The peso has been stable at about twenty to the dollar for over a year. And traffic jams and construction projects have brought some bustle back to Havana. All the things that were supposed to drive the Castro government from power have failed. Compared to reforms elsewhere in Latin America, Cuba's reforms are limited and gradual. But their impact is great.
Foreign investment is a significant example.
Total foreign investment in Cuba is relatively small. According to analyst Maria Werlau, total foreign investment in Cuba between 1990 and 1995 was less than half Chile's investment in Argentina during that period. Cuba's legal and regulatory morass make it a weak attractor for most types of private investment. But after a three-decade drought, the impact of even small amounts of new investment can be substantial. Tourism fuels hotel, restaurant, and retail construction, and it sustains some small businesses.