A classic car rolls past garbage piles in Havana, Cuba, in September. Ramon Espinosa/AP Images

Cuba in Crisis

Seesawing American policies and the Cuban government’s own failures have led to Cuba’s worst economic meltdown in decades

Not long ago, the Plaza of the Revolution in Havana, Cuba, was packed with American tourists knocking into each other with selfie sticks while taking photos of the iconic image of the revolutionary Che Guevara and trying to catch a ride in a candy-apple red 1952 Chevrolet Bel-Air.

Today those polished 1950s-era American convertibles that have come to symbolize Cuba sit empty. The tourists they once carried are largely gone.

Lately, the drivers spend their lives like most Cubans do: coping with prolonged power outages, standing in line at poorly stocked supermarkets, and watching many of their friends, relatives, and neighbors—sick of all the hardships—pack up and leave the country.

Ten years ago, President Barack Obama stunned the world by restoring diplomatic relations with Cuba, ending more than 50 years of Cold War estrangement between the United States and a nation with which it had once been on the brink of nuclear war (see timeline slideshow, below). For two-plus years, Cuba brimmed with enthusiasm as waves of tourists and investment flowed in, fueled by deals signed by major American companies such as AT&T, Google, and Major League Baseball.

Not long ago, the Plaza of the Revolution in Havana, Cuba, was packed with American tourists. They’d knock into each other with selfie sticks while taking photos of the iconic image of the revolutionary Che Guevara. Then they’d try to catch a ride in a candy-apple red 1952 Chevrolet Bel-Air.

Today those polished 1950s-era American convertibles sit empty. The tourists they once carried are largely gone.

Lately, the drivers spend their lives like most Cubans: They deal with prolonged power outages, standing in line at poorly stocked supermarkets, and watching many of their friends, relatives, and neighbors leave the country.

Ten years ago, President Barack Obama stunned the world by restoring diplomatic relations with Cuba. It put an end to more than 50 years of Cold War estrangement between the United States and Cuba, nations that once had been on the brink of nuclear war (see timeline slideshow, below). For two-plus years, Cuba was full of excitement. Waves of tourists and investment flowed into the country.  Major American companies such as AT&T, Google, and Major League Baseball signed deals to do business there.

Jim McMahon


But since then, a cascade of factors has plunged Cuba into an unprecedented crisis. In his first term, President Donald Trump reversed Obama’s overtures, saying they empowered Cuba’s Communist government. President Joe Biden once again eased restrictions on travel to Cuba and on remittances—money that Cuban immigrants living in the U.S. send to family back home. Then Trump revoked these policies for a second time when he returned to office this year.

The island’s economy has also faltered under its own government’s mismanagement, the disruption of the Covid-19 pandemic, and ongoing political repression (see “Crushing Dissent,” below). The result of all of this has been an emigration exodus of epic proportions.

Tourism, once a lifeblood of Cuba’s economy, has collapsed, down nearly 50 percent since 2017, with the U.S. even discouraging Europeans, who make up a big part of Cuba’s tourism industry, from traveling there.

“The comparison between then and now is literally night and day,” says Luis Manuel Pérez, 57, who works as a chauffeur. A former engineering professor, Pérez once had a stream of customers who paid $40 an hour to ride in a classic car. Now he’s lucky to land one a day.

But since then, many factors have plunged Cuba into an unprecedented crisis. In his first term, President Donald Trump reversed Obama’s changes, saying they empowered Cuba’s Communist government. President Joe Biden once again eased restrictions on travel to Cuba and on remittances—money that Cuban immigrants living in the U.S. send to family back home. Then Trump revoked these policies for a second time when he returned to office this year.

The island’s economy has also struggled under its own government’s mismanagement, the disruption of the Covid-19 pandemic, and ongoing political repression (see “Crushing Dissent,”below). These troubles have resulted in people leaving Cuba in epic proportions.

Tourism, once a lifeblood of Cuba’s economy, has collapsed. It is down nearly 50 percent since 2017.  The U.S. has even discouraged Europeans, who make up a big part of Cuba’s tourism industry, from traveling there.

