Raul Castro - Economic changes must be gradual

Posted on Saturday, 07.05.14



Raul Castro: Economic changes must be gradual

BY PETER ORSI

ASSOCIATED PRESS



HAVANA -- President Raul Castro reiterated Saturday that Cuba's program

of reforms will remain cautious and gradual, despite recent

disappointing GDP numbers that show the country's already-struggling

economy slowing.



Days after Cuba downgraded its 2014 economic growth forecast by nearly a

percentage point, Castro told parliament during the first of its

twice-annual regular sessions that the reforms "have great complexity

but are advancing" at the necessary pace.



"This process, to be successful, must be conducted with the appropriate

gradualness and be accompanied by the permanent control of different

party and government structures at all levels," Castro said in a

25-minute speech.



"Gradualness is not a whim, much less a desire to delay the changes that

we must make," he added. "On the contrary, it is about a need to ensure

order and avoid gaps that would lead us directly to mistakes that

distort the proposed objectives."



Foreign journalists were not allowed access to the one-day session at a

convention center in western Havana. His comments were broadcast later

on state TV.



Vice President Marino Murillo, Castro's reforms czar, said a nascent

project to eliminate Cuba's unique dual currency system is continuing

and warned islanders that monetary unification itself will not increase

their purchasing power.



"For that to happen, we must produce more," Murillo said.



Cuba's economy minister announced at the end of June that officials were

lowering their GDP growth expectations to 1.4 percent for the year, down

from a previous forecast of 2.2 percent for 2014 and from 2.7 growth

recorded last year.



Castro and other officials say the reforms do not amount to an embrace

of capitalism, but are rather an "update" of Cuba's socialist model to

survive in the 21st century global economy.



Cuba has decentralized state-owned enterprises, legalized home and used

car sales and let hundreds of thousands of people open or work for small

businesses in the private sector.



Parliament also considered a report Saturday from the comptroller's

office on its attempts to root out corruption. No specifics were given

on the nightly newscast.



Official media reported that Agriculture Minister Gustavo Rodriguez said

Cuba's food imports have reached $2 billion a year, but the government

believes the island could produce 60 percent of that.



Cuba's parliament typically meets twice a year, once in the summer and

again in December. Lawmakers also called an extraordinary session this

spring to approve a law that seeks to attract badly needed foreign

investment.



Peter Orsi on Twitter: www.twitter.com/Peter-Orsi



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