HAVANA, March 12, 2008

Cuba's Revolution Of Rising Expectations

Ordinary Cubans Press Raul Castro For A Higher Standard Of Living

    • Cuba's acting President Raul Castro casts his ballot, as a school boy looks on, during parliamentary elections in Havana, Sunday, Jan. 20, 2008.

      Cuba's acting President Raul Castro casts his ballot, as a school boy looks on, during parliamentary elections in Havana, Sunday, Jan. 20, 2008.  (AP Photo/Prensa Latina)

    • CBS News Producer Portia Sieglebaum

      CBS News Producer Portia Sieglebaum  (CBS)

    • A street scene in Havana

      A street scene in Havana  (istockphoto.com)

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Back at the hospital, the nurses had been complaining that they earned some 200 Cuban pesos less than the cleaning staff. Another bizarre aspect of the current economic situation.

Just a few weeks earlier, the hospital director, Rodrigo Alvarez
Cambra spoke bitterly about the problem. “We are paying more than 500 pesos a month but we’re still way understaffed for janitors and nothing we offer convinces them to work during the evening hours.”

This situation reflects two problems: one, Cubans generally feel their wages are inadequate making unskilled workers less willing to take dirty jobs, and two, there is a generational change.

Younger workers look down on unskilled, agricultural and blue collar jobs. The mostly highly educated young people believe these jobs are both low-paid and stultifying. The resulting shortage of workers represents another serious threat to economic growth.

Hernandez says what’s needed is “Changes to make the economy grow, avoid inequalities, or to decrease the level of inequalities created by the crisis and changes that may allow most people to have access to the market to the consumption market.”

Economists point out however that the government has much to do before it can make these changes.

Since 1986, the economy did not grow more than 4 percent, explained economist Juan Triana, speaking to a group of Cuban academics. On the bright side, he noted that today the average growth rate tops 6 percent, even though the GDP growth is falling short of planning.

On the negative side, the increase, he said, is concentrated in certain sectors with basic services, such as education and health care not growing at all.

Unfortunately, nearly every Cuban runs up against the health and education systems every day. One complaint is the shortage of doctors, which the average Cuban blames on the thousands of medical professionals serving in other countries, such as Venezuela.

That shortage has resulted in the closing of neighborhood doctors’ offices and longer lines at community health clinics. But the flip side of the coin is that the export of services represents nearly 70 percent of the increase in economic growth.

In addition, the steady supply of petroleum arriving from Venezuela has resulted in an end to the annoying blackouts that plagued Cubans for hours daily and done much to improve their lives.

The government has a lot to do before the standard of living can be raised, says Triana. Among the problems to be solved: the deterioration in technology; inefficiency in agriculture including in low production, low mechanization, and the failure to generate highly productive jobs.

Only the biotech sector, he says, can compete on a world scale but unlike tourism, biotechnology is incapable of motivating growth in other sectors of the Cuban economy.

Tourism, he points out, a major motivating force for several years has declined over the past two years due to regulatory measures and unfavorable changes in the exchange rate.

Still, in his point of view, 2008 offers good perspectives. Triana cites good relations with Latin America, the prospect of improved relations with Europe, particularly Spain, positive and improving relations with China and improving relations with Russia.

He also mentioned new deals with Venezuela, the high price of nickel, sugar and tobacco, the possibility of slightly increasing nickel production, and the secure supply of petroleum. All this, he said, has led the government to plan for 8 percent growth this year.

There is some speculation that the government will try to respond to popular demands for change by moving on issues that do not first require improvements in production and services.

Several sources say that immigration regulations will be relaxed so that people seeking to leave the country, either permanently or temporarily, will have an easier time of it. Others say Cubans with cash will be allowed to stay at hotels previously closed to all but foreign tourists thus increasing profits for hotels operating at half capacity, and that Cubans will be allowed to open cell phone accounts.

All these changes would give an appearance of greater openness. However, most specialists believe that tackling low wages, high prices and the dual currency will take a while.

Sweig thinks Raul Castro is going to have to move on all fronts at once. “I think he will need to do a little of everything: greater freedom to move around internally and abroad, greater purchasing power from wages, which means dealing with the currency issue and greater opportunities for Cuban to provide for their families and see themselves, especially young people, as having a stake in the survival of the revolutionary project. Beans alone won’t do it and Raul seems to be aware of this as well.”


