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Cuba with Simon Reeve

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'I've travelled to Cuba, the largest island in the Caribbean.

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'With its unique blend of sun, sea and revolution,

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'it's one of the most seductive places on earth.

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'It's also been stuck in a time warp

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'since communists took over here 50 years ago.'

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It's a steam train. How could it NOT be fun?

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'But Cuba's finally changing.'

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I think Ramon is rather enjoying being the boss!

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'Faced with financial ruin,

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'one of the last bastions of communism on the planet

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'is now undergoing a new revolution.'

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800,000?

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-SHE LAUGHS

-That must be a palace!

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'Capitalism is coming to Cuba.'

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You've got a VIP area?

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'The country's being transformed

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'as the government loosens its iron grip.

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'I'm meeting ordinary Cubans

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'to find the winners and the losers in this new revolution,

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'and I'm discovering whether this might actually be

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'the last chance to see communist Cuba.'

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Havana, Cuba's vibrant capital.

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Founded in the 16th century by the Spanish conquistadors,

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it's now home to more than two million people.

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Many of the cars here are still exotic, pre-revolutionary relics,

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and they're the best way of seeing the city.

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You see a lot of the city around the bay here.

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From this distance, it just looks like anywhere else,

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but Havana is like few other cities.

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Motoring around today, in a classic '50s convertible,

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you soon see this place has a unique appeal.

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With rum, music, dancing, Havana seems all smiles and cigars.

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It is a really attractive and alluring city.

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It's got this glorious colonial architecture

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that is crumbling away,

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but there's such a romance to this place.

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Until the late 1950s, Cuba was run

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by an American-backed dictator, General Batista.

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His regime was infamous for decadence, corruption and greed.

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Many Cubans suffered extreme poverty,

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even as Cuba became a playground for rich Americans and the Mafia.

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Then in January 1959, after a seven-year guerrilla campaign,

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rebel leader, Fidel Castro

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overthrew the military regime and arrived triumphantly in Havana.

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CROWDS CHEER

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Castro introduced radical social changes.

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The Americans were kicked out.

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Schools, hospitals and industries were nationalised.

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I want a political, philosophically representative democracy

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and social justice in a world-class economy.

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Cuba became the first and only communist state in the Americas.

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It was the height of the Cold War

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and Castro was welcomed into the arms of the Eastern Bloc.

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Backed and bankrolled by his new friends in the Soviet Union,

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he started building what he claimed

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was a workers' utopia on America's doorstep.

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Many Cubans are justifiably proud of the achievements of the revolution.

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After the communists took power,

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they introduced free pensions, free funerals.

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Child malnutrition was virtually eliminated.

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Rates of literacy soared.

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Even life expectancy increased,

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because Castro ploughed money into health care,

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as well as education and the arts.

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Gracias.

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Visitors can get a taste of that egalitarian legacy

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here at the Ballet Nacional,

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one of the world's leading dance companies.

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I've got my tourist ticket, which cost me about £20.

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Most of the people here are actually Cubans

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and the price they pay for a ticket is much, much lower.

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The cheapest ticket for a Cuban

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costs only the equivalent of about 15p.

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Art for the masses.

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It's a bargain!

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ORCHESTRA PLAYS CLASSICAL MUSIC

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The arts were an important part of Castro's vision for the new Cuba.

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Ballet, traditionally elitist in most other countries,

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is seen as popular entertainment in communist Cuba.

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This Havana dance school, Drodanza, trains 500 students for free,

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an education that, in the West,

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could cost tens of thousands of pounds a year.

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27-year-old Gedera is a recent graduate.

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She's now a professional prima ballerina.

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CLASSICAL MUSIC PLAYS

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Speaking as somebody who can barely touch their knees,

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let alone their feet, that was magnificent!

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-OK, thank you.

-Are you OK?

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Fine.

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I get the impression that Cubans really, really love ballet

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and they sort of respect, almost worship, ballerinas as well?

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I'm just wondering whether

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you would be able to have become a ballerina

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if you'd had to pay for your lessons?

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CLASSICAL MUSIC PLAYS

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THEY PLAY THE LAMBADA

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'Cuba's heady mix of idealism and revolutionary chic

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'already attracts several million tourists a year,

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'with increasing numbers from the UK.

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'But there's a real dark side to life here.'

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As a visitor, it's very easy to be seduced by Cuba.

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It's a very colourful and an exciting place.

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It's also easy to forget this is still a totalitarian state

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with only one political party, the governing party,

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and no real elections.

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Cubans have very limited civil rights.

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For the last 50 years, few have even been allowed to leave the island.

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Human Rights Watch describes Cuba

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as the only country in Latin America

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that represses virtually all forms of political dissent.

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Dissidents are routinely followed, harassed and imprisoned,

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so few Cubans dare criticise the regime in public.

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I was only allowed into the country

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on the condition I didn't meet with well-known dissidents,

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but I was permitted to speak to ordinary Cubans

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about their daily lives,

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and that gave me a great chance to see the reality

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of life in this country at a critical moment in its history.

