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    Cuban food ration system marks 50 years amid controversy
    10:14am EDT
    By Rosa Tania Valdes

    HAVANA | Fri Jul 12, 2013 1:31pm EDT
    (Reuters) – Cuba’s food-rationing system marked 50 years on Friday amid
    controversy, with President Raul Castro facing popular resistance to his
    plans to end the benefit as he moves the country from broad subsidies of
    goods and utilities to targeted welfare.

    Castro quickly began market-oriented reforms in 2008 after he replaced
    his ailing brother Fidel, who installed a communist government on the
    island nation in the early 1960s. But the younger Castro has criticized
    the rationing system as “paternalistic, irrational and unsustainable.”

    The country spends 25 billion pesos (around $1 billion) annually on
    rationing, subsidizing 88 percent of the cost, according to a source
    close to the government.

    The law establishing the system, known as the “libreta,” was passed in
    1962, and hundreds of ration stores opened on July 12, 1963.

    A lifesaver for some and obsolete for others, eliminating rations has
    proved perhaps the most controversial policy Castro has proposed.

    “For many, the ration is necessary because it guarantees each month a
    little rice, a few eggs, some sugar and milk,” said Ignacio Lima, who
    manages a small, dark and dingy ration outlet in Havana. “It is not
    enough, but it helps a bit and then you go find what you need on the
    open market.”

    After he spoke with a reporter, four shoppers at the store quickly began
    debating the merits of the system – a discussion much like the one that
    has raged across the Caribbean island for decades.

    Olga Raquel Vazquez, 49, said there had to be a better way to feed
    people. “The time has come for the ration to disappear,” she said.

    But Verena Rodriguez, a 72-year-old pensioner at 250 pesos per month,
    the equivalent of $10 dollars, insisted she couldn’t live without her
    “libreta”.

    “It has to stay because without the ration some of us will eat and
    others won’t,” she said.

    “Who has money can buy everything and who doesn’t can’t,” Rodriguez
    said, adding that with 10 pesos, or around $0.45, she could buy what was
    coming to her on the ration this week.

    A LACK OF CONFIDENCE

    Cuba has become a more stratified society since the collapse of its
    benefactor, the Soviet Union, in the early 1990s. Reforms, such as an
    opening to international tourism and foreign investment, the loosening
    of restrictions on small businesses and the welcoming of family
    remittances, were introduced to manage the economic and social crisis
    that followed.

    As a result of the reforms, small businessmen, farmers, residents with
    family abroad and others now enjoy an income many times that of state
    workers and pensioners, yet everyone receives the ration and subsidized
    utilities.

    “Undoubtedly, the ration book and its removal spurred most of the
    contributions of the participants in the debates, and it is only
    natural,” Castro said in a speech to a Communist Party Congress in 2011,
    after sponsoring three public discussion on reforming the economy since
    taking over from his brother.

    “Generations of Cubans have spent their lives under this ration system
    that, despite its harmful egalitarian quality, has for four decades
    ensured every citizen access to basic food at highly subsidized derisory
    prices,” he said.

    Despite communism having its roots in social equality, Castro openly
    opposes egalitarianism as harmful, saying that people should get what
    they deserve through individual effort.

    The Congress, as part of a five-year plan to institute further
    market-oriented reforms, voted to do away with the ration, promising it
    would be replaced by support for poorer Cubans.

    But the government, faced with a popular outcry, has instead opted to
    chip away at the libreta in hopes of gradually weaning the public off it.

    Soap, detergent and cigarettes were first removed, followed by potatoes,
    chickpeas and sugar. This month, the government cut in half its monthly
    offer of 10 eggs.

    Bert Hoffmann, a Cuba expert at the German Institute of Global and Area
    Studies in Hamburg, said the resistance to ending the ration revealed a
    lack of confidence in the government.

    “It’s only natural that people hang on to the “libreta”, nobody likes to
    give up virtually cost-free provisions if he gets nothing in return,” he
    said.

    “And this is where Raul’s reforms have failed: Cubans don’t trust that
    the targeted welfare system that the government promises will be better,
    reliable or work at all.”

    (Writing and additional reporting by Marc Frank; Editing by Philip Barbara)

    Source: “Cuban food ration system marks 50 years amid controversy |
    Reuters” –
    http://www.reuters.com/article/2013/07/12/us-cuba-reform-ration-idUSBRE96B0NP20130712?feedType=RSS&feedName=worldNews

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