Cuba vs. Puerto Rico

The native Amerindian population of Cuba began to decline after the European discovery of the island by Christopher COLUMBUS in 1492 and following its development as a Spanish colony during the next several centuries. Large numbers of African slaves were imported to work the coffee and sugar plantations, and Havana became the launching point for the annual treasure fleets bound for Spain from Mexico and Peru. Spanish rule eventually provoked an independence movement and occasional rebellions were harshly suppressed. US intervention during the Spanish-American War in 1898 assisted the Cubans in overthrowing Spanish rule. The Treaty of Paris established Cuban independence from Spain in 1898 and, following three-and-a-half years of subsequent US military rule, Cuba became an independent republic in 1902 after which the island experienced a string of governments mostly dominated by the military and corrupt politicians. Fidel CASTRO led a rebel army to victory in 1959; his authoritarian rule held the subsequent regime together for nearly five decades. He stepped down as president in February 2008 in favor of his younger brother Raul CASTRO. Cuba's communist revolution, with Soviet support, was exported throughout Latin America and Africa during the 1960s, 1970s, and 1980s. Miguel DIAZ-CANEL Bermudez, hand-picked by Raul CASTRO to succeed him, was approved as president by the National Assembly and took office on 19 April 2018. DIAZ-CANEL was appointed First Secretary of the Communist Party on 19 April 2021 following the resignation of Raul CASTRO.

The country faced a severe economic downturn in 1990 following the withdrawal of former Soviet subsidies worth $4-6 billion annually. Cuba traditionally and consistently portrays the US embargo, in place since 1961, as the source of its difficulties. As a result of efforts begun in December 2014 to re-establish diplomatic relations with the Cuban Government, which were severed in January 1961, the US and Cuba reopened embassies in their respective countries in July 2015. The embargo remains in place, and the relationship between the US and Cuba remains tense. 

Illicit migration of Cuban nationals to the US via maritime and overland routes has been a longstanding challenge. On 12 January 2017, the US and Cuba signed a Joint Statement ending the so-called "wet-foot, dry-foot" policy - by which Cuban nationals who reached US soil were permitted to stay. Illicit Cuban migration by sea has since dropped significantly, but land border crossings continue. In FY 2018, the US Coast Guard interdicted 312 Cuban nationals at sea. Also in FY 2018, 7,249 Cuban migrants presented themselves at various land border ports of entry throughout the US.

The government continues to balance the need for loosening its socialist economic system against a desire for firm political control. In April 2011, the government held the first Cuban Communist Party Congress in almost 13 years, during which leaders approved a plan for wide-ranging economic changes. Since then, the government has slowly and incrementally implemented limited economic reforms, including allowing Cubans to buy electronic appliances and cell phones, stay in hotels, and buy and sell used cars. The government has cut state sector jobs as part of the reform process, and it has opened up some retail services to "self-employment," leading to the rise of so-called "cuentapropistas" or entrepreneurs. More than 500,000 Cuban workers are currently registered as self-employed.

The Cuban regime has updated its economic model to include permitting the private ownership and sale of real estate and new vehicles, allowing private farmers to sell agricultural goods directly to hotels, allowing the creation of non-agricultural cooperatives, adopting a new foreign investment law, and launching a "Special Development Zone" around the Mariel port.

Since 2016, Cuba has attributed slowed economic growth in part to problems with petroleum product deliveries from Venezuela. Since late 2000, Venezuela provided petroleum products to Cuba on preferential terms, supplying at times nearly 100,000 barrels per day. Cuba paid for the oil, in part, with the services of Cuban personnel in Venezuela, including some 30,000 medical professionals.

Puerto Rico had one of the most dynamic economies in the Caribbean region until 2006; however, growth has been negative for each of the last 11 years. The downturn coincided with the phaseout of tax preferences that had led US firms to invest heavily in the Commonwealth since the 1950s, and a steep rise in the price of oil, which generates most of the island's electricity.

Diminished job opportunities prompted a sharp rise in outmigration, as many Puerto Ricans sought jobs on the US mainland. Unemployment reached 16% in 2011, but declined to 11.5% in December 2017. US minimum wage laws apply in Puerto Rico, hampering job expansion. Per capita income is about two-thirds that of the US mainland.

The industrial sector greatly exceeds agriculture as the locus of economic activity and income. Tourism has traditionally been an important source of income with estimated arrivals of more than 3.6 million tourists in 2008. Puerto Rico's merchandise trade surplus is exceptionally strong, with exports nearly 50% greater than imports, and its current account surplus about 10% of GDP.

Closing the budget deficit while restoring economic growth and employment remain the central concerns of the government. The gap between revenues and expenditures amounted to 0.6% of GDP in 2016, although analysts believe that not all expenditures have been accounted for in the budget and a better accounting of costs would yield an overall deficit of roughly 5% of GDP. Public debt remained steady at 92.5% of GDP in 2017, about $17,000 per person, or nearly three times the per capita debt of the State of Connecticut, the highest in the US. Much of that debt was issued by state-run schools and public corporations, including water and electric utilities. In June 2015, Governor Alejandro GARCIA Padilla announced that the island could not pay back at least $73 billion in debt and that it would seek a deal with its creditors.

Hurricane Maria hit Puerto Rico square on in September 2017, causing electrical power outages to 90% of the territory, as well as extensive loss of housing and infrastructure and contamination of potable water. Despite massive efforts, more than 40% of the territory remained without electricity as of yearend 2017. As a result of the destruction, many Puerto Ricans have emigrated to the US mainland.

the US dollar is used

state control of the telecom sector hinders development; Cuba has the lowest mobile phone and Internet penetration rates in the region; fixed-line density is also very low; thaw of US-Cuba relations encouraged access to services, such as Wi-Fi hotspots; access to sites is controlled and censored; DSL and Internet available in Havana, though costs are too high for most Cubans;  international investment and agreement to improve Internet access through cost-free and direct connection between networks (2021)

small telecom market affected by mismanagement and natural disasters; hurricanes in 2017 and earthquake in 2020 caused destruction of telecom infrastructure, leading to market decline; US provided funds to rebuild after some delay; lags behind US in fixed and broadband penetration due to high unemployment and lack of operator investment; multi-national telcoms enable LTE and launch of 5G; growing number of submarine cables helps to reduce costs and supports streaming of international content and cloud services; operator launched connectivity for school children during pandemic (2021)

Government owns and controls all broadcast media: five national TV channels (Cubavision, Tele Rebelde, Multivision, Educational Channel 1 and 2,) 2 international channels (Cubavision Internacional and Caribe,) 16 regional TV stations, 6 national radio networks and multiple regional stations; the Cuban government beams over the Radio-TV Marti signal; although private ownership of electronic media is prohibited, several online independent news sites exist; those that are not openly critical of the government are often tolerated; the others are blocked by the government; there are no independent TV channels, but several outlets have created strong audiovisual content (El Toque, for example); a community of young Youtubers is also growing, mostly with channels about sports, technology and fashion; Christian denominations are creating original video content to distribute via social media

US Naval Base at Guantanamo Bay is leased to US and only mutual agreement or US abandonment of the facility can terminate the lease

increasing numbers of illegal migrants from the Dominican Republic cross the Mona Passage to Puerto Rico each year looking for work