“The comparison between then and now is literally night and day,” says Luis Manuel Pérez, 57, who works as a chauffeur. A former engineering professor, Pérez once had a stream of customers who paid $40 an hour to ride in a classic car. Now he’s lucky to land one a day.

Ten years ago, they had hope. Now there’s despair.


Many of the thousands of private businesses that Cuba’s government allowed to open in recent years in an experiment with capitalism are trying to stay afloat after losing workers to migration. Garbage piles up on the streets as fuel shortages impede trash pickup. Many Cubans put it succinctly: Ten years ago, they had hope. Now there’s despair.

“You go on the street,” says Adriana Heredia Sánchez, who owns a clothing store in Old Havana, the historic center of the city once crowded with tourists, “and people’s smiles are fading.”

Many of the thousands of private businesses that Cuba’s government allowed to open in recent years are trying to stay afloat after losing workers to migration. Garbage piles up on the streets because there is not enough fuel for trash pickup. Ten years ago, many Cubans had hope. Now there’s despair.

“You go on the street,” says Adriana Heredia Sánchez, who owns a clothing store in Old Havana, the historic center of the city once crowded with tourists, “and people’s smiles are fading.”

Yamil Lage/AFP via Getty Images

In Havana: empty store shelves amid a food shortage.

Help Not Wanted

Cuba’s unraveling underscores the oversized role the U.S. has played in its fortunes over the years. Obama hoped to make Cuba a trading partner and to encourage its dictatorship to grant more freedoms, such as expanded internet access. He allowed American cruise ships to dock in Cuba, more U.S. airlines to fly there, and more Americans to visit.

The move represented a dramatic turning point in relations between countries that had been hostile to one another for decades. President Dwight D. Eisenhower broke off diplomatic relations with Cuba in 1961, shortly after Fidel Castro drove U.S.-backed president Fulgencio Batista from power and embraced Communism. Under President John F. Kennedy, the failed Bay of Pigs operation aimed at toppling Castro in April 1961 and the 13-day showdown over Soviet missiles installed in Cuba the following year cemented the country’s status as a Cold War enemy.

The excitement was palpable the week in 2016 when Obama attended a Tampa Bay Rays baseball game in Havana with Raúl Castro, Fidel’s brother and Cuba’s then-president.

“If Obama had run for president in Cuba, he would have been elected,” Jaime Morales, 44, a tour guide in Havana, says laughing.

Not everyone was pleased. As part of the reconciliation between the nations, Cuba freed political prisoners and agreed to increase internet access and permit more private enterprise. But former President Fidel Castro soon spoke out against the new policies, says Ricardo Zúniga, a top Obama aide. Castro knew that increased internet access and economic freedoms would lead more people to question Cuba’s lack of basic rights and could undermine the regime, Zúniga says.

“Cuban government leadership never took advantage of opportunities to allow for gradual change in response to popular will,” he adds. “So now they are stuck with social collapse.”

His first year in office, President Trump reversed what he called a “terrible and misguided deal” with Cuba. Then in 2018, mysterious illnesses befell U.S. Embassy employees in Havana, which some believed was an attack by a hostile nation. Trump sent many workers home, effectively closing the embassy. He also listed Cuba as a state sponsor of terrorism, limiting Cuba’s ability to do business globally. Biden lifted that designation this year, before leaving office, but Trump has reinstated it.

Cuba’s downturn demonstrates the oversized role the U.S. has played in its fortunes over the years. Obama hoped to make Cuba a trading partner. He encouraged its dictatorship to grant more freedoms, such as expanded internet access. He allowed American cruise ships to dock in Cuba, more U.S. airlines to fly there, and more Americans to visit.

The move represented a dramatic change in relations between countries that had been hostile to one another for decades. President Dwight D. Eisenhower broke off diplomatic relations with Cuba in 1961, after Fidel Castro drove U.S.-backed president Fulgencio Batista from power and embraced Communism. In April 1961, President John F. Kennedy oversaw the failed Bay of Pigs operation aimed at toppling Castro. The following year, a13-day showdown over Soviet missiles installed in Cuba cemented the country’s status as a Cold War enemy.

