ABSTRACT
Cuban officials realize that these reforms run the risk of creating sharp economic inequalities among the Cuban population, benefiting mainly those who work in the dollar-earning sectors, principally tourism and related services, and/or those who have generous relatives abroad. Cuba lost not only the protection of the Soviet political umbrella, but also the economic support that had been the lifeline of the Castro regime. Soviet aid and subsidies suddenly vanished. The most significant response to the crisis has been the reforms in Cuba's foreign investment laws and the country's active posture in seeking joint ventures with foreign companies. The Fidel Castro government has also showed no signs of making meaningful concessions in the political and human rights arena. Indeed, in late 1995, the Castro regime began to slow down the lukewarm pace of economic reforms and to insist that Cuba will remain a Communist state.
