CUBA: Cuba vows to maintain its current economic policies whatever the state of President Fidel Castro's health

Cuban Minister for the Economy and Planning, Jose Luis Rodriguez, on Tuesday (September 12) said the nation would remain steadfast in its economic path - scotching talk that the economy might loosen up under the rule of Raul Castro. Raul Castro took the reins of power from his brother Fidel, after the Cuban leader underwent intestinal surgery in July. "In the event that the Commander in Chief remains ill and the issue of whether there would be a change in the policies of Cuba with the opening of the market, I can say that it will not be like that. We do not foresee this nor is it the will of the people nor is it under consideration. It is another thing the way the U.S. government thinks with their supposed plan of transition of the Cuban economy, but in the first place, in order to try it, they would have to come here," said Rodriguez. Raul Castro supported economic reforms in the early 1990s and is said to favour a Chinese path. As defence minister, he introduced Western management practices in the armed forces, which now run Cuba's most efficient and profitable companies. Battered by an economic crisis following the 1991 collapse of its benefactor the Soviet Union, Cuba has opened up to small businesses in the services sector, mainly food and transport, but Fidel Castro has wanted to run the self-employed out of business and attacked them in recent years for getting rich at the expense of the Cuban people and the state. Rodriguez said that foreign investment in Cuba had remained steady, despite the continued U.S. embargo on the island. "I think that within certain spheres, (foreign investment) it has been maintained in the most important areas which fuel the country and the foreign capital with good results with growth perspectives," said Rodriguez. Cuba's economy has begun to enjoy something of a recovery in recent years as it puts its post-Soviet "special period" behind it. With the aid of subsidized oil from Venezuela and soft loans from China, Cuba has pulled itself up and began recentralizing control over the economy three years ago. At least 90 percent of output is state-run. Rodriguez said economic ties with Mexico could help it move forward. "Mexico continues to be a very important business partner. There have been some difficulties as regards some incomplete agreements between both countries which has caused some difficulties in expanding the relationship but, on our side, important interests in Mexico have been identified and we think that once these problems have been resolved, the relations can move towards improvement," said Rodriguez. He added that economic ties with China would also be consolidated. "Our relationship has been developing within the margin of political similarities between the government of China and the high-level relations that we have been consolidating over the last few years." Rodriguez said oil cooperation agreements with Venezuela looked promising. Cuba produces around 70,000 barrels per day of poor-quality oil and imports about 98,000 bpd of oil and derivatives from its ally Venezuela. "Without a doubt, it creates very important prospects for a high quality of refined oil both for national consumption and exporting but it is an agreement which was just recently signed and it will advance but it will take some time, there has to be some investment and it is the most important (agreement) that we have in that sense," said Rodriguez.

ITN Source | September 13, 2006

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