The excitement was high the week in 2016 when Obama attended a Tampa Bay Rays baseball game in Havana with Raúl Castro, Fidel’s brother and Cuba’s then-president.

“If Obama had run for president in Cuba, he would have been elected,” Jaime Morales, 44, a tour guide in Havana, says laughing.

Not everyone was pleased. As part of the reconciliation between the nations, Cuba freed political prisoners and agreed to increase internet access. The government also permitted more private enterprise. But former President Fidel Castro soon spoke out against the new policies. Castro knew that increased internet access and economic freedoms would lead more people to question Cuba’s lack of basic rights and could undermine the regime, says Ricardo Zúniga, a top Obama aide.

“Cuban government leadership never took advantage of opportunities to allow for gradual change in response to popular will,” he adds. “So now they are stuck with social collapse.”

His first year in office, President Trump reversed what he called a “terrible and misguided deal” with Cuba. Then in 2018, mysterious illnesses befell U.S. Embassy employees in Havana. Some believed it was an attack by a hostile nation. Trump sent many workers home, effectively closing the embassy. He also listed Cuba as a state sponsor of terrorism, limiting Cuba’s ability to do business globally. Biden lifted that designation before leaving office, but Trump has reinstated it.

Ramon Espinosa/AP Images

In Havana: cooking over an open fire during a blackout in December. 

Deepening Despair

Cuba’s economic crisis may be its worst since the 1990s, when the island suffered terrible hardships after the collapse of the Soviet Union, its chief economic backer. Cuba has experienced several nationwide blackouts since October because of its crumbling power grid. Official figures show the population has plunged by 10 percent, or about 1 million people, since the pandemic. More than 675,000 of those Cubans fled to the U.S.

Even the infant mortality rate, which Cuba’s leaders had so proudly brought to levels lower than the U.S., has been climbing. Cuba was one of the few countries in Latin America touted for eliminating child malnutrition. Today, milk rations for children, as well as staples such as rice and beans, are often delivered late to state-run stores, if at all. Last year, for the first time, Cuba turned to the United Nations’ World Food Programme for help supplying milk, the organization says.

Cuba’s economic crisis may be its worst since the 1990s. After the collapse of the Soviet Union, the island lost its main source of financial backing and suffered terrible hardships. Its crumbling power grid has caused several nationwide blackouts since October. Official figures show the population has plunged by 10 percent, or about 1 million people, since the pandemic. More than 675,000 of those Cubans fled to the U.S.

Even the infant mortality rate, once lower than that in the U.S., has been climbing. Cuba was one of the few countries in Latin America praised for eliminating child malnutrition. Today milk rations for children and staples such as rice and beans are often delivered late to state-run stores. Sometimes they aren’t delivered at all. Last year, Cuba turned to the United Nations’ World Food Programme for help supplying milk, the organization says.

Many Cubans have grown tired of their government blaming Washington.

Hospitals have run out of basic medicines such as penicillin and aspirin. A pharmacy in Havana’s Vedado neighborhood doles out 200 numbered tickets the day before medicines are delivered. As a result, people must line up for hours­—twice.

“Sometimes there are medicines that run out before they get to 200,” says Maritza González, 54, a teacher’s assistant who needs an asthma inhaler.  “Sometimes, they run out before they get to 50.” She managed to get an inhaler only once this year.

Life could get harder. Trump’s new secretary of state, Marco Rubio, a former Republican senator from Florida, is a hardline critic of the Cuban government. He could push for even stronger travel and economic restrictions.

Hospitals have run out of basic medicines such as penicillin and aspirin. A pharmacy in Havana’s Vedado neighborhood hands out 200 numbered tickets the day before medicines are delivered. As a result, people must line up for hours to not only get a ticket but also to get their medicine.

“Sometimes there are medicines that run out before they get to 200,” says Maritza González, 54, a teacher’s assistant who needs an asthma inhaler.  “Sometimes, they run out before they get to 50.” She managed to get an inhaler only once this year.

Life could get harder. Trump’s new secretary of state, Marco Rubio, a former Republican senator from Florida, is a hardline critic of the Cuban government. He could push for even stronger travel and economic restrictions.

