Why is Cuba a planned economy?

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2026-03-24 07:05

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Cuba is considered a planned economy because the government centrally controls the production, distribution, and pricing of goods and services. This system, established after the 1959 revolution, aims to eliminate private ownership of major industries and ensure equitable resource allocation among the population. The state plans and directs economic activity to meet social needs rather than profit motives, reflecting socialist principles. Consequently, the economy relies heavily on state enterprises and strict regulations, limiting market forces.

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