Spotlight: Raul Castro paints panorama of economic evolution, political regeneration in Cuba

Cuban President Raul Castro on Saturday pledged to continue modernizing the country's socialist economic system, and proposed political reforms to regenerate the Cuba's Communist Party (PCC).

Presenting a keynote address at the 7th Congress of the PCC, Castro said the government was committed to implementing a package of economic reforms approved at the last PCC congress in 2011, noting they have made a positive impact.

Cuba today has a budding private sector that has become an important source of jobs, employing about half a million workers, noted Castro, urging the PCC and legislators to pass laws to protect and benefit this segment of the population.

"We are advancing without haste, but without delay as well, with a comprehensive approach to assure success," he said of the reforms, reporting that 21 percent of the 313 reform guidelines have been implemented, 77 percent are in the works and 2 percent has not gotten off the ground.

According to observers, the most ground-breaking reform implemented in the last five years has been the gradual opening up of an emerging private sector, which already constitutes 27 percent of the country's workforce.

Hundreds of restaurants and cafeterias, lodgings for tourists, mass transport operators and taxi companies have opened up in this sector.

"The party needs to view economic reforms as its main issues," Ramon Hierrezuelo, a 50-year-old civil servant, told Xinhua prior to the congress. "This would be a sign that there is the political will to change bad things done up until now and create spaces for new investment opportunities," he said.

Cuba's complex dual currency system, slated to be gradually phased out, has been the main obstacle to further reforms designed to improve the economy, acknowledged Castro.

However, he stressed Cuba would never resort to neoliberal "shock therapies" that harm the most vulnerable.

"The neoliberal formulas that propose privatizing state patrimony and services such as health and education will never be applied in Cuba," Castro, who is also first secretary of the party, said during a two-hour speech.

The government will continue to administer the country's key industries and strategic sectors, but "we recognize the importance of private property and we will continue to engage with small and medium-sized private businesses," he said.

The reforms have not been without challenges, he noted, saying officials need to pay attention to the growing wealth gap created by private business operation.

"The premise that ... no one will be left behind, to a great degree sets the speed for modernizing the Cuban economic model," said Castro.

Cuba's economy has grown at an average of 2.8 percent a year in the last five years, said Castro, despite such obstacles as the U.S.-led trade embargo.

"Cuba has improved its financial credibility over the last five years and is restructuring its old debts with many countries, even though the U.S. blockade remains in place," he said.

MAKING WAY FOR NEXT GENERATION

As Cuba's revolutionary leadership ages, passing the baton to the next generation has become a primary task.

On Saturday, Castro called for political and Constitutional reforms to reflect "the new era" of modernization, and to set term limits for political leaders.

Dressed in a dark suit, but forgoing the tie, Castro proposed to limit top political leaders to a maximum of two consecutive five-year terms, to make way for younger generations.

He also proposed new members of the party's Central Committee be no older than 60, and party leaders be no older than 70.

The renovation of the leadership, said the president, will take place over the next five years leading up to the party's next congress in 2021, though Castro himself will be stepping down from the presidency earlier.

"It is no secret that my second term as president of the Councils of State and Ministers will come to an end in 2018, and I will hand over my responsibilities to whoever is elected," Castro said.

Alejandro Suarez, a young leader of the Communist Youth, told Xinhua prior to the meeting, "I believe this is the last congress for the revolution's founding leaders. New ideas and fresh faces must emerge to update our socialist system."

HURDLES TO OVERCOME

While working to overcome such shortfalls as aging infrastructure, a lack of skilled labor and inefficiency, Cuba must also be on guard against external threats, said Castro.

Despite the recent rapprochement between Cuba and the United States following half a century of enmity, Cubans should be aware that Washington's intentions towards the government in Havana remain the same -- regime change, he said. The only thing that has changed today is that the White House is taking a different tack, he added.

"There have been many declarations by U.S. officials making clear that their objectives have not changed, only the methods," said Castro, adding U.S. policy towards Latin America in general was aimed at thwarting the region's left-leaning governments and the process of regional integration.

"We reaffirm our support for all the progressive governments whose efforts have resulted in tangible benefits for the vast majority of people in the most unequal region on the planet," said Castro.

"We will never forget that the OAS (Organization of American States), founded by the U.S. at the ... start of the Cold War, has only served to further interests contrary to Our America," added Castro.

Still, as part of the thaw in relations with the United States, he said Cuba would continue to work to normalize bilateral ties in the interest of both countries.

Castro concluded by saying the congress "will be a historic and fruitful event" that will serve as a roadmap to achieving "a sovereign, independent, prosperous, sustainable and socialist nation." Endi