Obama and Castro Peruvian Presidency/ZumaPress

Cuba Comes in from the Cold

A few years ago, it would have been difficult to imagine Cuba knocking at the doors of the World Bank and the International Monetary Fund. Today, it seems only a matter of time before the country joins both institutions – to the benefit of all involved.

WASHINGTON, DC – A few years ago, it would have been difficult to imagine Cuba knocking at the doors of the World Bank and the International Monetary Fund. Now, with the United States having just restored diplomatic ties with the island after more than a half-century of enmity, it seems to be only a matter of time before it joins both institutions – to the benefit of all involved.

Membership in the IMF is a precondition for joining the World Bank, and the advantages that Cuba could gain from membership in the latter are easy to see. Cuba is rightly proud of its social achievements, but ensuring that they remain sustainable will require that its economy continues to grow. For that, Cuba will need to pursue and deepen the economic reforms that it has started, address its technological obsolescence, and upgrade its public infrastructure.

All of this requires raising capital. And, though Cuba could (and possibly should) seek financial support from sources other than the World Bank, there are problems with many of the multilateral alternatives. The Andean Development Corporation’s financial support could be limited. The procedures for accession to the BRICS countries’ New Development Bank are not yet established. And joining the Inter-American Development Bank could be politically sensitive, given its link to the Organization of American States.

To continue reading, please log in or enter your email address.

Registration is quick and easy and requires only your email address. If you already have an account with us, please log in. Or subscribe now for unlimited access.

required

Log in

http://prosyn.org/Plp726F;
  1. China corruption Isaac Lawrence/Getty Images

    The Next Battle in China’s War on Corruption

    • Chinese President Xi Jinping knows well the threat that corruption poses to the authority of the Communist Party of China and the state it controls. 
    • But moving beyond Xi's anti-corruption purge to build robust and lasting anti-graft institutions will not be easy, owing to enduring opportunities for bureaucratic capture.
  2. Italy unemployed demonstration SalvatoreEsposito/Barcroftimages / Barcroft Media via Getty Images

    Putting Europe’s Long-Term Unemployed Back to Work

    Across the European Union, millions of people who are willing and able to work have been unemployed for a year or longer, at great cost to social cohesion and political stability. If the EU is serious about stopping the rise of populism, it will need to do more to ensure that labor markets are working for everyone.

  3. Latin America market Federico Parra/Getty Images

    A Belt and Road for the Americas?

    In a time of global uncertainty, a vision of “made in the Americas” prosperity provides a unifying agenda for the continent. If implemented, the US could reassert its historical leadership among a group of countries that share its fundamental values, as well as an interest in inclusive economic growth and rising living standards.

  4. Startup office Mladlen Antonov/Getty Images

    How Best to Promote Research and Development

    Clearly, there is something appealing about a start-up-based innovation strategy: it feels democratic, accessible, and so California. But it is definitely not the only way to boost research and development, or even the main way, and it is certainly not the way most major innovations in the US came about during the twentieth century.

  5. Trump Trade speech Bill Pugliano/Getty Images .

    Preparing for the Trump Trade Wars

    In the first 11 months of his presidency, Donald Trump has failed to back up his words – or tweets – with action on a variety of fronts. But the rest of the world's governments, and particularly those in Asia and Europe, would be mistaken to assume that he won't follow through on his promised "America First" trade agenda.