By Portia Siegelbaum
© MMVIII, CBS Interactive Inc. All Rights Reserved.
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Add a Comment See all 14 Comments
by libsrweak March 15, 2008 4:46 PM EDT
IS IT SAFE TO SAY THAT JOHN F KENNEDY FU CKED UP ON THIS ONE??????
Reply to this comment
by downsteamjim March 15, 2008 12:52 PM EDT
Why aren''t millions of peole trying to move to this utopia? What % of Cuba''s popultion has risked their life to escape heaven on earth?
Reply to this comment
by mglesne March 14, 2008 4:21 AM EDT
RG, Cuba has improved in nearly every way since 1999. Visit again, but this time stop over in any comparable regional country first - Jamaica, Haiti, Venezuela, Colombia, Mexico, etc. Tell me which one you would want to walk around at night in? Tell me what capital city has more culture, more beauty, more educated and interesting citizens? What city has fewer street kids, fewer homeless, fewer desperate?

Still, it is also true that Cubans have few modern products, their food situation remains poor (but much better than 99) and many things we take for granted continue to be a struggle. But now that they''ve fixed their energy problems, they were able to lift restrictions on many electronic appliances, including PCs. A big agricultural reform is in the pipeline next...
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by rgmiron March 14, 2008 12:01 AM EDT
I got to study in Cuba, a cross cultural study program out of spain, it was back in 1999 so it has been some time. mglesnel1- I am not sure what country you are talking about, but it sure wasn''t the Cuba I remember!
The people were wonderful, smart, creative, they could be very hard workers, when motivated.
There form of government was the problem, at least they are all starving equally.
Reply to this comment
by walt1944-2009 March 13, 2008 4:04 PM EDT
With Fidel Castro "retired" and his brother running Cuba, Cubans are starting to demand a better standard of living.

Apparently, they have heard of the treatment that the North Koreans are getting , particularly, the "secret" deals between North Korea and the Great Emperor Bush II involving thousands of porno DVDs and the prospect of a "Hannah Montana" concert in Pyongyang, and now the Cubans want part of the action!

Since the North Koreans are being treated with greater respect since getting THE BOMB, Raul Castro has ordered what scientists he has to concentrate on a "crash course" of getting THE BOMB for Cuba as well, or at least a close facsimile of it.

It is hoped by Raul Castro that this would lead the Great Emperor to open negotiations with the Cubans which might lead to several baseball games between Cuban teams and the New York Yankees, the opening of a Chevrolet dealership in Havana, and the opening of the country to tourism, which has such attractions as the battle field at the Bay of Pigs, Fidel Castro''s mountain hideouts, and relics from the 1962 Soviet missile crises!

SIG HEIL, BUSH!!!!
sig heil, McCain????
Reply to this comment
by mglesne March 13, 2008 3:31 PM EDT
Nacho, I was in Cuba in 2003, when I experienced blackouts and the overcrowded transport problems. Today, blackouts are virtually a thing of the past through increased efficiency and the purchase of state of the art generators. Cubans are very glad. As for the claims about water in Baracoa, I think these problems were related to the drought in the East the last couple years and the problem has been solved. Also, to convert what Cubans make in dollars is not relevant, as everything they buy is in 25/1 pesos. But the $10/month figure is also out of date (or perhaps refers to minimum wage). Soap is available for a few pesos as part of the ration book. The $1 price is for a Western brand at the dollar store. Cuba has its problems but at least it is able to solve them. What problem in the US have we solved??
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by sheila1346 March 13, 2008 3:16 PM EDT
I have read all of the comments and I am still confused as to the article as I know for a fact (as does a previous writer) they have one of the best health care system in the world along with a first rate educational system. Yes there are real problems all brought on by the US embargo, but the so called news article makes no sense as to the real reality in Cuba. Neither do the totally misinformed who write stories of horror and injustice. The us has a propaganda machine that churns out garbage about Cuba every single day. Sadly people are so willing to believe the lies. CUBA is a country with problems just like any other but unlike here in the US where we deny the problems and continually make cuts in human services so the rich can get richer they really do work for every single man woman and child to have a better life.
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by nacho_london March 13, 2008 1:37 PM EDT
when was the last time mglesne1 visited Cuba? How has Cuban resolved its energy problems? Public transport is almost non-existent and unbearably overcrowded
There''s thousands without proper running water and hygiene. Baracoa in Oriente, a town nearly 82 000 people has running water every other day.
mglesne1 if you love Cuba so much, you should move there with the Castro, see how you can survived with a low paid job, making 10 dollars a month and with a bar of soap costing 1 dollar. And, without freedom of expressing yourself in publications such as this one
Regarding Portia''s article, it merely touches the tip of the iceberg of the problems faced by the real Cubans every day. Check this out regarding the dual currencty system http://preview.tinyurl.com/2jutqd
Reply to this comment
by mglesne March 13, 2008 6:18 AM EDT
It is far from clear what nation is "ruined" and why. Russia''s low human development (HDI) ranking is exactly because they went capitalist and had a huge increase in human poverty. Cuba, by the way, scores the second best country in the WORLD in their HDI ranking, when compared to their GDP (GDI).

The education system in Cuba is still stellar - with kids scoring nearly twice as high on UNESCO tests than other in the region. As for health, Guantanamo Province just recorded a less than 1.0 infant mortality rate - the best ever seen in Cuba. Sending 30,000 volunteer doctors abroad to help the truly needy is something Cubans are pround of (and it brings in hard currency).

Cuba has solved their energy problems and have recently bought thousands of Chinese buses to aleviate their transport. The Cuban state has built more 150,000 homes in 2 years (on par as total US home construction/per capita). Many went to the most needy - hurricane vitims, those doubled up, etc. There are no homeless and very few without proper hygeine and water.

And Portia, I did not understand the glasses intro to your story. If 2$ glasses are available in Cuba (albeit with a sometimes waiting list), why lead the story with a quote that seems like she had to pay $84? If the US offered cheap glasses, I''m sure few here would complain. But I thank you for mentioning the redistributive aspects of Cuba''s currency policy - and other often denied things like that.
Reply to this comment
by mglesne March 13, 2008 6:16 AM EDT
It is far from clear what nation is "ruined" and why. Russia''s low human development (HDI) ranking is exactly because they went capitalist and had a huge increase in human poverty. Cuba, by the way, scores the second best country in the WORLD in their HDI ranking, when compared to their GDP (GDI).

The education system in Cuba is still stellar - with kids scoring nearly twice as high on UNESCO tests than other in the region. As for health, Guantanamo Province just recorded a less than 1.0 infant mortality rate - the best ever seen in Cuba. Sending 30,000 volunteer doctors abroad to help the truly needy is something Cubans are pround of (and it brings in hard currency).

Cuba has solved their energy problems and have recently bought thousands of Chinese buses to aleviate their transport. The Cuban state has built more 150,000 homes in 2 years (on par as total US home construction/per capita). Many went to the most needy - hurricane vitims, those doubled up, etc. There are no homeless and very few without proper hygeine and water.

And Portia, I did not understand the glasses intro to your story. If 2$ glasses are available in Cuba (albeit with a sometimes waiting list), why lead the story with a quote that seems like she had to pay $84? If the US offered cheap glasses, I''m sure few here would complain. But I thank you for mentioning the redistributive aspects of Cuba''s currency policy - and other often denied things like that.
Reply to this comment
by clifden6 March 13, 2008 3:44 AM EDT
Not sure exactly what destroyed the Soviet Union, but if Flint, Michigan in Michael Moore''s Fahrenheit 9/11 and his Sicko are these examples you are citing, well we have plenty of our own to export.

In the 2007/2008 Human Development Index rankings, Iceland #1, Norway #2, Autralia #3, Canada #4, Ireland #5, Sweden #6, Switzerland # 7, Japan #8, France #10, and the US #12, Cuba is #51, the Russian Federation #67. It would appear that perhaps the Russian Federation may need to look to Cuba.

and this is what the Democrats want to bring to the US, the same old *** that destroyed the Soviet system. Posted by lorinkundert
Reply to this comment
by clifden6 March 13, 2008 3:24 AM EDT
Reads like the United States:

Topping the list: the inadequacy of wages, the housing and transportation crisis and the deterioration of the health and education systems, once the pride and joy of the Revolution.
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by dignorsign March 12, 2008 11:55 PM EDT
I''m Cuban, I liked this article, it have a lot of data and some research. There''s always a lot more to say but this is the very best one written in these days about Cuba, in regards of neutrality and even optimism.
Regarding previous comment by ''lorinkundert'', well, it''s not very advisable to turn to Cuba looking for examples; you can look for bare good intentions in the Bible. However, look to other socialist countries and to European nations and they aren''t doing that bad, the EE.UU. people deserves better things in the social sphere.
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by lorinkundert March 12, 2008 11:30 PM EDT
and this is what the Democrats want to bring to the US, the same old *** that destroyed the Soviet system.
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