Cameroon Country presentation

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Cameroon Country presentation

  1. 1. Social Protection for InclusiveGrowth: Case Study for Cameroon Arsene Nkama UNDP, Yaounde Cameroon
  2. 2. The Plan of Presentation• 1. Context, Development Trends and Fiscal Space• 2. Social Protection Profile in Cameroon• 3. Social Protection Policies and Schemes in Cameroon• 4. Estimating Social Protection Benefits and Cost in Cameroon: the ILO Social Protection floor work• 5. Financing and Fiscal Sustainability• 6. Conclusion and Recommendation
  3. 3. 1. Context, Development Trends and Fiscal Space• Cameroon is richly endowed with natural resources, human resources and a diversified production activity.• However, Cameroon’s potential failed to exhibit higher returns to economic development.
  4. 4. 1. Context, Development Trends and Fiscal Space• From independance to the end of 70s – Rapid real economic growth: about 6%. – Growth rate over passed the average annual population growth rate (about 3%). – Average annual increase in private consumption: 2% – Period marked by five year planning policy centered on Agriculture productivity and rural development
  5. 5. 1. Context, Development Trends and Fiscal Space• Oil-led boom period: end of 70s-mid 80s – Growth led by oil; – Traditional growth sectors’ carelessness, hence the decline in their productivity; – Poverty headcount: 40% in 1984• The economic crisis /adjustment period: (1986 – 1994) – Sharp decline in world market prices for cocoa, coffee and oil; – Real GDP declined by an annual of about 4% per cent from 1986 to 1994;
  6. 6. 1. Context, Development Trends and Fiscal Space• The economic crisis /adjustment period: (continued) – Real per capita income decreased on average by nearly 7%; – External debt rose, from 39% of GDP in 1986 to 65 per cent in 1992 and 105% of GDP in 1994 (as a result of CFA franc devaluation); – Poverty increased in 1996: 53% – Unsuccessful internal adjustment policies led to Bretton Woods institutions assistance between 1988 and 1994.
  7. 7. 1. Context, Development Trends and Fiscal Space Yaounde: per capita consumption in 1983 CFA Francs 500000 454000 450000 400000 350000 300000 250000 196000 209000 200000 150000 104000 100000 50000 0 1964 1983 1993 1996 Sources: Own estimations based on EBC83/84; E 1-2-3 1993; ECAM1; ECAM2; ECAM3;
  8. 8. 1. Context, Development Trends and Fiscal Space• The Poverty Reduction Strategy Paper (PRSP) Period: 2003 – 2008 – The main objective of Cameroons PRSP was to boost the countrys real economic growth from around 4% in 2003 to about 8%, the minimum necessary to achieve the MDGs; – The implementation of the PRSP has been disappointing, leading to lower growth compared to projections; – Poverty declined to 40% but inequalities rose.
  9. 9. 1. Context, Development Trends and Fiscal Space7.006.005.004.003.002.001.000.00 2003 2000 2001 2002 2004 2004 2005 2006 2007 2008 croissance observée du PIB croissance recherchée par le DSRP
  10. 10. 1. Context, Development Trends and Fiscal Space• The Growth and Employment Strategy Period: 2009 – 2020 – The GES is the first phase of ten years of the implementation of the country Vision 2035 (Cameroon being an emergent country by 2035). – The GES is center on three important strategies: • a growth strategy; • an employment strategy; • a management strategy.
  11. 11. 1. Context and Development Trends• To sum up,• All development episodes are characterized by high underemployment rate (75% in 2010).• Growth has been weak, non employment-based, less cross-sectors based, and relatively less shared. For this reason, it has not been inclusive.• Social protection could be a channel to make Cameroon’s growth inclusive.
  12. 12. 2. Social Protection Profile in Cameroon• Legal Protection - Cameroon’s Constitution;  Preamble  Article 26; Article 45 - An important number of national texts; - International Agreements;
  13. 13. 2. Social Protection Profile in Cameroon• Institutional Protection CNPS Social Insurance Ministry of Finance Social State Protection Private Sector Social Assistance Households Development Partners
  14. 14. 2. Social Protection Profile in Cameroon• Social Protection coverage – National institutions cover 7 of the 9 ILO branches of social security as defined by convention 102. Unemployment benefits and health benefits are not covered. – The seven branches served by national institutions cover only 10% of active population. – The 10% of the population covered are in 90% non poor (ECAM2007).
