Economic Conditions

With the cutoff of assistance from the former Soviet Union, Cuba experienced severe economicdeterioration from 1989-1993, although there has been some improvement since 1994. Fidel Castro, who turned 73 on August 13, 1999, has ruled since the1959 Cuban Revolution, which ousted the corrupt government of Fulgencio Batista from power. (2)
Since the early 1960s, U.S. policy toward Cuba has consisted largely of isolating the island nation through comprehensive economic sanctions. The Clinton Administration has essentiallycontinued this policy of isolating Cuba. The principal tool of U.S. policy remains comprehensivesanctions, which were made stronger with the Cuban Democracy Act (CDA) of 1992 and with theCuban Liberty and Democratic Solidarity Act of 1996 ( P.L. 104-114 ), often referred to as theHelms/Burton legislation. Another component of U.S. policy consists of support measures for the Cuban people, a so-called second track of U.S. policy. In January 1999, President Clinton announced five additional measures to support the Cuban people: 1) a broadening cash remittances to Cuba, so that all U.S. residents (not just those with closerelatives in Cuba) are allowed to send $300 per quarter to any Cuban family and licensing largerremittances by U.S. citizens and non-governmental organizations to entities independent of theCuban government; 2) an expansion of direct passenger charter flights to Cuba from additional U.S.cities other than the current flights from Miami, and to cities other than Havana (direct flights laterin the year began from Los Angeles and New York); 3) the re-establishment of direct mail serviceto Cuba, which was suspended in 1962 (this measure has not yet been negotiated with the Cubangovernment); 4) authorization for the commercial sale of food to independent entities in Cuba suchas religious groups and private restaurants and the sale of agricultural inputs to independent entitiessuch as private farmers and farmer cooperatives producing food for sale in private markets and 5)an expansion of people-to-people contact through two-way exchanges among academics, athletes,and scientists. Over the years, although U.S. policymakers have agreed on the overall objective of U.S. policy toward Cuba -- to help bring democracy and respect for human rights to the island -- there havebeen several schools of thought about how to achieve that objective. Some advocate a policy ofkeeping maximum pressure on the Cuban government until reforms are enacted, while continuingcurrent U.S. efforts to support the Cuban people. Others argue for an approach, sometimes referredto as constructive engagement, that would lift some U.S. sanctions that they believe are hurting theCuban people, and move toward engaging Cuba with dialogue. Still others call for a swiftnormalization of U.S.-Cuban relations by lifting the U.S. embargo. Numerous measures have been introduced in the 106th Congress that reflect the range of views on U.S. policy toward Cuba. At the same time, there has been legislative action to increase sanctions: byconditioning aid to Russia on closing the Russian signals intelligence facility at Lourdes, Cuba; andby making it easier for enforcement of anti-terrorism judgments in U.S. courts, thereby allowing fora $187.6 million 1997 judgment against Cuba to be paid from Cuba's frozen assets in the UnitedStates to the families of three U.S. citizens killed when Cuba shot down two U.S. planes in 1996. Helms/Burton Legislation

Major Provisions. As provided for in the bill, President Clinton waived such payments in the interest of nationalsecurity when he signed the bill into law on October 28, 2000. Allows travel between the United States and Cuba.
Cuba remains a hard-line Communist state, with a poor record on human rights. Fidel Castro has ruled since he led the Cuban Revolution, ousting the corrupt government of Fulgencio Batistafrom power in 1959. With the cutoff of assistance from the former Soviet Union, Cuba experiencedsevere economic deterioration from 1989-1993, although there has been some improvement since1994 as Cuba has implemented limited reforms.
Since the early 1960s, U.S. policy has consisted largely of isolating the island nation through comprehensive economic sanctions. The Clinton Administration essentially continued this isolationpolicy. The principal tool of policy remains comprehensive sanctions, which were made strongerwith the Cuban Democracy Act (CDA) in 1992 and the Cuban Liberty and Democratic SolidarityAct in 1996, often referred to as the Helms/Burton legislation. Another component of U.S. policyconsists of support measures for the people of Cuba. This includes private humanitarian donationsand U.S.-sponsored radio and television broadcasting to the island. Under this rubric of support forthe Cuban people, President Clinton announced several policy actions in March 1998. Theseincluded the resumption of direct charter flights and cash remittances to Cuba and the streamliningof licensing procedures for the sale of medicines. In January 1999, the President announcedadditional measures, including a broadening of permissible cash remittances, increasing directcharter flights, expanding people-to-people contact, and authorizing the sale of food and agriculturalinputs to independent entities in Cuba.
Although U.S. policymakers agree on the overall objective of U.S. policy toward Cuba -- to help bring democracy and respect for human rights to the island -- there have been several schoolsof thought about how to achieve that objective. Some advocate a policy of keeping maximumpressure on the Cuban government until reforms are enacted, while continuing current U.S. effortsto support the Cuban people. Others argue for an approach, sometimes referred to as constructiveengagement, that would lift some U.S. sanctions that they believe are hurting the Cuban people andmove toward engaging Cuba in dialogue. Still others call for a swift normalization of U.S.-Cubanrelations by lifting the U.S. embargo.
Numerous measures were introduced in the 106th Congress that reflected the range of views on U.S. policy toward Cuba. Legislative initiatives proposed both easing and increasing sanctions. Inthe end, legislation passed reflected both approaches: it allowed the export of food and medicine butprohibited any U.S. financing, both public and private, of such exports. Travel to Cuba for tourismwas also prohibited. Another law facilitated enforcement of anti-terrorism judgments in U.S. courtsto allow for the payment of a $187.6 million 1997 judgment against Cuba to be paid from Cuba'sfrozen assets in the United States to the families of three U.S. citizens killed when Cuba shot downtwo U.S. planes in 1996. President Clinton waived the provision, however, upon signing the rest ofthe bill into law.