Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
CREATING DECENT JOBS FOR CAMEROON’S FAST GROWING YOUTHFUL POPULATION Uwem Essia Regional Director Pan African Institute for Development – West Africa (PAID-WA) Buea Cameroon’s Excellent Investments potentials • An ambitious but realizable Cameroon Vision 2035. • Abundant mineral and agricultural resources. • A peaceful and happy population. • A stable macroeconomic environment - inflation rate below 3%. • A thriving middle class of consumers. • A gradually growing democracy and free Press. • Diverse ecological and climatic conditions. • Vast agricultural and mineral resource potentials. • Enormous cross-border trade potentials: • Close neighbor to Africa’s biggest economy, Nigeria; • Leading CEMAC country; Cameroon feeds nearly all its neighbors. • A strong culture of civil obedience, especially with paying taxes. Cameroon’s Excellent Investments potentials ..1 • Cameroon’s Country Strategy for 2015-2020 aims to: • Strengthen infrastructure for inclusive and sustainable growth; • And, build sector governance for effective and sustainable investments. • A long history of price control. • Minimal inter-communal conflicts and civil disturbances. • Regime longevity is an opportunity for sound long term planning. • Arable land under-cultivated – extensive rather than agricultural intensification practices. • Focus on a few traditional export crops like cocoa, cotton and coffee that the people consume little. • High consumer goods’ import – the paradox of producing what is consumed little, and consuming what is produced little. Cameroon’s Excellent Investments potentials ..2 • Weak market-making mechanisms, leading to low off-farm prices and rural poverty. • Low value-addition from processing; e.g., fruit concentrates’ imports, even with high seasonal fruit yields! • More neglected traditional plant species, and undomesticated ‘bush meat’. • Commercial propagation of neglected plant species and ‘bush meat’ will create new jobs and new paths for startups. • Predominant focus on the traditional crops’ and mineral resources’ exports: • leaves the economy at the mercy of market forces. • Increases the addiction of dietary habits to imports. • Makes hi-tech learning difficult, as the makeup of imported goods changes at a fast rate due to technological change. • The educational system is weak in practical content and cognitive learning, and mis-match of acquired and required skills is high. Cameroon’s Excellent Investments potentials ..3 • Cross-border trade prospects with Nigeria is poorly utilized due to CEMAC rules (Nigeria is in ECOWAS). • But, by its geographical location and political history, Cameroon can duly belong to CEMAC and ECOWAS, and profit from both sides. • However, sound market making with guaranteed off-farm prices will incentivize the farmers to produce more. • Giving the most vulnerable farmers incentives is critical for the eradication of rural poverty. • Cutting taxes and sundry regulatory requirements will ease doing business. • Deliberately growing the population’s purchasing power will expand the domestic market and attract more investors. • Equally, speeding up decentralization will further democratize development. • Economic democracy should be separated from political democracy, and prioritized to speed up development. Cameroon’s Development Challenges Cameroon’s Poverty Reduction Strategy Paper (PRSP) notes that: • Income gap is widening and many live below the poverty line. • A weak private sector with few competitive indigenous firms. • The economy’s ‘commanding height’ is controlled by expatriate firms. Additionally, • Infrastructural development, especially roads and rails, is slow, despite steady toll charges. • The country’s wealth is mainly in the hands of top government functionaries who tend to invest so little. • Huge resources leak out through the importation of used goods. • Technical skills’ deficiency has remained high. • Allegorically, Cameroon is a sleeping lion whose prey prowls around ready to be consumed. Cameroon’s Development Challenges .. 1 African Development Bank notes that: • Africa’s (Cameroon’s) vast potential is constrained by: • Poor produce quality; • Inadequate infrastructure; • Weak market making and price uncertainties; • And, poor financing. • Potential investors are inhibited by high taxes, nuisance levies and excessive documentation requirements. • Investment promotion is inhibited by weak capacity for implementing reforms. Cameroon’s Development Challenges .. 2 World Bank Group – Doing Business in Cameroon • Cameroon’s overall ranking dropped by 4 points from 168th in 2015 to 172nd in 2016. • Starting business, getting electricity, and obtaining credit deteriorated significant from 2015 to 2016. • Paying taxes and trading across borders remained the same, while resolving insolvency improved by just 1 point. • It notes that Doing business in Cameroon is constrained by: • Misapplication of resources; • High lending and charges rates; • Poor infrastructures; • And, inefficient government bureaucracy. Doing Business in Cameroon Indicators 2015 and 2016 (Out of 189 economies) Indicators DB 2016 Ranking DB 2015 Ranking Overall Ranking 172 168 Starting a Business 137 134 Dealing with Permits 159 158 Getting Electricity 113 110 Registering Property 175 173 Getting Credit 126 118 Protecting Investors 134 133 Paying Taxes 180 180 Trading Across Borders 185 185 Resolving Insolvency 118 119 Source: Ease of Doing Business in Cameroon (2016), World Bank Group Change in Rank -4 -3 -1 -3 -2 -8 -1 No change No change +1 Cameroon’s Development Challenges .. 