San Francisco Chronicle

End of Castro era sees new liberties and dire troubles

- By Michael Weissenste­in and Andrea Rodriguez

HAVANA — In 2008 Raul Castro took over a country where most people couldn’t own computers or cell phones, leave without permission, run most types of private businesses or enter resort hotels.

Castro set about re-engineerin­g the system he had helped create and Cuba opened dramatical­ly over his decade in office. But when Castro steps down this week after two terms as president, he will leave his successor a host of problems that are deeper than on the day his brother Fidel formally handed over power.

Cuban state media reported Monday that the government moved up the start of a meeting of the National Assembly in which Castro plans to resign. The session will now start Wednesday instead of Thursday.

Cuba has nearly 600,000 private entreprene­urs, more than 5 million cell phones, a bustling real estate market and one of the world’s fastestgro­wing airports. Limited Internet use is expanding fast, with thousands of Cubans installing new home connection­s this year. Foreign debt has been paid. Tourism numbers have more than doubled since Castro and President Barack Obama re-establishe­d diplomatic relations in 2015, making Cuba a destinatio­n for nearly 5 million visitors a year, despite a plunge in relations under the Trump administra­tion.

On the other side of the ledger, Cuba’s Soviet-style command economy still employs 3 of every 4 Cuban workers but produces little. Private-sector growth has been largely frozen. The average monthly state salary is $31 — so low that workers often live on stolen goods and handouts from relatives overseas. Foreign investment remains anemic. The island’s infrastruc­ture is falling deeper into disrepair. The break with Washington dashed dreams of detente with the U.S. And after two decades of receiving Venezuelan subsidies totaling more than $6 billion a year, Cuba’s patron has collapsed economical­ly with no replacemen­t in the wings.

Castro’s inability or unwillingn­ess to fix Cuba’s structural problems with deep and wide-ranging reforms has many wondering how a successor without Castro’s founding father credential­s will manage the country over the next five or 10 years.

“People in Cuba really haven’t processed yet what it means to have a government without Raul or Fidel leading it,” said Yassel Padron Kunakbaeva, a blogger who writes frequently from what he describes as a revolution­ary perspectiv­e. “We’re entering unknown territory.”

The greatest immediate challenge for Castro’s expected successor — 57-year-old Vice President Miguel Diaz-Canel Bermudez — is unwinding a byzantine dual-currency system featuring one type of Cuban peso worth 4 cents and another that is nearly a dollar. The system was designed to insulate a state-run, egalitaria­n internal market using “national money” from trade with the outside world denominate­d in “convertibl­e pesos.”

Michael Weissenste­in and Andrea Rodriguez are Associated Press writers.

 ?? Ricardo Mazalan / Associated Press 2016 ?? Residents of Santiago, Cuba, hold portraits of Fidel Castro (left) and his brother, Raul, as they wait Dec. 3, 2016, for a caravan carrying Fidel’s ashes to arrive following his death.
Ricardo Mazalan / Associated Press 2016 Residents of Santiago, Cuba, hold portraits of Fidel Castro (left) and his brother, Raul, as they wait Dec. 3, 2016, for a caravan carrying Fidel’s ashes to arrive following his death.

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