The Cuban economy has endured a number of upheavals over the past century. In the early 1900s approximately two-thirds of the businesses in Cuba were owned by U.S. citizens, and around 80 percent of the country's trade was with the United States. In 1959, when Fidel Castro seized the country through revolution, the reforms enacted by the socialist government confiscated most of the privately-held property in Cuba. Relations with the United States became strained, and eventually ended in 1962 when the United States placed an embargo (prohibition) on trade with Cuba, which continues to this day. Cuba turned to the former Soviet Union for help, and soon introduced long-range socialist state-managed planning that followed Soviet models. The Soviet Union effectively subsidized the Cuban economy by repeatedly postponing debt payment schedules, creating new credit lines, paying high prices for Cuban exports, and offering military assistance. As a result, many Cuban economic problems did not manifest themselves until the fall of the Soviet Union in 1989.
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