Cuba economic health warning

The global economic crisis is slowing the pace of economic reforms in Cuba.

That's the message from President Raul Castro in his first speech to the National Assembly since taking office in February.

He says rising food and oil prices mean it'll take more time to lift wage caps - a key reform aimed at boosting incentives for workers.

(SOUNDBITE) (Spanish) RAUL CASTRO, CUBAN PRESIDENT, SAYING:

"Socialism means social justice and equality, but equality of rights, of opportunities, not of income. Equality is not egalitarianism, the latter is also a form of exploitation -- that of the good worker because of the one who isn't, or worse yet, the lazy one."

Decentralizing food production is one of the key reforms introduced by Raul Castro.

Farmers are to be given more scope to decide how to use their land - which crops to plant and supplies to buy.

And unused state land is being lent to private farmers, part of a drive to boost agricultural output.

The Cuban leader told the assembly it wouldn't be "ethical to create false expectations" of quick action on reforms.

He sat beside an empty seat reserved for his brother Fidel, the former president.

(SOUNDBITE) (Spanish) RAUL CASTRO, CUBAN PRESIDENT, SAYING:

"All of us who are here...are in agreement but, very importantly, he who sits over there (gesturing to Fidel's seat and making sign of a beard with hand) where I sit is also in full agreement."

A signal meant to reassure that his economic reforms have the full support of his brother, who hasn't been seen in public since having emergency stomach surgery nearly two years ago.

Susan Flory, Reuters