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To find out what it's like to live in communist Cuba,

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I met a woman called Cecilia in a run down part of Havana.

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All Cubans are entitled to heavily-subsidised food

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and other services provided by the state.

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Cecilia took me to her local ration shop.

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-So!

-Buenos.

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Buenos dias. Buenos dias. Buenos dias.

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So what is this book that you've got?

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So it's the staples of life, then?

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But this is interesting.

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Can you get rum as part of the rations?

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-No.

-That's separate!

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-That you have to pay for!

-HE LAUGHS

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Approximately 628 people.

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That's very precise! That's not approximate, is it?

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And here's another customer.

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'The rations provide very basic food for Cuba's 11 million people.

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'The rations aren't huge and the quality is generally low,

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'but distributing and administering food on such a scale

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'still puts an enormous financial burden on the state.

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'Back at her home, I met Cecilia's family.'

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Hi, Umelady.

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Umelady? Very nice to meet you. Senor!

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Mucho gusto! Simon.

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-Carlos.

-Carlos!

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Yes, that's very lovely of you. Thank you.

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'Like most Cubans, Cecilia is employed by the state.

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'She works in a government pharmacy and earns an average wage here,

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'about £15 a month.

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'Her house is also state-owned.'

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Bedroom one. Bedroom two.

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And what are these doing?

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The house is in danger of collapsing?

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My goodness!

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Is it frightening to be looking up at the ceiling

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when you're in here in bed,

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thinking the roof could collapse?

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Whose room is this?

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Is this for Carlos?

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OK. Carlito! All right.

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There's another support here in this room

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propping up the roof,

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which looks in pretty terrible condition.

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'Since the early days of the revolution,

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'the state has controlled all aspects of life,

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'even the building trade,

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'deciding who gets access to a builder and materials.

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'Cecelia's been waiting for a new roof for 16 years.'

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Oh, careful!

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Don't tread there?

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OK, so the floor's...

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We don't want to fall through.

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Yeah. Right, yeah, yeah, yeah.

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My goodness!

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'Cecelia's living conditions are difficult, but she's not alone.'

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You can see Cecelia's house from the outside here,

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and you can get a sense of the state it's in.

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The roof has partially collapsed.

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You can see all the brick work is falling apart

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and it's far from unique. This is completely normal.

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You look at the house here, one of her neighbours,

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the first floor has almost completely gone.

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There's somebody living here. This is still somebody's home.

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All of the buildings here are in a terrible state.

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None so bad as the one just 20, 30 metres down the road here.

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That's actually collapsed.

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Much of Havana is now falling down.

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Havana's deteriorating buildings

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are a symptom of a much wider problem in Cuba.

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The economy of the island is in a state of complete collapse.

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For 30 years after the revolution,

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Cuba received generous subsidies from the Eastern Bloc.

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Russian money, advisors and arms poured into the country.

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The US reacted by imposing a trade embargo,

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which they hoped would quickly topple Castro's regime.

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Five decades and more than ten US Presidents later,

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the embargo remains in force.

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The economy here has been failing for decades,

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partly because it's been strangled by the US embargo,

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and partly because of inept government management.

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The situation's got worse and worse,

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and Cuba now imports twice as much as it exports.

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Fidel Castro stepped aside and his brother, Raul, now runs the country.

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The dire state of the economy

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has forced his government to do the unthinkable,

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loosen their grip

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and send people who had previously been employed by the state

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out to work for themselves.

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I've got the official list here.

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The very, very precise list of the 181 jobs

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that the government is allowing people to do as part of the reforms.

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They're very specific.

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They include some you might expect, things like taxi driver,

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construction worker,

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shopkeeper as well.

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So those are jobs that in the past

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would have been done by people who were working for the government.

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Now, if you get a licence,

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you can set yourself up in that position on your own.

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But there's also a few jobs in here that you might not expect.

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There's a mule driver,

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a palm tree trimmer, a well digger,

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a button coverer, and my personal favourite,

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as part of the reforms

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you can now get a job working for yourself as a dandy.

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'I only spotted a couple of dandies.

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'That's a gentleman in traditional costume.

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'But other new businesses were thriving.

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'A new word has entered the Cuban vocabulary.

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'Entrepreneur.'

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There's people selling flowers, shoes, clothes,

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calculators, mobile phones.

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It might not seem unusual,

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but you have to remember how novel all this is.

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Before the reforms, people could be arrested

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for starting a small business or trying to open a shop.

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Now there's evidence of consumerism,

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of an entrepreneurial spirit,

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almost everywhere here.

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The government has always employed millions of workers

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at great expense.

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But the nation's finances are in such a state

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that the regime has decided

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it must cut up to 20% of the government work force.

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They're going to slash one million public sector jobs.

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While the state will continue to run health, education and transport,

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many other services are now shifting into private hands.

