Document of

The World Bank

FOR OFFICIA. USE ONLY

gA 320a- Ct3Report No. 8451-CM

STAFF APPRAISAL REPORT

REPUBLIC OF CAMEROON

SOCIAL DIMENSIONS OF ADJUSTMENT PROJECT

APRIL 24, 1990

SDA Project UnitOccidental and Central Africa DepartmentAfrica Region

Thi document has a rescted distibution and n¢y be used by recipients only In the perfonnace oftheir officj duties Its contents may not otherwise be didosed witho Wodd Bank authIdaion

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CURRENCY EQUIVALENTS

The CPA franc (CFAF) is tied to the French franc (FF) in the ratio ofFF 1 to CFAF 50. The French franc is currently floating. The rateof CFAF 305 to the US dollar is used for the economic projectionsbeginning 1989190.

Currency unit - CFA Franc (CFAF)US$ 1.00 = CFA? 305CFA? 1.0 billion 8 US$ 3.3 million

SYSTEM OF WEIGHTS AND MEASURES

Metric System

FISCAL YEAR

July 1 to June 30

FOR OMFCA4L USE ONL'

ABBREVIATIONS AND ACRONYMS

ADS African Development BankAPICA Association pour la Promotion des Initiatives Communauta iroes AfricalassCAPUE Centre d'Assistance aux Petites et Moyennes EntreprisesCCA Cols. Autonome d'AmortissemsntCSDS Commisslon Sup6rieure de Developpement de la Sant6CENAFOP Centre National do Formatlon ProfessionelleCNP Commission Nationale de PopulationCOIC Opportunities Industrialization Center-CameroonCFA Communaute Financiere d*AfriqueCFAF CFA francCTC/DSA Comit6 Technique de Coordination du Projet Dimensions Sociales de

I 'Aj ustementCTPAS Comit6 Technique charg6 de Is Pr6paration et du Suivi du Programme

d 'Ajustement Structur lDAIR Division d'Assistance a l'Insertion et a la R4ensertionDHC Developed Health CentersECAM Enqu&te Camerounaise Aupres des 16nagesEHC Elementary Health CentersFNE Fonds National de L*LmploiFOGAPE Fonds de Garantie et d'Aide aux Petit.s EntreprisesCDP Gross Domestic ProductcTZ Gesel lschaft fUr Technische ZusammenarbeitHSCM Health Sector Coordination MechanismIPO Institut Penafricain pour le D6veloppementISIP Institut Superilur de Management PublicMESIRES MinistIre de l'Education Sup6rleure, de l'Informatique, et do ta Rechercho

ScientifiqueMCH Maternal and Child Health (centers)MINAGRI Ministere do I'AgricultureMINASCOF MinistIre de Affares Sociales et de In Condition FdeonineMINAT Uinistere de l'Administration TerritoralelMINDIC MinistIre du D6veloppement Industriel et ComercialMINEDUC Ministere de l'Education NationaleMINFI Ministere des FinancesMINPAT MlnistIre du Plan et de l'Am6nagement du TerritoiroMINSANTE Minist6re de Ia Sant6MTPS MinistIre du Travail et de la Pr6voyance Social.NOo Non-Covernmental OrganizationOIC Opportunities Industrialization CentersPAS Programe d'Ajusetont Structurel (Structural Adjustment Program)PPF Project Preparation FacilityPRODEC Programe de Developpement CommunautaireSDA Social Dimensions of AdjustmentSTD Sexually Transmitted DiseaseUNFPA United Nations Fund for Population ActivitlesUNICEF United Nations Children's Emergency FundUPP Unit6 do Planification de la PopulationUSAID United States Agency for International DevelopmentWHO World Health OrganizationWID Women In Development

This report is the product of several missionsconsisting of staff from AFlAG, AFIPH, AF1SD,AFRVP, AFTPS, and PHRWD as well as consultants.

This document has a restricted distribution and may be used by recipients only in the perfornanceof their offcial duties. Its contents may not otherwise be discobsed without Wodd Ihnk aathorization.

TABLE OF CONTENTS

LOAN AND PROJECT StUMMARY ..... . . . . . . ..... . . i

I. INTRODUCTION . . . . . . . . . . . . . 1

II. THE ECONOMY . . . . . . . . . . . . . . . .. . . . . . . . 1A. The Economy and Crisis . . . . . . . . . . . . . . . . . . . 1B. Poverty in Cameroon . . . . . . . . . . . . . . . . . . . . 2C. The Effects of the Crisis . . . . . . . . . . . . . . .6

III. SOCIAL DIMENSIONS OF STRUCTURAL ADJUSTMENT . . . . . . . . . . . . 7A. The Structural Adjustment Program . . . . . . . . . . . . . 7B. Government Social Policy ... . . . . .. . . . . . . . . 8

IV. THE PROJECT .... . . . . . . . . . . . . . . . . .. . . . . . 15A. Objectives and Approach ... . . . . . . . . . . . ... 15B. ProJect Modules (Policy Design, Action Programs, and

Institutional Strengthening) . . . . . . . . . . . . 17Population.. . . . . . . ... . i 17Health. . . 19Education. . 24Employment. . 27Women in Development.. .... 33Community Development--PRODEC . . . . . . . . . . . . 35Plarning Capacity and Information Base . . . . . . . . . . . 37

C. Project Administration ............. ...... 39D. Project Costs, Financing and Supervision . . . . . . . . . . 42

V. BENEFITS AND RISKS .... . . . . . . . . . . . . . . .......... 49

VI. AGREEMENTS AND RECOMMENDATIONS. . . . ..... ......... 50

Annexes

1. Extracts from the Declaration of Development Strategy2. Matrix of Actions3. Population and Health Programs4. Education Program5. Organization and Operation of the Employment Fund6. Reinsertion Assistance Service7. Programs of the National Employment Fund8. Women in Development Program9. Organization and Operation of PRODEC10. Cameroonian Household Survey Plan of Operation11. Organizational Structure for the SDA Project12. Cost Estimates13. Project Financing14. Project Procurement15. Estimated Government Cash Flow16. Documents in the Project FileMAP No. IBRD 21811J

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REPUBLIC OF CAMEROON

SOCIAL DIMENSIONS OF ADJUSTMENT PROJECT

LOAN AND PROJECT SUMMARY

Borrower: Republic of Cameroon

Implementing Agencies: Ministry of Planning and Regional Development andtechnical ministries

Loan Amount: US$ 21.5 million equivalent

Terms: Standard IBRD terms, with a five-year grace periodand 20 years maturity.

Onlending Terms: Grant, US$ 11.2 million for the NationalEmployment Fund

Cofinancing: African Development Bank US$ 16.0 millionEuropean Community US$ 10.0 millionFederal Republic of Germany US$ 7.7 millionCanadian International

Development Association US$ 7.3 millionFrance US$ 3.9 millionUS Agentcy for International

Development US$ 3.5 millionUnited Nations Fund for

Population Activities US$ 3.2 millionUnited Nations Development

Program US$ 0.8 millionJapanese Yen Grant Facility US$ 1.0 million

US$ 53.4 million

Obiectives: The Project is an integral part of Cameroon'sStructural Adjustment Program. As such it isdesigned to support the Government in theimplementation of its poverty reduction strategyby: (a) improving basic services in populationplanning, health and education, rendering themmore cost-effective and restoring servicesdirected at the poor that have been crippled bybudget cuts; (b) promoting job creation andfacilitating job placement in the recessionaryenvironment; (c) improving the opportunities forwomen to participate in development; (d) providingsupport to community-based micro-activities whichgenerate income or provide b Bsic social

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infrastructure for the poor; (e) strengthening theinstitutional capability for formulating andimplementing social policies, including broadeningthe itLformation base to help the authorities toobtain a better understanding of the nature andlocation of poverty and its evolution over time.

Descriptions The Project will achieve these objectives through:(a) a socio-economic policy design package in theareas of population and health designed tostrengthen planning capacity, review prioritiesand policies, formulate and implement sectoralstrategies, and incorporate the new policies intoprogram budgets; (b) an action program consistingofs (i) the establishment of a National EmploymentFund to channel resources into counselingprograms, apprenticeship programs, othervocational training, and technical and financialsupport to self-employment; (ii) a component toimprove women's welfare and tbeir contribution toeconomic growth; (iii) a community developmentprogram to finance small-scale communityinitiatives that will create employment or providebasic services for vulnerable groups; and(iv) support to short-term measures to improvethe quality and coverage of basic health care andeducation; and (c) a program of institutionalstrengthening, including the reinforcement of theplanning and coordination capacity of the Ministryof Planning and the development of socioeconomicstatistics including a system for householdsurveys and support to the system for preparingprice indices.

Project Benefits: The Project should bring benefits to thevulnerable groups in the population, both in theshort and long terms. It should result in theformulation of cost-effective and well-orientedbasic services in the areas of population, healthand education. It should facilitate theparticipation of women in development both byimproving programs directly targeted at women, andby ensuring that economic and social programsdirected at the population at large fully take theinterests of women into account. It shouldenhance the creation of employment opportunities,notably for persons leaving the public sector, andoffer training and re-training to better equip jobseekers to find employment. It would stimulatesmall self-help activities at the community levelrun by the people who best understand the needsof local groups. Finally, the Project should help

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the Government to build up an information base onthe location of poverty and its evolution.

Proiect Riskes The first risk stems from the complex nature ofthe Project which would involve many differentCameroonian agencies, not all of which may movespeedily to execute Project components inaccordance with Project objectives. This risk iscomplicated by the presence of several externaldonors. The second risk is that there could be,despite the Government's strong commitment,resistance to the population and women'scomponents of the Project which may conflict withestablished cultural attitudes. The third riskarises from the innovative nature of the self-employment and micro enterprise support programs.

The first risk would be reduced by the Project'smodular approach (para. 4.4) which would simplifyProject execution and facilitate the channellingof external finance, and by the creation of astrong coordinating unit in the Presidency. Thesecond risk would be mitigated by the intensiveinformation programs being and to be carried outby the Government. Finally, the third risk wouldbe minimized by the safeguards built into theself-employment and micro-enterprise programs, andboth would be subject to review after a limitedtesting period and continued only if the reviewindicated that continuation was justified.

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REPUBLIC OF CAMEROONSOCIAL DIMENSIONS OF ADJUSTMENT PROJECT

Estimaed ract Cost(US$ million e4u7velent

% Forelgn U TotalLocal Foreign Total EXChsnge Base Co8tsPopulaton3.1 4.8 691%

foatth 6.7 12.8 19.2 e5.4% 22.2%Educatlon and Training 8.7 1.9 10.6 17.9X 12.8%Employment 17.7 15.0 32.7 48.0% 37.8%Women In Development 3.4 2.3 5.7 39.8% 0.6%Community Development - PRODEC 3.2 2.7 5.9 46.2% 8.8%Pianning Capacity A Info. Base 5.8 1.5 7.1 20.8% 8.2%SDA Project Management 08 0.1 0.9_ 9.9% 1,0%

Total BASELINE COSTS 47.4 39.2 88.8 45.3% 100.0%Physical Contingencies 1.6 1.2 2.8 42.8% 3.2%Price Contlingoncies 8.1 -1.9 5.0- 37.4% S.7%

Total PROJECT COSTS 52.0 42.3 94.3 44.8X 108.9%less TAXES 8.8 0.0 8.6 0.0% 9.9%

Total TO BE FINANCED 43.2 42.5 85.7 49.e% 99.0%

Financ1ng Plan(USS m_ on equivalent)

ShareIBRD 21.5 21611African Dovelopment Bank 18.0 19%European Community 10.0 12%Federal Republic of Germany 7.7 9XCanadian International Development Agency 7.3 9%France 8.9 6%US Agency for International Devolopment 3.2 4XUnited Nations Fund for Populations 3.2 4%

Avt;vitiesJapaneso Yen Grant Facility 1.0 1%United Nations Development Program 0.8 1%Government of Cameroon 10.8 laX

85.7 i

Schedule of Estimated Bank Disbursementssus millions equivalent)

Fiscal aeer Annual Cumulative1991 - 2.2 2.21992 5.4 7.51993 4.6 12.01994 3.4 15.51995 3.2 18.71998 2.8 21.

I. INTRODUCTION

1.1 With the country currently undergoing a difficult economiccrisis, the Cameroonian Government is determined to reestablish economicgrowth with equity and ensure the protection of vulnerable groups in theshort term. It has, therefore, decided to address the social dimensions ofadjustment as an integral part of its Structural Adjustment Program. Thisdetermination, expressed in the Government's Declaration of DevelopmentStrategy (see excerpt in Annex 1), has been translated into the proposedSocial Dimensions of Adjustment (SDA) Project. It is thus closelycoordinated in both conception and design with the US$ 150 million IBRDStructural Adjustment Loan1 and the US$ 9 million loan for an EconomicManagement Project,2 approved on June 8, 1989 and July 11, 1989respectively. The three operations constitute an integrated whole.

II. THE ECONOMY

A. The Economy and Crisis

2.1 From the early seventies to the mid-eighties the Cameroonianeconomy registered steady growth. However, since 1986 Cameroon hassuffered from simultaneous declines in the prices of all its major exports(petroleum, coffee, cocoa, and cotton) aggravated by the depreciation ofthe dollar vis-a-vis the CFA franc. As a result the Cameroonian economy iscurrently experiencing a severe economic and financial crisis.

2.2 With a per capita GDP of US$ 955 and 10.9 million inhabitants in1987, Cameroon's diversity in terms of human and natural resources gives itconsiderable potential for economic growth. Indeed, throughout the 1970'sand early 80's, economic growth was high (about 8 percent per annum in realterms, much higher than the estimated 3.2 percent annual rate of populationgrowth). In the period after independence, Cameroon relied heavily onagriculture, which still remains the key economic sector, employing abouttwo-thirds of the population and generating 40 percent of export receipts.However, petroleum became a major source of growth after 1978. Whenpetroleum production peaked in 1984/85 it accounted for more than15 percent of GDP, 45 percent of Government revenues and almost two-thirdsof total merchandise exports.

2.3 Petroleum revenues boosted private and (particularly) publicspending, enabling gross fixed investment to grow at an average real rateof 7 percent during the first half of the 1980's and to maintain a highlevel of 20 percent of GDP. Despite large capital expenditures, theGovernment was able to maintain a balanced budget until the mid-1980'swithout extensive recourse to foreign borrowing. Foreign financingamounted to only about 6 percent of total expenditures until 1984/85. Even

1See the 'Report of the President to the Executive Directors on theStructural Adjustment Program in Cameroon" (Report No. P-5079-CM, dated May16, 1989).

2See the "Report of the President to the Executive Directors on theEconomic Management Project (Report No. P-5083-CM, dated June 29, 1989).

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in 1988/89, the external debt was only a projected US$ 3,119 millionequivalent, or 27 percent of GDP, while annual external debt service wasprojected to be 23 percent of exports of goods and services (beforerescheduling).

