Cameroon - Fiscal policy for growth and development

Abstract

Cameroon's growth achievement is
 disappointing and the country is not likely to meet most of
 the Millennium Development Goals (MDGs) on its current
 trajectory. Underemployment is extremely high, with risks of
 social unrest and instability. The fallout of the current
 global economic crisis is making more challenging the
 attainment of growth targets foreseen in the new Growth and
 Employment Strategy (DSCE) and in the new vision 2035. This
 overall picture hides an even more worrisome divide between
 urban and rural areas, among provinces, and between farmers
 and all other socioeconomic groups. Cameroon has ended up in
 this situation as a result of several factors, including a
 legacy of poor public finance management, weak governance,
 and inequitable distribution of resources. The report also
 argues that the Government has the capacity to use fiscal
 policy as an effective instrument to address the legacy,
 governance, and distribution issues that are constraining
 growth, while providing basic services and necessary public
 goods to the population. The Government is committed to
 reviving growth and job creation, in line with vision 2035,
 and the recommendations in this report could help it to
 achieve these goals. The Government needs to act quickly,
 however, as the costs of delaying reforms can be high. It
 also needs to engage with the private sector, for example,
 in public private partnerships in the energy sector.