This paper evaluates Cameroon’s 2002 Article IV Consultation, Third Review Under the Poverty Reduction and Growth Facility (PRGF), and a Request for a Waiver of Performance Criterion. During the first half of the second annual program (October 2001–March 2002), economic activity expanded at a somewhat slower pace than projected, but continued to be strong. Although all the structural benchmarks were observed, the end-March 2002 performance criterion was missed. Good progress continued in implementing policies to strengthen non-oil revenue mobilization, and steps were taken to improve governance.
Cameroon’s good record of performance in the macroeconomic and structural areas under the previous three-year Poverty Reduction and Growth Facility (PRGF) arrangement remained broadly satisfactory during the first six months of the first annual program. Progress in structural reforms has continued, notably in the financial, transport, forestry, and petroleum sectors. For the medium term, Executive Directors emphasized the importance of continuing to strengthen the efficiency and transparency of public revenue and expenditure management, and welcomed the authorities’ intention to launch a technical audit of the judicial system.
International Monetary Fund. External Relations Dept.
This paper describes the need to improve public finance for development. The paper underscores that public finance affects aggregate resource use and, together with monetary and exchange rate policies, influences the balance of payments, the accumulation of external debt, and the inflation, interest, and exchange rates. It highlights that public spending taxes, user charges, and borrowing also affect the behavior of producers and consumers, and influence the distribution of wealth and income in any economy.