Mired in economic problems, Cuba was aided by the election of socialist and anti-imperialist Hugo Chávez to the Venezuelan Presidency in 1999.
Castro and Chávez developed a close friendship, with the former acting as a mentor and father-figure to the latter, and together they built an alliance that had repercussions throughout Latin America.
In 2000, they signed an agreement through which Cuba would send 20,000 medics to Venezuela, in return receiving 53,000 barrels of oil per day at preferential rates; in 2004, this trade was stepped up, with Cuba sending 40,000 medics and Venezuela providing 90,000 barrels a day.
That same year, Castro initiated Misión Milagro, a joint medical project which aimed to provide free eye operations on 300,000 individuals from each nation.
The alliance boosted the Cuban economy, and in May 2005 Castro doubled the minimum wage for 1.6 million workers, raised pensions, and delivered new kitchen appliances to Cuba's poorest residents.
Some economic problems remained; in 2004, Castro shut down 118 factories, including steel plants, sugar mills and paper processors to compensate for a critical shortage of fuel.

Cuba and Venezuela were the founding members of the Bolivarian Alternative for the Americas (ALBA).
ALBA sought to redistribute wealth evenly throughout member countries, to protect the region's agriculture, and to oppose economic liberalization and privatization.
ALBA's origins lay in a December 2004 agreement signed between the two countries, and was formalized through a People's Trade Agreement also signed by Evo Morales' Bolivia in April 2006.
Castro had also been calling for greater Caribbean integration since the late 1990s, saying that only strengthened cooperation between Caribbean countries would prevent their domination by rich nations in a global economy.
Cuba has opened four additional embassies in the Caribbean Community including: Antigua and Barbuda, Dominica, Suriname, Saint Vincent and the Grenadines.
This development makes Cuba the only country to have embassies in all independent countries of the Caribbean Community.

In contrast to the improved relations between Cuba and a number of leftist Latin American states, in 2004 it broke off diplomatic ties with Panama after centrist President Mireya Moscoso pardoned four Cuban exiles accused of attempting to assassinate Castro in 2000.
Diplomatic ties were reinstalled in 2005 following the election of leftist President Martín Torrijos.

Castro's improving relations across Latin America were accompanied by continuing animosity towards the U.S. However, after massive damage caused by Hurricane Michelle in 2001, Castro successfully proposed a one-time cash purchase of food from the U.S. while declining its government's offer of humanitarian aid.
Castro expressed solidarity with the U.S. following the 2001 September 11 attacks, condemning Al-Qaeda and offering Cuban airports for the emergency diversion of any U.S. planes.
He recognized that the attacks would make U.S. foreign policy more aggressive, which he believed was counter-productive.
Castro criticized the 2003 invasion of Iraq, saying that the U.S.-led war had imposed an international "law of the jungle".

Meanwhile, in 1998, Canadian Prime Minister Jean Chrétien arrived in Cuba to meet Castro and highlight their close ties.
He was the first Canadian government leader to visit the island since Pierre Trudeau was in Havana in 1976.
In 2002, former U.S. President Jimmy Carter visited Cuba, where he highlighted the lack of civil liberties in the country and urged the government to pay attention to the Varela Project of Oswaldo Payá.
Mired in economic problems, Cuba was aided by the election of socialist and anti-imperialist Hugo Chávez to the Venezuelan Presidency in 1999. Castro and Chávez developed a close friendship, with the former acting as a mentor and father-figure to the latter, and together they built an alliance that had repercussions throughout Latin America. In 2000, they signed an agreement through which Cuba would send 20,000 medics to Venezuela, in return receiving 53,000 barrels of oil per day at preferential rates; in 2004, this trade was stepped up, with Cuba sending 40,000 medics and Venezuela providing 90,000 barrels a day. That same year, Castro initiated Misión Milagro, a joint medical project which aimed to provide free eye operations on 300,000 individuals from each nation. The alliance boosted the Cuban economy, and in May 2005 Castro doubled the minimum wage for 1.6 million workers, raised pensions, and delivered new kitchen appliances to Cuba's poorest residents. Some economic problems remained; in 2004, Castro shut down 118 factories, including steel plants, sugar mills and paper processors to compensate for a critical shortage of fuel.
Cuba and Venezuela were the founding members of the Bolivarian Alternative for the Americas (ALBA). ALBA sought to redistribute wealth evenly throughout member countries, to protect the region's agriculture, and to oppose economic liberalization and privatization. ALBA's origins lay in a December 2004 agreement signed between the two countries, and was formalized through a People's Trade Agreement also signed by Evo Morales' Bolivia in April 2006. Castro had also been calling for greater Caribbean integration since the late 1990s, saying that only strengthened cooperation between Caribbean countries would prevent their domination by rich nations in a global economy. Cuba has opened four additional embassies in the Caribbean Community including: Antigua and Barbuda, Dominica, Suriname, Saint Vincent and the Grenadines. This development makes Cuba the only country to have embassies in all independent countries of the Caribbean Community.
In contrast to the improved relations between Cuba and a number of leftist Latin American states, in 2004 it broke off diplomatic ties with Panama after centrist President Mireya Moscoso pardoned four Cuban exiles accused of attempting to assassinate Castro in 2000. Diplomatic ties were reinstalled in 2005 following the election of leftist President Martín Torrijos.
Castro's improving relations across Latin America were accompanied by continuing animosity towards the U.S. However, after massive damage caused by Hurricane Michelle in 2001, Castro successfully proposed a one-time cash purchase of food from the U.S. while declining its government's offer of humanitarian aid. Castro expressed solidarity with the U.S. following the 2001 September 11 attacks, condemning Al-Qaeda and offering Cuban airports for the emergency diversion of any U.S. planes. He recognized that the attacks would make U.S. foreign policy more aggressive, which he believed was counter-productive. Castro criticized the 2003 invasion of Iraq, saying that the U.S.-led war had imposed an international "law of the jungle".
Meanwhile, in 1998, Canadian Prime Minister Jean Chrétien arrived in Cuba to meet Castro and highlight their close ties. He was the first Canadian government leader to visit the island since Pierre Trudeau was in Havana in 1976. In 2002, former U.S. President Jimmy Carter visited Cuba, where he highlighted the lack of civil liberties in the country and urged the government to pay attention to the Varela Project of Oswaldo Payá.
Fidel Castro