Monday, February 6, 2012

Cameroon economy stagnated by bad governance

Cameroon - Earlier this year, two western African countries held presidential elections. On the surface, they have little in common -- one country recently emerged from a brutal civil war and has an abysmal economy; the other has been peaceful for decades and enjoys abundant revenue streams.   And yet both Liberia and Cameroon are classic stories of wasted potential.

Amid widespread allegations of electoral fraud, incumbent president Paul Biya was named winner of the Cameroon elections and Liberian incumbent Ellen Johnson Sirleaf victorious  in Liberia's runoff elections. But the two are poised to provide strikingly different kinds of leadership to their troubled countries. 

This strikingly diverse land, the curve under the African crook, has enjoyed political stability for decades. What's more, it enjoys significant natural resources, not least the oil and gas reserves that constitute roughly 30% of government revenues.

Naturally,  Cameroon's economy would dwarf Liberia's. But look a little closer, and a very different picture of lost potential comes into focus. With "one of the best-endowed primary commodity economies in sub-Saharan Africa," Cameroon also received over $35 billion in foreign aid during Biya's rule. And yet Cameroon's GDP remains unimpressive, overly dependent on commodity prices, and currently lagging behind the average developing sub-Saharan country (per capita). In its "lower-middle income" country peer group, as defined by the World Bank, Cameroon's per capita GDP is fully one-third lower than the average.

"Given its oil resources, Cameroon could be one of the richest countries in Sub-Saharan Africa," stated a 2009 Oxford University study. Instead, it noted, "Cameroon has become an example of growth collapse." The study makes the stunning assertion that 54% of total oil revenues in Cameroon between 1997 and 2006 are potentially unaccounted for in the national budget. The culprit?  "Poor governance."

Since 1982, Cameroon has been ruled by a one-man presidential show, the secretive bureaucrat Paul Biya, 78. Routinely ranked among the most corrupt countries in the world, Cameroon has also achieved a "Not Free" rating from Freedom House's political rights survey, grouping it with such continental all-stars as Somalia, Sudan, Zimbabwe and the DRC.

At least Ellen Johnson Sirleaf can blame a civil war for her country's stagnation. Paul Biya has had 30 years to capitalize on Cameroon's many economic and social advantages, with little to show for it. Just consider the following areas where Liberia -- its population, infrastructure, and institutions recently devastated by a 14-year war -- outstrips Cameroon. Issues affecting the private sector, the engine of growth in a healthy economy are. Source: World Bank Enterprise Surveys, 2009

But apparently Biya does not consider these statistics troubling enough to require much of his attention. Cameroon's president can be found as often in Europe as in his official residence in Yaoundé, once blowing through $40,000 a day on 43 hotel rooms during a vacation in France. (As a little side note, 40 percent of Cameroon's population lives below the poverty line).

This year, after doctoring election laws to favour his own victory (having altered the constitution in 2008 to abolish term limits), Biya ran a notably lackadaisical campaign. He must have taken to heart what many election observers have pointed out over the years - that the deeply flawed presidential elections in Cameroon are basically a foregone conclusion.

Too often in Africa, “We focus on the wars, the epidemics, the genocidal dictators. But Cameroon has killed its potential the quiet way - through years of mismanagement, corruption and abuse. All the while, Western nations cut aid checks and conduct cheerful business with this most refreshing oasis of political stability. Considering that both Sirleaf and Biya will likely continue in office the next few years, perhaps we should be more selective in our assistance. Whom would you rather receive your foreign aid tax dollars: the leaders trying to lift their countries out of trouble, or those who inflicted it in the first place?” Intimate source of IMF hinted the Vanguard.

©2012 The Vanguard Cameroon, Bamenda. A publication of Media World. All rights reserved.  All are welcome to comment. Leave a comment, speak your mind and take part in any discussion. As exchange of ideas and debates between opinions are fundamental for our democracy. And will push Cameroon forward. Comments with racist, homophobic, sexist, hateful, extreme Christian or extreme Islamic content will be removed. Leave the CAPS-LOCK off, no reason to SHOUT.


Tsimi Brice said...

Cameroon has gone through thick and thin over the years and we can say today things are far better.The language in quite different in 2012. There is a fresh impetus and President Paul Biya has launched the major accomplishment project which will lead Cameroon to emergence in 2035.The resources and potentials which Cameroon possesses will now benefit all Cameroonians and our economy is undergoing rapid growth. All the ills which our society suffered in the past like corruption, mismanagement, and laxity just to name a few are now dead and gone. A new Cameroon is at the door, the Cameroon you are talking about no more exists, and it belongs to the past.

Bertrand Bindzi said...

Cameroon has known a troublesome past and President Paul Biya has worked hard over the years to revive our economy so we can occupy the position we deserve given our rich potentials.We are done with the past where there was inertia and where a group of people thought the country belonged to them and they were not accountable to anybody. With the major accomplishment program geared towards making Cameroon an emerging nation, Cameroon will completely transform and breakup with the past .Talking about the supposed expenditures of President Paul Biya during his journeys, it is completely stupid. President Paul Biya has never been extravagant and such behaviours are not part of his habits. Such information is fabricated to discredit him.

Fingon Marie-Pierre said...

President Paul Biya was democratically and massively elected by Cameroonians in all transparency and not through any fraud. The painting on Cameroon’s picture is now completely different is one of nation rising like a sphinx from its ashes. Cameroon has armed all mechanisms for emergence come 2035.