Since the 2006 announcement by the Cuban government that octogenarian Fidel Castro had transferred power to his brother Raul, there has been increasing speculation regarding political and economic changes in Cuba. More recently, some potential investors seem to have bought the narrative that the Cuban government has embarked on a process of genuine political and economic reforms. But investors beware.
In its 2014 “Index of Economic Freedom” report, the Heritage Foundation ranks Cuba as one of the world’s least free economies with a score of 28.7 compared to a world average of 60.3, and an average of 84.1 for the free economies of the world. Cuba’s economic milieu continues to deteriorate in terms of most of the factors considered in the Heritage Foundation methodology such as trade freedom, fiscal freedom, monetary freedom, and particularly freedom from corruption.