realm, a shift toward democracy in Cuba can positively influence the U.S. disposition toward Cuba.

Aspects that may signal a future change in Cuba’s political status include economic reforms, changes in leadership and foreign relations, and media freedom. The most viable example of such change is economic reform, as property relations tend to become more diversified through the involvement of new social actors (Martinez, 2022). Leadership changes are no less significant, as the newly elected president has the potential to reinvigorate the country’s economy and promote foreign investment in Cuba (Leogrande, 2018). Next, reflecting on the country’s affairs without pressure has become the agenda for a new wave of journalists (Keely, 2023). The development of independent media and the increased access to the internet for Cubans can considerably affect the country’s standing in the global arena.

References

Council on Foreign Relations. (2022). U.S.-Cuba relations.

Keely, G. (2023). Cuba’s independent media under pressure but undeterred. VOA News.

Leogrande, W. (2018). What to expect of Cuba’s new president Miguel Diaz-Canel. Independent.

Martinez, J. L. (2022). The political economy of contemporary Cuba. In H.-J. Burchardt & J. Leinius (Eds.), (Post-)colonial archipelagos: Comparing the legacies of Spanish colonialism in Cuba, Puerto Rico, and the Philippines (pp. 76-95). University of Michigan Press.

Preciado Coronado, J. A., & Uc, P. (2012). Cuba and the new inter-American system. In. L. Bialakowsky et. al. (Eds.), Latin American critical thought: Theory and practice (pp. 83-103). CLACSO.

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StudyCorgi. (2026, August 5). The US’ Neoliberalism vs Cuba’s Socialism: Economic Policies and Global Impacts. https://studycorgi.com/the-us-neoliberalism-vs-cubas-socialism-economic-policies-and-global-impacts/

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StudyCorgi. (2026) 'The US’ Neoliberalism vs Cuba’s Socialism: Economic Policies and Global Impacts'. 5 August.

1. StudyCorgi. "The US’ Neoliberalism vs Cuba’s Socialism: Economic Policies and Global Impacts." August 5, 2026. https://studycorgi.com/the-us-neoliberalism-vs-cubas-socialism-economic-policies-and-global-impacts/.


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StudyCorgi. "The US’ Neoliberalism vs Cuba’s Socialism: Economic Policies and Global Impacts." August 5, 2026. https://studycorgi.com/the-us-neoliberalism-vs-cubas-socialism-economic-policies-and-global-impacts/.

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StudyCorgi. 2026. "The US’ Neoliberalism vs Cuba’s Socialism: Economic Policies and Global Impacts." August 5, 2026. https://studycorgi.com/the-us-neoliberalism-vs-cubas-socialism-economic-policies-and-global-impacts/.

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