Fellow Cameroonians,
My dear compatriots,
At the beginning of the year now drawing to an end, we had every reason to believe that the time was ripe for us to devote our efforts to the attainment of our set objectives, namely the consolidation of our democratic institutions and the revival of our economic growth. In fact, the legislative and municipal elections had resulted in large and homogeneous majorities and furthermore, our economic recovery prospects were encouraging.
We therefore immediately embarked on the process of constitutional revision in order to remove a hurdle which was looming over our political future in the medium-term. I believe that the majority of the Cameroonian people understood the meaning of this reform which, in any case, leaves all options open.
In the same spirit, we pursued the finalization of ELECAM which will strengthen the credibility of our electoral system, while the process of decentralization that will imminently culminate in the putting in place of the Senate, was being carried out methodically.
Nonetheless, we spared no effort in the implementation of our three-year economic and financial programme. The international financial institutions have acknowledged this effort as well as the management of our public finances. What remains to be done concerning our structural reforms will take into consideration in the formulation of our next programme.
Such good performance of our economy enabled us to make some progress: our growth rate improved and inflation was contained. The upturn in our industrial production was another promising sign.
While these gains may seem insufficient, they point to recovery and renewed confidence. The numerous proposals from major national and foreign groups wishing to partner with us in exploiting our natural resources and developing our energy capacities bear testimony to this.
Such was the trend of our action to foster the democratic, economic and social development of our country when various unforeseen events which particularly complicated our task occurred.
First, at the end of February, riots broke out in several of our urban centres in protest against the rising cost of living, water and electricity shortages, unemployment, etc. Although such discontent was exploited politically, it must be acknowledged that the grievances expressed at the time were not unfounded.
I understood this, and while disapproving of the excesses that had been committed to the detriment of our national heritage, I directed the government to rapidly take steps to meet the most legitimate demands.
Accordingly, the prices of basic commodities were contained through the lowering of duties and taxes and through imports; fuel prices were stabilized; speculation was kept in check; and as soon as it was feasible, the salaries of State employees were increased and recruitment into the civil service resumed.
With hindsight, and while acknowledging a certain lack of foresightedness on the part of public authorities, I would safely say that these riots, for which our economy has paid dearly could have been avoided. In fact, in our country, there are political parties, trade unions and associations whose role as intermediaries, is precisely to transmit to the government the grievances of their constituents. I can assure you that I will always lend a keen ear to their claims are well-founded and if they are really willing to negotiate.
During the summer, the food crisis which triggered unrest in various countries especially in Africa, affected the global financial system. From the United States of America, it spread to Europe, then to the Far East and finally rocked the entire world. Of course, we are all concerned. But the question is how and to what extent.
At first sight, the impact of the financial crisis on our economy could be limited in the short term. Our banking sector which is sound and which is somewhat on the sidelines of the international financial system should not be seriously threatened. On the other hand, the possibility of our being affected by a real economic crisis in the medium term cannot be ruled out. Our exports could suffer from the slump in oil and commodity prices, which could lead to a drop in our tax and customs revenues.
Due to the uncertainty that characterizes current trends, it is difficult to accurately predict the impact of the crisis on the economy of our country. As of now, it is clear that it can only compound matters in our ongoing efforts to revive our growth. If, on the contrary, it brings about the reorganization of the global financial system and the regulation of globalization, it could be expected that its effects will be limited in scope and duration.
The assumption most often made is that it could be relatively short-lived and could be curbed in early 2010. If such were the case, we should stay on course so as to anticipate the end of the crisis. To put it plainly, it means that we should step up our efforts by developing, as envisaged, our agricultural sector and launching, without further ado, our major energy, industrial and mining projects. At the same time, we have to pursue the extension of our road, port and telecommunications infrastructure. Regarding employment, the State has already set an example by authorizing substantial recruitments in the Army and Police force.
The worst thing would be to resign ourselves to the crisis, in expectation of some assistance from elsewhere. Although there is reason to hope that global consultations will, in the long run, find solutions to the crisis, we have, I believe, in the present circumstances, to count above all on our own strength and to adopt the motto: “God helps those who help themselves”. I will very soon have the opportunity to come back to this point.
We do not lack the means to get out of this tight corner. We must at all costs use, as best we can, the resources of our public investment budget and funds accruing from debt cancellation, the consumption rate of which remains too low. We must also convince banks to conduct a less tentative lending policy, by eventually providing them with collaterals. Lastly, we must channel individual savings, which are by no means insignificant, towards projects that are profitable in the short term. Furthermore, the State may be induced, as appropriate, to take measures to support the economy.
We will also have to pay attention to the situation of the population segment that is most vulnerable to any economic slowdown and, hence, to unemployment. Our employment policy should be more vigorous. Basic commodity price trends will be monitored very closely. The fight against speculation will be pursued and strengthened. In short, all that can help support consumption should be envisaged.
It goes without saying that, in parallel, we will continue to provide our country with the facilities that it deserves in the areas of health, education and various infrastructure, in order to improve the living conditions of the population.
To sum up, I have the conviction that, if we use our resources to the fullest, if we face the crisis with determination, we will go through this new ordeal without much damage. I have no doubt that after the crisis we will start moving forward again, with even more enthusiasm and energy.
At the very moment when it was becoming clear that the crisis was assuming a global dimension, we were celebrating the complete handing over of the Bakassi peninsula to Cameroon. At that time, I pointed out that the settlement method adopted appeared to me to have the merit of serving as an example and that the Calabar ceremony was the beginning of a new era of our relations with Nigeria.
I still believe so. In this respect, the incidents which occurred recently in the Bakassi region and in which the Nigerian authorities had no responsibility, reinforce my conviction that close cooperation with Abuja is crucial in putting an end to the insecurity reigning in this zone. It will therefore be absolutely necessary to go beyond such cooperation and involve all countries interested in putting in place a mechanism that can ensure security in the Gulf of Guinea and the Cameroonian coastline in particular.
In any case, incidents such as those we experienced in the past few months and more recently would not cause us to give up providing, as we promised to do, the Bakassi population with essential resources for development in the areas of administration, security, education and health.
My dear compatriots,
The life of States has become so complex, not only in domestic affairs but also in relations between them, that there is always an element of unpredictability in the events which confront them. It is the duty of those in power to minimize that element of unpredictability as much as possible in order to successfully conduct policies in keeping with the commitments made before their peoples.
I can assure you that, as far as I am concerned, the riots, the difficulties due to the crisis, the incidents caused by armed groups will not make me stray off my course. The priorities which we set – revival of growth, improvement of the standard of living, and fight against corruption – constitute my “road map”. Circumstances may make the task more arduous for us but, rest assured, no obstacles will stop us.
As always, I will need your confidence and your support to overcome them. But I have no doubt that, together, we will succeed.
My dear compatriots,
Now is the time for me to heartily wish you all good health and happiness throughout the New Year.
Happy and Prosperous New Year 2009
Long live Cameroon.
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