  15. 15. 2. Social Protection Profile in Cameroon• Basic social security guarantees of social protection floor in Cameroon – Familial allocations are served at 1800 CFA francs per child and per month (less than 10% of the national poverty line); benefits only to 2.6% of children; – Free access to basic education in public schools; – Income security programmes for children; – Limited access to essential health care and other goods and services;
  16. 16. 2. Social Protection Profile in Cameroon• Basic social security guarantees of social protection floor in Cameroon (continued) – Per capita government expenditures in health represented 17 USD in 2010 (the WHO target is 44 USD); – Food for work (WFP) and labour intensive projects (Government and ILO); – 15% of population aged 60 and more received pensions from CNPS or the ministry of finance.
  17. 17. 2. Social Protection Profile in Cameroon • Evolution of social security expenditures of the public sector (in millions of CFAF)Type of allocations 2006 2007 2008 2009 2010 2011 72763 89229 96168 103940 111431 119462PensionsFamily allawances 19631 20150 22797 24440 26201 28090Total 92394 109379 118965 128380 137632 147552Share in public budget (%) 6,0 4,9 5,2 5,6 6,5 5,7 Source : MINFI/DRH
  18. 18. 2. Social Protection Profile in Cameroon Evolution of CNPS expenditures by branches(in thousands of CFA francs) Branches 2003 2004 2005 2006 2007 2008Family allowances 7 466 7 694 6 836 7 404 8 229 8 470occupational accidents 1 839 1 860 1 880 3 578 3 470 4 035Pensions 30 893 25 189 29 993 34 132 44 304 48 250Heath actions 5 607 5 803 5 827 5 710 6 052 5 307Total 45 805 40 546 44 536 50 824 62 055 66 062 Source: Statistical Yearbook 2008 of CNPS
  19. 19. 2. Social Protection Profile in Cameroon Safety nets programmesProgrammes/Project Target/beneficiaries Main ActorsAccess to food for school girls More than 55 000 pupils between PAM, MINEDUBand boys in high poverty areas 2008 and 2009.Food distribution Orphans and vulnerable children UNICEF, CARE, CRS, AWA, Autres specifically those affected by HAIDS ONGPublic works Youth, seasonal workers PAD-Y (BIT, BAD), PAMEmergency interventions Populations vulnerable in during PAM, MINADER, UNICEF drought, refugeesSubsidies on energy products, All populations MINFIfood and transportFunds transfers Abandonned Children, children of the MINAS street, persons with disabilities, elders and cultural minoritiesFree basic education School pupils and students in need MINSANTE, MINEDUB, MINESUP
  20. 20. 2. Social Protection Profile in Cameroon Safety Nets Programme Expenditures (in CFA Francs million)Programme/projet 2006 2007 2008 2009 2010Access to food for boys and girls in 90 107 1796 1801 1796high poverty areasFree basic education 1400 1600 4400 6400 6400Fund transfers 22 112 50 50 50Subsidies on energy products, food 1600 59400 213100 76700 166700and transportPublic works 0 0 0 3196 3196Emergences 329 215 26109 6765 14893Food distribution 100 100 147 147 147Total 3541 61534 245602 95059 193182Development partners (in%) 13,7 0,6 11,4 11,8 10Cameroons Government in %) 86,3 99,4 88,6 88,2 90 Source : Rapport Banque Mondiale (2012) : « Cameroun : les filets sociaux »
  21. 21. 2. Social Protection Profile in Cameroon • Efficiency of Social Protection Expenditure: Selected Safety Nets – Consumption expenditure of subsidized petroleum products (% of total consumption) by quintile Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5 Together 0.13 0.16 0.30 0.58 1.15 0.46 gasoline 0.00 0.01 0.01 0.00 0.13 0.03 Diesel 1.67 1.66 1.31 1.06 0.68 1.27 kerosene 0.00 0.05 0.17 0.45 0.85 0.30 Domestic Gas (LPG)Source : Rapport Banque Mondiale (2012) : « Cameroun : les filets sociaux »
  22. 22. 2. Social Protection Profile in CameroonSocial Capital: A form of Protection Proportion of people belonging to association that offer assistance Region Poor Non poor Total Douala 92,8 93,1 93,1 Yaounde 100,0 92,2 92,4 Adamaoua 73,2 86,4 80,8 Centre 95,9 96,4 96,3 East 88,1 95,0 93,7 Far-North 46,6 70,5 55,5 Littoral 92,2 94,9 94,2 North 95,4 81,9 87,0 North-Wouest 88,6 88,2 88,3 Wouest 85,0 92,4 90,7 South 91,1 88,3 88,8 South-Wouest 83,5 86,9 86,3 TotalECAM 3 (2007) Source 82,3 90,9 88,9
  23. 23. 3. Social Protection Policies and Schemes in Cameroon• No social protection strategy in Cameroon;• Goverment is actually reviewing the national strategy on social protection initiated in 2004 but not finalised;• Development partners are engaged to support Government in defining social protection policies.