2.4 Since 1985, the fall in the US dollar-denominated prices ofCameroon's major export commodities (petroleum, coffee, cocoa, and cotton)and the depreciation of the US dollar have exposed major structuralweaknesses in the economy and have plunged it into a deep recession.Between 1985 and 1987 the dollar depreciated by 40 percent against the CFAfranc. Over the same period Cameroon's terms of trade deteriorated by47 percent. Thus Cameroon's balance of payments went from a currentaccount surplus of 3.9 percent of GDP in 1984/85 to a deficit of8.8 percent in 1986/87.

2.5 These factors brought a halt to economic growth in Cameroon. Theeconomy stalled in 1986/87, with GDP falling by 3 percent. It is estimatedthat GDP fell by 9 percent in 1987-88 and by a further 6-7 percent in1988/89. Per capita GDP fell an estimated 19 percent from 1986/87 to1988/89. Investment and imports are about 50 percent and 40 percent,respectively, below their levels of three years ago. The fall in exportearnings, combined with capital flight (a function of uncompetitiveinterest rates), has produced a sharp contraction in the liquidity of thedomestic banking system which further constrains economic activity.Government revenues have also suffered. In 1986/87 for the first timeGovernment operations recorded a large deficit (122 of GDP). This deficithas been financed by a build-up of domestic arrears, a drawdown of bankdeposits, and an increase in foreign borrowing. These factors havecontributed to the slowdown in economic activity and the illiquidity of thebanking system.

B. Poverty in Cameroon

2.6 Available data on household economic activities and income flowsin Cameroon are very poor. While more accurate knowledge should em -gefrom the household surveys which would be implemented through the SDAProject, existing data, tempered with observation, does allow a tentativepicture of regional variations in income and poverty, variations in urbanemployment, and the regional distribution of malnutrition.

2.7 Regional Variations in Income and Poverty. GNP per capita inCameroon increased from US$ 130 in 1965 to US$ 960 in 1989. This comparesfavorably with other Sub-Saharan countries and places Cameroon in themiddle-income economies in a world-wide classification. However, thisnational average hides significant regional and rural/urban variations.These variations are indicated in estimates derived from the HouseholdBudget Survey conducted in 1984/85 (see Table 1), that show average netincome (including autoconsumption) per capita and rough estimates of the

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incidence of relative poverty in each region.8 Clearly the northern partof the country is the poorest, and the coastal zone the least poor, by bothmeasures. But there is also considerable variation within zones. Thefigures hide variations within provinces. Thus the degree of poverty whichempirical observation finds in the South and the East does not appear inthese average figures, as a result of uneven distribution of income.Table 1 also makes clear that the urban population, on average. is betteroff than its rural counterpart. Nonetheless, some 23 percent o.. thepopulation of Yaounde and Douala is estimated to be below the nationalpoverty line.

Table 1

Reional Variation In Income andPoverty by Agro-Ecologicul Ztne

Average Annual Net EstimatodIncome and Auto- Incidenceconsumption per of Povertyl/

capita (CFAf) (_gree

COTTON AND LIVESTOCK ZONE 28,0983 0Extreme North 19,066North 28,889Adeamoua 83,462

COFFEE ZONE 89,687 46Northiect 47,461West 88,212

COCOA AND TOBACCO ZONE 86,295 46East 80,830Central 85,783South 69,577

COASTAL ZONE 98,509 SOSouthwest 102,084Littoral 90,151

Yaound6 AND DOUALA n.*. 23

Source: mission oetimatos

i/ Percentage of population with income below national poverty line (803 ofnational averago net income, Including subetstence production).

2.8 Urban Employment and Poverty. By all accounts, unemployment hasbecome a major problem in Cameroon. The available employment statistics,4showing only 6.1 percent of the 3.1 million active population in 1987 to benonemployed, are highly suspect, underestimating unemployment and entirelymasking underemployment. They do, however, allow comparisons between

8Given the poor quality of the data from which these figures are derived,they should be viewed as only roughly indicative.

4Prom the 1987 population census.

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different groups of the urban population. Unemployment is concentrated inyouth. :n urban areas youths (aged 15 to 24) are three times more 'lkelyto be unemployed than those aged 25 and above. Again in urban areas, whileunemployment amonig women in general is only marginally higher than amongmen, among the young, 18 percent more women are unemployed than men. Withthe continuing decline in the economy and continued population growth, thissituation is undoubtedly worsening.

2.9 The poor in cities such as Yaound# and Douala often live incrowded squatter settlements, with limited access to social and physicalinfrastructure. The population of these settlements suffers from a highdegree of unemployment and underemployment, which has been exacerbated bythe current economic crisis, and suffers from an apparently high rate ofsocial violence. While the available data is inadequate to provide acomplete picture of urban poverty, Table 2 does illustrate some of thecharacteristics of the poorest 20 percent of the population in YaoundG andDouala in comparison to the total population in these cities. Notsurprisingly, it shows that the urban poor have larger households, lesseducation, less access to water and electricity, and spend some 59 percentof their income on the basic needs of food, housing, and fuel (as comparedto an urban average of 46Z.

Table 2

Household Characteristicsof the Poorest In Yaound6 & Douala (1986)

Poorest20X Averase

Household Size 7.98 6.98

EducationNone 20% 19%Vocational 24X 14X

Housi ngRent 76% 54%Electricity 44X 68X

WaterIndoor Faucet 14% 81%Well 24% 17%

Expenditure StructureFood 40% 29%Rent A Energy 19% 17XEducation 5% 3%Health ON 6XOther 30% 46%

Source: Household Budget and Consumption Survey 1984

2.10 Nutrition. Table 3 summarizes some of the findings of theNational Nutrition Survey conducted in 1978. The study found that21.0 percent of children between 3 and 59 months old were chronically

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malnourished5 and 4.7 percent acutely malnourished.8 According to onemeasure of maternal malnutrition (triceps skinfold thickness), 13.6 percentof mothers were malnourished. The data show that malnutrition is a greaterproblem in rural than in urban areas. It is also less of a problem inYaounde and Do4ala than in other urban areas. Not shown in Table 3 aresignificant regional differences. The prevalence of maternal malnutritionand acute malnutrition in children is higher in the northern part of thecountry than the national average.7 The pattern of chronic malnutrition inchildren is somewhat different: its prevalence in the West, the East, andthe Northwest is higher than the national average (31?, 26.7?, and 24.2?respectively), unlike the North (21.1Z) which falls very close to theaverage.

Table 3

Measures of Malnutrition, 1978

Chi ldren Chi ldrenCh,ecnici Acutei MaternalS

Yaound6/Douala 1.5t3 1 2.8Urban 19.4 2.2 8.1Rural 22.4 5.8 14,8All Cameroon 21.0 4.7 18.8

lCM Idren between 8 and 59 months old with loss than 903 of thestandard height for their age.'ch ildren between 3 and 69 months old with leSS than 8S% of thegtndar weight for their height.Mothers with a triceps skinfold thickness of IGSS than 7.5 m.

Source: Cameroon National Nutrition Survey, 1978.

2.11 The study found malnutrition to be related to illiteracy, over-crowding, inadequate child care, inadequate diet, recent illness of thechild, and insufficient and poor utilization of health services.Inadequate environmental sanitation, such as contamination of food andwater, also plays a significant causal role. Efforts to addressnutritional problems in Cameroon have been hampered by a lack of in-depthunderstanding of nutritional problems, and by the diversity of and lack ofcoordination between ministries and NGOs (non-governmental organizations)involved in nutrition programs.

6Defined as less than 90? of the standard height for their age.

6Defined as less than 85? of the standard weight for their height inchildren 3-59 mos.

7However, in contrast to the protein deficit found among northernchildren, the protein consumption of northerr mothers is higher than that inother regions.

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C. The Effects of the Crisis

2.12 The serious recession that Cameroon has experienced since 1986has reduced the incomes of several vulnerable groups in the population andthreatens ot'-- . So far, the main incidence has been in parts of theprivate sector. The cuts in Government spending on major investmentprojects have curtailed employment in the heavy construction sector, andother suppliers to whom the Government is in arrears have undoubtedly hadto reduce their work forces as well. Private Javestors, both foreign anddomestic, have curtailed their activities on account of the recession andbank .redit has become scarce as most banks are quite illiquid.Manvufacturing industry is depressed. One estimate puts at 28,000 thenumber of workers discharged by the modern sector in the three years1987-89. This is about 5 percent of the 572,000 estimated to be employedin the non-farm modern sector. A further 13,000 persons are expected tolose their jobs as a result of restructuring of public enterprises--almost20 percent of their work force. No doubt these declines have been or willbe partially compensated for by new job creation and absorption into theinformal sector, but the net effect will be a shrinkage in employment inthe modern sector, perhaps by as much as 30,000. In the rural sector,coffee growers were not paid for their crops in 1988, and cotton growers--a large number of very small f nmers throughout the North--received onlyhalf the payment due them for the 1988 crop, the other half being paid inpromissory notes. The marketing agencies handling both coffee and cottonhad been losing heavily since 1986, when world prices fell drastically andthe dollar lost value. By 1988 these agencies did not possess the fundsneeded to meet obligations to farmers. Cocoa farmers, whose receipts aredirectly linked to world prices, fared better, but still suffered losses ofincome as the price of cocoa expressed in dollars fell.

2.13 Further effects of the crisis will be felt shortly, as theGovernment's adjustment measures take hold. The Government has stopped newhiring, and is reducing the staff of the public service through attrition.This means that large numbers of secondary school or university graduates,who in previous years could have expected to find employment in the publicsector, have to compete for the shrinking number of job opportunities inthe private sector. The situation may become even more serious if thebudgetary situation obliges the Government to discharge regular civilservice employees.

2.14 There are a few pockets of activity that do not seem to have beenhurt by the crisis. Private residential construction continues to beactive, or even to increase in some areas. Motor vehicles are not renewedas frequently by either the public or the private sector, and there is ashortage of auto mechanics. And there has always been a shortage oftrained electric and electronic repair workers in Cameroon. Thus, manyemployment opportunities remain, for the well-trained. If the Government'snew efforts to promote tourism are successful, new employment opportunitiesmay open up in the catering and related service industries, although forthe moment they suffer from a recession brought on by the decline inprivate business activity, and to build up the tourist industry will taketime.

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2.15 On the whole, the unemployment situation has become very seriousin the past three years, and is likely to further deteriorate over the nextyear, as the Government's adjustment measures take effect. Probably nocoe"ination of near-term measures to promote new employment generation andvocational training can fully remedy the situation before there is ageneral upturn in the economy. However, the Government is determined tomitigate unemployment as much as possible, inter alia, through theemployment segment of the SDA Project (see paras. 4.39 to 4.51).

2.1f In addition to the decline in employment, the economic crisis andthe resulting cuts in public expenditure have led to a deterioration in anumber of basic public services designed to help the poor, notably publichealth services and primary education. Budget cuts have aimed particularlyat non-personnel expenditures, with the result that the public healthservices are bereft of medicines and other supplies and public schools havea severe shortage of teaching materials. From 1986/87 to 1988/89 thehe-lth and education budgets declined 21.2 percent and 10.6 percentrespectively.

III. SOCIAL DIMENSIONS OF STRUCTURAL ADJUSTMENT

A. The Structural Adjustment Program

3.1 Faced v4th the economic crisis, the Government began to prepareits Structural Adjustment Program in early 1988. At that time itestablished a working level committee comprised of directors and seniortechnicians from all major operational ministries to draw up theGovernment's Declaration of Development Strategy (see Annex 1). InDecember 1988, the President established an Interministerial Committeeresponsible for overseeing the preparation of the Structural AdjustmentProgram and for monitoring its implementation. The Structural AdjustmentProgram has been developed in close collaboration with the InternationalMonetary Fund, which approved an 18 month stand-by arrangement for Cameroonin September 1988, and the Bank. The ADB is providing co-financing for theprogram, and France and the European Community are funding relatedadjustment measures.

3.2 The broad objectives of the Government's Adjustment Program canbe summarized as follows:

a) to reestablish a positive rate of per capita income growth;

b) to progressively reduce the constraints which circumscribeeconomic opportunities by fostering increased competition andreducing the inefficiency of domestic markets;

c) to reorient the role of the State from one of direct interventionin the production and distribution of goods and services to oneof facilitating the operation of the private sector;

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d) to reorient public services towards programs which improve thewell-being and productivity of all Cameroonians, taking intoaccount the social dimension of adjustment.

The Government aims to attain these objectives through reforms in the areasof public sector resource management; public enterprises and the financialand banking sector; agriculture; and industrial and trade policy.

B. Government Social Policy

3.3 The Government is conscious of the effect that the decline ineconomic activity has had on the poorer population groups and of the impactthat the adjustment program will have on the future life chances of thepopulation. Consequently, it considers addressing the social dimensions asan integral part of the Structural Adjvqtment Program and critical to itssuccess. For this reason, the Government has adopted interim action plansin the health and education sectors to prevent declines in and improve thequality of basic services. These interim plans seek to improve healthstatus and the quality of education in spite of the adjustment sacrificeswhich the country has to make. The Government has been also hesitant toproceed too quickly with the decontrol of prices, because of its concernfor low-income consumers of essential goods. However, the Government'sability to protect the population's standard of living has been constrainedby a number of factors, which the SDA Project would seek to mitigate. TheGovernment's social policy and the constraints which it faces are describedbelow for the areas of population, health, education, employment creation,women in development, community development, and the information base.

Population

3.4 Demographic Profile. In 1990 Cameroon's population will reach 12million inhabitants, unevenly distributed over a territorial area of475,000 square kilometers. The highest population densities are to befound in the western highland areas, in the extreme northern province andin urban areas. Close to 40 percent of the population lives in urbancenters. The largest towns (100,000 and above), Douala, Yaounde, Garoua,Maroua, Bamenda and Bafoussam, are growing at over 5 percent per annum.

3.5 The major characteristics of Cameroon's population are high andrising fertility (crude birth rate: 48 per 1000, total fertility rate: 7),shrinking but significant pockets of pathological sterility, graduallydeclining mortality (crude death rate: 13 per 1000), and a life expectancyestimated at 56 years. About 45 percent of all live births are of fifth orhigher birth order and less than half of all deliveries take place in ahealth facility. Consequently, maternal mortality is still very high,especially in rural areas where it averages 300 per 100,000 births. Infantmortality has dropped to 96 per 1,000 live births but recent evidence ofdeclining immunization in some parts of the country, including Douala, anddeteriorating basic health care resulting from budget cuts could push therate back above the 100 mark.

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3.6 The very youthful age structure (55Z of the population is under20 years), increases in fertility, and further declines in mortality willsustain current high rates of growth into the next century. Cameroon'spopulation growth (3.2Z per annum) will result in a doubling of its currenttotal by 2010.

