Publication:
Cameroon - The Path to Fiscal Decentralization : Opportunities and Challenges

Loading...
Thumbnail Image
Files in English
English PDF (1.07 MB)
954 downloads
English Text (407.59 KB)
158 downloads
Published
2012-09
ISSN
Date
2012-12-04
Author(s)
Editor(s)
Abstract
Decentralization in Cameroon is an instrument to meet multiple objectives. This report takes stock of Cameroon s experience with decentralization. It examines whether the design has been coherently formulated and preconditions for decentralization have been put in place. It also suggests short to medium-term proposals to make the process work better, within the constraints of significant data limitations. The design of the decentralization process in Cameroon reflects the normative approaches to decentralization-assuming benign officials and policy makers, and stipulating a normative allocation of responsibilities. In reality, a political economy story is at play, as suggested by developments in the positive literature that drop the assumption of disinterested officials. The legal framework relating to decentralization is overlapping, cumbersome and contradictory, and in many respects open to different interpretations. The main difficulty is that decentralized functions are ill-defined and not distinct from deconcentrated operations of the central government. This report examines the building blocks of the decentralization framework-starting in chapter one with a description of the status quo and the methods to be used. In chapter two discuss the unclear legal framework in Cameroon. The fuzzy spending responsibilities and lack of effective strategy to address the extent and scope of decentralization are examined in chapter three. The weaknesses in information flows and public financial management (PFM) issues, including in the budgeting, treasury and debt management systems are addressed in chapter four. Examine in chapter five the absence of effective own-source revenues that limits the accountability of local governments. This accentuates a general absence of hard budget constraints at the sub national level. In chapter six review some options for redesigning the transfer system, and some institutional arrangements. Finally, in chapter seven address the special issues related to forestry.
Link to Data Set
Citation
World Bank. 2012. Cameroon - The Path to Fiscal Decentralization : Opportunities and Challenges. © World Bank. http://hdl.handle.net/10986/11875 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections

Related items

Showing items related by metadata.

  • Publication
    Cameroon Economic Update, July 2011, Issue No. 2
    (Washington, DC, 2011-07) World Bank
    These economic updates analyze the trends and constraints in Cameroon's economic development. Each issue, produced bi-annually, provides an update of recent economic developments as well as a special focus on a selected topical issue. The economic updates aim to share knowledge and stimulate debate among those interested in improving the economic management of Cameroon and unleashing its enormous potential. The notes thereby offer another voice on economic issues in Cameroon, and an additional platform for engagement, learning and change. The latest information confirms the expected recovery in economic activity in Cameroon. The upturn in the global economy and measures taken by the authorities to stimulate domestic production, real gross domestic product (GDP) growth in 2010 is estimated to have reached 3.2 percent (compared to 2 percent in 2009). As expected, most of this recovery was driven by the tertiary sector, which accounted for more than half of the estimated growth. The sector benefitted from a pick-up in timber-related transport and continued strong activities in mobile telephony stemming from a greater use of fiber optic, promotional campaigns during the Soccer World Cup, and the roll-out of new products. The recovery in the primary sector, with an estimated growth rate of about 4 percent in 2010, was led by a strong expansion in the timber sector, as well as in food crops. The non-oil secondary sector, meanwhile, is also estimated to have grown by about 4 percent, driven by a continued pick-up in construction activities and a rebound in food processing. Cameroon is a relatively small and mature oil producer, where oil production is declining. Depleting reserves, aging equipment, and more recently postponements of some development projects and investments because of the financial crisis explain this profile. The contribution of this sector to GDP growth has been mostly negative in recent years and oil production is estimated to have contracted by a further 12 percent in 2010 (to 23.2 million barrels).
  • Publication
    Service Delivery and Decentralization in Sri Lanka : Assessment and Options
    (Washington, DC, 2006-05-15) World Bank
    This report assesses Sri Lanka's experience with decentralization to date and discusses options for decentralization and implications for service delivery in three sectors: roads, solid waste and health. The selected sectors illustrate the considerations relevant to the decentralization decision and its future direction. The services selected cover a range of central, provincial and local responsibilities in delivery and illustrate how the cause of success or failure of service delivery is rooted in the institutional framework, division of responsibility, funding mechanisms i.e. incentives and accountability. The effective provision of these services requires a clear understanding of the service delivery goals, technical capacity, adequate assets and recurrent inputs to deliver services. Each sector has its particular needs and to some extent can be considered independently, but the political realities effectively require that any constitutionally mandated and elected level of government have some corresponding responsibilities.
  • Publication
    Peru : The Decentralization Process and its Links with Public Expenditure Efficiency
    (Washington, DC, 2010-06-07) World Bank
    Decentralization in Peru is an ongoing process that is in its infancy and faces key challenges. This study aims to take stock of the process and identify these challenges. The main goal of the report is to help think through these issues with a view of identifying priorities and opportunities for fruitful engagement in this area. Much of the stock-taking serves as an introduction to the topic for the general reader and draws on what has become by now extensive secondary literature. The report distils the key challenges of the decentralization process and adds value in three specific areas. A first distinct contribution of this report is to highlight the importance of political economy factors in explaining the ebbs and flows of the decentralization process. Second, the report provides new data on truly decentralized spending as opposed to deconcentrated as well as on public spending per capita across districts. Third, this report provides a novel analysis of the efficiency of public spending across departments in Peru. The report compiles measures of public sector performance and efficiency for education, health, and transport across all departments. The overall institutional framework provides enough reasons for reconsideration an area where the Bank could add value. To be clear, this report does not call for new rushed legislative initiatives to address the perceived shortcomings in the institutional set up. What is called for is the creation of spaces for inter-institutional and inclusive dialogue to help establish a consensus on some basic principles. Only then will changes to the current institutional framework be appropriate. The mechanism to share natural resource revenues among levels of government has contributed to obfuscate the decentralization process.
  • Publication
    South East Europe Municipal Finance Review : Local Government Finance in the Western Balkans
    (Washington, DC, 2013-09) World Bank
    This report addresses the limited access to local governments of data and knowledge of municipal finance issues in South East Europe (SEE). The objective of the analytical work under the SEE Municipal Finance Review (MFR) aims to (i) contribute to improved understanding of local government management and finance in the SEE Region; and (ii) contribute to improving the quality and consistency of key municipal finance data for improved evidence based policy making. The analysis presented in this report comprises the first attempt to review and analyze a regional set of disaggregated sub-national finance data in the SEE Region. Main findings of the MFR are presented in this report. Following an introductory chapter, chapter 2 provides an overview of the decentralization framework in the SEE Region, including on the administrative and political structure of sub-national governments, their population size and distribution, and the service functions assigned to local governments. Chapter 3 explains in more detail the local government finance framework. This includes an overview of the structure and composition of sub-national finances, in particular (i) revenue and expenditure assignments; (ii) transfers and intergovernmental fiscal relations; and (iii) the evolving framework and realities of sub-national borrowing and debt. Chapter 4 provides a summary of the key trends and findings from the cross-country, regional analysis, complemented by detailed analysis of the disaggregated datasets, where available. Finally, Chapter 5 summarizes conclusions and provides some recommendations for a possible way forward. In the medium to long term, access to municipal finance information would contribute to increasing transparency and accountability of local governments, improving revenue collection and expenditure performance, optimizing budget allocation procedures, and strengthen local authorities' role and position in intergovernmental fiscal considerations and negotiations in the SEE countries.
  • Publication
    Subnational Taxation in Developing Countries : A Review of the Literature
    (2010-10-01) Bird, Richard M.
    This paper reviews the literature on tax assignment in decentralized countries. Ideally, own-source revenues should be sufficient to enable at least the richest subnational governments to finance from their own resources all locally-provided services that primarily benefit local residents. Subnational taxes should also not unduly distort the allocation of resources. Most importantly, to the extent possible subnational governments should be accountable at the margin for financing the expenditures for which they are responsible. Although reality in most countries inevitably falls far short of these ideals, nonetheless there are several taxes that subnational governments in developing countries could use to help ensure that decentralization yields more of the benefits it appears to promise in theory. At the local level, such taxes include property taxes and, especially for larger cities, perhaps also a limited and well-designed local business tax. At the regional level, in addition to taxes on vehicles, governments in some countries may be able to utilize any or all of the following -- a payroll tax; a simple surcharge on the central personal income tax; and a sales tax, in some cases perhaps taking the form of a well-designed regional value-added tax. The "best" package for any particular country or subnational government is likely to be not only context-specific and path-dependent, but also highly sensitive to the balance struck between different political and economic factors and interests.