  24. 24. 4. Estimating Social Protection Benefits and Costs in Cameroon• The ILO Rapid Assessment Protocol (RAP) – RAP estimates the future cost of introducing one or more cash transfer elements of the Social Protection Floor. – The model is based on four components: a demographic framework, a labour market model, the macroeconomic model and the general government operations models. – Combining the four components leads to the benefits costing, the main output of RAP. The RAP is articulated as in figure below.
  25. 25. 4. Estimating Social ProtectionBenefits and Costs in Cameroon LABOUR MARKET DEMOGRAPHIC MODEL FRAMEWORK MACROECONOMIC GENERAL MODEL GOVERNMENT OPERATIONS MODEL BENEFITS COSTING EXERCISE SUMMARY AND RESULTS Source: ILO 2012
  26. 26. 4. Estimating Social Protection Benefits and Costs in CameroonDeveloping a Social Protection Floor in Cameroon: Estimated Beneficiaries 25000000 Prestations enfants scenario (1) 20000000 Pension de vieillesse scenario (1) 15000000 Age actif: Programme demplois publics pour les personnes en 10000000 mesure de travailler scenario (2) scenario modéré Age actif: prestation en espèce pour invalidité 5000000 Soins de santé: scenario (1) 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: ILO 2012
  27. 27. 4. Estimating Social ProtectionBenefits and Costs in Cameroon Developing a Social Protection Floor in Cameroon: Estimated Costs (in million CFA Francs) 1000000 900000 800000 700000 600000 500000 400000 300000 200000 100000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: ILO 2012
  28. 28. 5. Financing and Fiscal Sustainability• Actual receipts can be explained by: – Actal receipts for social security (both public and private) and; – Actual expenditures on safety nets.• Projecting these receipts/expenditures and comparing them with ILO (2012) cost estimations gives a broad view of the existing financial gap.
  29. 29. 5. Financing and Fiscal Sustainability Estimated Financial Gap (in million CFA Francs)1000900800700600500400300200100 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total recipts for social protection Total cost SPF (ILO)
  30. 30. 5. Financing and Fiscal Sustainability• Cameroon can launch a social protection floor by 2013. Estimated receipts are higher than ILO (2012) estimated costs;• The financial gap that appears in 2014 grows at a steady rate;• Important new sources of funding a social protection floor are needed.
  31. 31. 5. Financing and Fiscal Sustainability• The new consumpption behaviours (ICT products, luxury products…) could be an imporant sustainable sources of funding;• Beside new taxes, good governance could be regarded as a key element;• The private sector is also an important source of funding;• Households can also play a key role.
  32. 32. 6. Conclusion and Recommendations• Cameroon can afford investing in a social protection floor in its earlier implementation stage;• To do so, there is a need of coverting actual social safety nets expenditures on targeted social protection schemes;• There is a need of extending the actual fiscal basis coupled by better resources management.

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