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Raúl Castro warns over Cuba slowdown

By Richard Lapper in Santiago de Cuba

Published: July 27 2008 15:29 | Last updated: July 27 2008 15:29

President Raúl Castro has dampened expectations of rapid change in Cuba, arguing that his country faces tougher conditions as a result of rising fuel and food prices and sharply higher import costs.

In his biggest public speech since the formal retirement in February of his older brother, Fidel, the 77-year-old president said that Cubans would have to �?get used to receiving not only good news.�?

EDITOR’S CHOICE
In depth: Cuba after Castro - Jun-23Cuba determined to perfect statist economy - Jun-23EU ends Cuba sanctions - Jun-20Chávez threatens over migrant law - Jun-20Obama tries to woo Cuban-Americans - May-23Bush tests Cuba by easing embargo - May-21�?The world faces a real crisis, not only economic, but associated with climate change, the irrational use of energy and growing problems of every type,�? he said. �?We should timely explain to our people the difficulties so that we can prepare ourselves to face them.�?

Speaking on Saturday to a subdued audience of 10,000 supporters in the eastern city of Santiago, at the annual commemoration of the rebel military action that triggered the Cuban guerrilla war in the 1950s, Mr Castro also took a swipe at the US, Europe and Japan, saying that the response to the crisis of the “the rich countries and multinational companies was passive. It is not just selfish and irresponsible but suicidal because after all we all live on the same planet.�?

Echoing themes of earlier speeches this year, Mr Castro said the government was “conscious of the great quantity of problems that Cubans face�?. He insisted that the country was making effective use of limited resources, especially through investments in roads, water and other basic infrastructure.

For most residents of Santiago – Cuba’s second biggest city - water is available only on one or two days per week but Mr Castro promised running water would be permanently available in 2010.

Mr Castro has been a sharp critic of unnecessary red tape and sloppy management and on Saturday he warned that ministers and officials responsible for the project would be held accountable for any delays. �?If they don’t meet the targets we’ll send them to you and you can do with them what you think fit,�? said Mr Castro, raising cheers from the crowd.

However, he made it clear that times are getting harder, with his tone suggesting that what by Cuban standards has been a heady pace of change will now ease.

Earlier this month, laws allowing private farmers to lease idle land from the state came into effect. In recent weeks Cubans have also been allowed to buy cell phones, personal computers, DVDs and a number of other consumer products. Plans are afoot to increase the pay of better performing workers.

But on Saturday Mr Castro – repeating a section of a speech originally made by his brother 35 years ago – said “the objectives of our people in the material order cannot be ambitious.�?

The government would do all it could, he said, to “reduce to the minimum the unavoidable consequences of the present international crisis�?. But he warned that �?we cannot spend in excess of what we have. And to make the best of what we have it is indispensable to save everything, foremost fuel.�?

Cuba is feeling the pinch in spite of heavy support from Venezuela, China, Brazil and Iran. Credits and investment have helped cover a sizeable trade deficit and offset the effects of the four-and-a-half-decade-old US trade embargo.

Even so, food imports are expected to cost $2.6bn in 2008, up from $1.47bn in 2007. Oil costs will also rise even though Cuba receives 40 per cent of its needs in the form of a soft Venezuelan loan. The government has already announced a cut in public investment, reversing increases of recent years.

By morphus on Jul 31, 2008, 07:18 in Cuba.

morphus says on Jul 31, 2008, 07:37:

Slowdown for everybody but the Castros...LOL. I heard Raul is driving around in a new Jaguar.

898iuiu

0 funny, 0 helpful.

orestesdd says on Aug 5, 2008, 11:30:

Cuba has been slowing down since 1959 when Castros took power.

0 funny, 0 helpful.