By the 1980s, Cuba's economy was again in trouble, following a decline in the market price of sugar and 1979's decimated harvest.
For the first time, unemployment became a serious problem in Castro's Cuba, with the government sending unemployed youth to other countries, primarily East Germany, to work there.
Desperate for money, Cuba's government secretly sold off paintings from national collections and illicitly traded for U.S. electronic goods through Panama.
Increasing numbers of Cubans fled to Florida, but were labelled "scum" and "lumpen" by Castro and his CDR supporters.
In one incident, 10,000 Cubans stormed the Peruvian Embassy requesting asylum, and so the U.S. agreed that it would accept 3,500 refugees.
Castro conceded that those who wanted to leave could do so from Mariel port.
Hundreds of boats arrived from the U.S., leading to a mass exodus of 120,000; Castro's government took advantage of the situation by loading criminals, the mentally ill, and suspected homosexuals onto the boats destined for Florida.
The event destabilized Carter's administration and in 1981, Ronald Reagan was elected U.S. president.
Reagan's administration adopted a hard-line approach against Castro, making its desire to overthrow his regime clear.
In late 1981, Castro publicly accused the U.S. of biological warfare against Cuba by orchestrating a dengue fever epidemic.
Cuba's economy became even more dependent on Soviet aid, with Soviet subsidies (mainly in the form of supplies of low-cost oil and voluntarily buying Cuban sugar at inflated prices) averaging $4–5 billion a year by the late eighties.
This accounted for 30–38% of the country's entire GDP.
Soviet economic assistance had not helped Cuba's long-term growth prospects by promoting diversification or sustainability.
Although described as a "relatively highly developed Latin American export economy" in 1959 and the early 1960s, Cuba's basic economic structure changed very little between then and the 1980s.
Tobacco products such as cigars and cigarettes were the only manufactured products among Cuba's leading exports, and even these are produced by a pre-industrial process.
The Cuban economy remained highly inefficient and over-specialized in a few highly subsidized commodities provided by the Soviet bloc countries.

Although despising Argentina's right wing military junta, Castro supported them in the 1982 Falklands War against Britain and offered military aid to the Argentinians.
Castro supported the leftist New Jewel Movement that seized power in Grenada in 1979, befriending Grenadine President Maurice Bishop and sending doctors, teachers, and technicians to aid the country's development.
When Bishop was executed in a Soviet-backed coup by hard-line Marxist Bernard Coard in October 1983, Castro condemned the killing but cautiously retained support for Grenada's government.
However, the U.S. used the coup as a basis for invading the island.
Cuban soldiers died in the conflict, with Castro denouncing the invasion and comparing the U.S. to Nazi Germany.
In a July 1983 speech marking the 30th anniversary of the Cuban Revolution, Castro condemned Reagan's administration as a "reactionary, extremist clique" who were waging an "openly warmongering and fascist foreign policy".
Castro feared a U.S. invasion of Nicaragua and sent Ochoa to train the governing Sandinistas in guerrilla warfare, but received little support from the USSR.

In 1985, Mikhail Gorbachev became Secretary-General of the Soviet Communist Party.
A reformer, he implemented measures to increase freedom of the press (glasnost) and economic decentralization (perestroika) in an attempt to strengthen socialism.
Like many orthodox Marxist critics, Castro feared that the reforms would weaken the socialist state and allow capitalist elements to regain control.
Gorbachev conceded to U.S. demands to reduce support for Cuba, with Soviet-Cuban relations deteriorating.
When Gorbachev visited Cuba in April 1989, he informed Castro that perestroika meant an end to subsidies for Cuba.
Ignoring calls for liberalization in accordance wi
By the 1980s, Cuba's economy was again in trouble, following a decline in the market price of sugar and 1979's decimated harvest. For the first time, unemployment became a serious problem in Castro's Cuba, with the government sending unemployed youth to other countries, primarily East Germany, to work there. Desperate for money, Cuba's government secretly sold off paintings from national collections and illicitly traded for U.S. electronic goods through Panama. Increasing numbers of Cubans fled to Florida, but were labelled "scum" and "lumpen" by Castro and his CDR supporters. In one incident, 10,000 Cubans stormed the Peruvian Embassy requesting asylum, and so the U.S. agreed that it would accept 3,500 refugees. Castro conceded that those who wanted to leave could do so from Mariel port. Hundreds of boats arrived from the U.S., leading to a mass exodus of 120,000; Castro's government took advantage of the situation by loading criminals, the mentally ill, and suspected homosexuals onto the boats destined for Florida. The event destabilized Carter's administration and in 1981, Ronald Reagan was elected U.S. president. Reagan's administration adopted a hard-line approach against Castro, making its desire to overthrow his regime clear. In late 1981, Castro publicly accused the U.S. of biological warfare against Cuba by orchestrating a dengue fever epidemic. Cuba's economy became even more dependent on Soviet aid, with Soviet subsidies (mainly in the form of supplies of low-cost oil and voluntarily buying Cuban sugar at inflated prices) averaging $4–5 billion a year by the late eighties. This accounted for 30–38% of the country's entire GDP. Soviet economic assistance had not helped Cuba's long-term growth prospects by promoting diversification or sustainability. Although described as a "relatively highly developed Latin American export economy" in 1959 and the early 1960s, Cuba's basic economic structure changed very little between then and the 1980s. Tobacco products such as cigars and cigarettes were the only manufactured products among Cuba's leading exports, and even these are produced by a pre-industrial process. The Cuban economy remained highly inefficient and over-specialized in a few highly subsidized commodities provided by the Soviet bloc countries.
Although despising Argentina's right wing military junta, Castro supported them in the 1982 Falklands War against Britain and offered military aid to the Argentinians. Castro supported the leftist New Jewel Movement that seized power in Grenada in 1979, befriending Grenadine President Maurice Bishop and sending doctors, teachers, and technicians to aid the country's development. When Bishop was executed in a Soviet-backed coup by hard-line Marxist Bernard Coard in October 1983, Castro condemned the killing but cautiously retained support for Grenada's government. However, the U.S. used the coup as a basis for invading the island. Cuban soldiers died in the conflict, with Castro denouncing the invasion and comparing the U.S. to Nazi Germany. In a July 1983 speech marking the 30th anniversary of the Cuban Revolution, Castro condemned Reagan's administration as a "reactionary, extremist clique" who were waging an "openly warmongering and fascist foreign policy". Castro feared a U.S. invasion of Nicaragua and sent Ochoa to train the governing Sandinistas in guerrilla warfare, but received little support from the USSR.
In 1985, Mikhail Gorbachev became Secretary-General of the Soviet Communist Party. A reformer, he implemented measures to increase freedom of the press (glasnost) and economic decentralization (perestroika) in an attempt to strengthen socialism. Like many orthodox Marxist critics, Castro feared that the reforms would weaken the socialist state and allow capitalist elements to regain control. Gorbachev conceded to U.S. demands to reduce support for Cuba, with Soviet-Cuban relations deteriorating. When Gorbachev visited Cuba in April 1989, he informed Castro that perestroika meant an end to subsidies for Cuba. Ignoring calls for liberalization in accordance wi
Fidel Castro