3.7 Family Planning. Family planning services are very limitedbecause of prevailing pro-natalist attitudes. Until the establishment ofthe Cameroon National Association for Family Welfare (CAMNAFAW) in 1987,family planning was not promoted as a program and the small minority ofcouples who sought services relied on private and rather discreet servicesoffered by a few daring physicians. The absence of services and relevantexpertise in this area has turned a growing number of desperate individualsand couples to clandestine abortion. Traditionally, intensive breast-feeding contributes to birth spacing, however, young and working womenabandoning the practice do not always adopt modern contraception(contraceptive practice among women of child-bearing ages is a low 31).The lack of a national population policy constitutes an obstacle to bothGovernment and NGO initiatives in this field. In recent years, church-sponsored groups have been actively promoting natural family planningmethods as concern for teenage pregnancy, illegally induced abortion,abandoned children, and juvenile delinquency have begun to alarm publicopinion.

3.8 Population Policy. Although Cameroon has made significantprogress in reducing mortality the Government has not so far consideredfamily planning an important operational strategy. Indeed, until recently,official Government policy on population was overtly pro-natalist.Population growth tended to be underestimated and there was a generalbelief that the country was underpopulated and needed a larger labor forceand bigger market. This attitude has begun to change as the country facesserious difficulties in meeting the development needs of a rapidly growingpopulation. A Demographic Unit (the Unit# de Planification de laPopulation--UPP) was established in 1984 in the Planning Ministry (MINPAT)to ensure greater integration of population variables in developmentplanning. In 1985, the Government established a National PopLlationCommission (CNP) which called for the expansion of family planning servicesand which initiated work on formulating a national population policy. Theneed for a comprehensive population policy and program was articulated byPresident Biya in a statement to the National Assembly in August 1986 whenhe called for responsible parenthood and stressed that the country'sdevelopment could be compromised by an unplanned increase in the birthrate. These initiatives have been supported by grants from the UNFPA, butare still at an embryonic stage.

Health

3.9 Organization of the Health Sector. The public sector health caresystem comprises 888 facilities (173 hospitals, 146 developed healthcenters (DHC), 397 elementary health centers (EHC), 64 dispensaries,51 preventive health centers, and 57 maternal and child health centers(MCH)). The private sector health services are provided in 444 facilities

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(218 hospitals, 35 DHC, 97 EHC, 15 MCH, and 79 dispensaries). The publicsector system is run by about 12,000 trained personnel (511 physicians,82 pharmacists, 25 dentists, 4,667 state-registered nurses and mid-wives,5,652 nursing aides, and 829 health technicians). Private health providersinclude 268 physicians, 136 pharmacists, 16 dentists, and an unspecifiednumber of auxiliary staff. Much of the private sector system is managed bythe churches, but there are also many individually-owned clinics in majorand secondary towns.

3.10 Health Service Financing. No comprehensive data are available ontotal public and private sector expenditure on health in Cameroon. TheGovernment's operating budget for the health sector in the 1988/1989 fiscalyear amounted to CFAF 24 billion (US$ 79 million equivalent), or 5 percentof the national operating budget. This was a decline of CPAF 5.8 billion(20 percent) from the peak year 1986/87, with the whole reduction takingplace in expenditures for medication and other non-personnel expenditures.This is demonstrated in the following figures:

Governmcent Health Budoe1;(CFAF bi 11 if no)

of whichsTotal Investment Operations Personnel D us Other

1956//8? 62.S 23.0 29.3 20.6 4.2 a.s1967/88 47.1 21.6 25.6 21.2 2.0 2.21985/89 41.8 17.8 24.0 20.2 1.9 1.9

The allocation for medications alone was cut by more than 50 percent,resulting in severe shortages, especially in rural areas. This situationshould now be alleviated, as a result of the decision under the StructuralAdjustment Program to partially restore the level of non-personnelexpenditures in the health sector. During the period 1981-85, Governmenthealth sector investment amounting to CFAF 17.6 billion was allocated forhospitals and other health facilities. In 1986/1987, only 14 percent ofthe investment budget for the sector went to primary health care and over80 percent was spent on hospital construction. The bias to hospitals waseven more pronounced in the 198711988 budget in which 92 percent ofinvestment funds went to large hospital establishments, mainly in Yaounde '.and Douala.

3.11 Coot Recovery. User fees have been used only on very limitedscale in the public health care system. Because all revenues from usercharges are remitted to the national Treasury, there has been littleincentive to improve the efficiency of the system. Furthermore, chargesfor different services are not related to costs, and no proper accountingand auditing system exists. In recent years, better organized costrecovery initiatives have been developed with donor assistance (notablyfrom GTZ and USAID) in several provinces, with very positive results, whichhave encouraged the Government to envisage generalizing the practicethroughout the health care system.

3.12 Health Sector Policy. Past development plans have sought toattain total coverage of the population in basic health care services bythe year 2000. The strategies outlined for achieving this general policy

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objective included reducing regional disparities in services, satisfyingprimary health care needs, providing basic medication to underprivilegedgroups, improving preventive health care, and promoting and supportingcommunity participation in planning, controlling, and funding healthactivities. To develop the human resources for implementing thesestrategies, the Government set up a University Center for Health Sciences(CUSS) which was to train the health team (physicians, midwives, nurses,pharmacists and other key paramedical personnel) in one institution,thereby building the community health spirit from the classroom. However,the details of the Government's sector policy, its operational strategy andquantitative objectives have never been clearly defined and articulated.In the absence of comprehensive program targets, training in CUSSincreasingly shifted away from stated objectives and physician trainingdrifted back to classical medicine drastically reducing the communityhealth content in the curriculum. The shift in sector priorities has beenreflected in the increasing attention paid to urban high-cost hospital careto the detriment of primary health care services.

Education

3.13 The Cameroonian Government has made considerable efforts toprovide universal education at the primary level and to increase access toall other levels of education to large segments of the population. Inprimary education, a vigorous expansion of physical facilities took place.By 1986/87, the country counted with some 6,138 primary schools (33,150classrooms) and about 32,000 teachers provided education to 1.8 millionprimary education students. The gross enrollment ratios of the order of108, and is among the highest in West and Central Africa. Over a ten yearperiod (1973-1983) the growth of the primary education system was 4.5percent per annum. The evolution of secondary and higher education waseven more dramatic in relative terms: average annual growth over the sameten year period was over 10 percent. At present, the number of secondaryeducation students is closed to 270,000, while the number of highereducation students is of the order of 23,000.

3.14 Consistent with these efforts, Government expenditure oneducation rose rapidly. From 1976/77 to 1986/87, total expenditure oneducation rose from CFAF 23.1 billion to CFAP 140.7 billion, and was equalto about 18 percent of total Government expenditure. However, the effortsmade in the quantitative expansion of the system were not matched byimprovements in the quality of the system. In 1986/87 only 645 of 1,000students completed primary education. Because of high repeater and dropoutrates, it takes an average of 11.0 years to produce a primary schoolgraduate. In spite of efforts to take the child's environment intoconsideration, primary schools in Cameroon continue to emphasizepreparation for secondary school. Problems of access to primary educationparticularly affect girls, who often are required to stay home to take careof younger siblings.

3.15 Technical and vocational education suffer from low internalefficiency and a lack of adaptability of programs to the economy's needsTechnical programs do not appear to have any relationship with the needs of

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the labor market in Cameroon. In addition, the cost of technical andvocational training is very high due to the long cycle needed to obtain acertificate. Repeater and dropout rates are extremely high, andonly 18 percent of students in the lower technical schools obtain acertificate, while 26 percent pass the exams to graduate from uppertechnical school. Furthermore, technical education is often used as aconduit to access to university education which has resulted in undueemphasis on general and theoretical courses, further minimizing thepractical aspects of technical education.

3.16 The lack of appropriate training is even more pronounced in thesmall scale segments of the modern sector and in the informal sector. TheGovernment's modest vocational training capacity consists mainly of theadult training center (Centre National de Formation Professionnelle,CENAFOP), which is being supported by the Bank's 1986 Education andVocational Training Loan, and a small number of accelerated vocationaltraining centers under the Ministry of Labor and Social Security (MTPS),and training centers operated by the Ministry of Social and Women's Affairs(MINASCOF). A few NGOs are also involved in training activities, notablythe Institut Panafricain pour le Developpement (IPD) and the Associationpour la Promotion des Initiatives Communautaires Africaines (APICA), fortraining in management skills, and the Cameroonian affiliate clfopportunities Industrialization Centers (OIC) for training in simple jobskills and business acumen. The scope and complexity of the vocationaltraining needed is well beyond the existing capabilities. It is thereforenecessary not only to improve the performance of Government trainingcenters, but to also harness the vocational training potential of NGOsactive in this field.

3.17 The lack of direct relationship between higher education and theeconomy's needs and the rapid increase in enrollments principally at theUniversity of Yaounde have given rise to graduates with limitedpossibilities for employment in the private sector. Indeed, enrollmentrates in humanities, law and economics constitute a majority, with only17 percent of students graduating in sciences, engineering or businessadministration. A combination of high repeater and dropout rates resultsin the average time needed to graduate being two to four times greater thanthe structured period. This indicates a need to review criteria forgranting scholarships for higher education, to apply a rigorous selectionprocess and to improve the quality of teaching in various faculties.

3.18 Private sector education plays an important role in the country'seducation system. At the end of the 1987/88 school cycle, there were268 pre-school establishments providing education to 27,417 students, 1,669primary schools providing education to 578,512 students and 219 general andtechnical secondary schools providing education to 526,805 students.Nevertheless, the growth of private sector education has been restricted inthe past by severe factors including inadequate school fees which haveremained insufficient in the light of higher operating costs. In 1986school fees were decontrolled, and this is expected to result in anincrease in the share of the private sector in the financing of thecountry's education system.

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3.19 Current expenditure, including transfers to universities andsubsidies to maternal, primary and secondary private schools which stood atCFAF 110.1 billion in 1986/87, was reduced to CFAF 105.7 billion in1987188, and in 1988/89, it stood at CFAF 96.1 billion. Teacher salariesand other wage-related benefits represent over 60 percent of total currentexpenditure in the sector, and the distribution of the teacher force isskewed in favor of urban areas. Transfers to the university and otherhigher learning institutions, and subsidies for private schools, are of theorder of 30 percent of total education expenditures, while less than 10percent of current expenditure is allocated to operational needs, such asschool supervision, textbooks and teaching materials, and maintenance ofschool facilities.

3.20 Under the Structural Adjustment Program, the Government hasincreased non-wage current operational expenditure to its 1986 level ofabout US$ 5.5 billion, with 50 percent of that increase allocated toprimary education. Nevertheless, the present structure of currentexpenditure in the education sector continues to be biased in favor ofhighly subsidized secondary and higher education, resulting in thefinancing by parents of an increasing share of the burden of primaryeducation. This situation has prompted the Government to review and reviseits policies in the education sector.

Employment Creation

3.21 The Government has been ill-equipped to deal with the increase inunemployment and the decline in new job opportunities for school anduniversity leavers. Under current labor legislation all hiring in themodern sector should take place through MTPS, firing is severelyrestricted, and wage rates are determined by levels of education. However,MTPS has not had the resources that would be needed to carry out the tasksit was supposed to perform, and as a result, this legislation is notenforced. Nevertheless, its very existence on the books imposesdistortions on the labor market. Under the Structural Adjustment Program,the labor legislation is scheduled to be overhauled and liberalized (indeeda draft revised labor code has been prepared), so that in the future, theemployment market should, officially as well as in practice, be open to thefree play of market forces.

3.22 Various efforts have been made to help the creation and expansionof micro and small enterprises, which in principle could result in creatingmany job opportunities. Technical and management assistance to smallbusiness was supposed to be the function of the Centre d'Assistance auxPetites et Moyennes Entreprises (CAPME) and small business loans were to beguaranteed by the Fonds de Garantie et de l'Aide aux Petites Entreprises(FOGAPE), both under the aegis of the Ministry of Industry and Trade(MINDIC). Unfortunately, these institutions have not so far met with muchsuccess. The former was operated by civil servants who did not havepractical experience in business management, and its contribution has beenvery limited. It is one of the public enterprises selected to be closed

14

under the Structural Adjustment Program. FOGAPE is moribund, after usingup its initial guarantee ability which has not been repaid.

Women in Development

3.23 Because women face a number of multisectoral constraints thathamper their participation in the economy, the country does not fullybenefit from this important source of growth and development. Because ofthe multiplicity and drudgery of their tasks, women face an enormousconstraint on their time. Their educational level is low. They havelimited access to training and information, to specific health serviceslike pre-natal care and family planning, to modern inputs and technologies,to land, and to financial intermediation. They are the victims ofdiscriminatory customary practices. Furthermore, women's contribution tothe economy is undervalued and the constraints they face are underestimatedbecause women are invisible in national and regional statistics.

3.24 In order to achieve equity and economic growth, the Governmenthas decided to emphasize the full integration of women in the developmentprocess. It has tried to promote increased attention to the welfare andproductivity of women, but existing institutional and technical weaknesseslimit the ability of the Government to significantly broaden theiractivities. As a result, and in the absence of a coherent operationalstrategy, the scope and impact of Government interventions have remainedrather modest, limited to the promotion of social welfare rather than theenhancement of self-reliance for women.

3.25 MIIASCOF, empowered to coordinate policy and all activitiesconcerning women's development concerns, has not yet developed the capacityto undertake these tasks, and hence to mediate or coordinate effectivelythe interests of women in the programs of various sector ministries.Several factors contribute to this weakness. The Ministry has beeninhibited by the lack of a clear definition of its mandate and ofappropriate institutional linkages. There is insufficient technicalcapacity within MINASCOF to generate research proposals and innovativeprograms to expand women's economic opportunities and integrate suchprograms into national development planning and implementation. MoreoverMiNASCOF's intervention program, while providing some useful services, hasfocused on traditional tasks and skill-development schemes, which are notconducive to gainful employment, thereby doing relatively little to promotethe self-reliance of women. Budget resources have been directed to theconstruction of new physical infrastructure (social and women's centers)rather than on making existing outreach services work better. Finally,there has been duplication and dispersion of the activities of MINASCOF andthe technical ministries.

Comumaity Development

3.26 Many Governmental agencies are currently involved in communitydevelopment activities in Cameroon. Unfortunately their effectiveness islimited by overlapping and uncoordinated responsibilities, lack ofresources, and concentration in major urban areas. Ironically, despite

1S

this concentration, urban slums receive relatively little attention. Overthe years the Government has also established a large number of parastatalagencies which engage in community development activities (e.g., FONADER,SEMRY, SODECOTON). However, the parastatal sector is now in severefinancial difficulty and most of these agencies will be either closed downor restructured. The Government has also been involved in promotingcooperatives, which are formally organized through the government serviceCooperation Mutualite. Unfortunately, despite years of outreach work, manycooperatives have not adopted appropriate management practices andconsequently their sustainability is questionable.

