Vukenkeng Andrew Wujung, (Ph.D), Lecturer of Economics, Head of Accounting Division University of Bamenda.
Cameroon’s growth stood at about 6 per cent in 2015. This however, falls below expectations given that the country has great potentials. What accounts for this dismal performance?
A good number of factors account for loss of productivity and slowdown in investment and growth. The transport infrastructure, in terms of road and railway networks, is inadequate and in poor condition. The 1,200-kilometre railway network is really limited, and at the same time most of the system’s equipment is worn out or obsolete, requiring replacement and additional investment. A second factor is the fact that the economy is largely public sector oriented. The private sector needs to be revitalized. Energy supply is grossly inadequate; the business climate is not investment friendly. In general, the country suffers from mismanagement, misplaced priorities and reluctance/laisez-faire in the conduct of public administration.
What does Cameroon need to jumpstart the economy?
The country needs to review the way it uses its economic resources. The contribution of labour and capital to the output in various economic sectors in the country has been shown to be very important but more often capital dominates in spite of the abundance of labour. Given that the technology level in the country is still relatively low but growing very rapidly, more effort needs to be put into developing this component of growth, especially through research and development. Past experience has shown that in periods when the economy has saved much or has grown more rapidly, it has tended to invest much more in physical capital than in appropriate human capital. Yet there should be a balance between investment in human and physical capital, with greater stress put on human capital development as the main mover of other types of investment, including investment in technology. The foregoing requires proper management of all factors of production to ensure they are maximally productive. Again, the development agenda of the country should be developed drawing expertise from all sectors of the economy and walks of life, and followed –up strictly.
Low and volatile commodity prices have been blamed for the lackluster growth in some Sub Saharan countries meanwhile Cameroon has seen its resources diverted to the war against Boko Haram. Does this still pose a major problem to the growth of the country?
CEMAC countries like several others countries are highly dependent on commodity price exports. These products (fuels, agricultural and none, agricultural products) are very volatile. The fluctuation of raw materials leads to instability of revenue earnings of government and producers. This instability is the source of uncertainty, which leads to reduced investment by affecting growth and public spending.
Cameroon is increasingly facing a challenging situation in its northern regions, where Boko Haram’s war has shifted to suicide attacks since October/November 2015. Many Cameroonians have been displaced internally and Cameroon is also host to many Nigerian refugees in the north and refugees from CAR in the east. This has increased cost of ensuring security to the government and has caused the government to forgo some important development projects.
Education is said to be the springboard for sustainable economic growth. What is that model you think can turn the tides for Cameroon?
There is need to intensify the implementation of good governance and accountability in the sector of education. In fact, a 2012 World Bank study on governance in education revealed that public school resources are not transparently allocated and that there are instances of inefficient resource management. Against this backdrop, the role of stakeholders will be crucial to engage in collective actions to promote good governance and increased accountability. Local communities will need to play an important role in demanding schools to publish and publicly announce the level of state funding received, the time of receipt of funding, and the proposed uses of the funds. There should be the inclusion of some key sustainable development issues into the teaching and learning process (Entrepreneurship, climate change, disaster risk reduction, poverty reduction etc.) It requires participatory teaching and learning methods that motivate, empower learners to change their behavior and take action for sustainable development. Such education consequently promotes competencies like critical thinking, imagining future scenarios and making decisions in a collaborative way. If the aspect of entrepreneurship is introduced at all levels of education with a strong practical component it will offer the possibility for graduates at all levels to be job creators. Even those who get paid jobs in both the private and public sectors will be entrepreneurial in their working attitudes and this will go a long way to guarantee the growth and sustainability of the organizations for which they work.
The World Bank’s April « Africa Pulse » notes that cities in Sub Saharan Africa are
What about the role of energy supply, improvement of the business climate and regional integration?
The role of energy supply in business is paramount, especially for large-scale operations. In fact a secured supply of electricity is crucial for economic growth. The erratic power supply in Cameroon harms badly businesses - especially industrial output thus lowering its contribution to economic growth.
The Cameroon government is doing a lot to improve the business climate so as to attract substantial and sustainable investors, especially direct foreign investments. Government’s efforts in this direction includes amongst others the April 18, 2013 law on private investment incentives in Cameroon, the 2013 law governing economic zones in the country and the regular holding of the Cameroon Business Forum (a platform for public/private concertation on improving the business climate) as well as the creation and rendering operational of the bank for small and medium-size enterprises and the launching in 2013 of Leasing, a mechanism to equip enterprises.
Meanwhile Cameroon finds itself in the CEMAC zone and shares common characteristics with the other countries-low historical growth in per capita incomes, limited progress in poverty reduction, and dependent on oil and other primary resource exports. They have common challenges, both internally and externally, for example, fluctuations resulting from reliance on primary exports, conflicts of interest between richer coastal and poorer landlocked countries, limited intra-regional linkages, and political instability within and without. Regional integration can provide a platform for examining and dealing with these challenges. Such integration will force countries into policy reform and to enjoy a number of advantages - economies of scale, and a unified forum for international negotiations. To achieve this dream there is need to strengthen the institutional capacity, ensure political consensus, build strong infrastructure, and above all developing strong ties within member countries and with neighboring countries.
