Cuba debates economic path ahead under Raul Castro

Cuba's foreign exchange earnings have nearly doubled over the last two years, thanks mainly to the export of medical and other services to Venezuela and record-high nickel prices.

Economic growth has sped up to three times its pace at the start of the decade when Cuba was pulling out of the economic collapse that followed the collapse of its former benefactor, the Soviet Union, in 1991.

Nevertheless, the state has run into problems investing the revenues through its more than 3,000 state-run companies. The economy also suffers from chronic disorganization, bad accounting, poor quality, lax discipline and graft.

The head of parliament's economic commission, Osvaldo Martinez, told Reuters the debate over economic policy probably would be taking place even if President Fidel Castro were not too ill to govern.

"We are not talking about the Chinese model, but a Cuban model, the best way forward given Cuba's possibilities, realities, resources and problems," Martinez said.

Some Cuban economists believe that only by adopting China's model of a capitalist market under communist political control, or at a minimum by decentralizing and developing private cooperatives and markets in nonstrategic sectors, can internal production be improved.

Others say any opening would provide the United States with a chance to topple the socialist system.

Agriculture specialist Nova said taking steps to loosen the economy would not threaten his sector.

"Decentralization and more autonomy would result in more production and food security, consolidating our economy and making us less vulnerable," he said.