3.27 A large community of non-governmental organizations (NGOs) isengaged in a variety of development activities in Cameroon. These include,inter alia, the promotion of local development initiatives and micro-enterprises, training in management, marketable skills, and communitydevelopment, and the provision of social services and infrastructure. MostNGOs have a specifically rural focus. While NGOs have the advantage ofworking close to their beneficiaries and have had some notable successes atthe local level, the NGO community is poorly integrated into the nationaldevelopment effort. While the volunteer agencids (Voloi.-aires du Progras,Peace Corps, etc.) meet among themselves occasionally and have begun toinvite other NGOs, coordination between NGOs remains largely ad hoc andthere appears to be little communication between lay and religious NGOs.The same can be said for coordination between NGOs and the Government.There is no single channel by which NGOs are legally recognized .inCameroon, nor is there any formal organization of NGOs. The Government hasrelatively little knowledge about NGO activities, but is committed tofostering collaboration with them. It is currently undertaking a reviewthrough which it hopes to gain a better understanding of NGCs and toestablish better means of coordinating Government and 1GO activities(something which NGOs tend to view with distrust). At present the NGOcommunity is undergoing a period of financial crisis. Over the past year anumber of NGOs have been forced to drastically curtail their operations inCameroon.

Planning Capacity and Information Base

3.28 Cameroon does not yet possess the statistical data nor theplanning tools that are needed to support policies that would enable theGovernment to develop an effective anti-poverty program and to forecast theeffects of alternative economic and financial policies on incomedistribution and welfare. The most recent household income and expendituresurvey was in 1984, but its findings have yet to be fully analyzed andpublished, and the same is true of the results of the population census of1987. As a result the Government is deprived of important analytical toolsneeded to develop a fully effective anti-poverty program.

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IV. THE PROJECT

A. Objectives and Approach

4.1 The proposed Project results from the Government's recognitionthat economic growth, in itself, is insufficient to reduce poverty and toimprove the standard of living of the poor, and from its deliberatedecision to incorporate into its Structural Adjustment Program a processthat will result in actions to address human resource and poverty issuesthat are important for sustainable economic and social development in thefuture.

4.2 Project Objectives. The Government's Declaration of DevelopmentStrategy and Economic Recovery identifies as its objectives in the areas ofhuman resources and the social dimension of adjustment (Annex 1):

a) in the medium to long-run, to promote the participation of thepoorest groups in the process of development;

b) in the short to medium-run, to protect underprivileged andvulnerable segments of the population, especially those groupsdirectly affected by the economic crisis and the adjustmentprogram; and

c) to promote the institutionalization of these concerns within the-iutine duties of existing agencies.

From these objectives emerge the three lines of action of the project:

a) support to a fundamental policy design process in the socialsectors;

b) action programs to address priority needs while overall policyreforms are not in place; and

c) institutional strengthening to support emerging policy reformsand action programs.

These actions are detailed in a matrix (Annex 2) upon which final agreementbetween the Government and the Bank was reached during negotiations. Thepolicy design and institution-building components constitute a process thatwould occupy roughly the first two years of the project period. Thus,except for the action programs, much of the project would begin to reapconcrete benefits only toward the end of the project period. Because theProject's objectives are to be achieved as an integral part of Cameroon'sStructural Adjustment Program (PAS), the Bank has reserved the right tosuspend disbursements under the Project if it found that Cameroon's generalperformance under the PAS was unsatisfactory. In practice, the Bank mightconsider exercising this only in respect to components directly related tothe PAS, namely the education, formal training and self-employmentcomponents.

17

4.3 To prepare the Project, during the first half of 1989, fiveworking groups8 were set up under the supervision of the TechnicalCommittee for the Preparation and Follow-up of the Structural AdjustmentProgram (CTPAS), which, in turn, reports to the Interministerial Council onthe Supervision of the Structural Adjustment Program, chaired by theSecretary General of the Presidency. These working groups developed sevenproject modules, described below. in the areas of population, health,education, employment, women in development, community development, andplanning capacity and information base.

4.4 The Project would take a modular approach, meaning that eachcomponent, or module, although under the overall coordination of a Projectcoordinating unit (the CTC/DSA), would be managed by a line ministry orother agency largely independent of the others (see para. 4.76). Thus thesuccess of any one module would not be dependent on the activities of othermodules. Each module, composed of policy design, action programs, andinstitutional strengthening, would be coordinated by senior officials ineach of the ministries concerned, and carried out by line managers, most ofthem already on the job. Each would have responsibility for theimplementation of the module concerned or part thereof, under a work planagreed with and monitored by the CTC/DSA. The Project would be executedover the four-year period beginning September 1, 1990. Preparation hasbeen financed by a US$ 750,000 advance from the Project Prep-rationFacility.

B. Project Modules (Policy Design, Action Programs, andInstitutional Strengthening)

Population

4.5 In its Statement of Development Strategy and Economic Recoveryaccompanying the Structural Adjustment Program, the Government recorded itsdecision to define a new national population policy that would enableCameroon to reduce mortality and slow down the current rapid rate ofpopulation growth, and to mobilize the necessary resources for itsimplementation (Annex 1). The population module of the SDA Project wouldsupport the process by which the Government is developing and refining itspopulation policies and operational strategies under a grant already madeby UNFPA. The SDA Project would also contain an action program tostrengthen and expand family planning services provided through Governmentand NGO programs. The successful implementation of this module would laythe foundation for a future sector reform operation in population thatcould benefit from IBRD and other donor funding.

4.6 Policy Design. The National Population Commission (CNP) and thePlanning Ministry's population planning unit (UP?) are actively preparingstudies and other mater'als for a series of national and provincial

These Working Groups were established for the following issue areas:population and health, education and vocational training, employment, womenin development, and institutional factors.

18

workshops to build nation-wide consensus on policy options. The Projectwould support these activities and would finance the drafting andpublication of the policy document as well as the preparation of a medium-term action plan for the implementation of the population policy. Themajor objectives of this policy would be: (i) to establish equilibriumbetween population growth and the development of the country's resources;(ii) to regulate fertility by educating the population on responsib..eparenthood and promoting family planning and birth spacing; (iii) toaccelerate reductions in mortality and morbidity rates; and (iv) tointensify the fight against sterility and sexually transmitted diseases,including AIDS. A draft population policy statement would be discussedwith the Bank prior t- its adoption not later than June 30, 1991. Specialtraining would be pro ided under the Project to Government staff in orderto build national car bilities to successfully implement the new policy.

4.7 Action Prc am. The Project would support the strengthening ofprovincial maternal and child health and family planning services and theextension to other provinces of high risk pregnancy management currentlybeing implemented in five provincial centers. Support under the Projectwould include equipment and supplies for ante- and post-natal care,deliveries, family planning, nutrition education and surveillance, andhealth education. Family planning activities would be strengthened in 65maternal and child health care centers and 49 maternities in the tenprovinces with the objectives of reducing maternal mortality by 50 percentin ten years and achieving a contraceptive prevalence rate of 25 percent bythe end of that period. A decentralized training and supervision systemwould be developed and put in place to improve staff skills and increasetheir productivity. The Project would also finance information, education,and communication programs to sensitize the population on the availability,uses, and benefits of family planning. An annual evaluation system and animproved family planning statistical reporting system would be supportedthrough the Project. This program would be managed by MINSANTE's Maternaland Child Health and Family Planning services.

4.8 To accelerate the attainment of the operational targets it hasset for the family planning program (para. 4.6) the Government proposes toreview annually the family planning activities of NGOs (e.g., the CameroonNational Association for Family Welfare--CAMNAFAW), with a view tosupporting such activities through the Project. The maternal and childhealth and family planning service of MINSANTE would be responsible forthis periodic review which it would carry out in collaboration withprovincial maternal and child health and family planning services and theNGOs concerned. This support to NGOs for family planning would coverdirect service delivery, supplies, information and education, and trainingworkshops and seminars for promoting safe motherhood and regulatingfertility. USS 500,000 of the assistance to NGOs would consist of directgrants by USAID to CARE and Save the Children.

4.9 Management and Implementation. Overall responsibility for thedevelopment of the national population policy lies with the NationalPopulation Commission and its support unit, the UPP, in the Ministry ofPlan and Regional Development. A newly-created Department of Family and

19

Mental Health in HINSANTE and the provincial maternal and child health andfamily planning services would implement the Family Planning Program andmanage support to NGO activities in this area. The health sectorcoordination Mechanism (HSCM) to be established by MINSANTE to coordinatethe health module (para. 4.22) would also coordinate the activities of theaction program of the population module. A satisfactory implementationplan for the action program of the population module was agreed upon duringnegotiations.

4.10 The cost of the population module (including contingencies andexcluding taxes) would amount to about US$ 4.7 million, distributed asfollows:

USS milIIonPolicy Oov.lopment 0.2Action Program 4.6

of which:Fam! ly Planning 8.6NGO support 1.0

Health

4.11 The Government's Statement of Development Strategy and EconomicRecovery (Annex 1) sets forth as priorities for the health sector thepromotion of preventive and primary health care (especially in ruralareas), improvement in training of health personnel, and rationalizing thereferral system. The health component of the SDA Project consists of aprocess to enable the Government:

a) to develop and refine those health policies and formulateoperational strategies for their implementation;

b) in the short term, to re-equip and revitalize basic health carefacilities and strengthen curative and preventive services in thepriority areas of immunization, primary health care, tropicalcommunicable diseases, and sexually transmitted diseasesincluding AIDS; and

c) to strengthen the institutional capability of MINSANTE instrategic planning, programming and budgeting, financial andpersonnel management, and coordination of sector operations.

The combination of policy design, an action program to improve basiccurative and preventive health services, and institutional development,would lay the groundwork for a f_.ture sector reform program.

4.12 Policy Design. Health sector policy development would focus onarticulating clear policy objectives and priorities, and on definingoperational strategies and quantitative targets for implementing the newpolicy. In refining its health sector policy and operational strateRy, theGovernment's major objectives would be:

20

a) to give greater priority to primary health care thereby shiftingaway from the current over-emphasis on high-cost, hospital-basedcurative care;

b) to develop and put in place an efficient dec.?ntralized system forprocuring and distributing essential drugs needed for combatingmajor causes of high morbidity;

C) to reduce the prevalence of communicable diseases and infectionsamong children and women of child bearing age;

d) to accord priority to maternal and child health, nutriti.., andto family planning;

e) to protect the general population against major endemic diseases;

f) to develop community-based services and promote increasedcommunity participation in the management of health care;

g) to develop a decentralized and efficient referral system ofhealth care;

h) to define and adhere to new criteria for sector investments andstaff deployment which take due account of prevailingepidemiological situations, regional disparities in existingservices, population distribution, and implications for operatingcosts; and

i) to develop and put in place mechanisms, including cost recoveryand better financial management, to reduce the unit cost ofcurative health care.

4.13 A working group within MINSANTE would be responsible forformulating the new health policies. It would receive financial supportand technical assistance from the Project in organizing national andprovincial workshops on sector constraints and policy options, and in thedrafting of a policy statement. This statement would include quantitativeobjectives and operational strategies for achieving these objectives, aswell as mechanisms for coordinating, monitoring, and evaluating medium termprograms for the implementation of the new sectoral policies. The newpolicies, which should tailor Government investment and sector organizationand management to addressing priority epidemiological problems andpromoting NGO, private sector, and community participation in health care,would be reviewed by a newly-created Higher Commission on HealthDevelopment (CSDS). Thereafter, a draft policy statement would bediscussed with the Bank prior to its adoption not later than June 30, 1991.

4.14 To ensure the availability of essential generic drugs and toreduce the unit costs of basic services, the Government would developessential drugs and cost recovery programs and set up and test appropriatemechanisms for their implementation. A central committee for essentialdrugs and MINSANTE's provincial delegations would be jointly responsible

21

for developing mechanisms for implementing the Government's new costrecovery program. During negotiations agreement was reached with theGovernment (i) that the essential drugs and cost recovery systems would beintroduced in all public health facilities not later than December 31,1992; (ii) that proceeds from cost recovery would be managed by eachfacility in particular to replenish essential drug supplies, and (iii) thatupdated lists of essential drugs for different levels of services would becommunicated to the Bank no later than December 31 of each year.

4.15 Action Program. MINSANTE's central and provincial services wouldbe responsible for carrying out the action program under the coordinationof the Secretary General of MINSANTE. The health sector action programwould include the purchase and distribution of US$ 7.4 million (CFAF 2.3billion) of medical and pharmaceutical supplies, the stocks of which havebeen run down because of budget constraints since 1986, and because therewas no generalized cost recovery system. These supplies would supportprograms of primary health care, health education, prevention and treatmentof sexually transmitted diseases, including AIDS, and immunization. In thearea of primary health care, the action program would aim to reverse thedecline in the quality of care and overcome the shortages of medicines andother diagnostic and treatment supplies. Support would be extended toprimary health care services in 44 administrative divisions during a four-year period. The program would involve the re-equipment of health centersand first-level referral hospitals at the sub-divisional level byreplenishing the pipeline of medical supplies, and the provision of aninitial stock of essential drugs for a sample of health facilities in whichthe Government's new cost-recovery program would be tested and evaluated.To ensure adequate management and supervision of this program, the Projectwould finance training activities for 45 Divisional medical officers, 100sub-divisional public health officials, and 938 para-medical staff.

4.16 To ensure that the population, especially in rural areas, takesadvantage of the primary health care services that are being up-gradedthrough external assistance, the action program would support an integratedinformation, education, and communication program to create greaterawareness of available services and their uses, to promote early recourseto health care, and to promote preventive personal and community healthpractices. The Project would finance equipment, vehicles, trainingworkshops, evaluation, consultant services (3 months), and supervisionneeded to develop the program.

4.17 The action program would also support the Government's sexuallytransmitted diseaselacquired immunodeficiency syndrome (STD/AIDS) programcomplementing resources from other donors. Through this program theGovernment aims to sensitize the general population on the prevention ofSTD/AIDS, reduce AIDS transmission through blood transfusion, monitor theevolution of the epidemic in high risk groups, improve technical knowledgeon local aspects of HIV infection, and put in place an efficientcoordinating mechanism and logistic support. To achieve these goals, theProject would support educational campaigns in the ten provinces, carry outtraining workshops for four laboratories per province, furnish supplies forHIV rapid tests, undertake seroprevalence surveys among vulnerable groups,

22

experiment on institutional care for AIDS patients, and carry out appliedresearch on knowledge, attitude, and practice in the use of prophylacticsand other preventive measures against STD/AIDS. The STD/AIDS service ofMINSANTE would be strengthened and its management and coordination roleimproved to ensure the sustainability of the program.

4.18 Finally, the action program would support efforts to improveimmunization coverage among children and women of child bearing age. TheGovernment has instituted a new strategy for immunization in all publichealth facilities in the country, which has been hindered for lack ofadequate resources and an inefficient management and monitoring system.The Project would support the development of this strategy through thetraining of personnel and equipping of health facilities to successfullyand regularly carry out vaccinations, putting in place a coordinated anddecentralized immunization program that would maintain a reliable andefficient ccld chain. The Project would finance refrigerators, vaccines,vehicles, training workshops, and recurrent costs needed to attain theGovernment's objective of 85 percent immunization coverage for childrenunder 20 months of age by 1994 and for asetting up 1,000 fully operationaland sustainable immunization centers nationwide by 1994. Additionalsupport for this program would come from ongoing UNICEF, WHO, GTZ, andUSAID assistance in the field.