3 Global Competitive Index – World Economic Forum • The overall competitiveness index improved marginally by 2 points from 116 to 114, without any change in the score. • Sub Index C: Innovation and Sophistication improved significantly in ranking by 9 points, and 0.1 point by score. • Sub-index A: Basic Requirements improved from 116th to 113th from 2015 to 2016. • Pillar 4: Health and Primary Education had an improvement of 2 points and 5 points in score and ranking respectively. • Pillar 8: Financial Market Development improved in ranking by 10 points. • Pillar 10: Market Size improved by 0.1 points and 4 points by score and ranking, respectively. Global Competitiveness Indicators (World Economic Forum) 2014 – 2016 Indicators GCI Ranking 2015 -2016 Rank Score 114 3.7 113 3.8 93 3.6 125 2.4 90 4.4 GCI Ranking 2014 -2015 Rank Score 116 3.7 116 3.8 91 3.5 126 2.5 Competitiveness Index Sub index A: Basic requirements Ist Pillar: Institutions 2nd Pillar: Infrastructures 3rd Pillar: Macroeconomic 90 4.4 environment 4th Pillar: Health and primary 107 4.9 112 4.7 education Sub index B: Efficiency Enhancers 113 3.5 113 3.5 5th Pillar: Higher education and 114 3.2 117 3.2 training 6th Pillar: Goods market efficiency 113 4.0 113 4.0 7th Pillar: Labor market efficiency 79 4.1 81 4.1 8th Pillar: Financial market 98 3.5 108 3.5 development 9th Pillar: Technological readiness 122 2.7 120 2.8 10th Pillar: Market Size 87 3.4 91 3.3 Sub Index C: Innovation and 93 3.4 84 3.5 sophistication 11th Pillar: Business sophistication 103 3.6 98 37 12th Pillar: Innovation 79 3.2 71 3.3 Source: Global Competitiveness Index Reports (2014 – 2016) World Economic Forum Change in Rank Rank Score +2 +3 -2 +0.1 +1 -0.1 +5 +0.2 +3 - +2 +10 - -2 +4 +9 -0.1 +0.1 -0.1 -5 -8 -0.1 -0.1 Cameroon’s Development Challenges ..4 Growth and Employment Strategy Paper (GESP) seeks to address unemployment in Cameroon in three perspectives: • Increasing decent employment opportunities; • Satisfying the demand for employment; • And, improving market efficiency. The GESP notes that: • Government’s capacity to employ is limited. • VSEs and SMEs have the capacity to create new jobs. • Youths can be supported to startup new businesses. • Government will focus particularly on the rural sector, handicrafts and services; • And, appropriate incentives, and optimizing entrepreneurship and vocational training system. Cameroon’s Development Challenges … 5 The GESP (2010/2020) emphasizes the importance of: • Adopting flexible tax regulations; • Streamlining administrative registration; • Social security; • Training on basic business management and accounting for Very Small Enterprises (VSEs); • And, providing VSEs funding assistantships. The GESP (2010/2020) notes also that: • 41% of households are headed by workers, 29.9% by non-workers and 11.9% by applicants; • Households headed by workers are more poverty-stricken since 43.1% of workers were considered poor; • And, poverty is more prevalent in the rural than in the urban areas. Cameroon’s Development Challenges … 6 GESP (2010/2020) • 56.9% of informal agricultural workers are poor. • However, the largely unexplored informal economy makes it difficult to assess it performance. • The population in the age brackets 15 -35 years increased significantly in recent years. • Urban youth unemployment was estimated at 20%, while rural unemployment was 5%. • Urban unemployment was fueled by rural-urban drift, and the restructuring of modern sector jobs. • Promoting business startup is key for creating new jobs. Youth Unemployment in Cameroon • ILO defines the unemployed as an economically active population without job but available for and seeking to work. • People who have lost their jobs or have voluntarily left work. • The "youth" is defined as people in the age brackets 15-24 years; • Youth include those schooling and school leavers; • The age brackets for youths changes from country to country due to differences in school leaving age. • Access to good-paying jobs are unequal for women and youths from poor homes. • Globally, 75million youths are looking for jobs. • 26million youths have No Education, Employment or Training (NEETs). • Globally, Africa has the most youthful population. Youth Unemployment in Cameroon …1 • About 85% of youths in developing countries search for jobs in cities. • More than 70% of city inhabitants are aged below 30 years. • 65% of the total population are aged 35 years and below. • Many youths are unemployment due to poor transition in the labour market – • More employers now prefer less educated but skilled workers, leading to certificate inflation. • More new jobs are created in the lowest (menial services) cadre and in the hitech cadre. • More employers now prefer casual workers. • Machines and IT systems have displaced a large number of workers. • Growing possibilities for multiple jobs have reduced employment prospects for new school leavers. • 55% of crime and moral decadence are unemployment related. Youth Unemployment in Cameroon …2 • According to ILO, in 2013 unemployment and underemployment rates in Cameroon were 30% and 75% respectively. • Government, the highest formal employer, employs barely 