Beware of the HIPC Completion Point!

Dibussi Tande

A common thread  in analyses of the ongoing anti-corruption drive in Cameroon is that it was launched because of external pressure; that it was initiated primarily to ensure that Cameroon successfully reaches the completion point of the Heavily Indebted Poor Countries (HIPC) initiative. The expectation being that the country's officials will simply return to their old corrupt and extravagant ways once the completion point is attained and Cameroon's 1400 Billion FCFA debt written off. The international community, however, sees it differently, and expects things to change fundamentally and permanently. Here is a cautionary note in this regard from the US ambassador to Cameroon, Niels Marquardt, during his now famous January 19, 2006 declaration:

Looking ahead into 2006, I would now like to talk about the next important step in Cameroon’s economic and democratic development: the post- HIPC phase.

First of all, and very importantly, I cannot help but note that the HIPC Completion Point is very poorly named.  Reaching this point does not mark an end; rather it marks a new beginning.  But there is, I fear, widespread misunderstanding across society that somehow the need for discipline and sacrifice will end with attainment of the completion point.  That is absolutely not the case. 

It is true that, with HIPC behind it, Cameroon can begin to chart a positive new course for its future.  Reaching the HIPC completion point means debt reduction and access to new lending.  Just getting to this point is an enormous achievement and means a lot of hard work is behind you.  But, to make an analogy, the day a consumer pays off his debts is not the time to go on a new shopping spree!  Even after completion point, much work will remain to be done, in order for Cameroon to start to realize its tremendous potential.  That, in fact is my main message here today.

Cameroon has already demonstrated the drive to make important fundamental economic, political and social reforms; the post-HIPC phase will provide new means and new momentum.

As I noted a moment ago, much of the hard work is behind you.  The National Assembly has passed important laws providing for macro-economic reform, privatization of state-owned enterprises, judicial reform and to combat trafficking in children.  You now face the challenge of implementing them.

To be forewarned is to be forearmed. The new Sheriff in town has spoken. Let those who have ears listen...

Click here for a full transcript of ambassador Niels Marquardt's remarks.

Comments

[Nkosi Jacob]

Tande
Indeed Niels Marquardt is the new sheriff in town. The question is will we continue to have sheriffs lording it over us forever? Yesterday there were the French. Seemingly their grip has been waning and the Americans might be strenthening their grip. It brings us back to the question of sovereignty, who rules Cameroon?

Several factors point to the fact that Niels Marquardt is the new sheriff in town.
1] The construction of a futuristic [others call it a bunker] embassy in Yaounde near the Presidency of the Republic.
2] Biya's personal presence at the opening of the embassy.
3]The rather surprisingly high number of audiences Biya has granted Mr Niels Marquardt recently. It goes down to record that the US ambassador has been received in audience by Mr Biya frequently than any other diplomat within the past 60 days.
4]The opening of a CENTRE FOR DISEASE CONTROL [CDC] in the South West Province.
5] The January 19, 2006 press conference in which Niels Marquardt shoved aside all diplomatic niceties and dished out lessons on the fight against corruption to Etoudi.
6] The declaration of Mme Fraser, Assistant Secretary of State for African Affairs that: "we are here to stay" during the opening of the new US embassy.
7] Though seemingly insignificant, the signing of an open skies agreement with Cameroon during Mme Fraser's visit

8] Though only a rumor, the stationing of US marines in Yaounde.

These are several factors that point to the changing geostrategic landscape.

[paolo laurent]

HOW DOES THE COMPLETE INDEPENDENCE
OF THE FEDERAL DEMOCRATIC REPUBLIC OF SOUTHERN CAMEROONS SITS WELL WITH MR AMBASSADOR? HAVENT MR AMBASSADOR LEARNT OF US HR 503? WHY DONT MR AMBASSADOR COMMENT OF THE SCNC AND THE QUEST FOR STATEHOOD/
yet they talk about staying forever/ HOW CAN THEY STAY FOREVER WHEN THE FUTURE STATE
OF AFFAIRS OF 6.5M UNREPRESENTED SOUTHERN CAMEROONIANS, ONLY POINTS TO WAR
HOW CAN ANT ONE IN HIS RIGHT MIND STAY SILENT IN THE FACE OF SUCH FACTS , WHICH ARE KNOWN WORLD WIDE, THAT IN FACT THE UN TRUST TERRITORY OF SOUTHERN CAMEROONS IS INFACT ONLY A COLONY OF ANOTHER COUNTRY TODAY CALLED LA REPUBLIQUE DU CAMEROUN, ITSELF, A COLONY OF FRANCE UPTO THIS DAY.

[paolo laurent]

IMF AND WB ITSELF ISNT THE WAY FOR DEVELOPING COUNTRIES.
WHEN A COUNTRY IS FORCED TO SELL ALL STATE
COMPANIES,JUST IN ORDER TO BORROW MORE
FROM IMF AND WB, WHERE WILL THESE COUNTRIES GET FUNDS TO REPAY THEIR DEBTS , IF THEY
DONT HAVE THE STATE COMAPNIES RUNING TO GENERATE PROFITS?
SOO, ITS ONLY A CYCLE OF POVERTY AND CONTROL
A KIND OF A CEILING ON HOW HIGH AN ECONOMY CAN GROW, THATS WHY COUNTRY THAT DONT BORROW LIKE NIGERIA, INDIA, S AFRICA, CHINA
INDONESIA, ALL ARE DOING JUST FINE.

