The Republic: 1902-1959

Cuba's years as a republic can be characterized by rampant government corruption, a disregard for the conditions of the poor, a continuation of U.S. involvement in Cuban affairs and a concomitant ongoing disagreement among Cubans about that involvement, and, underlying all, a relatively steady prosperity—thanks to the sugar industry—which allowed, in spite of political instability, some growth in public institutions and services.

By all accounts, the early republican governments were dominated by corruption, nepotism, and squabbles over the Platt Amendment and the role of the United States in Cuba's affairs. Nevertheless, the island prospered, and some of that prosperity resulted in public good: Roads, railroads and ports were built or improved, and schools, museums, and hospitals were established. There was a sugar boom during World War I, but then the bottom dropped out of the sugar market in 1920, causing a number of Cuban sugar concerns to go into receivership with U.S. banks. By 1924, American investments in Cuba totaled $1.2 billion: The U.S. owned 50% of the sugar industry, had sizable capital in public utilities, and purchased 75% of Cuban exports. Americans were also enthusiastically visiting Cuba as tourists, especially during the Prohibition years.

Given the dependence of the Cuban economy on the United States, it was inevitable that the 1929 U.S. stock market crash would badly hurt the Cuban economy. Foreign trade dropped drastically, investment stopped, and unemployment rose. Resentment grew against the regime in power, a U.S.-supported government headed by Gerardo Machado y Morales.

In 1933, Sergeant Fulgencio Batista organized a revolt of noncommissioned officers. Student support turned the military revolt into a true revolution. The United States did not intercede, and after some internal struggle Ramón Grau emerged as the revolutionary provisional president, with Batista promoted to colonel and given the position of chief military commander of the Cuban armed forces. Grau remained in office only for a year or so, but during that time he instituted several labor reforms, and denounced the Platt Amendment. Batista forced Grau out of office in 1934, eventually replacing him with Carlos Mendieta, a provisional president whose government the United States immediately recognized.

Mendieta's administration had severe problems, but he signed the Treaty of Relations, which, among other things, abrogated the Platt Amendment, although it allowed the United States to continue renting the property at Guantánamo Bay for its naval base. During Mendieta's administration, special trade agreements were also made: American exports to Cuba were given preferential treatment, and Cuba was guaranteed 22% of the U.S. sugar market at low tariffs.

Mendieta resigned in December, 1935, and from then until after World War II, Batista dominated Cuban politics from his position as the commander of the Cuban armed forces. In 1940, he was elected president, and his government showed promise both in social welfare measures and economic growth. U.S.-Cuban relations were cordial during the war, and the sugar industry did well.

In 1944, Batista lost the presidential election to Ramón Grau, and went into political retirement in the U.S. He re-emerged before the elections of 1952, however, seizing power in a coup d'etat and establishing a military dictatorship. Batista's government was immediately recognized by non-communist nations throughout the world. Although dissent was at first tolerated, continuing resistance to Batista's rule prompted more and more severe repression. Batista's government also became more and more notorious for its corruption.

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