For a long time, Cameroon was known as a success story in the context of Africa’s development. However, the economic crises of the 1980s and early 90s caused the failure of the development and industrialisation strategies that had been pursued until then. This was accompanied by a severe deterioriation of the social infrastructure and the erosion of public services, especially in rural areas.

In response to this severe economic and political crisis, the Cameroonian Government initiated a reform programme that focused on reorganising the public finance system, liberalising foreign trade and abolishing the national controlled pricing system. In the late 1990s, these measures began to result in an economic recovery that led to an average GDP increase of around 4 percent in 2002 and 2003.

Despite the leading role Cameroon occupies by virtue of the fact that it generates 50 percent of the region’s GDP, and despite a structural reform that is gradually showing some effect, the country faces grave socio-economic problems. According to the budget survey ECAM II, in 2001 40 percent of the rural and 12 percent of the urban population were living below the poverty line. The situation in the three northern provinces of the country is especially severe. Even though the food situation is satisfactory compared to neighbouring countries, malnutrition amongst women and children is still very common. In addition, the lack of capacity in the healthcare system means that mother and infant mortality is high. At 12.8 percent, the AIDS infection rate has become a considerable health risk.

The admission of Cameroon to the HIPC (Heavily Indebted Poor Countries) debt reduction initiative in April 2006 brought the country to an important development goal. The obligation to use the funds that are freed as a result to reduce poverty, provides an opportunity to achieve a sustainable improvement in living conditions as well as a significant reduction in poverty. However, due to the hesitant release of HIPC funds and the sluggish compliance with other requirements, the Cameroonian Government’s Poverty Reduction Strategy Paper (PRSP) has not yet the anticipated results.