SPOTLIGHT ON AN EMERGING ECONOMY

STIFLED BY ILLICIT FINANCIAL FLOWS:

THE CASE OF CAMEROON

Country:

Cameroon

Problem area of focus:

An emerging economy further stifled by illicit

financial flows

Target Audience:

All CamerooniansPolicy MakersCivil Society

Scientific CommunityAcademic World

Private SectorThe poor and vulnerable

Everyone

Project Objective:

To create awareness, deepen learning andInform the public on the way forward concerning how to end extreme poverty and boost shared prosperity in Cameroon by 2030Through focusing on boosting the economy and curbing illicit financial flows.

Final Project at a GlanceTopic:

Spotlight on an Emerging

Economy stifled by

illicit financial flows:

The case of Cameroon

Target Audience:

Project Objective:

Introduction/Overview The Problem

The Solution

Why the Cameroon

Government will be interested in

solving the problem Problem

How the solution will be

financed

Why the official aid provider and the private sector will be interested

in solving the problem ProblemThe way forwardThe end

IntroductionThere is need in Cameroon to end extreme poverty and boost shared prosperity by 2030.

To achieve this dire need, a lot needs to be done in terms of much more effort, morecommitment, more dedication and most Especially more financing is needed to address the enormous constraints faced by especially the poor and the vulnerable.

IntroductionCameroon has received Official Development Assistance (ODA) now for some time. Data provided on the Aidflow Chart shows that the trend of ODA for Cameroon has been Fluctuating across the years.

In 2005 and 2006, the net ODA as a percentage of GNI was lowest at 2.3% while in 2007 and 2008 it was at its peak at 8%. Cameroons ODA has been on the decline since 2008 possibly because of donor fatigue.

Introduction

Conversations are on-going and more thought is being given to diverting the use of ODA to be used in more serious situations like in crisis management and other natural unfortunate outbreaks. So, nations like Cameroon will have to depend less and less on ODA and much more On mobilizing resources in-country to solve identified development issues.

Introduction

It is in this vein that this project is first of all about determining one of the development priority areas for Cameroon (boosting the economy and curbing illicit financial flows),making suggestions on how to solve the problem, then providing a plan on how toprovide funding in solving the problem.

The ProblemCameroons economy is still emerging with very low standards of living for the masses. Any effort to address the situation is further stifledby corruption which is widespread across the Sectors.

The most outstanding area of focus here is on the fact that Cameroon has not got an organized system of coordinating Small and Medium Size Enterprises (SME’s) that focus on thepriority areas of development . The Cameroon Government from their policies and practices, have really not encouraged the birth of SMART businesses with positive ripple effects across several development sectors. The Government has Not provided an enabling environment for sufficient production in-country and also for enriching the discipline of entrepreneurship.

Proposed Solution

As Ian Allisson says in his video, we should place the problem in the centre , and gather round it, then ask ourselves… who can do Something about it.

Solution continued…

What this means is that since we intend to use the billions to get to the trillions, so as to meet the needs of the masses especially the poor and the vulnerable;

Solution continued…

Before we take action, we must…

• Include the poor• Engage the poor• Challenge the poor to be innovative• Go beyond brainstorming with the poor so that they are

part of their development.• Like Ian Allison says in his video, there needs to be some

level of shared responsibility and shared solidarity and not a top down approach

Solution Continued …• Focus on producing relevant products in-

country. Invest in the industrialization sector so that Cameroon refrains from exporting raw materials to creating her own industries

• Focus on reinforcing the entrepreneur spirit and support the formation of SME’s so that the masses can initiate new businesses that will enable them to afford a befitting and more acceptable standard of living without depending on the government for jobs. They will be self reliant and would be able to afford good healthcare and quality education. More philanthropists will even spring up as people are enabled to support even the government. Finally more businesses will mean more taxes to the government

Why the government would want to participate in solving this problem…

Because the solution will boost theCameroonian economy and there will be ripple Effects across other development sectors.

In addition, it will attract Foreign Direct Investment (FDI) of the private sector.

The proposed solution will go a long way to achieve at least half if not more, of the sustainable Development Goals (SDG’s)

Why the official aid provider or private sector would want to participate in

solving this problem…

• Because boosting the economy would provide a favourable environment for Foreign Direct Investment (FDI). In which case foreign companies invest in

• Because the means by which the economy will be boosted will empower the poor and vulnerable to be self reliant thus take charge of some dire needs without waiting or leaning on the international or national community.

Financing ProposalHow will the solution be financed?

• The greatest share of finances will come from domestic resource mobilization (DRM)

• Use will be made of financial instruments like concessional and regular loans, in-country grants (Susan McAdams video)

• Money will come from taxes, collection of public savings, returns from investments made, and bonds in order to finance the proposed solution.

• In Cameroon, the ODA can be used more effectively in making available incentives , loans and rewards for start up of SMART Small and Medium Size Enterprises (SME’s) whose work/focus will have a ripple effect on other sectors of development. (inspired from Dr. Ngozi’s video

• Cameroon should work on having a better tax policy and a good less complicated methods of tax administration like Nigeria that suceeded in bringing down the process to 24hours. (Dr. Ngozi’s videos). Policy makers should uplift the delays, inconsistencies and intricacies sorrounding tax payments…under invoicing etc…

• the Government of Cameroon should work closely with the private sector to better see how to finance this initiative.

• The international partners should lead the entire team in cracking down illicit financial flows especially capital flight.

• The money already collected from taxes in country can do much if there is smart use of the balance sheet. Bertrand Badre says tax collection should be better managed and the expenses reviewed with the entire tax system evaluated (TADAT)

• On a further note the Government should sponsor more research in country

• ODA can provide incentives for research geared towards development so that products developed will be based on facts and informed decisions…in this way it will ensure more production and more efficient services in addressing the SDG’s.Pause and Think… how come in Cameroon which is not an apple growing region, we eat apples round the year but simple tomatoes, pears etc cannot be preserved for more than a week and they get out of season… can more research be done in this area?

The way forward

By getting everyone involved in attaining thesustainable development goals, the international body, the national governments, other stake holders and the masses, the public and private sector need to work as a team.

The End

All photographs and images in this work were taken by the presenter of this presentation today 09/12/2012 at 5pm in the city of Bamenda in the North West Region of Cameroon.