| The purpose of this dissertation is to analyze and present research on the economic dilemmas and long-range planning strategies to revive the Cameroonian economy.;This study required extensive use of two qualitative research techniques: a historical method or procedure, and a descriptive in-depth interview method. The qualitative methodology is also accompanied by analysis of managerial and economic strategies, tables and economic models that are necessary and required to be fully implemented by the Cameroonian government.;The findings of this study do not presume to direct national leaders in Cameroon on how to properly formulate and implement issues such as the nation's economic policy. However, among the foci here are actions the Cameroon government can take to achieve its goal of self-sustained growth.;This research also analyzes the impact of petroleum revenues on the agriculture based economy of Cameroon. It has been observed in other petroleum exporting countries that when petroleum revenues are spent domestically, an appreciation of the real exchange rate results, leading to a shift in the production mix away from tradable sectors in favor of nontradables. This is quite the opposite in Cameroon: petroleum revenues are depreciatively spent abroad, creating delinquencies in the ways national revenues are spent, and automatically causing a decline in rate of development. The traditional export sectors, such as coffee and cocoa in Cameroon's case, do suffer as a result of the nation's decline in international competitiveness. Moreover, while real wages decrease, the gap between rural and urban wages widens. Finally, the efforts to protect the tradable sectors with tariffs have little effect on reversing the structural change induced by petroleum revenues.;The research presents a computable general equilibrium model designed to examine the effects of expanding petroleum export earnings on the agriculture based economy of Cameroon. The recent experience of Cameroon and other LDC's has shown that sudden increases in foreign exchange earnings can initiate a "Dutch disease" syndrome, currently influencing and affecting Cameroonian economy. The models can also aid in formulating strategies for managing the significant opportunities and problems attendant with sizeable, but temporary, export boom now occurring in most developing countries.;The research also presents optimal policy for dealing with price shocks in Cameroon after the January, 1994 CFA Franc currency devaluation. Policies to control inflation in Cameroon and other CFA Franc Zone countries include insulation against inflation. |