4.19 At negotiations, agreement was reached on a detailedimplementation plan for the logistics, procurement, and distribution ofmaterials and equipment for each component of the action program of thehealth module.

4.20 Institutional Strengthening. To improve the strategic planningand investment programing capabilities of MINSANTE, the Project wouldsupport the development and strengthening of planning and programmingprocedures within MINSANTE's Department of Studies, Planning, andStatistics and the key priority services to be financed under the Project.New programming methods would be instituted at the central and provinciallevels to improve and streamline the process of project and program design,implementation and evaluation. Better coordination, information, andstatistical systems would be developed to ensure effective integration ofepidemiological, human resources, and financial data bases in the sector.Consulting services and training for these activities would be supplied bythe Institut Superieur de Management Public (ISMP), a public administrationadvisory and training service supported with Canadian technical assistance.Through the Project, MINSANTE would institute a program-budgeting systemto ensure that annual budgetary allocations are made on the basis ofclearly defined program targets and that these resources are channelled toprograms that deal with the major morbidity problems of the generalpopulation. The development of the system would involve the establishmentof norms and targets for budgeting processes and the training of personnelat the central and provincial levels. The new system would enable NINSANTEto ensure that budgetary estimates incorporate non-salary operating costrequirements and that existing imbalances in resource allocation arecorrected in favor of priority programs. The new system would institute asystem of beneficiaries' assessment of the improvements achieved in

23

priority population and health programs, which would be used as an input toresource allocation. The system to be employed would be agreed with theBank by December 31, 1991, with a view to its introduction in the 1992-93budget.

4.21 Management and Implementation. MINSANTE would have overallresponsibility for the preparation and implementation of the health moduleof the SDA project, and would integrate project implementation into itsexisting services. Each central and provincial ministry unit responsiblefor the development of specific programs would be strengthened and equippedto coordinate and supervise implementation of these programs.

4.22 To ensure efficient and effective coordination, systematicmonitoring of policy developm.ent, and timely project implementation, theGovernmernt would set up, not later than September 30, 1990, a health sectorcoordination mechanism (HSCM) under the supervision of the Mirister ofHealth and mandated to periodically review all aspects of implementation ofthe actiorn program and to resolve any bottlenecks in prejectimplementation. This HSCM would be chaired by a senior official inMINSANTE. and its members would include the heads of the central andprovincial units of the ministry, and a representative each from theministries concerned. The chairman cf the committee would be a member ofthe overall SDA coordinating committee (CTClDSA--para. 4.76).

4.23 The HSCM would play a cardinal role in sector policy development,monitoring progress and sanctioning reform proposals before these aresubmitted to the political authorities for approval. It would ensure thatbroad policy objectives focus on the dominant pathological and demographicproblems adversely affecting health, welfare, and economic development.The HSCM would ensure that the annual budgeting process be used toreallocate resources to programs that would benefit the general population,especially those in rural areas.

4.24 As for implementation, the HSCM would follow-up all intermediatesteps needed for the adoption and implementation of reforms contained inthe population and health modules of the SDA project. It would alsocoordinate external assistance, ensure the effective supervision of projectactivities, and oversee the implementation of other important on-goingprograms in the sector as well as future reform efforts. The HSCM wouldconvene annual programming and budgeting workshops during which pastprogress would be reviewed and detailed implementation plans for the comingyear would be worked out. The HSCM would meet quarterly to monitor theimplementation of these plans and would maintain constant contact with theCTC/DSA and the Bank on implementation progress. It would superviseprocurement of goods and services, training, and program coordination, andwould provide the Bank with reports of its quarterly reviews.

4.25 The HSCM would be assisted by a small secretariat made up ofpermanent staff of MINSANTE located in the Directorate of Studies,Planning, and Statistics, which would carry out the day-to-dayadministrative and financial functions of managing the population andhealth modules. It would maintain correspondence on procurement, process

24

withdrawal applications, and monitor disbursements. The secretariat wouldcarry out these tasks in conjunction with the technical departments whichwould have primary responsibility for the implemention of the variousprograms.

4.26 The cost of the health module (including contingencies andexcluding taxes) would amount to US$ 19.0 million, distributed as follows:

US8 ml IlI tonsPolicy Design 0 8Action Program 16.0

of which:Primary health care 11.0Information 0.6STD/AIDS 0°4Imnuni zatlon 3.1Oparationa and Maintenance 1.1

Institut.ional Strengthenirg 1.8Module managemnt (populationand health modules) C 9

Education

4.27 The Government's Statement of Development Strategy and EconomicRecovery (Annex 1) emphasizes the Government's objectives in the educationsector: (i) maintaining the quantitative achievements in primary education,(ii) improving the quality of education at all levels, and (iii) improvingthe relevance of the education and training systems to the country'seconomic and social development needs. To these ends the Government hasdecided to develop and refine its education sector policy, undertake anaction program designed to replenish education supplies depleted as aresult of the budget cuts of recent years, and strengthen the institutionalcapacity of the Ministries of National Education and Higher Education (aswell as the University of Yaounde) for planning, budgeting, andcoordinating sector operations. The process for developing new educationalpolicies and a new strategy are described in annex 4. The policy designand institutional strengthening aspects of this sectoral program would befinanced under the ongoing Education and Vocational Training Project (Loan,2683-CM of 1986), which is currently being restructured, while the actionprogram would be financed by the SDA Project. These three aspects form anintegral part of the Government's education sector strategy.

4.28 Institutional Strengthening. The adoption of a new policy andimplementation strategy will also require the institutions charged with thesector to improve their management capacity, and particularly theirplanning and programming capabilities. In this context, there is a need tosupport the development of the planning divisions of MINEDUC and MESIRES,and to create a small planning unit at the University of Yaoundd as part ofthe strengthening of planning and programming and to assist decision makerswith investment program decisions. As in other ministries, consultantservices would be provided by ISMP, reinforced as needed withinternationally-recruited consultants.

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4.29 A second area to be addressed is the need to improve the budgetpreparation and execution processes so as to better reflect theGovernment's stated objectives and priorities, and determine the sector'sneeds through involvement of central and regional staff, including schoolmanagers. This is to be accomplished through the design and adoption of aprogram budgeting system and of a budget monitoring process which respondsto the priorities defined in the new policy and implementation strategydescribed if, Annex 4. The development of this system would involve theestablishment of norms for budgeting p.ocesses and the training ofpersonnel at the central, provincial and district levels. The new systemand monitoring mechanism would seek to correct existing imbalances inresource allocation in favor of priority areas, and at the individualinstitutional level, to incorporate needed operating cost requirements,while at the same time introducing an element of accountability through anexpenditure monitoring mechanism. The system would be established byDecember 31, 1991 with a view at its utilization in the preparation of the1992/93 budget.

4.30 These institutional support activities, including consultantservices. selected office equipment and supplies, data processingequipment, and the carrying out of training activities needed to introducethe program budgeting system and monitoring mechanism, would also befinanced by the ongoing Education and Vocational Training Project (Loan2683-CM).

4.31 Action Program. While the medium to long-term reforms of theeducation system are being prepared, priority programs must be protectedduring the transitional period of economic adjustment and financialstabilization. To this end, the SDA Project would finance an immediateinjection of badly needed materials and other pedagogical inputs forprimary and secondary schools by replenishing the supply pipeline, to haltthe erosion in quality and the depletion of educational materials whicheducation has suffered as a result of budget cuts since 1986 (seepara. 3.19) and thus to permit a resumption of the education system'snormal operations. From a very large backlog of pressing needs, theGovernment has selected a budgetary envelope of CFAF 2.3 billion (USS 7.7million equivalent) of which 47 percent would be allocated to primaryeducation, 32 percent to technical secondary education, and 21 percent togeneral secondary education. The value of this once-and-for-all injectionof supplies and equipment is less than the cuts in the non-personneleducation budget made after 1986. This allocation is consistent with theGovernment's stated priority of promoting universal basic education, thushelping a very vulnerable group in the country (children of 6 to 14 yearsof age), as well as strengthening the teaching of science and technicalsubjects.

4.32 The materials and equipment proposed for SDA financing fall intotwo categories. The first, amounting to US$ 5.4 million, consists ofeducational materials and equipment whose stocks have been depleted becauseof budgetary cut-backs after 1986. These include teaching guides,textbooks, teaching aids, laboratory equipment, and materials for technicalschools' workshops. The second consists of a stock of school

26

desks/benches, costing US$ 2.3 million, to improve the poor educationalenvironment in primary schools where children must sit on the floor.Priority in allocation of both categories would be accorded to: (i) primaryschools; (ii) schools in rural areas and in disadvantaged neighborhoods ofYaounde and Douala; and (iii) schools with a predominantly female studentbody. About 500 primary schools would receive desks, textbooks, andteaching materials. Twenty technical secondary schools would receivematerials for their student workshops and equipment for their libraries.About 65 general secondary schools would receive equipment for theirscience laboratories end libraries. MINEDUC is currently designing a planfor procurement and distribution of the materials and equipment to befinanced under the Project. Receipt of this plan would be a condition ofdisbursements for the education module. Future financing of the expendablematerials would be assured as a result of the increases in annual non-personnel budget expenditures for education agreed with Cameroon under thePAS. A Bank finding that Government performance in the preparation of thestatement of policy, a medium-term action plan and long-term implementationstrategy would justify the suspension of disbursements under the actionprogram for education.

4.33 Management and Implementation. To direct the activities to befinanced by the SDA Project, HINEDUC would establish a sector managementcommittee ("comite de suivi") not later that September 30, 1990. Thiscommittee would be chaired by MINSANTE's representative to the CTC/DSA.The advisor of the "Cellule d'Animation et de Suivi of theinterministerial task force ("Groupe de Pilotage") which is charged withthe preparation of the education policy statement under the Education andVocational Training Project would be a member of the committee. TheDirectors of Projects, Primary Education, Secondary General Education.Secondary Technical Education and the Chief of the Planning Division ofMINEDUC would be permanent members of the Committee, as wouldrepresentatives of the Planning and Finance Ministries. The sectormanagement committee would be responsible for the following: (a) review andapproval of plans submitted by the relevant directors; (b) review andapproval of the resulting budgets; (c) approval of the procurementprocedures to be utilized for each particular budget; (d) the criteria tobe utilized for the evaluation of bids; (e) evaluation and selection ofbids; (f) review of draft contracts; and (g) monitoring of the execution ofeach plan.

4.34 Day to day management and coordination of the activities of theeducation module would be the responsibility of the chairperson of thesector management committee. He would provide all logistical support tothe committee, would be responsible for the preparation of draft budgetsand work programs, and would participate in the supervision of theacquisition and distribution of equipments and materials and thedisbursement of funds for the execution of module activities in cooperationwith the Director of Projects. He would also advise the Minister ofNational Education on all relevant matters concerning the SDA project andwould be a member of the CTCIDSA (para. 4.76), providing the administrativelink between the CTC/DSA and the Education Ministry.

27

4.35 As is the case in the Education and Vocational Training Project,the Director of Projects would be responsible for the module's accounts.He would prepare and submit to the Project Administrator all relevantdocumentation, including the submission for approval by the Bank of bidsfor the procurement of equipments and materials after approval by theCommittee.

4.36 Each Director (Primary Education, Secondary General, andSecondary Technical), in cooperation -ith the Director of Projects, wouldbe charged with the selection of the schools that would benefit fromProject financing, including the preparation of plans for the acquisitionof equipments and materials as demonstrated by actual needs, and would beresponsible for delivery and supply to the schools through MINEDUC's normalchannels of distribution.

4.37 The interministerial task force on education (Groupe de Pilotage)would continue to play its consultative role on the major recommendationsregarding overall human resource development and education sector policiesand strategies prepared by the subsector management committee. The taskforce would meet periodically at the request of the Minister of NationalEducation to examine specific issues submitted by the managementcommittees.

4.38 The cost of the education module of the SDA Project (includingcontingencies and excluding taxes) would amount to US$ 8.8 million,distributed as follows:

USe millonsPolicy Designl/ 0.0

Action Programof whIch:

Teaching Materials 6.4Desks/Benches 2.8

Sub-Total 77

Institutional Strongtheningi/ 0.0Module Management 1.2

Total

1/ To be fInanced under the Educatton and Vocstlonal TrainingProject, currently being restructured.

Employment

4.39 Unemployment is a central preoccupation of the Came-oonianauthorities. Even during the years of strong economic growth (1977-85),there were probably more people reaching working age than were absorbed bythe labor market. After 1986, with the onset of the economic crisis, thesituation worsened considerably, as income declined and the private modernsector began to contract. The situation will soon become even more acute:under the Structural Adjustment Program many public enterprises and bankswill be shut down, or cut back, and the public service is not being allowedto expand, so that what was formerly the main source of jobs for newgraduates of secondary schools and the university no longer exists. As

28

noted above (para. 2.12), well over 30,000 persons have been or soon willbe added to the ranks of the unemployed, unless special measures are taker..

4.40 The employment component of the SDA Project seeks to address thisproblem through a series of major measures to improve the functioning ofthe labor market and to promote the creation of new employment. While itwould be rash to predict that these measures will completely solve theemployment situation as long as the economy remains in a deep recession,they should at least mitigate the problem considerably. It is estimatedthat the actions contemplated under the Project should achieve theretraining and insertion or reinsertion into employment of most of the30,000 new job seekers over the next four years. The socio-economic groupstargeted by the employment measures under the Project are: (i) employees ofthe private, public, and para-public sectors who will be unemployed duringthe transitional phase of structural adjustment; (ii} young graduates anddrop-outs of the education system; and (iil) the most impoverished andvulnerable groups of the population, including unqualified women and theyoung with insufficient resources to directly undertake self-employment.

4.41 The main actions to promote employment under the Project would beundertaken through a newly-created National Employment Fund (FNE) whichwould finance five important activities (see Annex 7):

a) systematic collection of information on training and lobopportunities and transmittal of that information;

b) strengthening of formal vocational training;

c) support for on-the-job training;

d) support for individual initiatives aimed at self-employment; and

e) advisory and financial support for the creation and expansion ofmicro-enterprises.

The Project would also finance several studies which will contribute to the Efuture development of national policy in the employment sector and supportthe reinforcement of the planning capacity of the Labor HinistLy.

4.42 Policy Design--Studies/Surveys. The Project would finance thecompletion of a national manpower survey, which has been started by MTPS,but which has been halted for lack of funds. It would also finance thedevelopment of criteria for taking labor content into account for theappraisal of investment projects and the identification of such projects inthe Public Investment Program. Finally, it would finance three preliminarystudies: the first on the capacity of vocational training centers; thesecond on the feasibility of creating a national voluntary service corps inorder to provide practical experience to the young unemployed; and thethird on an estimation of the potential for job creation in the informalsector.

