Story on New Housing Regulations in Cuba

Cuba legalizes sale, purchase of real estate
Much-despised ban on these transactions took effect in stages over the first years after Fidel Castro came to power in 1959
MSNBC

By PAUL HAVEN
HAVANA — For the first time in a half-century, Cubans will be allowed to buy and sell real estate openly, bequeath property to relatives without restriction and avoid forfeiting their homes if they abandon the country.

The highly anticipated new rules instantly transform islanders' cramped, dilapidated homes into potential liquid assets in the most significant reform yet adopted by President Raul Castro since he took over the communist country from his brother in 2008.

But plenty of restrictions remain.

Cuban exiles continue to be barred from owning property on the island, though they can presumably help relatives make purchases by sending money. And foreigners can also hold off on dreams of acquiring a pied-a-terre under the Caribbean sun, since only citizens and permanent residents are eligible.

The law, which takes effect Nov. 10, limits Cubans to owning one home in the city and another in the country, an effort to prevent speculative buying and the accumulation of large real estate holdings. While few Cubans have the money to start a real estate empire, many city dwellers have struggled over the years to maintain title to family homes in the countryside, and the new law legalizes the practice.

The change follows October's legalization of buying and selling cars, though with restrictions that still make it hard for ordinary Cubans to buy new vehicles. The government has also allowed citizens to go into business for themselves in a number of approved jobs — everything from party clowns to food vendors and accountants — and permitted them to rent out rooms and cars.

While Castro has stressed that there will be no departure from Cuba's socialist model, he has also pledged to streamline the state-dominated economy by eliminating hundreds of thousands of state jobs and ending generous subsidies the state can no longer afford.

Cuba's government employs about 80 percent of the workforce, paying wages of just $20 a month in return for free education and health care, and nearly free housing, transportation and basic foods.

Economists and Cuba experts say the new property law will have a profound impact on people's lives, though probably will not be enough by itself to transform the island's limping economy.
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Viva la evolucion (Cuban private market story)

Globe and Mail

Capitalism
In Cuba, it's Viva la evolucion!
sonia verma
HAVANA— From Thursday's Globe and Mail
Published Wednesday, Oct. 12, 2011 8:42PM EDT
Last updated Wednesday, Oct. 12, 2011 9:49PM EDT

Barbershops, beauty salons, restaurants and car washes have sprung up across Cuba in the year since the Communist Party allowed citizens to open small, private businesses in an effort to save the country from ruin.

The government says more than 157,000 people have qualified for business permits and are currently self-employed. This new generation of Cuban entrepreneurs is quietly reshaping the island’s stagnant revolution in a way that was inconceivable when Fidel Castro was in control. The economic changes brought about by his brother Raul, however, are proving slow to take hold.

Many are being implemented by young Cubans with virtually no memory of life before communism. Some new entrepreneurs are struggling to understand how to pay small-business taxes or navigate the country’s labyrinthine bureaucracy. With virtually no access to bank loans or credit, most are relying on family living abroad to float their new ventures.

Still, Cuba is buzzing with new energy as people attempt, for the first time in their lives, to make money outside of the underground economy. Business owners are experimenting with novel concepts, such as advertising and open competition. It’s unclear, however, how far the Cuban authorities will allow the reforms to go – whether small business owners will be permitted to accumulate vast amounts of wealth, for example, or build empires.

At the moment, however, these new entrepreneurs seem content enough to turn a profit they can officially pocket.

Read the four profiles HERE.

