Announcement of Cameroon Protects Poor During Economic Adjustment on May 29, 1990

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 90/86 Contact: Leandro V. Coronel (202) 477-3641 CAMEROON PROTECTS POOR DURING ECONOMIC ADJUSTMENT WASHINGTON, May 29, 1990 -- Cameroon will carry out a special project to protect the poor and other vulnerable groups as the country undertakes reforms to reestablish economic growth. The World Bank is providing a $21.5 million loan to join several cofinanciers in supporting the project. The project will support ongoing efforts to design and implement national policies in population, health, and women in development. These policies would be geared toward providing basic social services to the most disadvantaged segments of the population and toward establishing cost-effective and sustainable means of delivering these services. The government will take measures to improve the system of allocating and using resources in the health sector to ensure that services reach the poor. Immediate actions to be taken under the project include measures to strengthen maternal and child-health and family planning programs; emergency replenishment of educational materials for primary and secondary schools; and creation of a National Employment Fund to assist displaced workers or recent school graduates. The fund will also promote worker retraining, self-employment opportunities, and vocational training. Technical assistance will be provided to existing or new micro (very small, usually family-owned) enterprises. Agencies that support women's participation in social and economic activities will receive support. And non-governmental organizations and other civic groups will be eligible to receive grants for their income-generating projects and other community-support activities. Cameroon is carrying out structural-adjustment reforms and a project to strengthen management of the economy. These programs and this "social dimensions" project focusing on poverty are key parts of the government's economic recovery strategy. Financial support for this project will also be provided by the African Development Bank, the European Economic Community, the United Nations Fund for Population Activities, the United Nations Development Programme, Canada, France, the Federal Republic of Germany, Japan and the United States. The government of Cameroon will cover the balance of the costs of the $86 million project. The World Bank loan is for 20 years including five years' grace, with a variable interest rate, currently 7.74 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. NOTE: Money figures are expressed in U.S. dollar equivalents.