Church warns Cuba is on verge of economic collapse

Church warns Cuba is on verge of economic collapse
Agence France-Presse
First Posted 09:36:00 02/01/2010

Filed Under: Politics, Economy and Business and Finance, Religions

HAVANA, Cuba—The Roman Catholic Church warned Sunday that Cuba is on the
verge of an economic collapse that can only be prevented if President
Raul Castro institutes sweeping economic and social reforms.

"The economic situation in Cuba has turned rather complicated with signs
that it is close to free fall," the Havana Archdiocese said in the
latest edition of its "Palabra Nueva" (New Word) magazine.

Castro has responded to the crisis with "utopian statements and
readjustments along the lines of severe expenditure cuts that can lead
to socio-economic collapse," wrote economist-priest Boris Moreno.

Moreno said that there was "no sign at all" of the changes Raul Castro,
78, promised his people after he took over from his ailing, older
brother Fidel in 2006.

The economic crisis, made worse by the global economic downturn, fuels
"hopelessness" that can "break the fragile social compact," Moreno wrote.

The Cuban government admitted recently it was having cash flow problems
after a disappointing 1.4 percent economic growth last year—well shy of
an expected 6.0 percent.

The Castro administration has launched a savings program entailing sharp
cuts in social spending and priority investment in currency-generating
sectors of the economy.

Palabra Nueva, instead, said the government should promote exports and
small- and mid-size businesses, provide a safe environment for foreign
investment, institute business reforms, and a single currency, and allow
Cubans "to give their opinions without fear of reprisal."

Church warns Cuba is on verge of economic collapse - INQUIRER.net,
Philippine News for Filipinos (1 February 2010)
http://newsinfo.inquirer.net/breakingnews/world/view/20100201-250671/Church-warns-Cuba-is-on-verge-of-economic-collapse