Posted by: Armel | March 13, 2008


office-workers_cdc.jpg  GOVERNMENT WORKERS in CAMEROON


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.


Added S/ces: FT, SGPRC   CDC


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