Abstract

This study analyses the role of agriculture in the economic growth of Cameroon. Data used for this study was drawn from World Bank Development Indicators. This study covers a period of 23years.

The Ordinary Least Squares Multiple Regression Technique was used to analyze the data. The result revealed that in Cameroon, agriculture is negatively associated with economic growth. This negative effect is possible due to unfavorable economic conditions, poor yields, or poor management of the sector, which led to a total reduction of the place of agriculture in the economy of Cameroon.

CHAPTER ONE

INTRODUCTION

1.1 Background of Study

Agriculture is considered one of the most important activities in the world nowadays. The role placed by agriculture in economic development could be traced back to the 19th century. Developed countries can trace the origin and source of their growth from agriculture during the 18th and 19th centuries, during the revolutionary period in the agricultural sector where some countries witness a turning point in their economic development. This brought in modernization, transportation, and mechanization in the agricultural sector.

In European countries, agricultural changes such as plot consolation and mechanization were visible. In America, the agricultural revolution brought in the house–hoeing husbandry, crop rotation, and scientific animal breeding. These changes contributed a lot to the Industrial Revolution of the late 18th century (World Bank 2007)

Despite the fact that agriculture was the springboard of most developed countries, its contribution to their GD is not too significant as before. Most developed countries today depend on the secondary and tertiary sectors for development.

Agriculture in Cameroon has two main approaches, the improvement strategy, and the transformation strategy.

Improvement strategies are approaches that are adopted to improve the productivity of existing farms. This is very common with plantations. It accepts land ownership and farming rights and tends to stimulate productivity rather than force subsistence farmers to adopt new methods.

These methods adopted to improved agricultural farms include: effectiveness and average services, upgrading the marking system so as to make it easier for farmers to sell their products and obtained their prices, extend credit to finance the operations of farmers and improve the supply of improved inputs (fertilizers and seedlings) and farmer’s knowledge about cultivation techniques (World bank 2008).

Transformation package involves a complete change in the farming system such as creating a system based on the more intensive use of land, planned and effectively run farm sizes (farm settlement, irrigation system, and land reforms). Reforms are a necessary part of any agricultural development program and depend on the particular features of land ownership in the country. This approach is more capital intensive.

Research is being carried out in agricultural research centers in Cameroon such as IRAD (Institute for research and agricultural development)

1.3 Statement of Problems

During the past decades, Cameroon has gone through a lot of socio-economic problems or crises. Cameroon’s economic crisis has gone down wide and deep since 1990. These crises were characterized by climbing debts and deteriorating social indicators. Increase in unemployment increase in crime wave, low investment, and increase in mismanagement and corruption. These crises are taking a heavy toll on human terms (World Bank 2000).

In Cameroon open unemployment in towns like Douala, Yaoundé, Bamenda, and Baffoussam, especially among educated youths, is on the rise. Cameroon’s long-term productivity capacity population pressure on land is accelerating, fuel world is increasing, scare and soil fertility is being leached.

More so the Cameroon Government has seriously been attacked by corruption and mismanagements since 1998 till date. Cameroon is one of the leading corrupt countries in the world. Again, the devaluation of the FCFA in 1994 has left Cameroon always experiencing a balance of payment deficit with an increasing foreign debt profile. To maintain income and investment Cameroon’s long-term external debt rose and was almost equal to the GNP in 2006, making her one of the most indebted countries in sub-Saharan countries (World Bank 2006).

Furthermore, the political instability of 1992, the coup d’état in 1985, and ethnic strive in the villages (especially in the North West region), and the February 2008 strike in most cities of Cameroon. These riots have hitted the economy of Cameroon hence retarding investment and economic growth (Debre, De Battisti 2008).

Given the performance of the agricultural sector, especially the export sub-sector in the past farmers (individuals) and traders in the export crop sub-sector have responded by shying away from this sector and equally by getting to alternative avenues for generating income. Recent publications from export experts and academicians alike turned to indicate that this sector will perform well at the microeconomic level if the parameters that determine its performance are well examined and carefully measured.

These ideas are strongly enforced by Njikeu in his 1996 publications (the Cameroon export can be explained by a number of factors both sectors specific and nationwide.) the Cameroon Government since 1990 has embarked on various IMF. WHO and World Bank programs as designed to super increase efficiency in agriculture, business, investment, fisheries, improve trade and capitalize on the country’s bank and financial systems.

Equally, though nationwide show s and mines how government has not been able to renew the commitment of exports crop farmers in Cameroon. This problem has led to the following research questions.

1.3 Research Questions

1. What role does agriculture play in the economic development of Cameroon?
2. What impact do agricultural exports have on the GDP of Cameroon?
3. What impact does the value-added on agriculture have on the GDP of Cameroon?
4. Does agricultural labour employment have any effect on the GDP of Cameroon?
5. What contributions do agricultural raw materials provide to the GDP of Cameroon?

1.4 Objectives of the Study

1.4.1 Main Objective

The main objective is to analyze the role of agriculture in the economic development of Cameroon.

1.4.2.Specific Objectives

1. Examine the impact of agricultural exports on the GDP of Cameroon
2. Assess the impact of value-added on agriculture on the GDP of Cameroon.
3. Analyzing the effects of agricultural labour employment in the GDP of Cameroon.
4. Examine the contribution of agricultural raw materials to the GDP of Cameroon.

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AGRICULTURAL EXPORTS IMPACT ON THE ECONOMIC GROWTH OF CAMEROON