Cuba's Fidel Castro steps down after half a century

By Anthony Boadle

HAVANA (Reuters) - Ailing Cuban leader Fidel Castro stepped down on Tuesday 49 years after taking power in an armed revolution, closing the book on a Cold War career that made him an icon to leftists and a tyrant to his foes.

Castro, 81, who has not appeared in public since undergoing stomach surgery almost 19 months ago, said he would not seek a new term as president or leader of Cuba's armed forces when the National Assembly meets on Sunday.

His retirement raised expectations for change on the communist island, and calls by Castro's arch-enemy, the United States, for democracy, but Cuba experts said limited economic reforms were more likely than swift political transformation.

"To my dear compatriots, who gave me the immense honor in recent days of electing me a member of parliament ... I communicate to you that I will not aspire to or accept -- I repeat not aspire to or accept -- the positions of president of the Council of State and commander-in-chief," Castro said in a statement published in the Communist Party's Granma newspaper.

U.S. President George W. Bush, who has tightened the decades-old economic embargo against Castro's government, said his retirement should begin a democratic transition.

"Eventually this transition ought to lead to free and fair elections. And I mean free and I mean fair," Bush said in Rwanda during a tour of Africa.

Cuba's National Assembly, a rubber-stamp legislature, is expected to nominate Castro's brother and designated successor Raul Castro as president. The 76-year-old defense minister has been running the country since emergency intestinal surgery forced his older brother to delegate power on July 31, 2006.

Raul Castro has promoted more open debate about the failings of Cuba's state-run economy, but he is unlikely to make bold political changes to the one-party state. Fidel Castro will remain influential as first secretary of the ruling Communist Party.

"This is a crucial moment. Cuba wants change, the people want change," said Oswaldo Paya, Cuba's best-known dissident.

CUBANS NOT SURPRISED

Cubans on the quiet streets of Havana reacted without surprise, some with sadness, to Castro's retirement, first announced on Granma's Web site in the middle of the night.

"Everyone knew for a while that he would not come back. The people got used to his absence," said Roberto, a self-employed Cuban who did not want to be fully named.

"I don't know what to say. I just want to leave. This system cannot continue," said Alexis, a garbage collector.

"The Revolution will continue. Fidel resigned in time. It is a wise decision. He let Cubans get used to his absence for 18 months," said Lazaro, a building administrator sweeping a lobby in slippers. He said the only economically viable institution in Cuba was the armed forces run by Raul Castro and hoped their efficiency would spill over into the rest of the economy.

"His body gave up after so many years fighting for social justice and the independence of Cuba from American control," said a saddened psychology professor who identified himself simply as Dr. Alvizu.