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They're calling it an economic upgrade,

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but how might unleashing private enterprise affect Cubans

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who've only ever known life under a communist system?

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Azouz? Azouz?

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Hola, como estas?

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'Azouz is one of the entrepreneurs

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'on the front line of this economic revolution.'

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Look at these shiny sunglasses!

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-Let's see the man that...yeah!

-THEY LAUGH

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This is a loo roll holder.

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You've got a towel rail here.

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Soap dish.

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This is all stuff that previously

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could only be bought through government shops.

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Very, very hard to get hold of, very short supply,

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and now, you can buy them privately.

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This is the beginning of a big chain of DIY shops!

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Cliente! He's spotting a business opportunity!

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I've no idea where he's going.

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I think...ah, he's offering them up a sink from somebody else.

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The look on the senora's face here,

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she wants a new sink!

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Go on, do a deal!

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'Building supplies used to come from government shops,

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'if you were lucky enough to find one with stock.

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'Kitchen sinks and everything else were available on the black market,

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'but buying one was risky.'

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If you did some DIY or renovations to your flat or house here,

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and you couldn't account entirely for where you got the money for it,

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or where you bought the supplies,

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then your renovations could be torn down.

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An inspector would come round and say,

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"You're not authorised to do this," and they would take them down.

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HE SHOUTS

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He's got some pipes!

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What happened there? And was a deal done?

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Can we ask how much you got for the pipes?

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Just between us!

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'Since the reforms were introduced,

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'Azouz has become one of 400,000 Cubans

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'who signed up to work for themselves.

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'For the first time,

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'private businesses are paying substantial taxes

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'into the state's coffers.'

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A beer!

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Cheers. Here's to your business. Good luck with it, OK?

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-Good luck!

-Good luck!

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So why did you want to start?

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Why did you start working for yourself selling plumbing supplies?

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How did it come about?

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You're a doctor? Actually practising in hospitals at the moment?

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This is really surprising.

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A trauma doctor, an A&E doctor, working selling plumbing supplies.

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Is that normal here? Does it not seem surprising to you?

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-Drink to that.

-AZOUZ LAUGHS

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Thanks, Azouz. DOCTOR Azouz!

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That's very interesting.

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Azouz didn't really want to talk about it,

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but I know already that doctors here

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can earn as little as £15 a month,

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which is really a pittance in any country.

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I suppose, in a way, his story shows the best and the worst of Cuba,

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because he's not from a wealthy family,

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but he's been trained as a doctor by the state.

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He works in Cuba's world-class health system,

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and yet he's not making enough money as a doctor to survive,

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so he's got to supplement his income by selling plumbing supplies.

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It's an extraordinary situation

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and raises some pretty tricky questions about life in Cuba.

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The state doesn't have enough money to pay doctors

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and many take second jobs to survive.

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It's ironic the communist government is now hoping capitalist businesses

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might provide them with enough money in taxes

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so they can save the economy and protect their public services.

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Surely what all this really shows

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is that Castro's communist system simply hasn't worked.

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I headed out of the capital and into the countryside,

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the traditional engine of the Cuban economy.

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They've grown sugar here for more than 200 years,

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and Cuba was once the world's biggest producer.

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After the revolution in 1959, Castro nationalised the sugar industry

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and put tens of thousands to work on collective state farms.

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It worked well, at least for a few years.

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This is the Toledo sugar mill.

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In its heyday it was one of Cuba's largest sugar factories,

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processing more than 5,000 tonnes of sugar cane a day.

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But in the last decade,

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half of Cuba's sugar mills have closed down.

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HE SIGHS

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This is a sad place.

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The Cuban economy was really built on sugar, on the sugar industry.

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And the profits from it became completely indispensable

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to the communist government.

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But the collapse of the Soviet Union

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was a catastrophe for the sugar industry,

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because it had become completely dependent on Soviet subsidies.

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The Soviets used to buy entire harvests at inflated prices.

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This guaranteed income meant that Cuba didn't need to compete.

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Workers had jobs for life, and many became lazy.

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They had a saying,

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"The government pretends to pay us, and we pretend to work."

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State farms became inefficient and corrupt.

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So when the Russian orders abruptly stopped in the early '90s,

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the impact was devastating.

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There were shortages and even starvation,

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a time Castro euphemistically dubbed, "the special period."

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What happened on state farms also happened in state factories.

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Bureaucracy, incompetence, corruption, and the American embargo

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all combined to drive the economy off a cliff.

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Across most industries,

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output is now lower than it was before the revolution.

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Twenty to eight in the morning,

0:25:350:25:38

which will be rush hour in most countries,

0:25:380:25:40

but the motorway here,

0:25:400:25:43

we're on a four- or five-lane motorway,

0:25:430:25:47

and it's almost completely empty of vehicles.

0:25:470:25:50

I can't think of another country in the world I've been to

0:25:500:25:53

where a road of this scale is so empty of cars, vans and lorries.

