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Castro's world: A trickle-up society

Author: Tim J. McGuire, Star Tribune
Published: November 02, 1998
Last Updated: August 19, 1999
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'Conversation' is the stage for a forceful one-man act

November 1, 1998

HAVANA -- Roberto Robaina, Cuba's foreign minister, looked a delegation of 32 U.S. newspaper editors in the eyes and said, "People say bad things about Cuba, but we want you to see Cuba for yourself -- make up your own mind."

But when you look at Cuba from the inside, it's like peering through Alice in Wonderland's looking glass: Everything is upside down.

Robaina, who was dressed in a black tuxedo jacket, sleeves pushed up to his elbows, black silk T-shirt and black slacks, talked of a Cuba the editors never saw.

Robaina, President Fidel Castro and others praised socialism and their 39-year-old revolution and cursed the United States and its embargo. Yet the underpinning of the Cuban economy is a capitalistic dependence on tourism and the U.S. dollar.

Cuban officials speak of equality for all, yet the government does not allow Cuban citizens to enter its tourist hotels or many tourist restaurants.

In Cuba today, the economic system of rewards has been turned on its head. And the repressed Cuban people don't like it.

After the Soviet Union collapsed and withdrew its economic support, the Cuban government began a desperate scramble for hard currency. It turned to dollar-based tourism while restricting Cuban citizens to the peso system.

So when I gave my maid a $20 tip, I committed a significantly subversive act. That $20 meant she made 400 pesos in one day. The top doctors and scientists in the country make 350 pesos a month.

Waitresses, bellboys, maids, street vendors and prostitutes have become Cuba's wealthiest citizens. One of our cabdrivers had quit his engineering job to make far more money from the tips he receives in dollars.

The quest for the tourism dollar is blatant and can border on begging. Another cabdriver explained that the state gets all of his fare money but that he gets the tips. He then unashamedly pulled out a picture of his toddler daughter and said she needed milk. The tips were generous.

When I hadn't left a tip for the maid during the first three days I was in my room, I came back to find a polite letter from the maid saying how much she'd enjoyed serving me. Without saying it specifically, it screamed, 'Leave me a tip.' "

Cashing in

This year, 1.4 million tourists are expected to visit Cuba, and the predictions are for 2 million visitors by the year 2000. Everybody wants to cash in on those tourists. Street vendors come up with imaginative products, prostitutes roam the streets and there are rumors that people are paying as much as $1,000 to get jobs as waitresses and cabdrivers.

Victor Rameriz Ruiz, president of the assembly of Matanzas Province, was candid when he said: "Tourism has brought about some differences in people. People serving the tourists have advantages some people don't have. ... Tourism creates some limitations on our people, but they know development of tourism is important to our economy."

An old Communist revolutionary, Osmany Cienfuegos, was straightforward when he said: "We would have liked a chance to develop something else to improve our economy, but we had to develop tourism. ... Tourism has its bad points, but we think economic development is more important."

The message of most of the Cuban leadership is that while only a few people benefit directly from tourism dollars, that money will trickle down to the masses and provide better social services.

Castro makes the argument that "tourism dollars allow us to develop more medicines, better schools and better health care systems."

A second key element propping up the economy is money sent to Cuban citizens from family members in the United States. Some U.S. estimates put that number as high as $800 million a year. Cuban officials argue that that the number is half that.

Two economies

Whatever the number, the hard fact is that there are two starkly different economies in Cuba: an external market in foreign currency and an internal system in the peso. Salaries for most Cubans range from $6 to $18 a month. Dinner at one of the tourist restaurants in Cuba costs $25 per person.

The government has its hand in just about every dollar transaction. The U.S. interests section, which represents the United States in a country with which it does not have diplomatic relations, pays $500 per month to the Cuban government for each of its 250 Cuban employees. Each employee is then paid $10 a month by the government.

The hotels in the country are owned in partnership with the government, which takes its money off the top.

Tourism is confined to a few modern hotels in Havana and to some beautiful beach resorts, such as Varadero. Cubans are not allowed to stay in those hotels or stray onto the grounds of the resorts, restrictions that breed contempt and distrust among Cubans.