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4.43 Action Program--National Employment Fund. The FNE has beencreated by presidential decree as a separate legal entity. It is largelyautonomous, essential if it is to avoid day to day political pressures inthe distribution of its funds, but under the general responsibility("tutelle") of MTPS. '.'he Director General has been named by presidentialdecree. The Board of Directors is composed of 12 members: six representingthe private sector (from the chamber of commerce, industry and mines,employers organizations, and trade union organizations), four representingindividual interested ministries, one representing the Presidency, and aPresident, choosen from the private sector, named by decree. The Boardwill meet at least twice a year to decide on the FNE's organization,operating and financial policies, and annual budgets and accounts. TheDirector General is a senior Cameroonian, chosen for his/her managementqualifications and experience in the private sector. He will be a memberof t'ce CTC/DSA (see para. 4.76). He will be assisted by aninternationally-recruited advisor experienced in labor market issues,including training. He will exercise the day to day operations of the F1PE,hire and fire staff, insure coordination with the various partners in theFNE and with donors, prepare and submit to the Board of Directors forapproval ann al budgets and reports, and initiate, sub4ect to Boardapproval, the opening and closing of regional offices. The organization ofthe FNE, to be decided by the Board of Directors, will be kept as light aspossible, with four divisions (for employment and training assistance,program management, internal control and program evaluation, and financeand administration). The program management division will have two units,one dealing with support to self-employment and micro-enterprises, and theother with formal training and on-the-job training. There will be a fieldoffice in Douala and others will be created temporarily as warranted. TheFNE is expected to employ a staff of about 25 at all levels when in fulloperation.

4.44 It will take some time for the FNE to build its staff and defineits operating procedures, and for that reason it is not expected to be infull operation until the third Project year. Priority will be given toestablishing the Employment and Training Assistance Division (DAIR)(para. 4.47), urgently needed to facilitate job placement for departingpublic sector employees and university and secondary school graduates. Asnoted below, the training, self-employment, and micro-enterprise componentswould be phased (paras. 4.48, 4.50, and 4.51).

4.45 Estimated costs of the FNE (including contingencies and excludingtaxes) over the four years are as follows:

Base Costs of the FNEUSS million

Employment and training assistance (DAIR) 2.1Formal training 6.9On-tho-job training 4.4Self-employment 10.0Micro-enterprises 6.4FNE administration / 2.4

Total 31.1sf Exclusivo of DAIR costs.

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The FNE would be financed by external donors (852) and the Government(152). During project execution an effort would be made to secure privatesector financial support, essential if the FNE is to be more than atemporary institution. Studies to be financed outside the FNE (seepara. 4.41) are estimated to cost US$ 1.6 million equivalent of which US$0.7 million is needed for the manpower survey.

4.46 A plan for FNE start-up activities was agreed upon duringnegotiations. Appointment of the internationally recruited adviser to theDirector General would be a condition of effectiveness of the Bank loan.The effectiveness of the ADB Loan Agreement, the constitution of the FNE'sBoard of Directors, the exe:ution of a subsidiary agreement between theGovernment and the FNE to ?ass on loan proceeds to the PNE as grants, theadoption of an organization chart and operating procedures, acceptable tothe Bank, the appointment of the manager of the DAIR and of the manager ofthe FNE Service responsible for self-employment and his advisor, withqualifications and experience acceptable to the Bank, would be conditionsof disbursement for the vocational training and self-employment programs ofthe FNIE. Further details on the organization and operation of the PNE maybe found in Annex 5.

4.47 The Employment and Training Assistance Division (DAIR) of the FNEwould (i) collect data and maintain a data bank on training opportunitiesof all types and on employment opportunities, and (ii) based on the datacollected, offer advisory services to job seekers. Its main clients areexpected to be persons laid off from the public sector, notably from thepublic enterprises to be closed or reorganized under the StructuralAdjustment Program, and graduates from secondary schools and universitieswho are unable to find jobs directly. Candidates would be interviewedindividually by trained employment counsellors, and would be advised how toproceed: whether to seek employment directly in their present field ofcompetence, whether to seek retraining under one of the programs to beassisted by the PNE (or elsewhere), whether to seek assistance in becomingself-employed, or whether to seek assistance in setting up a micro-enterprise. Further information on the DAIR's organization and operationis given in Annex 6. It is expected that some 5,000-6,000 job seekers ayear will be interviewed and offered advisory services. The main office ofthe DAIR will be in Yaounde where a majority of the persons to bedischarged by public enterprises are now located, but there will be adecentralized intervention unit in Douala, and in other centers as needed.

4.48 During the transition period of structural adjustment, many job-seekers will have basic skills, although their qualifications may not meetthe requirements of potential employers. If possible, such persons shouldbe oriented toward recruitment and retraining by potential employers,through the on-the-job training and apprenticeship program described below.However, a significant number will need to be directed to formal vocationaltraining centers. The FNE will support such centers in two ways: first, byproviding resources to co-finance the fees required of individual trainees(FNE would pay these directly to the training institutions), and second, byfinancing the institutional strengthening and expansion of a few selected

31

training institutions. A budget of US$ 9C0,000 is included in the Projectfor the first of these actions, and a budget of US$ 5 million for thesecond. In the second category, CENAFOP, one of the country's maintraining centers, is already receiving major financial support under theBank financed Education and Vocational Training Project. The SDA Projectwould provide resources to develop the training programs of OpportunitiesIndustrialization Centers--Cameroon (COIC), which has a training center inBuea and plans a new one in Douala. and the Rapid Vocational TrainingCenters (Centres de Formation Professionnelle Rapide--CFPR) operated infive cities by MTPS. COIC would in the first two years concentrate onconsolidating its existing training facility and adding training in simplebusiness practices, and only in the third year open the new center inDouala. Of the US$ 4 million included in the Project for OIC,US$ 3 million would be financed through a grant from USAID, which alreadyfinanced COIC's start up, and the balance through the Bank's loan. OtherNGOs capable of providing relevant training,, such as APICA and IPD, mayalso be given institutional support. Training institutions benefittingfrom either category of support would enter into an agreement with the FNEspecifying the type of training to be offered and the criteria forselecting training candidates.

4.49 The on-the-ijob training program, for which US$ 4.4 million hasbeen allocated, would finance part of the cost of training new recruits inenterprises in both the modern and the informal sectors. Candidates forthe modern sector would normally be former state enterprise employees whoare already professionally experienced and only need retraining in newskills or technologies to qualify for jobs in private enterprises.Candidates for the informal sector would be mainly young, first-time jobseekers who have few resources and who personally have no access to thelabor market. The FNE contribution to training costs would be higher forfirms that agreed in advance to hire the trainee at the end of the trainingperiod. The FNE would negotiate an agreement with each enterprise andtrainee.

4.50 The self-employment program targets young graduates fromvocational and technical schools and from higher education, as well aslaid-off employees. It would provide grants for very small projects (up toCFAF 1,500,000, equivalent to US$ 5,000) generating at least one job (thejob seeker's own), subject to presentation of a credible business plan. Ifthe candidate had received a separation payment from a previous employer,he would be expected to contribute that to the capital of his new business.Several self-employment programs have been attempted in Cameroon with somesuccess, including one developed by the Polytechnical School of Yaounde forrather highly-trained young graduates, and the Enterprise Creation Centerof Yaounde, supported by Canadian aid, which helps young would-beentrepreneurs to create small businesses. A similar program is beingstarted by OIC to help its trainee graduates to set up "franchise"businesses. These three agencies, and possibly others, could benefit fromthe self-employment support program. They would be invited to recommendgraduates of their training programs with identified entrepreneurialaptitudes. The FNE would itself evaluate other candidates directly.Because the self-employment program is innovative and has not thus far been

32

tested, it would be subject to detailed review and evaluation after thefirst US$ 2 million had been committed, and in any case no later thanDecember 31, 1992. The results of that review and evaluation would bediscussed with the Bank, and commitment of further funds for this program,for which an additional US$ 8 million has been allocated, would only bemade with the agreement of the Bank.

4.51 The micro-enterpr'se support program would target job seekerswith entrepreneurial skills with at least a modicum of financial resources(including any separation payments from their previous employers), capableof achieving projects generating more than one job (up to five). Creationand expansion of small businesses are critical to the recovery and long-term growth of the Cameroonian economy. Cameroon has made a number ofattempts to support the development of small enterprises, so farunsuccessfully (see para. 3.22 above). However, the expansion of smallprivate entrepreneurship is fundamental to the growth process, and it isimportant that Cameroon gain further experience in developing micro andsmall enterprise support programs, despite the risks. For this reason, theFNE would enter this field very cautiously, and in an initial pilot phase,lasting two years, only on a very small scale. The program would extendfinancial support en a grant basis to NGOs and other organizations thatprovide training and/or advisory services to start or expand micro-enterprises. It would also stand ready to refinance small credits made onmarket terms (3-5 years, initially at 12Z) of up to CFAF 20 million(US$ 65,000 equivalent) extended to micro-enterprises by financialinstitutions. Perhaps 15-20 such small projects might be financed duringthis pilot phase. Lending decisions (end attendant risks) would be takenby the financial institutions themselves, not by the FNE. Severalfinancial institutions have expressed interest in having access to such afacility, to the extent that their own resources may be insufficient,including: the Cameroon Cooperative Credit Union League, the Caisse Communed'Epargne et d'Investissement, and the Union des Caisses Populaires deYaound6. The unit administering the micro-enterprise support program wouldbe assisted during the two-year pilot ph4se by an internationally-recruitedadvisor. After the US$ 2 million had been committed, and in any case nolater than December 31, 1992, an evaluation would be made of resultsachieved by an independent evaluation committee, and, in the light of thatevaluation, a decision would be taken as to whether to continue theprogram, and, if so, on what scale and through what means. Thus an initialUS$ 2 million is included for the credit program during the first phase,and US$ 4 million for the possible second phase.

4.52 Institutional Strengthening. The Project would also providefinancial support for the reinforcement of the Labor Ministry's planningcapacity. This strengthening would include improving and certifying thequalifications of staff, and determining future material, technicalassistance, and training needs. As in other ministries, consultantservices would be provided by ISMP, reinforced as needed withinternationally-recruited consultants, to organize and supervise seminarsand training sessiG..s for planning staff.

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Women in Development

4.53 The Women in Development (WID) module of the SDA Project isdesigned to strengthen the Government's capacity to improve women's welfareand contribution to economic growth. The proposed Project would be avehicle for introducing policy and institutional changes designed toalleviate the multisectoral constraints which hamper women's fullparticipation in development and to bring the WID perspective into themainstream of all development activities. The WID module would support acombination oft (a) policy design involving the definition of anoperational strategy and its implementation through a multisectoral actionplan; (b) specific actions to (i) launch an information, education, andcommunication program; and (ii) reorient existing support services forwomen towards the development of cost-effective and sustainable productiveactivities; and (c) introduce policy and institutional strengtheningmeasures. Details on the organization of the module's components may befound in Annex 8. The interests of women would also be addressed in othermodules of the SDA Project, especially the maternal and child health careprogram, the family planning program, the FNE, PRODEC, and the householdsurvey component.

4.54 Policy Design. The Government has recognized the need for abetter understanding of women's economic and social roles and contributionto particular sectoral activities, and for an integrated set of policyactions to enable their increased participation in economic development.In order to provide a more suitable policy and institutional environmentfor this broad-based approach, MINASCOF would coordinate the preparation ofa Multisectoral WID Strategy to ensure the participation of women in thegrowth process by increasing women's welfare and their ability to respondto a changing economic environment. A program of studies would bedeveloped with the objectives of (i) assessing the role and situation ofwomen; (ii) identifying the constraints that limit their participation ineconomic development; (iii) identifying programs and approaches that havesuccessfully addressed these constraints; (iv) recommending concreteactivities to improve women's contribution and participation; and(v) identifying the appropriate institutional channels for the execution ofthese recommendations. A preliminary proposal, developed by MINASCOF, forthe multisectoral strategy is included in Annex 8. The Strategy and ActionPlan would be adopted after discussion with the Bank. It would beincorporated into a policy statement to be adopted not later than March 31,1992. Prior to this, a Pres!dential Decree, to be issued by September 30,1991, would reorient MINASCOF's mandate towards a conceptual, normative,and coordination role on all women's issues.

4.55 The existing interdisciplinary task force, with representativesof the Government, would be expanded to include the private sector and NGOsas well as the academic world, and would formulate an operational strategyfor the execution and monitoring of the multisectoral action plan. Overallleadership for the formulation and implementation of this plan would beassumed by the Planning, Coordination, and Evaluation Division of MINASCOFto be created under the Project (para. 4.59). The Project would finance

34

consulting services and related preparatory work for the Strategy andAction Plan, as well as the organization of seminars.

4.56 Action Program. The action program of the WID module includes anInformation, Education and Communication Program and the reorientation ofMINASCOP's support services in both urban and rural areas. An efficientinformation strategy is necessary to sensitize the population to thebenefits of effective integration of women in development and to ensureincreased awareness of the opportunities that will be made available towomen. The primary objective of this action would be to produce anddisseminate effective information materials in order to reach fourcategories of people: (i) disadvantaged women, (ii) decision makers, (iii)persons working with women at the grass-root level (rural animators,community development agents, personnel of the social centers and women'scenters, NGOs), and (iv) the Cameroonian population in general. TheInformation and Documentation Service of MINASCOF would have the primaryresponsibility for this action. The Project would finance technicalassistance, equipment for the Information and Documentation Service andtraining of its staff, as well as the production of informationalmaterials.

4.57 As stated in para. 3.24, the Government is committed toincreasing the impact of its existing support services for women by(i) rationalizing the urban structures of MINASCOF including theirjuridical status, introducing cost-recovery principles, and reorientingtheir activities to providing assistance in setting up and managingproductive and competitive self-employment activities (i.e. micro-enterprises); and (ii) strengthening assistance to rural women's groups informulating and managing small projects. The Education Service of MINASCOFwould have the primary responsibility for this action. The Project wouldfinance technical assistance, training of staff, production of manuals,basic equipment, and the organization of seminars for adult women.

4.58 Institutional Strengthening. The reorientation of MINASCOF'smandate and the successful implementation of the multisectoral WID strategyand action plan require strengthening of MINASCOE's capacity for planning,coordination, and evaluation, and the establishment of effectiveinstitutional linkages to enable the concerns of women to be fully takeninto account throughout the public sector. To this end, the Project wouldassist the Government in defining and establishing a system ofinstitutional linkages (interministerial consultative and coordinatingmechanisms, training workshops and seminars, information programs, etc.)enabling MINASCOF to ensure due consideration of women's issues in theinterventions of line ministries and other agencies.

4.59 MINASCOF would create, not later than December 31, 1990, withinits General Secretariat a Planning, Coordination, and Evaluation Division(CPCE), which would be responsible for the development of the WID strategyand action plan, coordination with line ministries and other agenciesinvolved in the execution of the action plan, as well as the evaluation ofthe programs targeted at women. The existing Statistics Service ofMINASCOF would be integrated into this new unit. To this end, the Project

35

would finance technical assistance, equipment, training of CPCE staff,seminars, and local travel. Adoption of the Presidential Decree creatingthis Division (a satisfactory draft of which has been reviewed in theBank), would be a condition for disbursements of the CIDA funding of theWID module, which would be administered by the Bank.

