Comparing Factors that Lead to Underdevelopment in Cuba and Egypt

Underdevelopment has been a major issue in the Less Developed Countries (LDCs) since the end of World War II. Most of these countries have been struggling to improve their economies and living conditions. Among the LDCs, Cuba and Egypt have been most affected by underdevelopment due to several factors. The two countries share some common features related to underdevelopment. Being a unique island nation, Cuba’s economy has been a subject to contention for many years. Similarly, Egypt has remained an underdeveloped country due to unemployment and inequalities caused by the government (Fayed, 2017). Despite the many attempts by the Egyptian and Cuban governments to reform their economies, the countries have remained underdeveloped. This has been perpetrated by several factors, including governmental corruption, unfair judicial systems, geographical location, ethnic disparities, and shaky financial systems.

Governmental Corruption 

For many years, both Cuba and Egypt have been facing rampant and widespread corruption, which has led to economic stagnation in the countries. In the case of Egypt, large corporations and businesses get more privileged treatments from the government, leaving the average individuals to embrace extortion, bribery, lying, and embezzlement to survive. Fayed (2017) noted that Egypt’s economy is majorly influenced by the military, in which major companies are mostly owned by retired generals. Most of these generals have active businesses in water, cement, olive oil, hotel, construction, and gasoline industries. A study conducted by Ozunwanne (2018) on the financial system of Egypt also showed that a significant part of Egyptian bank credit went to the state companies. This has left many medium enterprises and family own firms to rely on informal markets. As a result of these policies the rates of underemployment and unemployment in Egypt has been high in the past few years. Due to the prevalence of corruption in Egypt, many firms are finding it hard to strategize beyond their short term goals leading to the rise of commodity prices.

The state of corruption in Egypt is similar to that of Cuba, which is predominantly orchestrated by government officials. Cuba’s public officials are diverting the state resources for their gains as well as receiving bribes in return for the benefits of discussions (Angelo, 2017). Due to lack of independent civil society organizations and a centrally planned economy, the socialist society has made it easier for corruption to flourish in the country. According to Sweig (2016), public ownership in Cuba has led to the widespread theft and misuse of state resources and lack of identifiable ownership. Whenever the Cubans have an opportunity to acquire funds, most of them do not hesitate to steal from the government. Moreover, the complex associations between the economic and governmental organizations are making the officials more prone to corruption. From the 2016 Corruption Perception Index (CPI) score, Cuba was ranked 62 among the 180 most corrupt countries in the world (Hansing, 2017). Corruption in Cuba has led to scarcity of jobs, with many Cubans resorting to working in the underground economy and black market.

Unfair Judicial Systems 

The judicial system is integral in development by ensuring the civil, social, and political rights of the people. However, in countries like Egypt and Cuba, judicial governance has engendered new forms of injustices as many citizens continue to live in impoverished conditions (Rouhi, Dezaki & Karveh, 2017). The rapid unfair judicial changes have prompted the increase in food securities, financial crises and lack of quality services to the people. In Cuba, highly effective machinery of repression has been developing in the last forty decades (Angelo, 2017). The Cuban government has written the denial of basic political and civil rights into law. With the aid of state-controlled mass organizations, armed security forces are silencing dissents with harassment, heavy prison terms, exiles or threats of prosecution in the name of legality. By using these tools, the Cuban judicial system has managed to restrict the fundamental human rights of assembly, expression, and association. Cuba’s prison conditions are inhumane and additional torture is imposed on political prisoners. The judicial system in Cuba is failing to enforce significant constitutional provisions that require accountability for government and state officials who commit crime (Rouhi, Dezaki & Karveh, 2017). Routinely, the system has denied the human rights abuses, retaliates against those who denounce their acts, and fails to punish or investigate those who commit the abuses.

