Aftermath of Hurricanes Gustav and Ike. (Photo: AP)

Via The Economist:

“NEVER in the history of Cuba have we had a case like this,” President Raúl Castro lamented after two powerful hurricanes, barely a week apart, struck the island, severely damaging crops and leaving some 200,000 homeless. Miraculously, Havana, the capital, was left virtually unscathed, as were the main tourist resorts, the oil industry and nickel mining. But with estimated losses of $5 billion, one of the world’s last communist regimes is facing a daunting task.

The enormous damage sustained to the island’s food supplies, housing and electricity grid raises big questions about Cuba’s ability to get by without massive international aid. Two of the island’s most valuable export crops, citrus and tobacco, suffered big losses. Luckily, the tobacco harvest was already in, but some 3,000 curing sheds where the leaves are stored were damaged. Almost half the sugarcane fields were flattened. The coffee harvest in the east has also been badly affected.

The government has admitted that it cannot cope alone. “It is impossible to solve the magnitude of the catastrophe with the resources available,” said Carlos Lezcano, director of the National Institute of State Reserves. “The reserves are being tested. We shall have to prioritise.”

Hurricanes Gustav and Ike could increase pressure on Raúl Castro to accelerate reforms to loosen the island’s centrally-controlled economy, much as his brother, Fidel, was forced to do in the early 1990s after the collapse of Cuba’s subsidised trade with the Soviet Union. Back then, reforms briefly opened the economy up to private enterprise, but Fidel Castro slammed the door shut again once the economy had recovered. [Read more →]

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Tags: agricultural production, America, Brazil, coffee harvest, communist regimes, electricity grid, enormous damage, export crops, Fidel Castro, food supplies, Gustav, harvest in the east, Havana, Ike, oil industry, powerful hurricanes, private enterprise, Russia, Spain, state reserves, sugarcane fields, tourist resorts, United States, Venezuela

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