0:25:530:25:57

Great if you're a driver,

0:25:590:26:00

but not so good if you're the economics minister

0:26:000:26:03

and trying to build the industry and economy of your country.

0:26:030:26:07

'But there is one obvious area of the economy

0:26:120:26:15

'that's doing well - tourism.

0:26:150:26:17

'100 miles east of Havana,

0:26:170:26:19

'one part of the sugar industry's found a new lease of life.'

0:26:190:26:22

BELL CLANGS

0:26:220:26:24

It looks like it should be in a museum!

0:26:240:26:26

-HE SHOUTS OVER STEAM

-It's a working steam train!

0:26:270:26:30

Hola! Mucho gusto.

0:26:320:26:35

Mucho gusto.

0:26:350:26:36

How long have you been driving the train?

0:26:360:26:39

Looks like I'm the driver's mate, and we're going for a little trip!

0:27:140:27:18

In a steam train!

0:27:180:27:20

HE SOUNDS WHISTLE

0:27:240:27:27

It's a steam train, how could it NOT be fun?!

0:27:370:27:40

It is a curious thing.

0:27:430:27:45

This machine has so many quirks and makes so many different noises,

0:27:450:27:49

it feels like a living creature.

0:27:490:27:52

And one with awesome power.

0:27:520:27:54

THEY SING GUANTANAMERA

0:28:000:28:03

The days of plentiful sugar harvests are over,

0:28:080:28:11

but Hannan and his crew are among the lucky ones who still have jobs.

0:28:110:28:15

Looks like celery.

0:28:200:28:23

Eat some sugar!

0:28:230:28:24

Where it all comes from.

0:28:260:28:27

Three million visitors come to Cuba each year

0:28:270:28:30

to enjoy its beaches and Caribbean culture.

0:28:300:28:33

It's a trade worth almost £2 billion in precious foreign currency,

0:28:330:28:37

but the government reforms are aimed

0:28:370:28:39

at boosting visitor numbers still further.

0:28:390:28:41

They want to milk the capitalist tourism industry

0:28:410:28:43

for every bit of money they can get.

0:28:430:28:45

WHISTLE BLOWS

0:28:450:28:48

I headed south into the nearby Zapata National Park.

0:29:010:29:04

It's home to one of the most iconic locations of the Cuban revolution,

0:29:070:29:11

The Bay of Pigs.

0:29:110:29:13

GUNS FIRE

0:29:130:29:16

In April 1961, 1,500 anti-communist Cuban exiles,

0:29:210:29:25

backed by the CIA, invaded the Bay

0:29:250:29:27

in an attempt to overthrow the new socialist government.

0:29:270:29:32

Fidel Castro personally led the island's defence.

0:29:320:29:35

The fighting ended with a crushing defeat for the invaders.

0:29:370:29:40

The Bay of Pigs is the place where, as Fidel Castro put it himself,

0:29:430:29:47

"Yankee imperialism was defeated and humiliated,

0:29:470:29:51

"and socialism triumphed."

0:29:510:29:53

And as such, it's a real icon of the revolution.

0:29:530:29:57

It's also very symbolic, largely because

0:29:570:30:00

there are a number of graves along the roadside here

0:30:000:30:02

where Cuban soldiers fell,

0:30:020:30:04

defending the island and defending the revolution.

0:30:040:30:07

This area is crammed with revolutionary propaganda.

0:30:100:30:13

The authorities don't want Cubans to forget their past.

0:30:140:30:18

And they try to unify Cubans

0:30:200:30:22

by warning them of the threat of more attacks.

0:30:220:30:25

We were just driving past a school here,

0:30:300:30:33

a primary school which is closed at the moment,

0:30:330:30:36

but every day during term time the students, it would appear,

0:30:360:30:41

pass this rather inspiring educational motto which says,

0:30:410:30:46

"Every Cuban must learn to shoot, and shoot well."

0:30:460:30:52

Next to a primary school!

0:30:520:30:54

Buenos dias!

0:31:000:31:01

ALL: Buenos dias!

0:31:010:31:02

'63-year-old Satanino was just a boy when the Bay of Pigs was invaded.'

0:31:020:31:08

Satanino, do people here still remember the attempted invasion?

0:31:080:31:12

It must have been pretty terrifying.

0:31:350:31:37

Given the revolutionary status of the Bay of Pigs,

0:31:570:31:59

you might think the government would be reluctant

0:31:590:32:02

to introduce capitalist reforms here.

0:32:020:32:04

But in just a year, the number of private guest houses

0:32:050:32:08

shot up from just 12 to more than 80.

0:32:080:32:10

Thanks to the new reforms, the Bay area is booming.

0:32:120:32:15

'Among the new openings is Tiki.'

0:32:200:32:22

Oh, wow!

0:32:220:32:23

'A B&B and cafe built by Satanino,

0:32:230:32:26

'partly on top of his house.'

0:32:260:32:28

Look at the view!

