Planned liberalism is an economic policy followed in Cameroon since the 1960s that aims to merge the best concepts of capitalism and socialism. [1] [2] Abel Eyinga see it more as a African Dirigisme . [3] It had characteristics of an planned economy, [4] [5] economic nationalism and crony capitalism. [6]
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 (They can be considered as government-affiliated entities designed to meet commercial and state capitalist objectives [7] [8] ). Meanwhile, it has encouraged private enterprise and investment and the operation of market forces. [9] Capitalism had led to economic development worldwide, but also to a growing gap between rich and poor. Socialism attempted to tackle economic inequality through a planned economy, but this model did not lead to a direct improvement in the lot of citizens. Liberal planning, according to Ahidjo, led to direct prosperity. Ahidjo said that "there was no longer an absolute gap between the two formulas" (i.e., Marxist socialism and Western capitalism). [10] Cameroonians were encouraged to start their own (modern) companies so that a private sector would emerge, and the country opened its doors to foreign investors who were encouraged to invest their money in mixed companies (half private, half government ownership). However, when the economy declined in the 1970s and 1980s, the government decided to privatize the mixed companies. The intention was that the former state share would then end up in the hands of Cameroonians (economic nationalism). An important political aspect of liberal planning was that Western investments increased, but at the same time the non-aligned foreign policy could be continued. Full identification with the West was thus not possible. Because liberal planning was mainly seen as an economic model and not as a political model, the Ahidjo government did not consider it necessary to democratize the Republic of Cameroon.
Abel Eyinga traces the theory of liberal planning to Gaullist economic doctrine and sees liberal planning as "the African equivalent of 'participation'." [11] According to him, the concept of liberal planning first emerged around 1965 in Gabon, where the concept—possibly elaborated differently than later in Cameroon—was embraced as an economic ideology. [12]
To develop, with a view to the future, all the resources of the country, the President of the Republic of Cameroon at that time has set himself the objective of self-centred development and the doctrine of "planned liberalism", which he defines as follows: "We intend to submit, henceforth, our international economic relations to our objectives of internal development, that is to say, we intend to promote a truly integrated economy, characterised by effective control of the principal factors of development." It is, at bottom, a humane socialism which seeks its path in a pragmatic manner. [13]
President Ahmadou Ahidjo El Hadj explained this choice at the time by declaring: "The most dynamic factor in our start is, we believe, our choice for liberalism in economic matters; liberalism, thanks to which the prospect of legitimate profit encourages initiative and thanks to which freedom fertilizes the imagination. But, it is a question of an ordered, selective, non-anarchic liberalism; one that finds its fulfillment within the previously defined framework of the Plan. In economic matters and particularly in matters of investment, we believe more in the favorable psychological effects of freedom and confidence than in the results of actions due to constraint. In the current national and global situation, this policy of liberalism is without a doubt the best for our country and consequently the most in accordance with the interest of our people. It represents the happy conjunction between the ideal of development towards which we tend and reality. It expresses this realism from which we cannot depart in our action. We therefore say out loud that private investments, national or foreign, will always be welcome in Cameroon and will find the guarantee of their full profitability in the operations of our investment code, precisely designed in the spirit of our liberal option. Let us also say that this, however, does not exclude the possibility, or even the necessity, of a public or mixed sector, an instrument in the hands of the government to drive, control or guide the entire national economy while at the same time safeguarding the fundamental interests of the State." [14]
However, the adaptation of the traditional economy to a modern pace of development that the president seeks cannot be achieved by the action of the State alone, given the financial means at its disposal. It will therefore be done in line with a " planned liberalism ", that is to say by the refusal of the anarchic surge of uncontrolled initiatives combined with a desire to direct and contain the pressure of creative activities. To achieve this, the government will turn to the private sector, whose action it considers must be the most dynamic agent of development. The major options are indicated within the framework of a flexible and adaptable plan, outlining the paths to desirable economic balances. [15]
Critics claim that planned liberalism has failed due to widespread corruption, overwhelming government bureaucracy, almost no development of the country [16] 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. [17]
Paul Biya the second and current President created a similar ideology with the name Communitarian liberalism , the difference between planned liberalism and communitarian liberalism is that communitarian liberalism is more supportive of privatization [18] , but the idea of a third way is still part of the ideology. [19]
During the rule of President Juvénal Habyarimana (1973–1994), Rwanda adopted an economic policy referred to as "liberal planning" ("Libéralisme planifié") [20] [21] Liberal planning as an economic ideology was proclaimed at the third congress of the ruling Mouvement Révolutionnaire Nationale pour le Développement (MRND) in 1980 [22] and involved a six-year development plan (1980–1986) aimed at foreign (Western) investors, self-sufficient food production, better use of human resources, and improved living conditions. [23] In 1988, state-owned enterprises were privatized as part of the liberal planning policy. [24]
Ivory Coast under Félix Houphouët-Boigny from 1960 until 1978 embraced something similar to planned liberalism, afterwards he embraced economic liberalism. [25] [26] The Democratic Party of Ivory Coast claims to be an economic liberal which excludes state intervention in economic activities. However, the PDCI accommodates state capitalism, but after independence it is only considered as a transitional phase, while waiting for Ivorian capitalists to be trained. [27]
Senegal under Léopold Sédar Senghor embraced from 1975 on something similar to planned liberalism. [28]
The First Republic of Madagascar under Philibert Tsiranana (1959-1972) economic policies were pursued that were very similar to liberal planning. [29]
Guinea under Lansana Conté embraced planned liberalism from 1985 until 1986 before advocating for economic liberalism. [30]
Gabon under Omar Bongo from 1980 until 1987 tried to adopt planned liberalism, [31] [32] [33] before embracing economic liberalism again like in the 1960s and 1970s. [34] Omar Bongo developed the philosophy that was referred to as Rénovation (Renovation), the main objective of which was to combat tribalism and regionalism and to create a national identity. Foreign entrepreneurs were attracted and an attempt was made to create an indigenous middle class. It then became clear that Rénovation had mainly led to predatory capitalism and therefore the slogan Rénover la Rénovation (Renovate the Renovation) was raised. Predatory capitalism had to be countered by means of a "directed liberalism" ("libéralisme dirigé") in which the role of the state in economic life was strengthened. The president believed that "directed liberalism" was essentially a form of capitalism but would result in a kind of socialism. He probably meant that as many people as possible would be given the opportunity to benefit from the expected economic growth. Directed and planned liberalism (libéralisme dirigé et planifié) that was also applied in other countries of French-speaking Africa as an alternative to liberal capitalism and state socialism. Since 1976, the policy of the country had been oriented towards Le Progressisme Démocratique et Concerté (Democratic and Coordinated Progressivism), although it has never really become clear what this actually entailed, except that according to Omar Bongo it was a philosophy that was in line with "African traditions" and embraced a kind of "community humanism", as well as a continuation of economic liberalism after 1987 again. [35]
Morocco in the late 1970s until the mid 1980s tried to adopt a economic system similar to the one of planned liberalism. [36] [37]
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