Al Jazeera English story on Cuba

NYT: The Stomachs of Strongmen

NYT August 20, 2011 The Stomachs of Strongmen By ANN LOUISE BARDACH Ann Louise Bardach is a writer at large for Newsweek and the author of “Without Fidel: A Death Foretold in Miami, Havana and Washington.” Santa Barbara, Calif. THE tribute concert Aug. 12 for Fidel Castro’s 85th birthday, at the Karl Marx Theater in Havana, was billed as the Serenata de la Fidelidad (the Serenade to Fidelity). In terms of flat-footed plays on the name of Cuba’s maximum leader, I prefer “The Fideliad” — which speaks to his epic, exhausting and endless run, which began in 1959. Some 5,000 concertgoers turned out for the homage by 22 singers, including Omara Portuondo of the Buena Vista Social Club, but the guest of honor was not present. Instead, he settled for a quiet celebration with family, his 80-year-old brother and presidential successor, Raúl, and his devoted disciple, President Hugo Chávez of Venezuela. The irrepressible Mr. Chávez broke the news on Twitter late Saturday: “Here with Fidel, celebrating his 85th birthday! Viva Fidel!” Over the last decade, the two leaders have celebrated quite a few birthdays together. For his 75th in 2001, Mr. Castro trooped to Caracas for a bash with Mr. Chávez, who hosted a Champagne gala, followed by a nautical tour of Venezuela’s rainforests. The visit, Mr. Chávez said, “gives us an opportunity to let him know how much we love him.” It’s unclear how many birthdays are left for either leader. Both are now facing their greatest challenges yet, not from opposition movements or dissidents, but from their own failing bodies. Mr. Castro nearly died in 2006 during a botched colon surgery to treat a pernicious case of chronic diverticulitis. He passed his 80th birthday lying in a hospital bed, connected to an antibiotic and nutrient drip. Sitting beside him was Hugo Chávez, who has been there at every stage of Mr. Castro’s five-year convalescence, casually jetting into Havana as if it were a stroll around the block. Now the 57-year-old Venezuelan is fighting for his own life, after a baseball-size tumor was removed from his abdomen in Havana’s top hospital in June. It was Fidel Castro, not an oncologist, surgeon or family member, who delivered the bad news to Mr. Chávez post-surgery, and who outlined his prognosis and treatment — along with his usual tips on public relations and political strategies. It is likely, based on his surgeries, symptoms and treatment, that Mr. Chávez has metastasized colorectal cancer. After surgery and radiation, he is probably undergoing at least six months of chemotherapy, again in Havana, where he just finished his second round. As it turned out, Mr. Castro spent much of his birthday giving his friend a pep talk. “We spoke about everything,” Mr. Chávez related upon his return to Caracas. “He said to me: Chávez, ‘You yourself can begin to convince yourself that everything’s over. ... No, no, it’s not over.’ ” Ironically, the hemisphere’s most indomitable strongmen and determined foes of the United States and free market economics have both been felled, at least for now, by abdominal woes — their guts, as it were. It’s just one more anomaly shared by the leader of the country with the world’s largest reserve of oil and that of a debt-saddled island in the Caribbean. The symbiosis between Cuba’s emeritus or former (and in most ways, still de facto) commander in chief and the Venezuelan colonel-turned-oil-sultan is the most powerful and fascinating political alliance in the Americas. Five years before becoming president in 1999 and two years after a failed coup attempt, Mr. Chávez was released from prison and flew to Havana in hopes of meeting his revolutionary hero. Waiting to welcome him at the airport was the man himself. It’s been a lovefest ever since, with Mr. Chávez declaring that Venezuela is sailing in Cuba’s “sea of happiness.” More crucially, after Cuba lost its Russian patron and plummeted into economic free fall, Mr. Chávez gave his friend one of the most magnanimous gifts in history — around 100,000 barrels of oil every day, gratis, with no strings attached — for as long as Cuba wanted it. In exchange, Mr. Castro sent thousands of doctors to Caracas — a deal derided by some critics as “oil for ointment.” No one doubts who got the better deal. Unlike the quid-pro-quo-demanding Soviets, who picked up most of Cuba’s tab for three decades, Mr. Castro now receives adoration from a leader who happily calls him “mi padre.” Not without reason. In 2002, when a coup appeared to have dislodged Mr. Chávez from power, it was Mr. Castro who spent night after night on the phone, tutoring his charge in a strategy to regain power and dispatch his enemies. “Don’t resign! Don’t resign! I kept telling him,” Mr. Castro recounted in his autobiography. Since then, Ramiro Valdés, Cuba’s pre-eminent policeman and spymaster, has made Caracas a second home, reorganizing Venezuela’s military, police force and Internet services (a fiber-optic cable connects the two countries like an umbilical cord). Cuban advisers are dotted throughout Venezuela’s ministries, offering counsel on everything from literacy to opposition movements and elections. There will not be another coup, or many more elections. “Deep down,” says the Venezuelan convalescent in chief, “we are one government.” They don’t call it “Venecuba” for nothing. Hence, if the health of either man further fails — and both are walking the razor’s edge — all bets are off. Read the full story HERE.

