Oil and the Cameroonian Economy: A Story of Unfulfilled Potential

Abstract

While Cameroon is one of the most endowed African countries in a wide range of overground and underground natural resources, it has struggled to leverage these resources to secure a decent living standard for the majority of its population. Instead of boasting impressive development outcomes, Cameroon is among African resource rich countries that are known for suffering high financial hemorrhage through capital flight. In a sense, capital flight from Africa has become a chronic manifestation of the ‘resource curse’ that tends to plague countries that are endowed with vast amounts of resources in a context of poor institutions and weak regulatory frameworks. This study provides a detailed analysis of the historical emergence of an externally dominated oil sector and the institutional and regulatory arrangements governing the sector to shed light on the causes of the country’s failure to fulfill its potential considering its impressive resource endowment. The evidence may shed light on strategies to usher a new path towards a Cameroonian economy beyond oil.