0:32:280:32:29

My goodness!

0:32:290:32:32

It sounds like a real opportunity for you. Is it going well?

0:32:440:32:47

'The government restricted the tourism industry in the past.

0:33:020:33:05

'Now, albeit reluctantly, the regime has finally realised

0:33:050:33:09

'it needs to make serious money from its coastline,

0:33:090:33:11

'one of its most valuable assets.

0:33:110:33:14

'There are plans to build more luxury hotels across the island,

0:33:140:33:17

'even multinational-owned golf resorts.

0:33:170:33:20

'For now, Satanino's own ambitions are a little more modest.'

0:33:200:33:23

Like other people in the area,

0:33:230:33:25

Satanino's not just offering tourists food,

0:33:250:33:28

he's offering them a place to stay as well.

0:33:280:33:31

SATANINO: Permiso?

0:33:310:33:32

The cleaner's in. Buenos dias.

0:33:330:33:35

Is he a good boss?

0:33:400:33:41

SHE LAUGHS

0:33:410:33:43

What do you teach?

0:33:560:33:57

It must be quite an exciting time,

0:33:590:34:02

cos this is opening,

0:34:020:34:03

more tourists coming, things are really changing?

0:34:030:34:06

Only weeks after the Bay of Pigs invasion,

0:34:290:34:32

Fidel Castro invited western journalists to tour Cuba.

0:34:320:34:36

One of the first stops on this PR jaunt

0:34:360:34:39

was a newly collectivised rice farm

0:34:390:34:41

intended to impress on his foreign audience

0:34:410:34:44

that socialism was working

0:34:440:34:46

and the country would soon be able to feed itself.

0:34:460:34:48

I travelled deep into Matanzas state,

0:34:520:34:54

following in Castro's footsteps.

0:34:540:34:56

Most Cubans live in the countryside.

0:34:560:34:58

Like the Cubans I met in Havana,

0:34:580:35:00

farm workers have also benefited hugely from the revolution,

0:35:000:35:03

with free health care and education.

0:35:030:35:05

But economically, the revolution has been a disaster out here.

0:35:050:35:09

Today the island imports up to 70% of its food.

0:35:090:35:12

Ramon?

0:35:120:35:14

-HE LAUGHS

-Buenos dias, Ramon!

0:35:160:35:19

Buenos dias.

0:35:190:35:20

What are you doing here, Ramon? What's going on?

0:35:200:35:23

'Ramon's spent most of his life working on a collective rice farm.'

0:35:330:35:37

This doesn't look like it's the hardest bit of the work, I imagine?

0:35:370:35:40

Now look at the tractor!

0:35:550:35:57

It looks loved and cared for, but it does look quite old.

0:36:060:36:09

'Cuba's Soviet era of bureaucracy

0:36:270:36:28

'imposed some peculiar rules on what could be farmed.

0:36:280:36:31

'Even out in the countryside, people had to toe the line.'

0:36:310:36:34

Here and across the country,

0:36:360:36:38

local people used to plant extra crops in the wild

0:36:380:36:43

to supplement their rations,

0:36:430:36:45

but if the authorities found out, found the crops,

0:36:450:36:48

they'd rip them out.

0:36:480:36:50

The state had to control everything and everyone.

0:36:500:36:55

But now the authorities are letting go.

0:36:590:37:02

In a remarkable turnaround,

0:37:020:37:03

the state is allowing farmers like Ramon

0:37:030:37:05

to lease government land and become their own bosses.

0:37:050:37:10

He's now hiring seasonal workers to help him farm,

0:37:100:37:14

but motivating them can be quite a challenge.

0:37:140:37:17

It's ten to eleven in the morning. Have they not turned up?

0:37:170:37:20

This is the problem with being the boss, with being the man in charge!

0:37:290:37:32

You have to worry about all these different things!

0:37:320:37:34

You have to manage the people as well and get them here!

0:37:340:37:36

'One of the biggest headaches for new farmers like Ramon

0:37:410:37:44

'has been how to make overgrown fields productive again.

0:37:440:37:48

'Much of Cuba's agricultural land

0:37:480:37:51

'has been covered by an aggressive weed called marabou.'

0:37:510:37:54

Some of your fields were in this sort of condition,

0:37:550:38:00

completely overgrown?

0:38:000:38:01

So you finished the day bleeding from head to toe?

0:38:210:38:24

'It's midday when Ramon's gang eventually turn up for work.'

0:38:290:38:32

So finally, here come the workers. Ramon!

0:38:340:38:36

-They're all late!

-HE MIMICS CRACKING WHIP

0:38:370:38:40

That's what's going in.

0:38:490:38:51

It's still wet. Well, it's damp, at least.

0:38:510:38:53

That's what they're going to pop in.

0:38:550:38:58

It's wonderful to hold, actually.

0:38:580:38:59

When you think of what a staple this is

0:38:590:39:03

for billions of people on the planet,

0:39:030:39:07

but a lot of Cubans as well.

