Download 'Too Hot', an exclusive Specials track from iTunes

The Cuban press was having a lot of fun at capitalism's expense. The lead story in the eight-page Granma - named after the yacht that brought the young Fidel back to Cuba to begin his revolution in 1956 - usually concerns the anniversary of an historic action on the part of the Castros, Che Guevara or even more antique heroes. But the second story, on this occasion, encompassed a piece of credit crunch schadenfreude: the number of suicides in the US was growing, according to the Samaritans; in Italy there were 16 million people living in poverty; and so on.
The cartoons showed Uncle Sam, an overweight old man with an anxious, miser's frown, suffering an indignity. In one, he was on a raft in the sea (an image humiliatingly associated with Cubans fleeing to the US) asking for help from a socialist Cuba, represented by a doctor on an island. In another, President Bush was attempting to reinflate a patched-up balloon of an Uncle Sam.
The message to the Cuban people could not have been clearer: capitalism is in crisis, just like we always told you it would be, and if you think things can be difficult here, you should look at what's coming over there.
The theme seemed particularly appropriate, because Havana is not an easy place for people to live in. This is not just because of the constant hucksterism, prostitution and begging that has gone on in Cuba since the time of the buccaneers, and which is described in Graham Greene's pre-revolutionary Our Man in Havana.
In central Havana, a physiotherapist I'll call Eduardo explained the problem: “Everything is depressed. The people are down. There's not enough food since Hurricane Gustav.” Already in short supply, fresh fruit and vegetables had become very difficult to find. He felt he was working every hour he could, using every resource he had, and getting nowhere.
Adding to his problems was the inevitable police crackdown on the rampant black market. “You see them everywhere now,” Eduardo complained. “Many police, always stopping you, always asking for your papers, asking what you are doing.” He then invoked the ultimate in Cuban pessimism: “It's nearly as low as during the Special Period.”
For 30 years the socialist Cuban economy was subsidised by the Soviet Union and its allies in the Eastern bloc economic organisation, Comecon. Cuban sugar was bought at high prices or exchanged for Eastern European plant and transport. Then, abruptly, amid the collapse of communism, the subsidies ended. Cuba could no longer afford to import food, people lost their jobs, and the indices of wellbeing - from daily calorie consumption to infant mortality - rapidly worsened.
Inevitably, crime and smuggling rose and the State cracked down on activities condemned as profiteering or antisocial. A Cuban invokes the Special Period in the same way that old people in the West used to speak about the Depression.
This autumn the police presence in central Havana was almost overwhelming. On a short walk along the Malecón - Havana's promenade - we saw several people, including two schoolgirls, stopped by police and asked for their papers.
In Cuba they seem to have Castro cycles like the West has trade cycles. When times are good there is minor liberalisation, maybe a reform or two, the police presence is reduced, life seems tolerable. Then the country runs out of money, there are shortages, the tolerance stops and the space for people to exist seems to constrict.
Underlying these cycles is the central fact that Cuba runs an economic system - almost total state ownership and central planning - that has been judged a failure in just about every other country in which it has been tried, and yet it persists.
At the street level, Cuba is famously quaint. It is full of old buildings, often in an advanced state of dilapidation, its few cars are ancient and picturesque, there is little neon, the schoolchildren are smart and neat in their identical uniforms. For spoilt Westerners this decaying simplicity can seem a relief from our consumerist cornucopia, with its attendant anxieties and fantastic waste.
To peer through a factory window in a Cuban town is to experience a camera obscura of the 1940s or 1950s. In the city of Santa Clara, not far from the centre, is a famous cigar-making plant. Inside a large room, sitting in rows behind wooden worktops, rolling cigars by hand - political posters on the wall and Seventies pop music on the radio - sit nearly 150 people, mostly women.
Away from the tourist areas the shops that Cubans can afford to use are a mix of the primitive and the understocked. A real supermarket will boast an eclectic mix of almost random products, with one brand of each: inner tubes, buckets, crude ladles, the one type of crash helmet, a small range of poorly made clothes. One large, modern food store in Santa Clara was full of cooking oil, and just about nothing else. At any time of day people were sitting around on the pavements or outside their houses.
