Farmland such as this will now be leased to farmers. Gerry Vandermaesen (flickr)

Since he was officially sworn in as Cuba's president in February, Raul Castro has been busy giving back to his constituents in ways his brother never did — allowing Cubans to hold licenses for private taxis, stay in tourist hotels and own a cell phone.

But these are primarily symbolic changes. After all, many Cubans can't afford to purchase a cell phone or pay for a night at a hotel. The average monthly wage is only $20. Two of the most recent reforms, however, are potentially dynamic: the opportunity for farmers to lease state-owned land and for workers to earn production bonuses beyond their state-set salaries.

The land reforms are a response to rising global food prices. Castro recently estimated that the country would pay an extra $1 billion in food imports — enough for him to declare the food crisis a national security threat. Cuba has plenty of empty farmland left to cultivate: half of state-owned farm land is covered with weeds, according to estimates. The idea is that giving farmers an incentive to plant some of this land should reduce the need for costly food imports.

Then there's the new system of bonuses laid out by the country's vice-minister for labor, Carlos Mateu. "Writing in the communist party newspaper Granma Mr Mateu said workers would receive a minimum 5 percent bonus for meeting targets but with no ceiling on salaries," the BBC reported. "The minister pointed out that the current wage system sapped employees' incentives to excel since everyone earned the same regardless of performance."

These are revolutionary ideas in Cuba, a socialist system built on the egalitarian ideal. Last month Raul Castro challenged the governmental mindset when he said,"egalitarianism is not convenient."

When Cuba's president speaks out against the very foundation of a 49-year-old government system, it's hard not to believe that real change is happening.

Photo: voxphoto (flickr)

In a span of just ten days, 7,400 Cubans signed new mobile phone contracts. On April 14, President Raul Castro lifted a ban restricting ordinary citizens from purchasing personal cell phones. The number of contracts is impressive, the BBC reports, considering that a cell phone in Cuba costs six times the average monthly salary.

Under Raul's brother Fidel, only government officials and people working for foreign firms were allowed to own cell phones. In addition to lifting the ban on personal cell phones, Raul Castro has lifted restrictions on DVDs, car rentals and other goods.

What more changes in Raul Castro's Cuba lie ahead?

Although Cuba's new leader says he will continue to run the country under a socialist framework, economic changes may soon be underway.

According to The Economist:

In his speech, Raúl also gave broad hints of economic changes. He recalled a commitment by Fidel in 2005 gradually to revalue the peso. Since many prices are set in hard currency, that is essential if wages are to rise above their average of $20 a month. This would take time, he said, but would involve moving away from the state-run rationing system and taking more account of wages and prices. That amounts to a move towards market mechanisms. And he praised decentralisation.

Some predict that Cuba will try to mimic progress made in Vietnam in Cuba by embracing markets while still adhering to the concept of socialism. This would be a substantial change for Cuban economic policy.

Fidel has resigned, but a Castro still rules over Cuba. What are the differences between Fidel Castro and his brother Raul, and what will these differences mean for a post-Fidel Cuba? While there is a general consensus that Fidel's official resignation is unlikely to bring substantial political and economic change in Cuba in the near future, there have been indications that Raul may follow the "Chinese model" and gradually open up the Cuban economy while maintaining strict political control.

Many Cubans say Raúl will have no option but to give Cubans more leeway, economically if not politically. “People here say they are fidelistas, but not necessarily socialistas,” said an analyst in Havana, who asked to remain anonymous. Without Fidel, “Raúl will have to renegotiate an agreement with the Cuban people”.

Raúl is hardly likely to jettison half-a-century of socialist reforms and throw the country open to foreign capital, as Russia did in the 1990s. But he has hinted that he wishes to gradually open up the system, acknowledging the “excessive number of prohibitions” in Cuba and starting a national debate about the shortcomings of the regime.