0:39:070:39:08

'Rice production's now rising,

0:39:120:39:13

'as more than 150,000 Cubans have signed up

0:39:130:39:16

'to lease their own farmland

0:39:160:39:18

'and take control of their own patch of the island.

0:39:180:39:21

'It's a huge change

0:39:210:39:22

'and could help to transform the economy of the country.'

0:39:220:39:24

What Ramon's done here is very impressive.

0:39:280:39:32

Taking ownership of the land, taking responsibility for it,

0:39:320:39:36

clearing it, running it, maintaining it.

0:39:360:39:40

Managing workers who aren't necessarily used to being managed.

0:39:400:39:44

It's a hell of a task, a hell of a headache.

0:39:470:39:49

But if he gets it right, he gets the reward.

0:39:510:39:55

So how does it feel to be the boss man now, the man in charge,

0:39:550:40:00

rather than one of the workers, as you were in the past?

0:40:000:40:03

I think Ramon is rather enjoying being the boss!

0:40:130:40:15

Work done, Ramon invited me home to meet his family.

0:40:210:40:24

You can tell it's a farming community

0:40:240:40:26

when they're drying corn outside!

0:40:260:40:29

Do you not take your shoes off?

0:40:290:40:31

I'm taking my shoes off. It's OK!

0:40:310:40:35

No? You want me to put them on?

0:40:410:40:44

They're muddy, they're muddy.

0:40:450:40:47

Hola! Simon. Is this mum?

0:40:490:40:51

This is mum, I presume?

0:40:510:40:53

Hello. Buenas tardes.

0:40:530:40:55

Como estas?

0:40:550:40:56

Kisses!

0:40:560:40:58

This is what we like to see!

0:40:580:40:59

Look at this, food already on the table!

0:40:590:41:02

This is your rice?

0:41:060:41:07

So is that chicken, but what have we got down here?

0:41:070:41:10

'It seemed Ramon wasn't the only new entrepreneur in the family.

0:41:140:41:18

'Thanks to the reforms, his son, Carlos,

0:41:180:41:20

'has set up a bicycle taxi service.'

0:41:200:41:23

So this is a very exciting time for the family, then?

0:41:390:41:42

Turns out, Mum has opened a clothing stall, I think.

0:41:520:41:55

Can you tell us a little bit about that?

0:41:550:41:57

It's a very enterprising family!

0:41:570:41:59

This food is really delicious.

0:42:270:42:29

Have you thought about opening a little restaurant as well?

0:42:290:42:32

No.

0:42:320:42:34

THEY LAUGH

0:42:370:42:39

It's really interesting to see what's happening

0:42:410:42:44

with the family here and in this area as well,

0:42:440:42:47

because it shows that the reforms aren't just affecting

0:42:470:42:51

and changing the lives of the Cubans who live in cities,

0:42:510:42:54

but they're changing the lives

0:42:540:42:56

of the millions of Cubans who live in the countryside as well.

0:42:560:43:00

It was the weekend, and I was back in Havana.

0:43:120:43:15

But rather than heading to the beach,

0:43:180:43:20

some of the locals were heading to a bustling market,

0:43:200:43:23

unlike any I'd ever seen.

0:43:230:43:25

Buenos dias!

0:43:300:43:32

Buenos dias!

0:43:320:43:33

Buenos dias. Sorry to trouble you.

0:43:330:43:36

Can I just ask you what are you selling?

0:43:360:43:38

So it's got a living room, a balcony, a bathroom,

0:43:450:43:47

and it's all in great condition.

0:43:470:43:49

'Under communism, Cubans were only permitted to swap their homes.

0:44:020:44:06

'But now, for the first time, people have the freedom to sell.

0:44:060:44:10

'That's created a property market almost overnight.

0:44:100:44:13

'This is a city up for sale,

0:44:130:44:15

'and change for some can't come quickly enough.'

0:44:150:44:19

Do you sleep together in the one room?

0:44:190:44:21

Is that difficult?

0:44:280:44:30

SHE LAUGHS

0:44:300:44:32

THEY LAUGH

0:44:370:44:39

There's more to the new housing market, of course,

0:44:410:44:44

than saving a mum's blushes.

0:44:440:44:45

Allowing people to buy and sell property,

0:44:500:44:53

creating a property market,

0:44:530:44:55

is probably the biggest single social change of the new reforms.

0:44:550:44:59

It's also a most significant loosening of the grip

0:44:590:45:03

the state has over Cubans since the revolution.

0:45:030:45:06

House prices are rising,

0:45:060:45:09

and this property boom is attracting a new breed of entrepreneurs.

0:45:090:45:13

Businesswomen like Acaena.

0:45:130:45:15

Can I see what properties you've got in the notebook?

0:45:560:45:59

Can you just show us some?

0:45:590:46:00

How much? That must be a palace!

0:46:070:46:09

You've gone from selling cheese in the countryside

0:46:260:46:29

to selling properties that are worth an absolute fortune.

