Topic > Cuba's Developing Economy - 634

Based on e-Activity, identify a challenge of a developing economy and how it can be managed. The challenge of Cuba's developing economy is the low productivity and low workforce of the economy as a whole. The Miami Herald revealed that “Granma and Yzquierdo pointed to a list of reasons for Cuba's economic inactivity, such as the postponement of projects due to broken contracts and “low productivity and labor shortages,” along with the economy of Latin America, as well as the rest of the world". Cuba's GDP growth for the first part of 2013 is estimated at 2.3 percent, compared to 2.1 percent for the same period in 2012. Cuba practices a unique approach to calculating GDP that embellishes the number compared to other countries." . (Tamayo, 2013) Negative radical policies have remained in decline in the productivity of the developing economy, and the most significant challenge facing the established order is how to incentivize the market towards increasing development of production and productivity. All goods and services constitute an economy. Real gross domestic product (GDP) is produced by labor and capital resources. The determining factors of economic development are the accessibility of economic resources (quality of labor and capital) and productivity factors (human capital and technology). Cuba can be managed by encouraging sustainable consumption and production, managing natural resources for the benefit of ecological and social expansion. Provide some form of urgency towards human development, with the eradication of poverty as a crucial objective. The success of human development depends on the extent to which the opportunities created through globalization are used and their negative effects are diminished. Furthermore, Cuba may have… half the paper… and other capital infrastructure needed for expansion. Domestic agriculture is also increasing. China's free and unrestricted trade with other countries (the open-door policy) has stimulated foreign direct investment, producing additional employment and also connecting the Chinese economy to the international open market. HanShih, T. (2013). China's formula for reducing poverty could help developing countries. Retrieved from South China Morning Post Publishers Ltd.: http://www.scmp.com/news/china/article/1202142/chinas-formula-reduce-poverty-could-help-developing-nationsMcEachern, W. (2012). Eco-Micro. In W. McEachern, Econ-Micro (pp. 27-30). Mason: Cengage Learning.Tamayo, J. (2013, July 1). The report said Cuban economic growth has not accelerated despite the reforms. Retrieved from Miami Herald Co.: http://www.miamiherald.com/2013/07/01/3480625/report-says-cuban-economy-is.html