2% of the labour force. • 40 percent of the population was aged below 15 years, and two thirds under 30 years. • Average age of the country's population was 22 years. • 'Youth' is considered as those in the age brackets 15-35 years. • Youth-run enterprises (YREs) are considered as necessary agents of development. • YREs can link young entrepreneurs to larger organizations through subcontracting, franchising, and so on. Youth Unemployment in Cameroon …3 • Youths have the benefit of enormous physical and mental energies, and resilience. • Youths can learn and innovate faster, and adapt to changes more easily and quickly. • Youths are potentially more responsive to changing economic opportunities and trends. • What the youths in Cameroon need most is extensive re-orientation and support to compete in the global markets. • The choice should not be between seeking either horizontal or vertical education but striving for both, simultaneously. Job Creation Initiatives in Cameroon • Integrated Support Project for Actors in the Informal Sector, popularly known by the French acronym (PIAASI). • National Employment Fund (NEF). • Rural and Urban Youth Support Program (PAJER-U). • Youth Socio-Economic Integrated Project for the Manufacturing of Sporting Materials (PIFMAS). • The success of these programs can be improved further by: • Strong political will and policy consistency. • Regular and adequate funding. • Favorable business environment. • Targeting the appropriate population. Job Creation Initiatives in Cameroon .. 1 • The Cameroon National Youth Council (CNYC) was established in 2009 as a platform for youth groups’ – government dialogue. • The National Civic Agency for Participation in Development (ASCNPD) was created in 2012. • ASCNPD aims to empower youths through training and micro grants to start small ventures. • Many complain that the selection process for ASCNPD has not been inclusive. • The implementation success for ASCNPD has been far below expectation. • A compulsory National Youth Scheme (NYS), similar to Nigeria’s National Youth Service Corp is needful in Cameroon. • Cameroon’s NYS can focus primarily on preparing higher education graduates for skilled jobs and startups. Job Creation Initiatives in Cameroon .. 2 The proposed CNYS should in a period of one year strive to: • Promote re-orientation towards innovativeness and self-employment. • Instill a value system that venerates truth, honest services and patriotism. • Achieve the military-type reskilling of the graduates to ‘think’, ‘learn’, ‘do’, ‘manage’, and ‘sell’ at the same time. • Equip the youths with basic military and self-defense skills. • Expose the youths to the basic skill they require to compete globally. • Ensure that they are able to start and run business, either individually or in groups. • Decree 2005/151 of May 4 2005 was enacted to organize the Ministry of Youth and prioritize the affairs of youths. • In 1990, government created the National Employment Fund (FNE) for the promotion of employment. Job Creation Initiatives in Cameroon .. 3 • The National Youth Policy (NYP) of Cameroon identifies the leading causes of youth unemployment as: • the mismatch of training and employment; • discrimination in the labor market; • weak capacity for startups; • Inaccessible and non-affordable key production inputs, particularly, land, credit and information on innovations. • The NYP admits that fewer youths are able to secure decent jobs. • Therefore, the NYP endorses all the strategies developed to promote the welfare of Cameroonians. • NYP defines youths as persons whose age is between 15 and 35 years. • The NYP envisions by 2020, the full development of young people by: • creating conditions favorable to their welfare; • ensuring their socio-economic integration for increased participation; Job Creation Initiatives in Cameroon … 4 • And, growing the commitment of youths to sustainable development of the nation. • Additionally, the Government of Cameroon: • Ratified the Convention on the Rights of the Child in 1993: • Signed the African Charter on the Rights and Well-being of the Child in 1997; • Participated in the 57th Special Session of the UN General Assembly on Children in 2002; • Joined the Global Summit Action Plan for Children of 1990. • Ratified the Convention on the Elimination of all Forms of Discrimination against Women (CEDAW) in 1994. • Success with implementing the NYP and other programs requires effective CSOs-public -private sector partnership (CPPP). New Jobs in Today’s Knowledge Societies • Well paying jobs have become highly competitive and dynamic. • The gap between the workplace, playground and home is closing at a fast rate. • With a smart phone, you can play, chat and plan household choirs while at work. • Combining work and play in an increasingly complex world, requires both horizontal and vertical learning. • Hence, the modern sector requires teachable, pliable, handy and adaptable employees. • Equally, startups require versatility and broad knowing that is beyond the normal outcome of classical schooling. • It is no longer just enough to go to school, ability to think outside the box is important. New Jobs in Today’s Knowledge Societies .. 