The Cameroonian economic crisis was a downturn in the economy of Cameroon from the mid-1980s to the early 2000s. The crisis resulted in rising prices in Cameroon, trade deficits, and loss of government revenue. [1] The government of Cameroon acknowledged the crisis in 1987. Outside observers and critics blamed poor government stewardship of the economy. The government instead placed the blame on the fall of the prices of export commodities, particularly a steep drop in the price of petroleum. [2] [3] President Paul Biya announced that "all our export commodities fell at the same time." [4]
Cameroon's trade partners, particularly France, Germany, and the United States, offered to help the country, but Cameroon balked at their condition that the country follow strict cost cutting suggestions laid out by the International Monetary Fund (IMF). Instead, Cameroon formulated its own plan. Civil servants lost access to subsidised electricity, housing, and telephones; parts of the government's vehicle fleet were sold; older civil servants were forced into retirement; the official working schedule was changed; economic missions in foreign embassies from Cameroon were closed; and state and parastatal enterprises were privatised. [2] The 1987–1988 budget reduced government spending by 18%, the first time in the country's history that the budget decreased. [5]
The measures met with international approval, but violent crime rose as a result. Cameroon's plan also failed to rein in corruption. [2] By October 1988, the intended effect was less than had been hoped, and Cameroon agreed to an IMF aid package worth $150 million and accepted a structural adjustment program (SAP) loan from the World Bank. The African Development Bank, France, Germany, and the United Kingdom loaned the government further funds. Cameroon has since focused on paying off its international debt and further restricting public salaries and pay rises to civil servants.
However, the consensus among Cameroonians both at home and overseas is that the economic hardship is as a result of public funds theft by the Biya administration. Members of his regime constantly steal public funds and build mega structures in other countries such as France without any serious legal action being taken by the Biya administration. Biya himself is known to have resorts in Europe where he spends more time enjoying the proceeds of his theft than he does in his own country.
Cameroon, officially the Republic of Cameroon, is a country in Central Africa. It shares boundaries with Nigeria to the west and north, Chad to the northeast, the Central African Republic to the east, and Equatorial Guinea, Gabon, and the Republic of the Congo to the south. Its coastline lies on the Bight of Biafra, part of the Gulf of Guinea, and the Atlantic Ocean. Due to its strategic position at the crossroads between West Africa and Central Africa, it has been categorized as being in both camps. Cameroon's population of nearly 31 million people speak 250 native languages, in addition to the national tongues of English and French, or both. Early inhabitants of the territory included the Sao civilisation around Lake Chad and the Baka hunter-gatherers in the southeastern rainforest. Portuguese explorers reached the coast in the 15th century and named the area Rio dos Camarões, which became Cameroon in English. Fulani soldiers founded the Adamawa Emirate in the north in the 19th century, and various ethnic groups of the west and northwest established powerful chiefdoms and fondoms.
At the crossroads of West Africa and Central Africa, the territory of what is now Cameroon has seen human habitation since some time in the Middle Paleolithic, likely no later than 130,000 years ago. The earliest discovered archaeological evidence of humans dates from around 30,000 years ago at Shum Laka. The Bamenda highlands in western Cameroon near the border with Nigeria are the most likely origin for the Bantu peoples, whose language and culture came to dominate most of central and southern Africa between 1000 BCE and 1000 CE.
The politics of Cameroon takes place in the context of an electoral autocracy where multi-party elections have been held since 1992, the ruling party wins every election, and Paul Biya has been president since 1982. Since Cameroon's independence in 1960, it has been a single-party state and ruled only by two presidents: Ahmadou Ahidjo and Paul Biya. Political opposition are repressed and elections are manipulated in favor of the ruling party.
The economy of Cameroon was one of the most prosperous in Africa for a quarter of a century after independence. The drop in commodity prices for its principal exports – petroleum, cocoa, coffee, and cotton – in the mid-1980s, combined with an overvalued currency and economic mismanagement, led to a decade-long recession. Real per capita GDP fell by more than 60% from 1986 to 1994. The current account and fiscal deficits widened, and foreign debt grew. Yet because of its oil reserves and favorable agricultural conditions, Cameroon still has one of the best-endowed primary commodity economies in sub-Saharan Africa.
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