Global Journal of Human Social Science, E: Economics, Volume 22 Issue 2

Institutional Analysis of the Determinants of Economic Non-Take-Off and High Living Standards in Cameroon between 1990 and2019 Engonga Mepolia D é vy Dimitri α , Ekamena Ntsama Sabine Nadine σ , Tchakounte Njoda Mathurin ρ & Dawe Daniel Ѡ Abstract- The current economic situation in Cameroon is characterized by a persistent increase trend in the p ricing of basic necessities, which is spreading to all other sorts of goods, eroding household purchasing power. The high cost of living is exacerbated because wages, particularly salaries, do not follow the same rising trend as the cost of commodities. Consequently, it is critical to address the dual problem of rising prices and low wealth creation. The goal of this research is to produce a diagnostic that will allow us to recommend a set of economic policy solutions to help Cameroon escape the abyss into which it is currently sinking. We provide an institutional explanation for the return of Cameroon's high living cost, in addition to the existing theories. Keywords: institutions, high living costs, economic growth, inflation, cameroon. I. I ntroduction he economic climate in Cameroon is currently characterized by the depreciation of the household basket due to a rise in the general price level, as well as the difficulty in achieving the level of enrichment intended in the 2009 economic strategy (DSCE, 2009). Inflation in Cameroon is also a significant issue of concern, having climbed from 0.17 percent in 2015 to 2.52 percent in 2019. The general price level has increased by roughly 1 382.35 percent since 2015. (WDI, 2019). Furthermore, the growth rate, which was 5.65 percent in 2015, has dropped to 4.2 percentin 2019, a loss of 25.66 percent from 2015. (WDI, 2019). These observations prompt us to consider the specific factors that can explain the roadblocks to a country's economic development. In terms of the determinants capable of presenting a country's economic status, the economic literature has advanced significantly. Throughout the centuries, many authors have worked hard to provide the forerunners of economic thinking, such as explaining a country's level of enrichment in terms of declining returns from land and population expansion (Ricardo, 1817; Malthus, 1798). It is crucial to highlight, however, that there are now a variety of additional causes for economic growth. Foreign Direct Investment is thus presented as a recent factor that significantly promotes a country's enrichment, owing to the technology transfer it induces in the receiving country (Bouiyour et al., 2009), the effects of the resulting opening of markets to international trade (Salaet Trivin, 2014), and the capital accumulation it allows (Hermes et Lensink, 2003). Berg et al. (2012) and Rodrik (2018), for example, put macroeconomic stability, financial development, the quality of public policies, and the institutional environment at the center of their analyses. Cameroon appears to be following the theories mentioned above since 2009 when the Growth and Employment Strategy Paper (GESP) was developed. As such, this paper illustrates the aims of capital accumulation through structural investments (roads and highways, dams, etc.), promotion of foreign investor entry, reduction of unemployment, and so on. So, Cameroon might become a developing economy by 2035. Cameroon, however, does not appear to be out of the woods at the end of the first phase of implementation of the said strategy, which was completedin 2020, and during the second phase, which began in 2020 with the elaboration of a compass known as the National Strategy for Development to 2030 (NSD- 30). In fact, the growth rate in 2020 was 4.96 percent, much below the DSCE's forecast of 5%, and the state's job creation is diminishing, as evidenced by the increase in the unemployment rate to 6.1 percent in 2021 compared to 2020. (According to the National Institute of Statistics report on development indicators in 2021). In addition, a research published in 2018 by the "Laboratoire de Recherche en Economie Mathématique" revealed that Cameroon had received roughly CFAF 9,350 billion in illicit remittances over the past 17 years. In its 21 January 2021 issue, the journal "Quotidien l'émergence" reported that Cameroon had suffered financial losses to the tune of 18 billion FCFA. Furthermore, a request for the departure abroad of 86 civil officials (usually trained in professional establishments), including 60 teachers, was reported in Cameroon's Western region, according to the daily "Actu Cameroun" in its 23 May 2018 issue. According to these observations, it is essential to note that another indicator of wealth must be sought T © 2022 Global Journals Volume XXII Issue II Version I 29 ( ) Global Journal of Human Social Science - Year 2022 E Author α ρ : Cameroon, Faculty of economics and management, University of Ngaoundere. e-mails: devydimitri28@gmail.com , mtchakou@yahoo.fr Author σ Ѡ : Cameroon, Faculty of economics and management, University of Maroua. e-mails: nadia_ekamena@yahoo.fr , dawe.daniel@gmail.com