[manga che]

Hi Paolo,

Can you just PLEASE humor us and desist from writing in caps? the fact that you've been doing it since 2003 does not mean that it is not wrong and rude. There is no need to shout. This is a civilized discussion. Part of being a "southern Cameroonian democrat" is being able to listen to voices of reason...

[Bate AGBOR-BAIYEE]

Corruption and primitive accumulation is ubiquitous, abundant, and disgracefully entrenched in the Cameroons. It is regrettable and hard to begin to imagine that this venomous and debilitating phenomenon is going to go away any time soon. I am generally not a cynic but I am on this. Who is going to eradicate bribery and fraud in the Cameroons and how? I mean, this is a cancer that has eaten deep, deep, deep into the subterranean fabric of that place call the Cameroons. Listen, they say the fish starts decaying in the cranium. Therefore, we have to start with Biya. The chap at the helm is a title holder in this criminal art ranking up there with the likes of Abacha, Mobutu atc. Mr. Marquardt should tell Biya that we can use some of our national resources that he has starched overseas. When we twice had ranked perfect on the Berlin-based non-governmental organization- Transparency International score cards, one hoped that Biya and his klepto-cronies hugging power in the Cameroons would bulge, but heck no. They stayed cozy and rather heightened their assault on the people’s national treasury. Their bank accounts in Europe and America continued to fatten. The new sheriff on the block must go an important step further to pressure his people in America and Europe to repatriate our money back to the languishing peoples of the Cameroons. That is the legitimate and logical beginning point of this important battle that we must embark on. Interrogation and imprisonment of some of these inglorious political imbeciles is good but far reaching enough? I say NO because we can still trace and locate the flow of these raw ‘dough’ that they stole from the people. Let us garnish their bank accounts and other assets. This nonesense must come to a halt. All in all, Masquerade is threading waters that his predecessors an equals turned a blind eye on. To you Mr Ambassador I take off my Manyu hat. The war against corruption and indiscipline in the government of the Cameroons must ensue.

[paolo laurent]

CHE, NGRAAFI GOAT, YOU CANNOT EVEN THANK GOD
FOR MAKING AVAILABLE IN THIS GENERATION, GREAT THINKERS AS PAOLO . YOU ARE JUST TOO LOW, ONLY KEEP MAJORING IN MINORS HAVE ALWAYS AND WILLBE YOU NGRAFFI JOB.

[SMITH]

CAPS IS JUST FINE ! THERE IS A SCARCITY OF
RIGHT THINKING PEOPLE .

WHEN ONE IS DROWNING - SKIP THE FORMALITIES ! JUST FEEL FREE TO YELL OUT
SENSE !

debt prison is not a great place to grow up in ! ..... if small caps convey

[Neba Funiba]

About the HIPC Completion point:

Cameroon may never get to the HIPC completion point because Mr. Biya picks and chooses which requirement to fulfill. Fighting corruption which is being made a big deal (and rightfully so) is not the only requirement for HIPC completion. There are issues such as decentralization, transparency in the way government revenue is spent, etc. For example, Inoni who is the PM may not know how much Cameroon has collected from the Chad-Cameroon pipeline project because it is a secret known only by the Mekas at the presidency. Also, there is the issue of declaration of assets, which will be political suicide for Mr. Biya to do. In 2000, the government of Cameroon signed on to the HIPC program with a 2004 completion date; in 2004 Cameroon failed to qualify for debt relief because requirements were not met and the things that Cameroon is doing now are the very things that were done from 2000 to 2004 meaning that at the end of the current HIPC Semester, Cameroon will still fail. The most important thing to know is that HIPC completion and hence debt cancellation does not give any country money. If Cameroon is poor "today" and all of its IMF/World Bank debts are cancelled, it will not automatically have money to invest in infrastructure immediately. May be in about five years, the money that would otherwise be used for paying back the debt will accumulate and then be used for infrastructure.

There are three types of debt that a country can owe:

1. Internal debts owed to banks within the country (e.g., SCB, Cameroon Bank, BCCI, Credit Agricole, and BIAO were crippled by the regime)

2. Multilateral debts owed to foreign banks (such as IMF/World Bank debts), and

3. Bilateral debts owed to governments of other countries.

The HIPC takes care of the debts owed to the IMF/World Bank, that's it. Cameroon did not start borrowing from the IMF/World Bank until 1967; before then all borrowing was from France and no one has ever told Cameroonians how much was borrowed, the terms, and how the money was used.

Also, there are loans that a president may take from a foreign goverment and then use the money for personal matters but have the country foot the debt. It happens a lot in Sub-Saharan Africa.

In 1992, France gave Mr. Biya over $100 million loan for his presidential campaign and in 1993 well over $120 million loan which Biya used to pay the troops and squash Ville Morte. These are loans that the country will be paying back to France but it was not for the benefit of the country at-large. Hogbe Nlend (the uncelebrated Dr.) bluffed that France has been very helpful to Cameroon because it always comes to our rescue. Some of us see it differently.

Chao!

[valentine.]

hallo my southen cameroon peple. can you tell me when Dr luma died.and more on what is going on in cameroon.