Cuba's black-market housing trade to go legit

MNBC/AP
Cuba's black-market housing trade to go legit:
Castro vows to end law prohibiting sale of private property
updated 7/24/2011 5:30:26 PM ET
By Peter Orsi

Each morning before the sun rises too high, Cubans gather at a shaded corner in central Havana, mingling as though at a cocktail party. The icebreaker is always
the same: "What are you offering?"

This is Cuba's informal real-estate bazaar, where a chronic housing shortage brings everyone from newlyweds to retirees together to strike deals that often involve thousands of dollars in under-the-table payments. They're breaking not just the law but communist doctrine by trading and profiting in property, and now their government is about to get in on the action.

President Raul Castro has pledged to legalize the purchase and sale of homes by the end of the year, bringing this informal market out of the shadows as part of an economic reform package under which Cuba is already letting islanders go into business for themselves in 178 designated activities, as restaurateurs, wedding planners, plumbers, carpenters.

An aboveboard housing market promises multiple benefits for the cash-strapped island: It would help ease a housing crunch, stimulate construction employment and generate badly needed tax revenue. It would attack corruption by officials who accept bribes to sign off on illicit deals, and give people options to seek peaceful resolutions to black-market disputes that occasionally erupt into violence.

It's also likely to suck up more hard currency from Cubans abroad who can be counted on to send their families cash to buy, expand and remodel homes, especially since President Barack Obama relaxed the 50-year-old economic embargo to allow unlimited remittances by Cuban-Americans.

"All these things are tied in," said Sergio Diaz-Briquets, a U.S.-based demography expert. "They want expatriate Cubans to contribute money to the Cuban state, and this is one big incentive for people who want to help their families."

But few changes are likely to be as complex and hard to implement as real estate reform.

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Racism remains an issue in Cuba

Miami Herald
Posted on Fri, Jun. 03, 2011
Racism remains an issue in Cuba, officials say

Juan O. Tamayo
jtamayo@elnuevoherald.com
WASHINGTON The Cuban government will soon cast a media spotlight on the issue of racism on the island, although some programs to improve the lives of black Cubans had to be cut because of economic restraints, a Havana official said Thursday.

Heriberto Feraudy, who heads the quasi-official Cuban Commission against Racism, also said the popularity of Afro-Cuban religions is soaring and indicated that Raúl Castro’s economic reforms may not help blacks as much as whites.

Feraudy, who served 15 years as ambassador to five African nations, and Esteban Morales, a well-known Havana economist who writes often on race, addressed a conference on the issue sponsored by the Center for International Policy, a think tank.

Their unusually frank comments — for decades Cuba officially denied the existence of discrimination on the island — seemed to reflect the growing concern over race issues as the country drops some of its socialist policies and embraces more private enterprise.

Feraudy and Morales — both black — argued that the Fidel and Raúl Castro governments have done more for Cuban blacks since 1952 than any other government in the previous centuries.

“The problem of a division in Cuba (due to racial issues) is not possible,” said Morales, who was reportedly suspended from the Communist Party last year after he wrote a column complaining about the island’s burgeoning official corruption.

But both also agreed that racism persists on the island, and that the issue needs to be discussed and confronted even though “many people” in Cuba argue that the Castro revolution did away with racial discrimination.

Feraudy said some programs adopted under Fidel Castro to help blacks “had to be terminated” because of a shortage of resources — he gave no further details — but added that his commission is pushing for a broad discussion of the race issue.

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