11. The Financial Decentralization Of Local Governments Tested By The Principle Of Cash Flow In Cameroon
- Author:
- Theophile Nguimfack Voufo and Steve Tametong
- Publication Date:
- 07-2021
- Content Type:
- Working Paper
- Institution:
- The Nkafu Policy Institute
- Abstract:
- In the face of the multiple socio-political crises that Cameroon is experiencing, the form of the state is now being debated, against the backdrop of the issue of governance. Seen in its political, administrative or financial dimensions, state governance has failed miserably in terms of socio-economic development issues. To remedy this, the public authorities recognize the need to complete the decentralization process. Is this commitment, which is regularly reinforced by the media, a way out of the crisis? From a legal point of view, the evolution of the decentralization process is marked by two fundamental requirements: the transfer of powers on the one hand, and the subsequent transfer of resources to exercise these powers on the other. Since 2010, the central executive has been committed to the transfer of powers to local authorities. However, the principles of complementarity, subsidiarity and even concomitance mark the return of the state, whereas decentralization implies a priority of action for the decentralized communities. In this respect, the transfer of powers is accompanied by the transfer of resources, in particular local taxation and allocations from the State budget. Local taxation, grants and own resources acquired by decentralized authorities constitute the basis of financial decentralization. It requires that the resources transferred to local governments be freely managed. This refers to the ability to mobilize these resources without being hindered by state bodies. This freedom remains an illusion in the presence of the principle of the unity of the treasury. This principle links the treasury of decentralized communities to that of the State, which can have several implications for the financial freedom of action of these communities. Given the current challenges of decentralization in Cameroon, the question arises as to whether the unity of the treasury is compatible with the financial decentralization of decentralized local authorities. Questioning the relevance of this principle allows us to verify whether this classic rule is not already obsolete in Cameroon. Analysis shows that the principle of the cash unit is incompatible with financial decentralization (I) and should be reconsidered (II).
- Topic:
- Government, Finance, Local, and Decentralization
- Political Geography:
- Africa and Cameroon