0:46:290:46:34

Your life has changed in an extraordinary way.

0:46:340:46:37

SHE LAUGHS

0:46:550:46:57

'The authorities say that creating a property market

0:47:020:47:04

'and the rest of the new reforms

0:47:040:47:06

'are just tinkering with the socialist system,

0:47:060:47:08

'but it looks a lot like something else to me.'

0:47:080:47:11

This is the absolute foundation of capitalism.

0:47:130:47:17

Allowing people to buy and sell property creates capital.

0:47:170:47:20

It means people can take out loans on their houses, for example,

0:47:200:47:24

to open a fast food joint or open a tailoring business.

0:47:240:47:28

It really feels like this is the start of fundamental change in Cuba.

0:47:280:47:34

With all this money changing hands, you have to ask,

0:47:340:47:37

where's it all coming from? It's not just local.

0:47:370:47:40

Havana International Airport.

0:47:450:47:47

A flight had just landed from Miami,

0:47:480:47:50

packed with Cuban-American passengers.

0:47:500:47:54

For decades the US banned Cuban-Americans

0:47:540:47:57

from visiting the island,

0:47:570:47:58

but they can come and go as they wish.

0:47:580:48:00

That's the first major thaw in US-Cuba relations for 50 years.

0:48:010:48:05

But almost as significant as the human traffic,

0:48:070:48:09

is what the passengers bring with them.

0:48:090:48:12

Travellers are allowed to bring in

0:48:140:48:15

what are termed "gift parcels" for relatives,

0:48:150:48:18

which basically is presents for the family,

0:48:180:48:20

but it's not unusual to see people turning up here

0:48:200:48:22

with half a dozen suitcases

0:48:220:48:25

and huge bags packed with stuff.

0:48:250:48:28

Visitors arrive with televisions, clothes and even food

0:48:320:48:35

that's sold on to Cuba's new shops and restaurants.

0:48:350:48:38

But just as importantly,

0:48:390:48:41

Cuban-Americans also send or bring cash to the island

0:48:410:48:44

to help their Cuban relatives survive.

0:48:440:48:47

This informal trade is worth billions of pounds every year.

0:48:470:48:50

I actually find this quite ironic,

0:48:520:48:54

because Cuba's always made great play

0:48:540:48:56

of the fact that it's independent.

0:48:560:48:58

But in reality, it's always been very dependent.

0:48:580:49:04

Dependent on the Soviet Union during Soviet times,

0:49:040:49:07

and now it depends in large part

0:49:070:49:10

on the United States and Cuban-Americans

0:49:100:49:12

for many supplies and for remittances.

0:49:120:49:15

And that surely proves how fundamentally weak

0:49:150:49:19

Cuba's economy actually is.

0:49:190:49:21

Officially, capitalism is still a dirty word in Cuba.

0:49:400:49:43

The government still insists their reforms are just

0:49:440:49:47

a slight modification to the communist system.

0:49:470:49:51

But market forces are taking root,

0:49:510:49:54

and that means there are losers and there are winners.

0:49:540:49:58

There's a small, growing middle class in Cuba

0:49:580:50:01

and I headed to one of their new hangouts.

0:50:010:50:03

So this is La Pachanga, a burger bar over here.

0:50:070:50:10

It seems to be very successful,

0:50:100:50:12

judging by the number of cars that are outside.

0:50:120:50:15

It's also got security on the door.

0:50:150:50:17

-Hola!

-Buenas noches. Buenas noches.

0:50:180:50:21

'La Pachanga is owned by the former manager of a state hotel.'

0:50:220:50:26

Sergio!

0:50:260:50:28

Buenas noches.

0:50:290:50:31

A few months ago, Sergio opened La Pachanga inside his own home.

0:50:350:50:40

For Cubans, its menu of burgers and fries

0:50:400:50:42

is an exotic taste of life beyond the communist ration shops.

0:50:420:50:46

You've got a VIP area?

0:50:520:50:54

Can we have a look at that?

0:50:540:50:55

Would we be at least allowed to have a look at the VIP area?

0:50:550:50:58

Come on, let's see!

0:50:580:51:00

Rather privileged.

0:51:030:51:05

Oh, my goodness!

0:51:050:51:06

You've even got a bar here.

0:51:090:51:10

This a burger joint with a difference, eh?

0:51:100:51:14

So how do you get to be a VIP and come in here?

0:51:140:51:18

What qualifications are required?

0:51:180:51:20

Was this your dream?

0:51:280:51:31

Sounds a little bit like having a demanding baby!

0:51:580:52:01

Ah! Back into the normal world.

0:52:090:52:12

Never lasts in the VIP room!

0:52:120:52:15

'It hasn't taken long for Sergio

0:52:150:52:17

'to master the basic principles of the free market.'

0:52:170:52:20

If there's one thing that Sergio's been really,

0:52:200:52:23

I think, quite innovative about,

0:52:230:52:25

he's branded almost everything with La Pachanga.

