As the principal city and national capital, Havana's economy dominates much of the nation. The city's port receives the vast majority of the nation's imports and handles a significant proportion of its exports. The harbor also supports a fishing fleet that is important nationally. Prior to the revolution the city supported comparatively little manufacturing activity, although rum production, cigar making, and shipbuilding have been mainstays of the city's economy since the colonial period. In the late 1990s industrial activity included light manufacturing industries, vehicle assembly, meatpacking, food processing, and petrochemical processing.
However, Havana's economic development has come up against a series of major problems over the last three decades. Since the early 1960s the United States has enforced an economic embargo against Cuba. It has prohibited the export of most goods and supplies to Cuba, which has resulted in many shortages. The loss of financial support from the USSR following the collapse of its Communist government during the late 1980s and early 1990s has resulted in extreme austerity measures. These measures have completely paralyzed some manufacturing activities. The government has called this period of austerity the Special Period, and most of Havana's residents have experienced extreme economic hardship as a result of the economic problems caused by the Special Period.
Microsoft® Encarta® Online Encyclopedia 2001
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