On the autopista, the unlined, largely unused main highway, men cleared the endless grass verges with sickles. These are the sure signs of that malaise of the planned economy: chronic underemployment. Or, as the old Soviet joke went: “We pretend to work and they pretend to pay us.” The average wage for a Cuban is about 340 pesos a month, or £10, with pensions set at 205 pesos. The purchasing power of this pitifully small amount is boosted by the provision of free education and healthcare, subsidised electricity, and by the supply of staple food rations at subsidised prices.
However, just how little Cubans can buy is brought home to them every day by the operation of a dual monetary system. The Cuban convertible peso (or CUC, pronounced “cook”), pegged to the dollar, is worth 24 times more than the “national money”, and is the unit of exchange for tourists and Cubans wishing to buy certain products. William, a middle-aged quality-control manager in the local rum factory, was on a higher wage of 700 ordinary pesos, but with three children in Cuba (another had gone to work in Spain), he was continually calculating the mathematics of shortage. “A T-shirt, that is 10 CUC, jeans 25 CUC, shoes...” he shook his head “...shoes 60 CUC. Half my money for one month, gone! My children, they want to make something! They can't make something here.”
Although there are restrictions on foreign travel, it is possible to leave Cuba - every year thousands of citizens take that option, adding to the numbers who have fled over the decades. More than a million Cubans now live in the US and Europe, many of them sending remittances back to their families at home.
Since there is a commitment to egalitarianism, wages for skilled occupations are not that much greater than for unskilled ones. I met one agronomist who had been bringing in 350 pesos a month. She told me how she had given up work to grow her own vegetables and sell them from a street stall - in the process nearly doubling her earnings. The Government recently admitted to a shortage of 8,000 teachers, many of whom had simply changed occupations to try to find something vaguely lucrative.
The main way, however, that Cubans manage to make life tolerable is on the black market. Since the State runs and owns almost everything, the market largely exists by stealing from a government enterprise and reselling. “We make the mercado negro, or we don't have anything,” said one middle-class Santa Clareno. “Mostly we steal from work. If it's a shoe factory, then we take something to make shoes at home and sell them. If it's building, then we steal cement. We carry what we can; the poor man on his back, the rich man in his truck.”
He had been involved in renovating public buildings, only to discover that a third of the materials he was supplied with were being pilfered from the sites. In Havana I bought cigars on the street (near the Museum of the Revolution, ironically) from a middle manager at a cigar factory who had stolen them that morning from the store. And there's bribery. At the famous Coppelia ice-cream parlour in the Vedado district of Havana, a policeman hoicked us off the Cuban queue and walked us over to the tourist section, where the ice-cream costs 20 times as much. There was a quick flash of silver as the man behind the counter paid the policeman off.
Cuba was the legendary island of sugar. In the 1990s the lumbering industry was replaced by tourism as the main earner of foreign exchange. Last year tourism constituted a full 43 per cent of the island's GDP, with more than two million visitors sampling Cuba's many beaches and resorts. Wages for Cubans working in foreign-owned concerns are paid to the Government, and a proportion is passed on to the workers. But, with the disparity between the Cuban peso and the convertible peso, the possible earnings from a holidaymaker's tips makes working in tourism a passage out of poverty. A 5 CUC tip to the chamber-maid is equivalent to a fortnight's earnings.
I met hotel workers who would hitchhike for several hours each day to their jobs. Jorge, a receptionist in Pinar del Río, told me that a day earlier he had finished his 24-hour shift and set out on his ten-mile journey home at 9am; he finally arrived at 1.15pm. “It's normal,” he shrugged.
To add to the difficulties of Cubans, the transport infrastructure is woeful. The railways are unreliable and much of the stock is pensioned-off Eastern European stuff, like the brown, rusty Romanian carriages that stood in the dilapidated station at Santa Clara. In that city - the size of Sheffield - the principal public transport is provided by small, horse-drawn carriages, into which up to eight people will often squeeze. “We were promised buses in March - but where are they?” grumbled one local man.
“We walk a knife edge”, answered Eduardo when I asked him to describe his life. Then he pointed to my copy of Granma. “But you also have your troubles,” he said.
