Financial Times FT.com

Austerity bites as Cuba fails to revamp

By Marc Frank in Havana

Published: June 3 2009 03:00 | Last updated: June 3 2009 03:00

Cubans are in no mood to party today as Raul Castro, the president, turns 78. They are suffering the toughest austerity measures since the post-Soviet crisis of the 1990s, despite diplomatic achievements that have left the US isolated in its tough policy towards the Communist nation.

It has been just over a year since Mr Castro took over from his ailing brother Fidel with a pledge to improve people's lives and remake one of the most statist economies in the world. But now the population is being called on to sacrifice by a government many view as old and bureaucratic.

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