The hotels are as modern and spacious as any in the United States, though the construction is probably not as good, if that whistle through the windows of my coastside room was any indication.

The breakfast buffet in the hotel Cohiba was incredible, equaling any I've seen in the United States and several foreign countries. Cheeses, meats, breads, fruits, salads, omelets with all the fixings and U.S.-brand cereals adorned the many tables. Breakfast cost about $12 per person.

However, the food in two state-owned restaurants for ordinary Cubans ranged from OK to memorably awful.

The luxury and plenty of the tourist hotel is turned upside down again when you walk outside into a rundown, ramshackle Havana. The glory of this city is obvious but faded, and it would appear that the greatest effect of the U.S. embargo has been on paint. Everything needs several coats. Some good hardware stores could make a killing with all the fixing-up that would be necessary to restore Havana to the grandeur of the '50s.

In many ways, time stopped when Castro seized power in 1959. Havana's road system is excellent, far better than in many European countries, but the system was built before the revolution. There are no traffic jams because few cars are on the road. Most of those are '49 Cadillacs, '53 Chevies, '54 Buicks and the like. The word is that many of those cars have American bodies but Russian engines.

The '50s motif is found in people's dress too. Most men wear the traditional Spanish guayaberas (shirts) and some women dress in a sharp, contemporary style. But some high-ranking female scientists look as though they stepped off the set of "I Love Lucy."

Ongoing revolution

Perhaps the greatest marketing victory in the universe belongs to Castro and his ministers, for their ability to convince the people that they are still in the midst of a revolution, 39 years after Castro marched into Havana.

Jose Ruiz Rodriguez, the minister of economy and planning, seems to understand important economic principles, but he and most other Cuban officials talk of the revolution as an ongoing thing, not as an event that took place more than a generation ago. Rodriguez is proud of the socialistic underpinnings of the economy. "What we have here is a more equal distribution of income than any other country in the world, even with the dislocations of the last year."

Some common citizens, including executives at the Carlos Finlay Science Institute, which manufactures life-saving vaccines, lectured the U.S. editors on the economy and socialism. They argued that one should not think of 350 pesos as the only salary that Cuban scientists get, singing the praises of the housing that is supplied by the state, the free medical system and the free education system. Those executives argued that those benefits made their salaries far more comparable to U.S. salaries than we understood.

And whenever the socialist rhetoric fails, everyone from Ricardo Alarcon, the head of the popular assembly of Cuba, to Foreign Minister Robaina to Castro himself blames the U.S. embargo. As Alarcon put it: "Cuba has been and continues to be a minor problem for the United States. To Cuba, the United States is the major problem."

A clear message conveyed to the editors was that the embargo is bad, that the United States is inconsistent because it is embargoing Cuba and not the Communist governments of China and Vietnam and that the United States has broken repeated promises to lift the embargo if Cuba did certain things. Most important, Cuban officials insist that it is the United States that must change, that Cuba will not change in order to get the embargo lifted.

The head of the U.S. interest section, Michael Kozak, contends that the embargo is a good thing simply because "we don't want to be doing business with this repressive regime." But one wonders what would happen to Castro and his apologists if the embargo was lifted and he no longer had an excuse for the country's poor economic performance.

Despite all the roiling in the country, you find little dissent. It is not tolerated. Dissent is viewed as an act against the state, and dissidents are routinely jailed. There's only one newspaper in the country, the state-run Granma. The newspaper's editor in chief, Frank Aguero Gomez, was unabashed in admitting that Castro has a personal hand in deciding what is published. Gomez could not understand why a newspaper might publish something that was not in the interests of the government.

Even though many Cubans complain about the economy and the government, most of them still love Castro. Despite the grousing about economic inequities, there was never any indication that serious rebellion is afoot.

Stability after Castro is a major question. Castro's brother Raul would legally succeed him, but it is unclear whether Raul or any other Cuban would have the political muscle to handle the upside-down world Castro and his ministers have created for Cuban citizens.

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