1 • The knowledge society is changing almost at the speed of light. • Incidentally, the reform of higher education in many poor countries has been much slower. • More employers are compelled retrain new employees no matter the high grades earned in school. • Consequently, entrepreneurship and other cognitive skills and knowledge should be mainstreamed in the school curriculum. • Indeed, enterprise culturing should start from crèche, to ensure that the child grows up with it. • A good knowledge of how the global economy works is important. • It is also needful to make startup facilitation an essential soft infrastructure of the higher education system. New Jobs in Today’s Knowledge Societies .. 2 • The final long essay, theses or dissertation should be prepared along with an implementable business proposal. • Higher education institutions should have one-stop-shops to ease registration, taxation, and other approval requirements. • The small and medium enterprise bank should harvest and support business ideas during theses defense. • The young graduate will become more competitive when such assistantships are provided right from the school. • Entrepreneurship should be an essential element of education at all levels. • The education system should popularize ‘portfolio careers’ instead of the traditional 'job-for-life' careers. New Jobs in Today’s Knowledge Societies .. 3 • Schools should empowered youths with a portfolio of conceptual and practical skills and knowledge. • Job creation should be mainstreamed in the strategic plans of all government departments and budgeted for. • On-going learning, networking and youth partnership programs are necessary for creating new jobs. • Linking local entrepreneurial learning in Cameroon with those in other countries will promote cross-border learning. • The success of job creation programs will depend on how participatory the engaged processes are. • Many job creation programs fail due to poor management. • More job creation programs focus just on giving grants, leaving out the aspect of teaching/learning. New Jobs in Today’s Knowledge Societies .. 4 • Many job creation programs targeting higher education graduates fail because: • Formal schooling in many LDCs fail to train the students on how to run real businesses in their local environment. • The problem is that textbook finance, economics, accounting and other business disciplines are alien to local realities. • The classic ‘enterprise’ alluded to in the business disciplines is alien to many African countries. • In reality, the conditions of production are shaped by local policies and country-specific socioeconomic history. • To be relevant the teachers/instructors need to be regularly trained and re-trained to meet local needs. • Otherwise they will continue to teach what they were taught. New Jobs in Today’s Knowledge Societies .. 5 • In todays world, the long run could be barely as long as one year. • After just a year what you thought you knew can become obsolete. • Moving from ‘best practices’ to ‘best fit’ answers is the right spirit in today’s new economy. • It follows that learning and training is needed for all actors in the society. • Learning continuously will help everyone to distill useful information from the overflow provided by the internet. • Cameroonians and Africans generally need to be more committed to adding value, whether in public or private life. • The mindset that schooling will end with paid employment has to be restructured. New Jobs in Today’s Knowledge Societies .. 6 • The new mantra should be education for productive work and self worth. • The perception that vocational and skills’ acquisition training is for school dropouts and misfits has to change. • Many unemployed higher education graduate will readily become employable with some dose of vocational training. • Productive work, creativity, and a sense of service, has to become the essence of life. • Achieving the above calls for culturing education at all levels with the following: • Vocational skills, to promote handiness and adaptability. • Practical skills in project making and management, and monitoring. • Emotional skills to promote team building, effective communication and a sense of self worth. New Jobs in Today’s Knowledge Societies .. 7 • Basic education has progressively become accessible and affordable in Cameroon. • But better and cheaper access has to be complemented with improved quality and entrepreneurial culturing. • Particular attention must be paid to teachers’ training. • Studying education ought not to a consolation for those who are unable to fit into other professions. • Indeed, the best brains should be incentivized to study education to become teachers, instructors and lecturers. • Equally, end-of-period assessments for the students should give adequate premium to cognitive learning. • It follows that the teacher/instructor should have the ability to promote cognitive learning. Making Local Entrepreneurs Global Players • High dependence on mineral exports: • Causes the real exchange rate to appreciate, and makes local goods less competitive; • Creates easy money that de-incentivizes industrialization, and weakens the desire to industrialize. • Processing mineral resources will create new jobs and opportunities for self employment. • Youths can be started with simple activities like stone polishing, carving and stone slate making. • Creating molded forms can be achieved with clay, and medicinal powder can be prepared from kaolin. • Global exposure will enhance the competitiveness of young entrepreneurs. Making Local Entrepreneurs