Cuba to introduce merit pay for state workers

In another surprising move, Raul Castro has announced that the old system of equal pay for government employees will be phased out as a new system of merit pay will be implemented. The Guardian UK's analysis posits that this move could bring "an end to the capped wages set up by Fidel Castro in 1959 could spark the beginnings of a new middle class in Cuba."

While the details of how this will affect each employment sector - such as school teachers and health workers - are unclear, the announcement is seen by some as another in a line of bold moves towards quasi-capitialism, including allowing the use of cellphones and the purchase of DVD players, computers and other imported electronics.

Sources: The Guardian UK, Granma, CNN, Miami Herald