CASTRO'S COUNTRY
1959 Fidel Castro overthrows the dictator Fulgencio Batista
1960 US businesses nationalised without compensation. US breaks off diplomatic relations
1961 Cuban exiles backed by the CIA try unsuccessfully to invade at the Bay of Pigs. Castro declares Cuba a communist state, allied to the Soviet Union
1962 Cuban missile crisis sparked by the deployment of Soviet missiles on the island
1991 Collapse of the Soviet Union, Cuba's biggest benefactor. Cuba forced to open up to foreign tourists to keep economy afloat
2002 US military begins to use Guantánamo Bay for the interrogation of al-Qaeda suspects
2006 Castro undergoes gastric surgery. Temporarily hands control of the Government to his brother, Raúl
2008 Castro announces permanent retirement. Raúl Castro takes over as President
Win a luxury weekend to Newcastle and its neighbour Gateshead, find out more here
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
Discover the power of collective thinking. Submit a solution and be in with a chance to win a Media Hub Home Entertainment System
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Make the most of the summer and enter our fabulous photographic competition, you could win a £5000 holiday
Corsica is an island of beauty and contrast, an ideal holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
The clever way to lease a new car is with Car leasing made simple™
2009
per month on 36-month
Personal Contract Hire (PCH)
2008
42850
Car Insurance
£24,250 - £30,346
MI5
London
£60,000
The Environment Agency
Bristol
Up to £90K
Boots
Midlands
OTE £85k
Credit Protection Association
Nationwide Opportunities
Completely London
Luxury Condo's in Manhattan with NYC views
The best new homes in Wimbledon?
Nationwide
Fabulous Cruise And Cruise & Stay Offers Including Virgin Atlantic Flights Prices Start From Only £699pp!
Last Minute Cruise And Cruise & Stay Offers. Med From £499pp, Caribbean From £699pp!
5 star quality at a 3 star price.
8 fabulous Canadian cities ...you won’t find cheaper
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
Robert. I am from Puerto Rico. It used to be one of the poorest islands in the West Indies, by every measure. Now it is the richest. Cuba used to be the richest island, now it is by most measures one of the poorest. People emigrate from the continental US to PR. Nobody emigrates to Cuba.
Marcos, Chicago, USA
I m from Romania , a country which cannot come back to reality from communism. Believe me, communism is the real hell. Communism is poverty, is shortage, is police run state, random justice, people in charge who nobody elects and wants them ... Ask anybody from an ex communist country .
Alex Coman, Medgidia, Romania
In Nicaragua I met Cubans working to send money to relatives in Cuba. This had to be sent to Gov't agency, which would forward it to the family. Needless to say, the full remittance did not reach its destination. "Mano a mano", hand to hand, by foreign visitors, willing to help is the only way!
J. Jacklin, n. Vancouver,
I've always wanted to visit Cuba but there's no need now that Fiddle Browno is in charge of the U.K. Up the Revolution!
Mike, Macau,
Great article , taking reports from State run newspapers , and unelected officials ! Even with our current problems (sometimes seriously overplayed by the "free press " of the west . I would VOTE for democracy everytime .
simon, london,
the sense of community cited by Gareth Tye results from the almost complete lack of a private life free of pervasive party interference which the Cubans suffer. Communism has abjectly failed to keep its promises where ever and when ever it has been imposed.
Arnold Ward, Weybridge, Surrey, UK
If equality is that you cannot afford to pay for your daily food, even when you work 8 o more hours and your sons have to emigrate in order to have a chance in this life, defenitely Cuba is the best place.
Juan A., Seville, Spain
Having just been to Cuba I was struck by the sense of community which is often missing in the Western World. I would not want to live under a Communist regime but we should be less critical of a system which is not built around self interest.
Gareth Tye, Santiago, Chile
Cubans may be living in poverty but at least there is equality.
Rather that than a plummeting dow jones and fat cat bonuses in the west.
Communism will rise again.
t balfe, NY,
Yes, yes.......we hear so much about the problems of Cuba. There seems to be an unreal expectation of what it should be. I have never seen a report on Puerto Rico, for example. Are the people happy there? This is what Cuba would be, if the US absorbed it.
Robert Bennett, Ennis, Ireland
Is the black market also socialist, or are we allowed to call that backdoor capitalism?
Vanessa, Amazonas, Peru