http://ap.google.com/…

President Raul Castro warned Cubans on Friday to prepare for a “realistic” brand of communism that is economically viable and does away with excessive state subsidies designed to promote equality on the island.

Addressing Cuba’s parliament in its first session since lawmakers selected him to succeed his older brother Fidel in February, Raul Castro announced no major reforms, but suggested that global economic turbulence could lead to further belt-tightening on the island.

“Socialism means social justice and equality, but equality of rights, of opportunities, not of income,” the 77-year-old president said in a speech that was taped and later aired on national television. “Equality is not egalitarianism.”

That sentiment marks a break with his brother, who spent decades saying Cuba was building an egalitarian society. But the new president nevertheless ended by proclaiming he had “learned everything” from Fidel, drawing a standing ovation.

Since succeeding his brother, Raul Castro has authorized Cubans to legally purchase computers, stay in luxury hotels and obtain cell phones in their own names. His government has raised some salaries and done away with wage limits, allowing state workers to earn more for better performance.

Cuba’s rubber-stamp parliament convenes for only for a few hours twice a year and rumors were rampant that Friday’s session would see an easing of restrictions on travel abroad or a strengthening of wages by increasing the value of the peso, worth about 21-1 against the U.S. dollar.

The government controls well over 90 percent of the economy and the average salary is just 408 pesos per month, US$19.50, though most Cubans get free housing, health care, education and ration cards that cover basic food needs.

Castro said that in “the matter of salaries, we’d all like to go faster, but it’s necessary for us to act with realism.”

“The situation could even get worse,” he said of the global economy. “We will continue to do what’s within our reach so that a series of adversities have less effect on our people, but some impact is inevitable in certain products and sectors.”

Economy Minister Jose Luis Rodriguez said this week that skyrocketing global food and oil prices would cause “inevitable adjustments and restrictions” for Cuba’s economy.

Castro said he supported a proposal to gradually push back the retirement age five years, to 65 for men and 60 for women. The move, which parliament plans to vote on in December, is part of an effort to soften the blow of a disproportionately elderly work force.

Castro acknowledged shortages that plague Cubans, but said “we have to be conscious that each increase in salary that is approved or price that is subsidized adhere to economic reality.”

He also shot back at U.S. officials who have dismissed the small changes he has overseen in Cuba as meaningless.

“Faced with the measures adopted lately in our country, some official in the United States comes out immediately, from a spokesman to the president, to brand them ‘insufficient’ or ‘cosmetic,’” Castro said. “Although no one here asked their opinion, I reiterate that we will never make any decision, not even the smallest one, as a result of pressure or blackmail.”

For the fourth straight parliamentary session, Raul Castro sat next to an empty chair set aside for his ailing brother.

The elder Castro, who turns 82 next month, has not been seen in public since undergoing emergency intestinal surgery in July 2006.

Interesting indeed.

http://news.yahoo.com/…

Communist Cuba is revamping the state wage system to create more incentive by allowing workers to earn as much as they can, local media said on Thursday, in the latest sign new President Raul Castro wants to improve the country’s economic performance.

Under Labor and Social Security resolution nine, and for the first time in decades, there is no limit on a state employee’s earnings, state-television reported.

“For the first time it is clearly and precisely stated that a salary does not have a limit, that the roof of a salary depends on productivity,” economic commentator Ariel Terrero said.

The Cuban state controls about 90 percent of the country’s economic activity and employs the vast majority of the labor force, often setting wages from central offices in Havana.

Cuba has always prided itself on its limited range of salaries, while at the same time some jobs do have perks and in the past bonuses were available for some workers.

However, the egalitarian approach has come under fire in recent years for holding back production.

“One reason for low productivity is there is little wage incentive and this breaks productivity and stops bigger salaries,” Terrero said.

He said the resolution, signed in February but yet to be published in the official Gazette, is aimed at breaking the cycle.

Terrero said it corresponded with the socialist slogan, “to each according to his work, from each according to his ability.”

“It is our strategic objective today to advance in an articulate, sound and well-thought-out manner until the wages recover their role and everyone’s living standard corresponds directly with their legally earned incomes,” he said.

Raul Castro has also launched a major reform of the agricultural sector to create conditions for state and private farmers to legally earn as much as they can from their efforts after meeting state quotas.

Allowing people to reap what the sow. Nice to see he realizes people need incentives to work harder.

Mariela Castro has introduced a new bill to mandate positive rights for homosexual and transgender persons.  Among the rights are domestic partnerships, ID cards with the gender of your choosing and state provided sexual reassignment surgery.  The article covers some history of the persecution of gay people in Cuba and talks about the current state of the gay community.  We’ll see how this legislation does in the national assembly.

Raul Castro has lifted restrictions on cellular phone ownership.  He gives the impression that he’s hoping to help bolster the nations telecom infrastructure.  The article also mentions some changes in “buying” options for farmers.

I’ll be interested to see if the US continues to wage war with Cuba or if they change their policy in the face of Cuba’s current flux.

http://www.reuters.com/…

Communist Cuba has authorized the unrestricted sale of computers and DVD and video players in the first sign that President Raul Castro is moving to improve Cubans’ access to consumer goods.An internal government memo seen by Reuters on Thursday said the appliances long desired by Cubans can go on sale immediately, although air conditioners will not be available until next year and toasters until 2010 due to limited power supplies.

Only foreigners and companies can buy computers in Cuba at present, while DVD players were seized at the airport until last year, when customs rules were eased.

Now Cubans will be able to buy them freely, paying for them in hard currency CUCs, or convertible pesos, worth 24 times more than the Cuban pesos state wages are paid in.

“Based on the improved availability of electricity, the government at the highest level has approved the sale of some equipment which was prohibited,” the memo said.

It listed 19-inch (48-cm) and 24-inch (61-cm) television sets, electric pressure cookers and rice cookers, electric bicycles, car alarms and microwaves.Cubans were delighted with the prospect of being able to buy items such as microwave ovens and air conditioners that were previously only available as stolen goods on the black market.

Shop attendants in central Havana had not heard about the measure but said there was great demand for the items.

“That’s great. I hope this is the necessary start along a new path,” said second-hand clothes vendor Maritza Hernandez, eager to see further reforms to Cuba’s command economy.

Many Cubans expect the state to soon allow them to buy cellular telephones. While they will now be able to buy computers, access to the Internet remains controlled by the government.

Toasters in 2010 huh? Welcome back… to the 20th century. Too bad it’s only because of help from Venezuela.

They don’t have toasters or electricity but at least they have “free” healthcare.