4.60 Management and Implementation. A coordinator would be appointedin the office of the Minister of Social and Women's Affairs in order toassure coordination of the programs financed under this module, and torepresent MINASCOF in the CTC/DSA. A detailed implementation plan for theinformation, education, and com-unication and sensitization and supportservices components were agreed upon at negotiations. As part of thegeneral evaluation of the SDA project, a mid-term evaluation would becarried out at the end of 1992 to assess progress in the implementation ofthe WID module.

4.61 The cost of the WID module (including contingencies and exc'udingtaxes) is estimated at US$ 5.9 million equivalent as follows:

USS millionPolicy DesignAction Program 8.1of which:Information, education A 1.1coimunlcation program

Reorientation of support 1.9services

Institutional Strengthening 1.8Module monawognt 0.1

Detailed costs and elaboration of the components of this module may befound in Annex 8.

Community Development--PRODEC (Action Program)

4.62 Community activities at the grassroots level are particularlyimportant for socio-economic development because they can accuratelyreflect the real needs and cultural preferences of communities andencourage people to take responsibility for their own future. Duringperiods of crisis, when Government and other resources are increasinglyscarce, grassroots activities become increasingly important as a means ofpromoting development. To strengthen the Government's policy of support tograssroots activities, an urban Community Development Program (PRODEC),with initial funding of US$ 5 million, has been set up as a financial andinstitutional mechanism to support, through grants, community groups'endeavors to improve their welfare, by providing essential infrastructureand services and by generating productive activities. The Program wouldtarget the urban9 poor, defined as those unable to meet their basic needs

9PRODEC is limited to non-agricultural projects, primarily in urban areas.A complementary program, the proposed Food Security Project, would providefunding to agricultural (inclusive of livestock, forestry, and fishing)projects, including those in urban areas. While PRODEC would be primarily

36

because of low or reduced income levels, and/or whose lack of access tosocial services and factors of production (particularly capital andtraining) have made them especially vulnerable during the current crisis.PRODEC would provide financial assistance to NGOs, community groups, andindividuals who need financing for: (i) small-scale social infrastructurebenefitting the community, (ii) social services for the community in theareas of hygiene, health, education, training, and nutrition, (iii)training and management support in simple business skills, and (iv) small-scale income generating activities (micro-enterprises) undertaken by groupsor individuals.

4.63 The identification, preparation, appraisal, and supervision ofprojects would be carried out by field agents at the regional level. Ineach province where PRODEC would be represented, a Provincial Committee,-omposed of one representative each of the Governor, MINPAT, and MINFI, aswell as the mayor of the provincial capital, would review projectapplications. Thus project selection would be a bottom-up process,emanating from the grassroots. The field agents would hold regularmeetings of all community groups, NGOs, and other organizations involved inthe identification and/or execution of PRODEC projects. The coordinationof PRODEC activities would take place at the central level. At this level,PRODEC would have a management unit, attached to the CTC/DSA, composed of aunit chief assisted by a project assistant and a secretary. Financialmanagement would be assured by the accountant in the management unit of theCTC/DSA (see para. 4.76). Initially, PRODEC would have four regional fieldagents, in Yaounde, Douala, Garoua, and Bamenda. In these four cities aset of pilot projects have been identified, which can be started as soon asfunding is available.

4.64 During negotiations agreement was reached on an operation planfor PRODEC. On this basis PRODEC would establish detailed guidelines forproject selection, appraisal and supervision acceptable to the Bank.Community groups benefitting from grants would have to contributesubstantially to the proposed project financially and/or in kind. Projectsustainability would also have to be demonstrated.

4.65 Over four years US$ 0.81 million equivalent, in addition to theUS$ 5 million operations fund, would be allocated for the administration ofPRODEC (including its field agents).

4.66 Further details on the structure and management of PRODEC,project selection criteria and approval procedures, as well as examples ofpotential projects identified during the preparation phase, may be found inAnnex 9.

4.67 Legislation establishing PRODEC was enacted in April, 1990 andPRODEC's unit chief has been appointed. The adoption of operatingguidelines (para. 4.64), and the effectiveness of the ADB loan agreement

focused on urban areas, small rural health and education projects, notcovered by the Food Security Project, would be included under PRODEC.

37

would be conditions of disbursements for this module under the proposedloan.

Planning Capacity and Information Base

4.68 In Cameroon, two major problems make it difficult to integratethe social dimensions into macroeconomic and sectoral decision-making:(i) the lack of appropriate tools for the simulation of the impact ofeconomic policy choices on the distribution of income and employment; and(ii) the absence of a viable information base which would permit themeasureLient of poverty and allow one to follow the evolution of the livingconditions of households during the adjustment and development processes.The planning capacity and information base module would provide support tothe Government in both these areas.

4.69 Planning Capacity. This sub-component would reinforce theability of the Planning Directorate of MINPAT to take Income and employmenteffects into account in the elaboration of macro-economic strategies, andto integrate the results of simulations into the elaboration of theStructural Adjustment Program and the national development plans. The sub-component would take as its starting point the general equilibrium modeldeveloped by MINPAT. It would include:

a) regular updating of the social accounting matrix so that it mayserve as the basis for the model;

b) re-estimating the parameters of the model on the basis of themost recent statistical data;

c) producing, on a regular basis, alternative macro-economic policyscenarios to illustrate the distributional impact of variouspolicies; and

d) integrating the results of these scenarios into the macro-economic strategy documents prepared by the Government.

Under the sub-component three principal elements would be financed:

a) short term training abroad, for high-level civil servants withinthe Ministry, in the elaboration and operationalization ofgeneral equilibrium mcdels;

b) short term technical assistance to aid in the development andoperationalization of the model; and

c) computer equipment and logistical support for the Macro-economicProjection Unit of the Directorate of General Planning.

4.70 The Information Base. This sub-component of the Project wouldreinforce the ability of the Statistics Directorate of MINPAT to assess theincidence of poverty in Cameroon, to identify vulnerable groups, and tofollow the evolution of the standard of living of different groups of the

38

population during the processes of adjustment and development. This sub-component is based primarily on the establishment and use of a system ofhousehold surveys. It would also provide support to the StatisticsDirectorate for improving the collection and quality of data for priceindices. A User's Committee including representatives of, e.g., MINPAT,MINEDUC, MINACRI, MINASCOF, and MINSANTE, would be established not laterthan September 30, 1990.

4.71 The Cameroonian Household Survey System (ECAM) includes threetypes of surveys: priority, integrated and community surveys. The priority(or monitoring) surveys (PS) planned in 1990, 1993 and 1994 would focus onthe identification of target groups and the follow-up of key socialindicators; it would be based on a light questionnaire and a large sample.Data collection in the field would last two months. The integrated survey(IS) would be based on smaller sample and a complete questionnaire coveringvarious elements of the living conditions of households: employment,income, consumption, savings, housing, access to social services (educationand health), and nutrition. The questionnaire would be set up to developinformation on the condition of women within the household. It would beconducted in 1991-1992. Data collection would last one year. The cummnitysrvey would be established in 1983 and would focus on socio-eccnomicvariables at the level of the village, the market, the school, healthcenter, etc. The system of data collection would be based on a network often decentralized field units, and on the rapid integration of dataprovided by the field units by a central unit within the StatisticsDirectorate. Published results would be available three months after thedata collection for the PS. For the IS, the first preliminary resultswould be available six months after the beginning of the field operations.Special emphasis would be put on data analysis and use; in this, the User'sCommittee would play an important role. A copy of the survey data would besent to the Bank.

4.72 This sub-component would cover equipment, training and operatingcosts of the surveys from 1990 through 1993. Subsequently, the prioritysurvey would be integrated into the regular activities of the StatisticsDirectorate. Establishment of ECAM's Users' Committee no later thanSeptember 30, 1990 is a dated convenant of the loan agreement. Furtherdetails on the organization and operation of ECAM may be found in Annex 10.

4.73 In 1983-84 Cameroon conducted a Household Expenditure andConsumption Survey. From the survey data a national price index (INP) hasbeen built. In June 1989 a national workshop was held in order to presentthis price index and its methodology, as well as the documents for thecollection of prices. All ministries involved and the Planning Ministry'sregional services participated. The Project would support the INP byproviding equipment for the central office in MINPAT's Directorate ofStatistics and for the regional services, training, internationalassistance, and the operating cost of price collection in the major citiesof Cameroon during the period 1990 to 1994.

4.74 Management and Implementation. Task management for theimprovement of planning capacity would be assured by MINPAT's Director of

39

Planning, and for the information base by MINPAT's Director of Statistics.During negotiations detailed plans for the implementation of the householdsurvey and the price indices were agreed upon.

4.75 Over four years the cost of the US$ 7.4 million (includingcontingencies and excluding taxes) planning capacity and information moduleare estimated as followss

US$ ml i l ionPlanning COpocity 1-0Camoroonian Household Survey 4.1Price InJex 2.3

C. Project Administration

4.76 Competent, hands-on, managcment is critical to the success ofthis Project. Overall management and coordination of the Project would beassigned to a Technical Committee for the Coordination of the SDA Project(CTC/DSA), under the supervision ("tutelle") of the Presidency. TheCTC/DSA is presided over by a senior Administrator who has access to alltop officials concerned with the Project. Working on the Project full-time, he would be responsible for assuring that the Project is implementedexpeditiously. He would effectuate coordination with and among managers ofthe various Project modules. The implementation of the various modules ofthe Project would be distributed among the six ministries concerned:MINPAT, MINSANTE, MINEDUC, MESIRES, MTPS, MINASCOF, and the NationalEmployment Fund (FNE). Each would designate a senior official tocoordinate activities within their ministry (and the FNE). Thoseofficials, together with representatives of the Presidency, the Ministriesof Finance (MINFI) and of Territorial Administration (MINAT), and theCaisse Autonome d'Amortissement (CM) would constitute the CTC/DSA. Thisstructure is shown graphically in Annex 11. The Presidential Decreesetting up the CTC/DSA and defining its functions was signed on April 5,1990. At the same time, the Administrator was appointed. Appointment ofthe other members of the CTC/DSA and its deputy administrator andaccountant would be a condition of effectiveness. The Administrator wouldbe in charge of a small Project management unit consisting of a projectofficer, an accountant, and support staff as needed. The management unitwould be provided with a car and appropriate office equipment including acomputer. A budget of US$ 1.0 million equivalent (including contingenciesand excluding taxes) would be provided for the CTC/DSA under the Project.The Administrator would also be in charge of the PRODEC management unit(see para. 4.63).

4.77 During the Project's start-up period the Administrator would:

a) initiate the measures necessary for the financial coordination ofthe Project, including the requested loan from the World Bank;

40

b) supervise the preparation and adoption of the legal textsnecessary for the Project, in particular the texts covering theorganization and operation of the FNE, PRODEC, and of MINASCOF;

c) assure the appointment of managers for the Project modules withinthe ministries concerned; and

d) help organize negotiations with other donors and undertakewhatever measures other donors may require for their funding tobecome effective.

4.78 During the execution of the Project the CTC/DSA would:

a) ensure that the various agencies executing Project modulesprepare and submit periodical reports on the progress of themodules for transmission to the Bank and other financiers;

b) prepare quarterly reports on the progress of the Project for theBank and other financiers;

c) keep the financial accounts for the Project as a whole and managethe Project's funds;

d) ensure that the various agencies exe ating Project modulesprepare and submit withdrawal reque cs along with appropriatedocumentation to be checked in the management unit of the CTC/DSAand then forwarded to the Caisse Autonome d'Amortissement;

e) undertake regular supervision missions to ensure appropriatemanagement of the various Project modules;

f) ensure liaison with the Project's financiers including assistingwith and participating in supervision missions;

g) organize the mid-term evaluation of the SDA Project, and thespecial evaluations of the micro-enterprises and self-employmentprograms of the FNE, and of the WID module;

h) verify, if necessary, the appropriateness of any changes in theorganization or content of the Project, or the redistribution ofProject funds between modules, in order to make proposals to theProject's financiers; and

i) make sure that the Project's accounts are audited in conformitywith legal agreements with the financiers.

4.79 The Project Administrator would have special responsibility foroverseeing the strengthening of the planning capacities of six of theministries concerned with the Project (MINPAT, MINSANTE, MINEDUC, MESIRES,MTPS, and MINASCOF), as described in the sections of the report dealingwith those sectors. To that end, the CTC/DSA would enter into a contract

41

with ISMP, which would be engaged for two years to advise and support thoseministries in their strengthening efforts. The Administrator would alsooversee the introduction of program budgeting in MINSANTE (see para. 4.20).To that end, he would employ an internationally-recruited expert on programbudgeting for three years, to work closely with this ministry (and withMINPAT and MINFI) on the design and implementation of the new programbudgeting system. The costs of the consultants on planning capacity andprogram budgeting are included in the cost estimates of the respectivemodules. The Administrator would also oversee arrangements for informingpotential Project beneficiaries and the general public about the Project.

42

D. Project Costs, Financing and Supervision

4.80 Costs. The following table summarizes the Costs of the Projectby module (USS million equivalent)s

X TotelX ForoTgn B...

