Cuba Under the Other Castro

Raúl is officially named President, and he promises economic and government reforms, but insists the socialist regime will not give way to democracy

by Geri Smith

Cuba's National Assembly on Feb. 24 selected Raúl Castro, 76, as the new President of Cuba, marking the end of 49 years of leadership by Fidel Castro. The veteran Army general pledged to carry out economic reforms but made it clear that the Caribbean island nation would remain under Communist rule in spite of Washington's insistence that it embark on a transition to democracy.

The new President, who had served as acting President since Fidel underwent emergency intestinal surgery on July 31, 2006, was selected six days after his ailing 81-year-old brother, who had been one of the world's longest-ruling leaders, removed his name from consideration for another term, saying that he was "exhausted."

Raúl said in his acceptance speech that he would continue to consult on important government decisions with Fidel, who he said is "irreplaceable" and who still has "a very clear mind and…capacity to analyze" that are "perfectly intact." But he said that he intends to carry out sweeping reforms to make the government more efficient, improve salaries, eliminate costly subsidies, and phase out a dual-currency regime that he said had caused distortions in the economy. Such adjustments are necessary, analysts said, to retain popular support for the Communist government as it begins the complicated transition away from Fidel's long domination of Cuba.

Oscar Espinosa Chepe, a 67-year-old dissident economist who spent nearly two years in prison in 2003 and 2004 for his writings critical of the Cuban government's economic and political policies, said after hearing the new President's nationally televised speech that he is "cautiously optimistic that under Raúl, we may see the beginnings of change on the economic front."

Lage Overlooked for First Vice-President Role

Raúl is viewed as a highly pragmatic leader who, as Cuba's first vice-president, spearheaded a series of market reforms in the mid-1990s, after the collapse of the Soviet Union deprived the island nation of billions in annual subsidies. Overcoming Fidel's initial reluctance, Raúl persuaded him to open the country to foreign tourism to earn needed hard currency. Raúl also oversaw the creation of numerous state companies, including several run by the military, which manage hotels, rental-car agencies, and other businesses that provide much of the government's revenue.

Working with the country's chief economic architect and fellow State Council member Carlos Lage, 56, Raúl allowed more than 100,000 Cubans to open a variety of small businesses, from auto-repair shops to small restaurants in their homes. The government later cut back on some of that private enterprise, because Fidel was concerned some Cubans were accumulating more wealth than those who depended solely on state-paid salaries.

Some Cubans had hoped that Raúl would elevate Lage to the post of first vice-president, which would have indicated a willingness to undertake additional, bold reforms under a younger generation of technocrats. He instead engineered the appointment to the State Council of several of his old-time, staunch supporters, including septuagenarians José Ramón Machado Ventura and General Julio Casas Regueiro, two fellow veterans of the guerrilla battles the Castro brothers led in the Sierra Maestra to overthrow former dictator Fulgencio Batista. Machado Ventura, a veteran, doctrinaire Communist Party politburo member, was named first vice-president. The appointment of Casas to the council was especially noteworthy, as he is the second-ranking officer of the army under Raúl and is head of economic affairs for the armed forces, overseeing the cluster of highly efficient, military-run companies that dominate Cuba's tourism industry.

From "Enforcer" to Reformer

Fidel was widely admired by many Cubans, even among the 70% who were born after the 1959 revolution, for his hands-on leadership style and efforts to create an egalitarian society with free health care and education. Raúl, however, is less well known. Although people who know both brothers say Raúl is more relaxed and sociable than Fidel, the public knows him as a gruff, formal military man, who in the early years of the revolution was responsible for physically eliminating political opposition and setting up the country's vast security apparatus. "I'm a little afraid of Raúl because he's always been the enforcer," says Yamily, 46, a single mother who works as a cleaning lady at a government office in Havana and didn't want her last name disclosed. "Fidel was warmer, like a father figure."