Saturday, July 26, 2008

Cuba struggles for economic reform

Cuba struggles for economic reform
By Claire Bolderson
BBC News, Havana

In a small flat in a leafy neighbourhood of Havana, Juan Jacomino points
to the mismatched tiles on his living room floor.

He bought the first lot of tiles, then found he needed a few more but
when he went back to the shop, they had disappeared.

That is common he says, particularly with imported goods.

"My advice is, if you find something you need, or you think you might
need one day, buy it!" says the translator and freelance journalist.

"Don't wait till tomorrow because when you come back it won't be there
and you may never see it again."

Juan attributes the erratic supplies to the US sanctions in place for
well over 40 years.

They certainly do affect imports but when it comes to other goods,
particularly food, Cuba has also made life hard for itself.

Subsidised food

Juan took me to his state-run corner shop where there was very little on
the shelves and no fresh food to be seen at all.

In the store room at the back were sacks of rice and other staple foods
and on the counter at the front, a big blackboard listing the prices of
all the basics that Cubans get each month with their ration book.

The food is not free but it is incredibly heavily subsidised.

Juan for example, got 18lbs (8kg) of rice, 15lbs of sugar and 1lb of
salt and some spaghetti for just over five Cuban pesos - about 25 US
cents (12p).

In a country where the average monthly wage is less than $20, the ration
book is a lifeline for many Cubans.

But they have to be patient, and they have to be alert.

When fresh meat arrives, shoppers come flocking. How do they know it is

"They just know," says shopkeeper Gerardo with a laugh. "Word goes
around instantly."

Garlic rations

So why not just go to the farmers' market? Because for most Cubans the
prices in non-state shops are just too high.

One head of garlic cost 25 cents, the same as Juan's basic rations for a

Almost 50 years after the revolution, you get the feeling the
government knows it has got to deliver that little bit more

The problem is that agriculture in Cuba is very inefficient.

Only half the land that could be used to grow food in this lush tropical
island is put to use.

For years farmers have depended on the state providing everything from
fertilisers to new spades.

But the system is slow and bureaucratic; vital tools can take months to

That is why Cuba has recently introduced agricultural reforms that allow
more privately run farming.

The plan is to increase domestic output and reduce an import bill that
is going up steeply as global food prices rise.

Productivity bonuses

President Raul Castro's recent speeches suggest there is more economic
reform to come.

He is promising productivity bonuses to boost wages.

There is the real prospect that Cubans might end up getting very
different rates of pay for different work, something unheard of until now.

But do not expect the state to give up its overwhelming control over the
lives of its citizens any time soon.

There is no real concept of private ownership in Cuba.

You cannot buy and sell your home, you can only buy a car through the
government and you cannot sell it on.

It is a one-party state with no independent media. What little private
enterprise exists is strictly limited.

Cubans can rent out rooms to tourists - but they pay a hefty tax and
cannot let more than two rooms.

There are even rules about what kind of food they are allowed to serve
if they also offer evening meals.

Life is a struggle

Everyone I met in Cuba told me they wanted more economic freedom.

They want money in their pockets and a choice over how they spend it.

"People want to be able to start their own businesses, to work with
their hands, with their talents," says young artist Humberto.

With daily life a struggle for the majority, political reform is not
always at the top of the list.

Almost 50 years after the revolution, you get the feeling the government
knows it has got to deliver that little bit more.

Now its leaders, keen to ensure the survival of the revolution after
they are gone, are trying to work out how.
Story from BBC NEWS:

Published: 2008/07/26 12:12:54 GMT

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