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Cameroon is again under the IMF’ structural adjustment program?

Cameroon is again under the IMF’ structural adjustment program?

The answer is:
Paru le mardi, 10 janvier 2017 14:26

According to a certain point of view, by agreeing to join the International Monetary Fund’s economic program (IMF) at the end of CEMAC summit on 23 December 2016 in Yaoundé, the country will experience a new austerity plan comparable to the 80’s-90’s one.

The debate has been raging since 23 December 2016, when all six countries (Cameroon, Congo, Gabon, Equatorial Guinea, Chad, Central African Republic) in the Central African Economic and Monetary Community (CEMAC) agreed, as proposed by the Cameroon President Paul Biya, to join the International Monetary Fund’s program (IMF) due to the economic crisis the sub-region has been suffering from, with a growth rate of 1% in 2016.

Some rushed to say that Cameroon is again under the Structural Adjustment Program (SAP) of the IMF. Exactly like during the 1980-1990’s, period during which Cameroon was forced by the IMF to apply an austerity policy to avoid bankruptcy. This, through the systematic privatisation of public companies, downsizing of the civil service workforce, reductions in civil servants’ salaries, halt in investments for short, medium and long term projects, etc.

Louis Paul Motaze, Minister of Economy (Minepat) gave some clarifications on 31 December 2016 on the “Extended Credit Facility”, name of the economic program to which the CEMAC countries in general, and particularly Cameroon, will be submitted. “This is about economic recovery and not a structural adjustment”, explained the Minepat. Who announced some actions such as the reform of the system to award public contracts. But globally, the changes announced will tend towards the improvement of the business environment, an improvement in internal revenues and control over public expenditure. On this last point, the State has to downgrade from its lavish lifestyle by avoiding superfluous spending, such as purchasing vehicles, food or mission expenses…

Shortly before the Minepat gave his explanations, Paul Biya, in his address to the nation on 31 December 2016, repeated: “The Cameroonian population, who just started benefitting from the sacrifices made for years, cannot come back to austerity. I agree with them”. As if to confirm that Cameroon is not back to the IMF’s SAP. In this regard, the Head of State announced the continuation of major projects such as the Bini plants in Warak (75 MW), Menchum (450 MW), Song Dong (270 MW) and Natchigal (420 MW), the construction of the Yaoundé-Douala, Yaoundé-Nsimalen highways, the second bridge over the Wouri…

Sylvain Andzongo

Dernière modification le mardi, 10 janvier 2017 14:35

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