Castro’s withdraw as leader of the country on Tuesday brought into discussion the long time dispute between Cuba and the United States. What everyone is wondering right now is what Cuba is heading for, now that Fidel Castro has stepped aside, after 50 years of ruling the country.

His critics have waited for an announcement such as this one for many years now, and President Bush was the first to welcome his resignation, and see it a sign that Cuba will enter a period of “democratic transition”, after five decades of communist rule.

Fidel Castro officially announced his retirement on Tuesday, in a letter published in the Communist Party paper: “I neither will aspire to nor will I accept -- I repeat -- I neither will aspire to nor will I accept, the position of president of the council of state and commander in chief," AFP reported.

Rumors about his decision started in December last year, when Castro himself suggested that he might give way to younger generations to lead Cuba: "The moment has arrived to propose and elect the Council of State, its president, vice-president. I just want to carry on fighting like a soldier for our ideas."

Bush, who is currently in his African countries tour, said at a news conference in Kigali, Rwanda: “This transition ought to lead to free and fair elections -- and I mean free and I mean fair, not these kind of staged elections that the Castro brothers try to foist off as being true democracy.”

Castro’s decision could be a big step for Cuba towards things that currently severely lack in the country, such as human rights reforms. Depending on what Cuba’s future leaders are up to next, the United States is expected to change their attitudes towards it as well.

 What still remains unclear for the time being though is whether President Bush will be willing to change U.S.’ policy regarding Cuba before his presidency ends, or will this be the job of the next president to arrive at the White House.