0:52:250:52:30

La Pachanga, you can see it's on all of the tables.

0:52:300:52:33

Like countless fast food franchises around the world,

0:53:040:53:07

Sergio hands out merchandise

0:53:070:53:09

branded with his ketchup and mustard superhero.

0:53:090:53:12

La Pachanga T-shirts, caps, even bumper stickers,

0:53:120:53:15

can be seen all over Havana.

0:53:150:53:18

It's all designed to encourage brand loyalty, and it's working.

0:53:180:53:22

Behind the scenes.

0:53:250:53:27

And look, more La Pachanga.

0:53:270:53:30

Buenas noches!

0:53:300:53:31

Flipping heck, there's not a lot of room! Sorry!

0:53:310:53:34

Let's go! Let's go!

0:53:340:53:35

HE LAUGHS

0:53:410:53:44

'Sergio now employs more than 40 people

0:53:460:53:48

'and tonight there's just about room to squeeze in one more.'

0:53:480:53:51

Guess what the gloves are for?

0:53:540:53:56

It's not a customs check.

0:53:560:53:58

It was either this, or I would have to do the washing up.

0:53:580:54:02

I can't stand doing the washing up.

0:54:020:54:04

Credit to this gentleman. He's doing it very well.

0:54:040:54:07

The magic formula!

0:54:130:54:16

Is being a boss part of what you enjoy

0:54:210:54:23

about this whole enterprise, this whole business?

0:54:230:54:25

How many meals are you serving every day?

0:54:400:54:42

1,000 meals a day? My goodness!

0:54:490:54:52

'A meal here typically costs about £3,

0:54:520:54:56

'that's around a week's wages for most state workers.

0:54:560:54:59

'La Pachanga's popularity shows

0:55:000:55:02

'just how much private money is already flowing around Havana.'

0:55:020:55:06

Oh, no, I failed! Look at that, it's a disaster!

0:55:080:55:11

All I had to do was flip the burger.

0:55:120:55:15

The burger is fragmenting,

0:55:150:55:17

disintegrating under my watch here.

0:55:170:55:20

OK, so you definitely do not want me

0:55:200:55:22

working the burger cooker, really, do you?

0:55:220:55:25

You want a proper professional in here.

0:55:250:55:27

I should get out of the way!

0:55:270:55:29

I return, sir, to you...

0:55:300:55:32

-HE LAUGHS

-..your La Pachanga hat!

0:55:320:55:36

So can you imagine yourself in five or ten years

0:55:410:55:43

becoming the McDonald's of Cuba,

0:55:430:55:44

with La Pachanga branches across the country?

0:55:440:55:47

Is that the ultimate aim? Is that the goal?

0:55:470:55:49

THEY LAUGH

0:55:490:55:51

Wow!

0:56:070:56:08

Gracias!

0:56:100:56:13

Thank you, Sergio. Let's give it a try.

0:56:130:56:15

Look at the size of this.

0:56:160:56:18

Excuse me. There's no delicate way of doing this.

0:56:220:56:25

I'm not really a burger fan, but this is good.

0:56:250:56:27

It's a tasty, meaty meal of a burger.

0:56:270:56:32

This place really does surprise me,

0:56:320:56:35

not least because we have to keep remembering

0:56:350:56:38

that until very recently, this was a fully communist state

0:56:380:56:44

with a really quite authoritarian government.

0:56:440:56:47

I'm amazed at how quickly people have embraced the changes.

0:56:470:56:51

It's all going surprisingly well.

0:56:510:56:54

HE PLAYS TRADITIONAL CUBAN SONG

0:57:020:57:04

Castro's mantra for Cuba was, "Socialism or death,"

0:57:090:57:12

and for most Cubans, socialism's all they've ever known.

0:57:120:57:17

But even the Cuban government has had to acknowledge

0:57:170:57:20

the need for urgent change.

0:57:200:57:23

They think they can allow just a bit of capitalism into Cuba,

0:57:230:57:27

using it to generate tax revenues

0:57:270:57:30

that will preserve the best aspects of the socialist legacy.

0:57:300:57:33

But it seems to me the genie is already out of the bottle.

0:57:340:57:38

Embracing capitalism will set in train

0:57:380:57:40

an unstoppable momentum for change.

0:57:400:57:43

It won't be long before the new middle classes

0:57:430:57:46

start demanding greater personal freedoms,

0:57:460:57:49

questioning authority,

0:57:490:57:50

even calling for democracy and the end of one party rule.

0:57:500:57:54

Cuba is now experiencing its second revolution

0:57:540:57:57

and I think the impact will prove as monumental as the first.

0:57:570:58:02

I suspect this really was my last chance to see Castro's Cuba.

0:58:020:58:07

HE SINGS TRADITIONAL SONG

0:58:080:58:12

Hasta la victoria, siempre!

0:58:140:58:16

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