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Friday, April 25, 2008

Cuban reforms create goodwill

Cuban reforms create goodwill
By Michael Voss
BBC News, Havana

Hundreds of Cubans have been learning a whole new vocabulary over the
past few weeks.

Sales staff at the state telecommunications company ETECSA have been
patiently explaining about Sim cards, Pin numbers and ring tones to
enthralled customers of all ages.

Until now, mobile phones in Cuba were restricted to key government
workers and foreigners.

In one of his first acts since officially taking over the presidency,
Raul Castro lifted the ban on owning cell phones, along with a range of
other restricted items such as DVD players and computers.

Only a few can afford to take advantage of these new-found freedoms. The
average salary here is less than $20 (£10) a month, though many people
do receive help from relatives living abroad.

Certainly, crowds gathered in front of shops on the first day that
mobile phones became available.

Let's hope everyone can afford one in the future - I'm hopeful, we are
seeing changes now
Felipe

"The first person I'm going to call is my sister in Costa Rica, she sent
me the money for the phone," an elderly lady, Maria Louisa, said with
anticipation.

"Isn't it good to be able to communicate with your family?"

Rene Martinez, the assistant manager at a software company, agreed it
was a good start.

"This is one of the big steps. If anyone can have a cell phone, it's a
nice idea," she said.

"Let's hope everyone can afford one in the future," said Felipe, who
didn't want to give his surname. "I'm hopeful. We are seeing changes now."

Even those who cannot afford to buy anything have been visiting the
shops, just to have a look at what is now on offer.

Buying time

In another move, the government has decided to allow Cubans to stay at
the same hotels as foreigners. It was a deeply unpopular restriction -
the resort hotels monopolise many of the best beaches on this Caribbean
island.

Now there are rumours that restrictions on foreign travel could soon be
lifted.

Critics call the moves cosmetic and point out that there are no signs of
any moves towards greater democracy.

But the changes have created goodwill and bought Raul Castro time to try
and grapple with how to improve the economy while maintaining this one
party state.

All sorts of things have got better for farmers - we've been offered a
bit more land, and resources like fertilisers and pesticides
Felix Oliva

Between the decades long US trade embargo and the inefficiencies of this
highly centralised state-run system, Cuba's economy is struggling.

Along with North Korea, Cuba has one of the most centrally-controlled
economies in the world. Only in agriculture is there a small private sector.

The small family farms and private co-operatives produce more than half
the country's food on just a fifth of the arable land.

For years, the communist authorities have tolerated them.

Now private sector farmers are being actively encouraged to expand. A
system is being set up to offer those with good track records leases to
take over unused or unproductive state owned land.

There will also be less red tape and centralised control over what to
plant along with better access to supplies.

"There really are some big changes taking place," said Felix Oliva. He
manages a 40-hectare family farm growing a range of fruit, vegetables
and salad in the Quivican region in Havana Province.

"All sorts of things have got better for farmers like us. We've been
offered a bit more land, and resources like fertilisers and pesticides."

In the nearby town of Guira de Melena, a new shop recently opened, one
of just four in the entire country. It sells basic farm tools such as
spades, rakes, machetes and horseshoes.

Until now, farmers had to apply to the ministry for such supplies.

"It's something new, for the first time in the country anyone can walk
in and buy the tools they need," shop manager Pedro Matos explained.

"Now the farmers are asking us to stock more things, like Wellington
boots, gloves, rope and fencing."

'Night and day'

One of the driving forces behind Raul Castro's reforms is to cut
imports. Last year this Caribbean island spent more than $1.5bn a year
on food imports.

With the current global food crisis the cost is likely to shoot up.

Dairy production is a prime example. Half the grazing land on the state
farms has been overrun by a high, prickly brush called "marabu" which
renders pasture useless.

There is only enough milk for pregnant women and young children. The
rest is imported at great cost.

Raul Castro has doubled and tripled what the state pays for milk, cattle
and other farm products.

One private dairy farmer, who did not want to be named, said the
difference under the younger Castro "was like night and day."

There are incentives now and he can, for the first time, legally hire
farm labourers.

Bonuses

But Cuban economist Juan Triana, from the University of Havana's
influential Centre for the Study of the Cuban Economy, believes they are
significant.

"The changes in agriculture are very important because agriculture is a
test for future changes in the Cuban economy. Cuba in general needs
greater efficiency and productivity."

If the agricultural reforms are successful then small business, self
employment and co-operatives in the cities could follow.

One key change has already been announced - workers will soon be able to
earn bonuses based on productivity and there will be no upper limit to
salaries.

The Cuban revolution has long prided itself on its attempt to produce an
egalitarian society, where professionals like doctors earned almost the
same as factory workers.

There may be no signs of any move towards greater democracy, but the
economic controls are starting to ease.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/world/americas/7365625.stm

Published: 2008/04/25 10:40:54 GMT

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