Users also downloaded

Showing related downloaded files

  • Publication
    Classroom Assessment to Support Foundational Literacy
    (Washington, DC: World Bank, 2025-03-21) Luna-Bazaldua, Diego; Levin, Victoria; Liberman, Julia; Gala, Priyal Mukesh
    This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.
  • Publication
    Lebanon Economic Monitor, Fall 2022
    (Washington, DC, 2022-11) World Bank
    The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.
  • Publication
    The Journey Ahead
    (Washington, DC: World Bank, 2024-10-31) Bossavie, Laurent; Garrote Sánchez, Daniel; Makovec, Mattia
    The Journey Ahead: Supporting Successful Migration in Europe and Central Asia provides an in-depth analysis of international migration in Europe and Central Asia (ECA) and the implications for policy making. By identifying challenges and opportunities associated with migration in the region, it aims to inform a more nuanced, evidencebased debate on the costs and benefits of cross-border mobility. Using data-driven insights and new analysis, the report shows that migration has been an engine of prosperity and has helped address some of ECA’s demographic and socioeconomic disparities. Yet, migration’s full economic potential remains untapped. The report identifies multiple barriers keeping migration from achieving its full potential. Crucially, it argues that policies in both origin and destination countries can help maximize the development impacts of migration and effectively manage the economic, social, and political costs. Drawing from a wide range of literature, country experiences, and novel analysis, The Journey Ahead presents actionable policy options to enhance the benefits of migration for destination and origin countries and migrants themselves. Some measures can be taken unilaterally by countries, whereas others require close bilateral or regional coordination. The recommendations are tailored to different types of migration— forced displacement as well as high-skilled and low-skilled economic migration—and from the perspectives of both sending and receiving countries. This report serves as a comprehensive resource for governments, development partners, and other stakeholders throughout Europe and Central Asia, where the richness and diversity of migration experiences provide valuable insights for policy makers in other regions of the world.
  • Publication
    Argentina Country Climate and Development Report
    (World Bank, Washington, DC, 2022-11) World Bank Group
    The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.
  • Publication
    World Development Report 2006
    (Washington, DC, 2005) World Bank
    This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.