Global Players ..1 • However, it is difficult for more Cameroon youths to enter the export market with traditional export goods like cotton, cocoa and coffee. • Identifying new niches for exports from agriculture, solid minerals and craft sectors should be a deliberate export promotion strategy. • This should not stop efforts at promoting the processing traditional export produces. For example, in agriculture, in addition to exporting cocoa, cotton and coffee From cocoa – more beverages and chocolates can be processed for local consumption and exports. From cotton - ceremonial traditional apparels of Cameroon can be produced for local use and exports. From coffee – native species can be processed for local consumption and export. Making Local Entrepreneurs Global Players ..2 In mining and quarrying – in addition to exporting sand, granite and others. From rocks and stones – gift items and souvenirs can be crafted from polished and carved stones. From kaolin and clay – sculptures, molded effigies, native chalks etc can be produced and marketed locally and internationally. In forestry, in addition to exporting timber: Herbal leaves, roots and barks can be processed for local use and exports. Wood carvings and sculptures can be produced for gift items. Forest resorts can be created to promote tourists visits. • Commitment to industrializing based on the processing of traditional export produce will add value significantly. • But it is also vital to re-introduce neglected food and vegetable species. Making Local Entrepreneurs Global Players … 3 • Agricultural simplification is necessitated by several factors, including: • Globalization of western values, and suitability of certain crops for mass production. • Globally, the food basket is shrinking, because agricultural “simplification” has favored some crops instead of others. • The simplification process has made species with comparative advantage easier to propagate than others. • In addition to enriching the local diet, commercial breeding of the neglected food species can support export diversification. • Globally, people crave for unique products, discoveries and inventions with local flair. • The re-introduced traditional food species will enrich the food basket, and help to reduce addiction to foreign diets. Making Local Entrepreneurs Global Players … 4 • Producing them enough for the export market will increase rural income and widen the possibilities for startups. • Restoring traditional plants and livestock biodiversity will unleash opportunities for healthy food and traditional medicines. • There is growing nutritional paradox because the more popular species have: • Simpler cultivation requirements; • Easier processing and storability; • And, nutritional properties and taste favor some crops more than others. • Investment in R&D for the popular species has grown more than those for other species. • But the simplification process has lowered food quality and weakened ecosystem biodiversity. • Both the intra and inter-specific diversity of crops and livestock are progressively eroded. Making Local Entrepreneurs Global Players …5 • This has increased the vulnerability of the poor who need the traditional species as a matter of necessity instead of choice. • Focusing on the popular species has as well led to genetic erosion in staple crops, leading to reduced quality of life. • This justifies the global concern to re-introduce the underutilized species. • The emphasis has been on how re-introduction of the underutilized species can raise the income of the rural poor. • Re-vitalizing the under-utilized species can grow Africa’s importance in global trade. • When tourists come to Cameroon, we need to give them our vegetables, fruits, grain and livestock species. • Dependence on the traditional export produce has placed the lot of the local farmers at the doorstep of global market events. • Fluctuations in export earnings have adversely affected the country’s earnings, growth prospects and debt servicing. Making Local Entrepreneurs Global Players …6 • Global food security and economic growth now depend on a declining number of plant species. • The neglected crops has the potential to contribute to improved incomes, food security and nutrition. • Many neglected and underutilized species are nutritionally rich and are adapted to low input agriculture. • Re-introducing these species, can promote food and health security, and export earnings. • Today’s global population is adventurous in everything including diet and cuisines. • The search for diversity and novelties in foods is creating new market niches for the neglected and underutilized species. • Many neglected and underutilized species play a role in keeping cultural diversity alive. Building Capacity for Project Implementation • Underutilization of capital budget is a common in most LDCs that are reforming their procurement processes. • For Cameroon, in 2014 the Public Investment Budget (PIB) execution rate was 36%. • In addition to poor understanding of the relevant laws, synergy among the different government units is weak. • Here again is a typical case where textbook knowledge is way apart from the realities on ground. • The other issue however is why not have best fit procurement laws and mechanisms that meet local needs. • It is also needful to have in place a robust value-for-money M&E mechanism that tracks public spending.