Planned liberalism is an economic policy followed in Cameroon since the 1960s that aims to merge the best concepts of capitalism and socialism.
For a quarter of a century following independence, Cameroon was one of the most prosperous countries in Africa. 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.
Cameroon, officially the Republic of Cameroon, is a country in Central Africa. It is bordered by 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. Cameroon's coastline lies on the Bight of Biafra, part of the Gulf of Guinea and the Atlantic Ocean. Although Cameroon is not an ECOWAS member state, it is geographically and historically in West Africa with the Southern Cameroons which now form her Northwest and Southwest Regions having a strong West African history. The country is sometimes identified as West African and other times as Central African due to its strategic position at the crossroads between West and Central Africa.
Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Characteristics central to capitalism include private property, capital accumulation, wage labor, voluntary exchange, a price system and competitive markets. In a capitalist market economy, decision-making and investments are determined by every owner of wealth, property or production ability in financial and capital markets, whereas prices and the distribution of goods and services are mainly determined by competition in goods and services markets.
In 1965, Cameroon changed from its previous economic philosophy, African socialism, under the guidance of its first president, Ahmadou Ahidjo. Under planned liberalism, the state began regulating and managing natural resources and guiding foreign investment into specific economic sectors or geographic areas. In the process, the government has partnered with foreign firms to set up various parastatal enterprises. Meanwhile, it has encouraged private enterprise and investment and the operation of market forces. [1]
African socialism is a belief in sharing economic resources in a traditional African way, as distinct from classical socialism. Many African politicians of the 1950s and 1960s professed their support for African socialism, although definitions and interpretations of this term varied considerably.
Ahmadou Babatoura Ahidjo was a Cameroonian politician who was the first President of Cameroon, holding the office from 1960 until 1982. Ahidjo played a major role Cameroon's independence from France as well as reuniting the French and English-speaking parts of the country. During Ahidjo's time in office, he established a centralized political system. Ahidjo established a single-party state under the Cameroon National Union in 1966. In 1972, Ahidjo abolished the federation in favor of a unitary state. Ahidjo resigned from the presidency in 1982, and Paul Biya assumed the presidency. This was an action which was surprising to Cameroonians. Accused of being behind a coup plot against Biya in 1984, Ahidjo was sentenced to death in absentia, but he died of natural causes.
Critics claim that planned liberalism has failed due to widespread corruption, overwhelming government bureaucracy, and ill-advised government backing of certain foreign investors. These faults became evident during the economic crisis of the mid-1980s. Cameroon under Paul Biya has since increasingly turned to privatisation of state-owned industries to stimulate its economy. [2]
Political corruption is the use of powers by government officials or their network contacts for illegitimate private gain.
Bureaucracy refers to both a body of non-elective government officials and an administrative policy-making group. Historically, a bureaucracy was a government administration managed by departments staffed with non-elected officials. Today, bureaucracy is the administrative system governing any large institution, whether publicly owned or privately owned. The public administration in many countries is an example of a bureaucracy, but so is the centralized hierarchical structure of a business firm.
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. 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. President Paul Biya announced that "all our export commodities fell at the same time."
