CASTRO’S RISE The Economic crisis that lead to Fidel Castro’s rise to power

The Economic Situation 1930s  Batista came to power during the Great Depression  Great Depression devastated the economy (U.S. influence accentuated it)  Sugar prices in 1928 were at $2.18 per pound, dropped to $1.72 per pound in By 1933 a pound of sugar sold for $0.57 per pound.  Unemployment/Starvation  Population increase meant people had inadequate housing  Bad living/sanitary conditions  Batista encouraged the diversification of Cuba’s economy.  Cuba’s economy specialized in sugar production since the 1700s.  Diversification took reserve that the Cuban government did not have  Industrialization was focused on: Agricultural workers declined 1953 – 60% labor force was nonagricultural

American Involvement  U.S. involved in Cuba’s internal affairs; economically and politically  Batista promoted investments on U.S. companies (controlled key industries e.g. electricity, water etc.)  U.S. controlled greater part of Cuba’s resources including sugar, mineral rights, public-utility concessions, cattle lands  Platt Amendments let U.S. operate military bases including Guantanamo Bay  U.S. businesses owned 32% of Cuban sugar industry  Resented by Cubans since their own businesses could never profit  Exports and Imports controlled by the U.S.  Restrictions were placed in price changes on exports and imports

Government Expenditure  Batista spent government funds on roads/promenades/monumental buildings etc instead of significant investments such as schools/healthcare/housing etc.  To show power and wealth  Cuba failed to invest government funds wisely.  Bought radio stations:  160 stations in Cuba compared to the 60 in U.K. 50 in France  23 T.V. stations in Cuba compared to 12 in Mexico, 10 in Venezuela  For Propaganda; censorship; show wealth/power

Economic Corruption  Reliance on tourism  Batista offered incentives for businesses to invest in Cuba especially hotel investments which apparently increased tourism to lead to economic growth  this allowed gambling establishments to inhabit Cuba which contributed to the eventual moral degradation of the regime.  Generated resentment among Cubans, average Cubans not allowed to use these facilities nor did they profit from these investments  Only Batista profited from bribes from these business investments  Replaced sugar production as Cuba’s key industry Mafia-run casinos  United States mafia leader Meyer Lansky in the 1930s would pay Batista millions of dollars in return for control of Cuba’s casino industry Havana  Havana lost its culture when it was opened to gambling, organized crime, tourism and prostitution (new Las Vegas)

Disconnection of U.S. involvement  Castro severed all ties to the U.S.  Reestablished close ties with the USSR (Import soviet oil)  U.S. severed all trading relations with Cuba (Without U.S. trade restrictions, Cuba recovered a steady flow of income through trade)  Cuba’s economy was able to fluctuate and experience economic growth

Why was this Factor Important?  Economy: important for success  Standard of living brought down  Ineffective policies from Batisa  People unhappy; wanted change  Batista’s popularity decreases