Posted by: Armel | March 13, 2008

CAMEROON: WHAT INCREASE ?

office-workers_cdc.jpg  GOVERNMENT WORKERS in CAMEROON

ARE WONDERING “WHAT MONEY ?”

While trying hard to contain the crisis that erupted in Cameroon a couple of weeks ago and resulted in daily riots widely spread in the country, the President Paul Biya decided to intervene. This Intervention was done without consultations. As I said before, the raise of 15% of the Gov’t workers salaries is a start, but frankly speaking, a joke compared to the decrease of 75% they all received in the last decade. May be if we consider the adjustments they’ve made by taking bribes to compensate, it can be inferred therefore that the raise was not a dramatic event in their spending habits. The bulk of these measures targeted the buying power that was lowered by a rising inflation. But again, the inflation rate is still high.

Gov’t workers in Yaounde believe that at best they can afford “a few more beer bottles” in extra. Unless these measures are followed by a lessening of the tight credit environment or a further augmentation percentage-wise, people believe they still won’t see “the end of the tunnel” (President’s quote). And they are right, because the amount of credit they can request at local banks would not change following the salaries increase. Basically, the banks are arguing that the loans incurred by these workers is already high and the 15-20% increase is too weak to alter their current debt level.

AN

Added S/ces: FT, SGPRC            P.credit: CDC

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: