© 2025 Improve the News Foundation.
All rights reserved.
Version 6.18.1
Cuba's blackouts stem from decades of communist central planning failures that have created an inefficient electrical system that is now crumbling. Central planners cannot produce reliable electricity because they lack the market incentives and competition that drive innovation and proper resource allocation. The government's cash-strapped system diverts scarce resources to disaster relief instead of long-term infrastructure investment, creating a vicious cycle of neglect and failure.
U.S. sanctions have pulped Cuba's economy and directly caused the blackouts by cutting off financial institutions, blocking fuel payments and destroying tourism through American terror designations. The decades-long blockade manufactured a cash-scarce economy where even exempt imports like medication can't be purchased because banks refuse transactions. This economic warfare is the root cause of Cuba's infrastructure collapse, not government mismanagement.