Q & A: Cuba's economy

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15 March 2011, last updated at 11: 00 GMT the Cuban Government has already enabled the expansion of private taxis Cuba is his convertible hard currency devaluation, and are mostly by tourists and foreign companies, to around 8% as part of efforts to revive the economy.

There are now on a par with the dollar, although it will be paid two-tier currency system pesos, in the most Cubans under the Communist island is still equal to 24 of the standard.

The devaluation, the first change in the currency value for six years, the Cuban Government is steps is the duty of the State in the economy and promoting the private sector.

Was announced in September last year, that to be released one million employees of the public service, job cuts would take now longer than be expected originally planned.

BBC business reporter, centrally on the implications for Cuba's Robert Plummer sees socialist planned economy.

What is the difference of the devaluation of the currency?

It is affordable for tourists who now form an important source of revenue for the country of Cuba.

Konvertierbarer was created in 1994 and until 2005, when its value has been increased to $1.08 was linked to the US dollar. At this time, Cuba had banned already commercial transactions in dollars, in response to a tightening of US sanctions.

The latest move brings the konvertierbarer back to its original exchange rate. However, tourists and the exchange of dollars Cubans have to continue to pay 10% Commission.

Why now Cuba adoption those changes?

The changes are China's first Congress in 14 years starting on 16 April instead of in the run-up to the ruling Communist Party.

This is likely President Raul Castro economic reform plans, support the further decentralization of decision-making and increasing revenues, cutting social benefits and require subsidies.

But why the Government feel changes are needed?

Because it simply can not afford, the old system maintain longer. Cuban revolution has always of one external makes financed were and the credit expired now.

During the cold war it was the Soviet Union, the island cheap crude oil in exchange for Cuban sugar, as well as loans and credit offered. It is estimated that Cuba of still Russia owes some $20 as a result.

After the collapse of the Soviet Union in 1991, President Fidel Castro had a "special period" of the hardness and allows a modest expansion of the independent companies, such as restaurants and farms.

But the State again tightens grip as China and Cuba's Venezuela new benefactor.

Cuba is now in hock to both selections as well as - and the Chinese press Fidel Castro's successor, his brother Raul, to follow their economic reform path.

What are the most important effects of the changes?

Now, if the planned cuts in full, one-fifth of employees set job will no longer have a Government to go. The Government employs about 85% of all workers.

But that does not mean that they are unemployed. Many of them continue to do, do it now, but their employers are no longer the State.

Taxi drivers, hairdressers and in small jobs, such as the will to separate and care itself, rather than the State do it for them to. Others are encouraged to set up their own businesses or change jobs.

Cubans will work also for rent to tourists, room as a self-employed gardener, iron clothes and shoes luminaires.

You will even be allowed to deal with other Cubans that none of their relatives - has been banned somewhat since the revolution.

Raul Castro said the goal is "overloaded" Government to reduce the payroll, but has also pledged that "no one simply will be omitted in the cold".

What other changes are made?

The whole system will be less paternalistic in the future. Subsidies that kept the prices of basic foodstuffs such as sugar and rice, removed. In fact, this is whole ration book system, were cheaper Basic, Cubans with a guaranteed minimum offers has since the US embargo in 1962 began, due to the phasing-out.

At the same time, the newly self-employed, one year up to 50% for those earning more than 50,000 pesos are income tax from 25% for those earning more than 5000 pesos ($225; £ 142).

Like many others before them are Cubans will discover, that if it grants rights, also powers on them imposed.

Is this the end of socialism in Cuba?

In a Word no. Since the ailing Fidel Castro stepped down as President in February 2008, observers have forecast that Raúl Castro would lead major reforms.

But it looks like this is as far as it goes. The President has ruled out general changes and wants the State still in his role as the central economic planner, although some control in fact been made, has.

Cubans no longer the same level of cradle to grave state care can expect and need to become more independent, but the country remains an a party State.

In fact, this is very timing of the Congress think the centrality of the Cuban revolution in Raúl Castro. It is the 50th anniversary of the battle of the Bay of pigs, the one start United States supported force of exiles defeat was in an attempt to overthrow invasion of the island and Communist rule.