The existence of an unfair judicial system is also evident in Egypt. From the beginning of President Abdel Fattah al-Sisi’s second term, which he obtained from unfair presidential election, the security forces supported by the judicial system have established a campaign of violence, intimidation, and arrests against activists, political opponents among other citizens who have voiced criticism on the government (Michaelson, 2016). Through unfair prosecutions and arrests of bloggers and journalists, the Egyptian government has been silencing critics. The legislature also has restrictive laws that deny the people with rights to access and freedom of speech. The intensified judicial law also prohibits lesbianism, self-described atheists, transgender activism, and bisexuals. Hundred have been placed on the list of terrorism against the country and their assets seized without any proper due process or hearing (Fayed, 2017). Thousands of civilians are continuing to be persecuted in Egypt as the judicial system continues being inherently abusive and not meeting the minimum standard of due process.

Geography 

The geographical location of both Egypt and Cuba is among the major causes of underdevelopment in the two countries. Located in the northeastern part of Africa, Egypt has a terrain consisting of a vast desert, which has been interrupted by the Nile delta and valley (ElDidi & Corbera, 2017). A larger part of the county’s area is covered by desert with most of its cultivated land being close to the banks of the river Nile. The Nile valley has been affected by excessive population pressure, a serious problem that the Egyptian government is yet to realize and find a solution to. With the desert occupying 97% of the country, agricultural expansion is limited due to lack of enough water. According to Kraft et al. (2019), about 30% of the country’s rural population lives in extreme poverty. This has been majorly influenced by small farm sizes, inadequate social services, landlessness, and lack of income opportunities.

Similarly, Cuba has geographical challenges that have led to increased poverty in the country. Cuba is located in a subtropical humid zone and is the largest island in the Caribbean. The major geographic challenge of Cuba is its impotence and proximity to the United States (Angelo, 2017). Due to its location, Cuba has severally been used as the battleground for global affairs. Since the Cuban Missile Crisis of 1962, the United States has been having policies that deny foreign countries with military access to the Island (Rouhi, Dezaki & Karveh, 2017). Cuba has since been an economically and politically isolated island. The economic sector of the country has stagnated due to its undeveloped industrial sector and limited resources among other geographical challenges.

Ethnic Disparities 

Leadership in the underdeveloped nations is mostly characterized by favoritism. Thus, many citizens are treated unequally, especially in political representation and allocation of natural resources (Ozunwanne, 2018). This creates a tantamount corruption that weakens the ability of the countries to develop economically and politically. In Egypt, 95% of its population are Egyptians while the other minorities 5% consist of the Bedouins, Nubians, Berbers, and Copts (Kraft et al., 2019). The minority ethnic groups have been experiencing degrading treatments and varying measures of ethnic disparities. Despite the Egyptian government prohibiting any form of discrimination, the law has not criminalized ethical discrimination. In Cairo the Nubians have been facing their struggle with ethnic discrimination including limited protection and support from the government. The Egyptians and the other minority groups have lived as strangers and he on each other. The representation of Egypt’s minority ethnic groups has historically been either ethnical or marginal (ElDidi & Corbera, 2017). The Nubian and other tribes are often depicted as illiterate, and most of them work as servants, maids, doormen, and nannies. The ethnic disparities in Egypt have lowered the abilities of the state to adopt growth-promoting policies leading to further underdevelopment.

In Cuba, 35% of the population are mixed heritage people (mulatto) and Afro-Cubans while 65% are whites (Hansing, 2017). After the fall of the Soviet Union and the constant economic crisis in Cuba, health care, universal education, public employment, and other social achievements have been tremendously affected. The contemporary Cuban society faces rising rates of inequality and poverty. This has been defined by the changing economy and introduction of new social stratifications, which are done along ethnical lines. Ethical inequalities that were dominant before revolution have become the central overlapping issues once again. The social, political, and economic measures implanted by the government mainly benefit the whites (Rouhi, Dezaki & Karveh, 2017). Social mobility barriers have also been imposed on Afro-Cubans and mullato communities. This has led to continuous outward migration by the discriminated communities leading economic instability.