Accusations Fly

Opponents of the longtime U.S. embargo still blame the U.S. for many of Cuba’s current woes, including sanctions that cut the country’s income.

“We have lived through other previous cycles which impacted the quality of life, which many times were linked to hostile U.S. policy,” says José Ramón Cabañas Rodríguez, a former Cuban ambassador to Washington.

But many Cubans have grown tired of their government blaming Washington, says Arianna Delgado, a makeup artist who left Cuba this year for Miami, Florida.

“Let’s be clear: Cuba was always bad, but now the situation is not that there’s less; it’s that there’s nothing,” she says through tears. “Now it’s a concentration camp, and the whole world has to know it.”

Many still blame the U.S. embargo for Cuba’s current woes, including the sanctions that cut the country’s income.

“We have lived through other previous cycles which impacted the quality of life, which many times were linked to hostile U.S. policy,” says Jose Ramón Cabañas Rodríguez, a former Cuban ambassador to Washington.

But many Cubans have grown tired of their government blaming Washington, says Arianna Delgado, a makeup artist who left Cuba this year for Miami, Florida.

“Let’s be clear: Cuba was always bad, but now the situation is not that there’s less; it’s that there’s nothing,” she says through tears. “Now it’s a concentration camp, and the whole world has to know it.”

Frances Robles covers Latin America and the Caribbean for The New York Times.

Frances Robles covers Latin America and the Caribbean for The New York Times.

CUBA

AT A GLANCE

Population

11 million

(U.S.: 342 million)

Per Capita GDP

$12,300
(U.S.: $74,600)

Life Expectancy

80 years

(U.S.: 80.9 years)

Source: World Factbook (C.I.A.)

Crushing Dissent

Critics of the Cuban government face arrest or exile

Yamil Lage/AFP via Getty Images

A protester is arrested in Havana in 2021.

Cubans still lack basic rights to protest against their leaders. The last major attempt to foment a protest movement in Cuba happened in 2021. But Cuba’s government cracked down before it could take off. That summer, thousands of Cubans had taken to the streets in cities around the country to protest food and medicine shortages—an eruption of discontent that hadn’t occurred in nearly 30 years. Hundreds faced arrest.

When organizers tried to hold another march in the fall, police officers, plainclothes security agents, and government supporters holding picket signs surrounded the homes of dissidents to prevent them from leaving. State-run television ran segments attacking some of the movement’s leaders, including Yunior García, a playwright. He took it as a warning that he would be arrested, and friends helped him sneak out of the country. He’s now in Spain.

“They have used every tool at their disposal to intimidate us,” García says.

With Cuba’s crisis deepening, opposition to the government is likely to grow. Occasional outbreaks of protests have occurred in the past few years, but in this tightly controlled nation, they remain rare.

“There is no other way to achieve change,” says Raúl Prado, a cinematographer and opposition activist. “If it’s not us, then the responsibility will fall on our children.”

—Brian S. McGrath

Cubans still lack basic rights to protest against their leaders. The last major attempt to foment a protest movement in Cuba happened in 2021. But Cuba’s government cracked down before it could take off. That summer, thousands of Cubans had taken to the streets in cities around the country to protest food and medicine shortages—an eruption of discontent that hadn’t occurred in nearly 30 years. Hundreds faced arrest.

When organizers tried to hold another march in the fall, police officers, plainclothes security agents, and government supporters holding picket signs surrounded the homes of dissidents to prevent them from leaving. State-run television ran segments attacking some of the movement’s leaders, including Yunior García, a playwright. He took it as a warning that he would be arrested, and friends helped him sneak out of the country. He’s now in Spain.

“They have used every tool at their disposal to intimidate us,” García says.

With Cuba’s crisis deepening, opposition to the government is likely to grow. Occasional outbreaks of protests have occurred in the past few years, but in this tightly controlled nation, they remain rare.

“There is no other way to achieve change,” says Raúl Prado, a cinematographer and opposition activist. “If it’s not us, then the responsibility will fall on our children.”

—Brian S. McGrath

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