Shaky Financial Systems 

In the global context, the LCDs are seeking to accomplish rapid microeconomic development through expansionary monetary and fiscal policies. Cuba and Egypt are considered among the main developing countries in Latin American and Africa. The financial systems are the main pillars to enable such countries to achieve economic growth (Rouhi, Dezaki & Karveh, 2017). However, both countries have shaky financial systems, which have been a subject to development and economic growth. In Egypt, most of financial systems are heavily dominated and regulated by the public sector (Elbannan & Elbannan, 2015). This has led to disinterest among economists, policymakers, and managers in assessing the financial systems’ performance in Egypt. In the last few decades, the Egyptian government has also accrued unprecedented loans. As a result, the financial systems in the country have been underperforming making it harder for economic growth in the country.

The main financial system in Cuba is its central bank, which has been the main source of financing to both the government and the people of Cuba. The Central Bank of Cuba has been facing issues regarding the monetary policy, exchange rates and development of the banking system (Gregg, 2015). With the lack of well developed financial markets and widespread distortions in the Cuban economy, the banking system has been facing instability. The Cuban banking sector has also been facing constraints on global integration and development resulting from court judgments and US embargo against Cuba. Due to the shaky financial system in Cuba, the country’s economy has stagnated leading to inflation and poverty.

Conclusion 

Most of the Less Developed Countries are facing underdevelopment resulting from poor governance, ethnic disparities, failed judicial systems, among other factors. Cuba and Egypt have shared some common factors which have caused poverty and lack of economic growth in the countries. Cuba has been an LDC that is struggling with provisions of transportation, housing, and other necessities. Similarly, economic and political instability in Egypt has also been a growing problem leaving many citizens helpless. Some of the common factors which have led to underdevelopment in Cuba and Egypt include governmental corruption, unfair judicial systems, geographical location, ethnic disparities, and shaky financial systems. Both countries have experienced challenges in development relating to the factors. Despite major attempts of both governments to reform their economies and deal with these challenges, constant political instability, as well as lack of good governance, has worsened the issues. Therefore, there is need for the countries to come up with new strategies of dealing with the challenges associated with underdevelopment.

References

Angelo, M. J. (2017). Food Security, Industrialized Agriculture, and a Changing Global Climate: Perspectives on the United States and Cuba.  Florida Journal of International Law ,  29 (1), 40. 

Elbannan, M. A., & Elbannan, M. A. (2015). Economic consequences of bank disclosure in the financial statements before and during the financial crisis: Evidence from Egypt.  Journal of Accounting, Auditing & Finance ,  30 (2), 181-217. 

ElDidi, H., & Corbera, E. (2017). A moral economy of water: Charity wells in Egypt's Nile Delta.  Development and Change ,  48 (1), 121-145. 

Fayed, A. A. (2017). The current status of corruption in Egypt.  Contemporary Arab Affairs ,  10 (4), 510-521. 

Gregg, A. (2015). Radical Simplicity And The Middle Class.  Prosperous Descent , 229. 

Hansing, K. (2017). Race and Inequality in the New Cuba: Reasons, Dynamics, and Manifestations.  Social Research: An International Quarterly ,  84 (2), 331-349. 

Krafft, C., Assaad, R., Nazier, H., Ramadan, R., Vahidmanesh, A., & Zouari, S. (2019). Estimating poverty and inequality in the absence of consumption data: an application to the Middle East and North Africa.  Middle East Development Journal ,  11 (1), 1-29. 

Michaelson, R. (2016). Justice Delayed: Egypt's illegal use of pre-trial detention.  World Policy Journal ,  33 (2), 82-89. 

Rouhi, E., Dezaki, L. R., & Karveh, M. J. (2017). Rule of Law and Its Guidelines and Indicators for Judiciary in Human Rights Issues.  J. Pol. & L. ,  10 , 98. 

Sweig, J. (2016).  Cuba: What everyone needs to know . Oxford University Press. 

UZONWANNE, M. C. (2018). Economic globalization and poverty reduction: A Nigerian perspective.  Journal of Economics and Political Economy ,  5 (3), 410-423.