LocDI Foreign Tote l Exchangeo CostsPopulation

Policy Design 0.1 0.0 0.1 2.2% 0.2XAction Program 1.B 3.1 4.4 71.80 5.1X

Sub-Total 1.4 3.1 4.6 89.1% 5.3XHealth

Pollcy Design 0.3 0.0 0.8 0.01 0.8XAction Program 4.4 11.8 16.2 72.rs 18.7%Institutional Strengthening 1.2 0.8 1.9 89.8% 2.2XModule Management 0.8 0.0 0.8 1.OX 0.9%

Sub-Total 8.7 12.6 19.2 e6.4x 22.2XEducation and Training

Action Program 7.7 1.9 9.8 19.8Z 11.11Module Management 1.0 0.0 1.0 0.8% 1.1%

Sub-Total 1.9 10.6 17.83 12.55Employment

Policy Design - Studies/Surveys 1.4 0.0 1.4 0.9S 1.61Action Program - FNE

Administration 1.8 0.9 2.2 42.91 2.65Programs

Employ. A Trg. Aest. Div. 1.6 0.6 2.0 24.81 2.8xFormal Vocational Trng. 8.0 8.0 5.9 60.0% 8.8%On-The-Job Trg./Apprent. 2.2 2.2 4.4 50.0% 5.1%Self-Employment 6.0 5.0 10.0 60.0% 11.6XMicro-Enterprise Support 8.2 3.1 6.8 49.1% 7.81

Institutional Strengthening 0.8 0.2 0.6 a6.9x 0.6%Sub-Total 17.7 15.0 32.7 4.OX 37.U8

Women In DevelopmentPolicy Design 0.6 0.8 0.9 84.61 1.1%Action Program 1.6 1.8 2.9 4B.1% 8.8%Institutional Strengthening 1.2 0.6 1.8 a8.6% 2.1XModule Management 0.1 0.0 0.1 12.7X 0.1%

Sub-Total 8.4 2.3 5.7 89.85 G6.MComunity Development - PRODEC

Action Program 2.5 2.6 6.0 50.01 6.9%Iodule Management 0.7 0.2 0.9 17.79 1.0%

Sub-Total 3.2 2.7 S.9 45.25 6.85Planning Capacity and Information Base

Support Macroeconomic Planning 0.5 0.4 0.9 46.81 1.1%Information Base

Household Surveys 8.2 0.9 4.1 22.6 4.7%Price Index 1.9 0.1 2.0 5.8% 2.8%

Sub-Total 5.6 1.5 ?.1 20.81 8.2XSDA Project Management 0.8 0.1 0.9 9.9% 1.0%

Total BASELINE COSTS 47.4 39.2 86.6 45.3X 100.0OPhysical Contingencies 1.6 1.2 2.8 42.81 8.2XPrice Contingencies 8.1 1.9 6.0 87.41 6.7X

Total PROJECT COSTS 62.0 42.8 94.8 44.8% 108.9xless TAXES _ 8. 0.0 a.6 O.O% 9.9%

Total TO BE FINANCED 48.2 42.6 86.7 49.6% 99.0X

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By category of expenditure, these costs would be distributed as follows(US$ million):

I Foreign X TotslLovel Foreign Total Exehana Base Costs

A. Consultant Services & Training 9.6 4.7 14.8 88.1% 16.6%B. Equipment and Supplies I/ 8.6 16.8 26.4 68.1 29.40C. Operating Expenditures 6 8.8 1.6 8.8 17.5% 9.610. Sub-ProJects (FNE, PRODEC,Pop.) 16.2 10.2 82.6 6O.0% 37.6XE. Salaries 0.1 0.0 6.1 C.OX 7.OX

Total BASELINE COSTS 47.4 89.2 86. - 45.85 100.0XPhysical Contingencies 1.$ 1.2 2.8 42.8X 8.21Price Contingencies 3.1 1.9 5.0 87.4X 6.7X

Total PROJECT COSTS 62.0 42.3 94.8 44.8X 16.95less TAXES 8.6 0.0 8.8 0.0% 9.9%

Total TO BE FINANCED 48.2 42.5 65.7 49.63i 8.0%

I Includes vehicles, equipment, medical supplies, school desks end teaching materials.g1 Includes fuel.

The Project would finance about 320 person-months of internationally-recruited consultants (at US$ 12,000/month, equivalent) and about 200person-months of local consultants (at USS 5,SOO/month). Draft terms ofreference for long-term consultants are included in the Project File. Formny of the consultancy assignments qualified Cameroonian consultants wouldbe available.

4.81 Base costs are in June 1989 prices. Contingencies amounting toUS$ 7.8 million have been added to base cost estimates (except for the twofunds). Physical contingencies of 5 percent on equipment, vehicles,incremental operating costs and long-term consultants have been included.In view of the close link between the Cameroonian and French economies,price contingencies for both foreign exchange costs and local currency havebeen included at 4 percent per annum, which is the Bank's present forecastfor the Manufactured Unit Value (MUV) index for France for the period1990-95. No contingency allowances have been made for the programs of theFNE or PRODEC, which are considered to be fixed-amount funds. Taxes arecalculated at US$ 8.6 million. Detailed costs estimates are presented inAnnex 12.

4.82 Financing Plan. The Project would be financed by theUS$ 21.5 million equivalent proposed Bank loan, loans from the AfricanDevelopment Bank, and the Federal Republic of Germany and grants from theEuropean Community, the Canadian International Development Agency, theFederal Republic of Germany, the US Agency for International Development,Japan, the United Nations Development Program and the United Nations Fundfor Population Activities. A financing plan (see paras. 4.83 to 4.85) forthe entire Project and for each of its modules has been substantiallycompleted. Annex 13 gives the Project financing plan by donor and natureof costs. A summary is provided belows

44

Flnancina Plan(usV millTon eauivalenl) Share

IBRD 21.5 26%African Development Bank 16.0 19%European Community 10.0 12XFederal Rapublic of Germany 7.7 9%Canadian International Development Agency 7.3 9%France 3.9 5%US Agency for International Development a.5 4%United Nations Fund for Population 8.2 4X

ActivitiesJapanese Yen Grant Facility 1.0 1%United Nations Development Program 0.8 1%Government 10.8 19%

TS.7 100%

4.83 The proposed Bank loan of US$ 21.5 million equivalent wouldfinance (see para. 4.92): consultant services and training (US$ 2.3miliion), and training (US$ 0.1 million), equipment and supplies10 (US$ 4.2million), operating expenditures including fuel (US$ 1.2 million),contingencies (US$ 1.0 million), and refinancing of the PPF (US$ 0.8million). A further US$ 9.5 million and US$ 2.5 million would finance PNEprograms and PRODEC sub-projects, respectively.

4.84 The African Development Bank will provide a USS 16.0 million(equivalent) loan for employment, women in development, and communitydevelopment modules. The European Community is to provide a USS 10.0million (equivalent) grant for the health module. The Federal Republic ofGermany would provide a US$ 4.5 million (equivalent) grant for primaryhealth care and a US$ 3.2 million (equivalent) loan (0.75Z interest, 40years maturity including a 10 year grace period) for the purchase ofteaching materials. The Canadian International Development Agency willprovide a US$ 4.0 million (equivalent) grant for the women in developmentmodule, which will be administered by the Bank and is expected tocontribute an additional US$ 3.3 million (equivalent) grant to finance theCameroonian household survey system. The French Fonds d'Aide a laCooperation expects to put aproximately US$ 3.6 million and US$ 0.3 million(equivalent) as grants into the health and education modules respectively.These grants will be part of grants of FF 30 million and 32.5 million whichFrance expects to devote to these to sectors. USAID is expected to providea US$ 3.5 million grant to finance support to NGOs in the Extreme NorthProvince as part of the action program of the population module, andsupport to OIC through the employment module. UNFPA is expected to prov:idea grant of US$ 3.2 million (equivalent) to co-finance the populationmodule. The Japanese yen grant facility administered by the Bank hasconfirmed a US$ 1.0 million (equivalent) grant for the population module.The United Nations Development Program intends to put some US$ 0.8 million(equivalent), on a grant basis, into support for macro-economic planning.

4.85 The US$ 10.8 million equivalent Government contribution toProject costs would consist of its 15 percent share of the FNE

10Includes vehicles, equipment, medical supplies, school desks, andteaching materials.

45

(US$ 4.7 million equivalent), and its coverage of the salaries of presentGovernment employees who would be assigned to Project tasks, estimated atUS$ 6.0 million equivalent. To ensure that the Government's contributionto the FNE would be available when needed, it would establish a ProjectAccount in CFA francs. After an initial deposit of CFAF 100,000,000 (aboutUSS 0.3 million equivalent) which would be a condition of effectiveness ofthe Bank loan, the Government would replenish the account as and whenrequired.

4.86 Because of the nature of Project activities, there would be fewnew recurrent expenditures resulting from Project activities, about US$ 1million equivalent per year, less than 1 percent of annual currentexpenditures (aprox. US$ 1.8 billion for FY90) (see Annex 15). The neteffect would actually be smaller since some of these would be financed fromthe cost-recovery features of the health and women-in-development modules,or would be matched by the economies expected from new policies forgranting university scholarships and housing and feeding universitystudents. The project would increase Cameroon's debt service burden(approx. US$ 0.4 billion for FY90) slightly, e.g., in the year 2000 projectrelated repayments are estimated at US$ 4.9 million equivalent (Annex 15).

46

4.87 Procurement. Procurement arrangements are summarized in thefollowing tables

PROCUREMENT ARRANGEMENTS(US9 Mtill one)

(Including contingencies, excluding taxes)(amounts In parentheseso would be financed by IBRD)

NOTICe LCB OTHER APPLICABLE TOTALS

Equipmant and Supplilea 0. 4.2 21.8 26.9(0.6)31 (4.2)V (4.6)

Consultant Servicoej/ 2.6 7.1 9.7(2.6) (2.8)

Training 0.1 4.6 4.6(0. 1) (0. 1)

Operating Expenditures 1.4 10.9 12.8 4/(1.4)E/ (1.4)

Sub-Projecto (FNE, PRODEC, Pop.) 12.0 20.6 82.S(12.0) (12.0)

PPF Repayment 0.8 0.8(0.8) (0.8)

TOTALS 0.6 4.2 16.1 64.8 86.7(0.6) (4.2) (16. 1) (0.8) (21.5)

Vehicles and equipment for employment.kJ Equipment, school desks, and teaching materialo for education; vehicles and equipment

for employment, SDA project mana aent, *nd the price indices component of the planningcapacity and Information base module

!/ Of which: technical assistance 421, salorles of recruited personnel 401, studies 11S,and supervtelon and evaluation 7X.

jI Includes ctivil servieo salaries (financed by the Governmnt) and fuel.Includes minor 1item (fuel and supplies) costing US$ 2S,000 or les, with an aggregatevalue estimated at USS 0.6 milIIon (equivalent), which would be procured on tho basisof price quotations from not laes than three reputable suppliers.

Procurement arrangements for individual modules may be found in Annex 14.

4.88 Goods financed by the Bank, would, to the extent prac_ical, begrouped to encourage competitive bidding. Contracts amounting toUS$ 100,000 (equivalent) or more, would be subject to internationalcompetitive bidding procedures according to Bank guidelines. The aggregatevalue of such contracts is estimated to be US$ 0.5 million (equivalent).Contracts amounting to less than USS 100,000 but more than US$ 25,000(equivalent), with an aggregate value estimated at US$ 4.2 million(equivalent), would be awarded following local competitive biddingprocedures, acceptable to the Bank. Minor items costing US$ 25,000 orless, with an aggregate value estimated at US$ 0.6 million (equivalent)11,would be purchased through quotations solicitated from not less than threereputable suppliers. All contracts estimated to cost more than US$ 50,000equivalent would be subject to Bank approval after prior review of

11Fuel and supplies included under operating expenditures.

47

procurement documentation. Funds advanced through the employment fund forsub-projects would cover allocations for training, advisory services, andsmall-scale purchase of goods. Some of these expenditures would notinvolve procurement; however, where procurement of goods or small works isinvolved, it would be subject to the same rules, except that procurement bysmall enterprises receiving funds through the self-employment and micro-enterprise support programs of the FNE would be in accordance with prudentbusiness practice. In the case of PRODEC's sub-projects, it would beimpractical for the Bank or the management unit of the CTC/DSA to review indetail the procurement procedures of NGOs and other agencies implementingsuch projects, but the agreements between PRODEC and such agencies wouldfollow guidelines to be approved by the Bank and would stipulate thatprocurement would be in accordance with prudent business practice.Consultants financed by the Bank would be engaged in accordance with theBank's Guidelines for the Use of Consultants.

4.89 Some of the materials, i.e. school desks/benches valued at USS2.3 million equivalent (including contingencies and excluding taxes), wouldbe grouped in small packages suitable for decentralized local tenderingthrough local competitive bidding procedures. Since these desks aretypically produced by local craftsmen and are expensive to transport,decentralized local procurement would be both faster and less expensive,and would have the ancillary benefit of generating rural employment andincome among the bidding craftsmen. This would also eliminate logisticalproblems associated with centralized distribution from Yaounde. It isunlikely that packaging the desks for procurement by ICB would result ineconomy or efficiency of procurement. It is also unlikely thatinternational manufacturers would be interested, in view of the need tosupply the desks at the point of use, given the distribution problems thiswould pose.

4.90 Procurement of goods and services financed by other donors wouldbe in accordance with their own procurement rules.

4.91 Disbursements. It is estimated that the proposed Bank loan wouldbe disbursed over a period of six years, compared to a RegionalDisbursement Profile of seven and a half years for technical assistanceprojects. The shorter disbursement period is justified by the nature andtiming of Project activities. Year-by-year disbursements of the Loan areestimated as follows (US$ million equivalent):

FTisca I YOar Annual Cumulative

1992 6.4 7.61998 4.6 12.01994 8.4 15.61995 3.2 18.7199B 2.8 21.5

4.92 The following table summarizes disbursements for the variousProject modules, with contingencies included under "unallocated". Thepopulation, health and WID modules are not included since the Bank loanwill not be used to finance these modules;

48

DISBURSEMENT

Amount of the Loan Percentage I/ ofAllocatod (Expressed Expenditures to

Catagory In USI millions Equlvalent) be Financed

Education- Shol ODesks 2.00 10os- Teaching manuals and materials 1.60 1001

EtplolmentMTPS Expendituros- Consultants' services and training 0.80 1001- Equipment and vehicles 0.SO 1001/865- Operating costs 0.60 86S

FNE Expenditures- Consultant services 1.20 1001- Equipment and vehicles 0.20 100%/85%- Operating costo 0.80 8SS- Vocational Training 1.00 1001- Goods and Services for:

Self-employment phase 1 2.00 1001Self-employment phase 2 6.60 100%

Cemmunity Develommat- consultaint s rvic-e 0.37 100%- Goods and services 2.60 501

PlanninQ Capacity A Information Base- Consultants, services and training 0.05 1001- Vehicles and equipment 0.04 100%/85X- Operating costs 0.10 6%

Projact Administration-ranling 0.09 100%- Vehicles and equipment 0.06 1OOX/85%- Operating couls 0.25 65%

Other- Repaymnt 0.75 Amount Due

- Unallocated 1.00

TOTAL FEW

j/ Whore two pereontags are shown, the first roeors to foreign exchange and the econd tolocal expenditures.

4.93 A revolving fund in CFA francs would be established in acommercial bank acceptable to the Bank. Upon loan effectiveness, a sum ofUS$ 500,000 equivalent would be disbursed into that account from the Bank'sLoan Account. These funds would be managed by the Project Administrator tocover Project expenditures. The account would be replenished by the Bankon the basis of eligible withdrawal applications. Normal documentationwould be submitted with most applications except that expenditures forgoods and services for community development (PRODEC) and the self-employment program of the PNE, and incremental operating costs in localcurrency, would be reimbursed against statements of expenditures withunderlying documentation held available in Yaounde for review by Bankstaff. Should any disbursements be made from tne Special Account that arenot acceptable to the Bank, the Government would deposit the correspondingamount in the Special Account or refund it to the Bank.

49

4.94 Accounts and Audit. The Government, through the management unitof the CTCIDSA, would maintain separate accounts for all Projectexpenditures. The accounts and statements of expenditure would be auditedeach year by external auditors acceptable to the Bank. The audit reportswould be submitted to the Bank not later than six months following the endof the Government's fiscal year.

4.95 Reporting. The Project Administrator would prepare semi-annualreports to the Bank, as of June 30 and December 31 of each year, describingthe progress of all modules of the Project, problems encountered, solutionsadopted, and the program of work for the following semester. Each reportwould include copies of the reports that the Government had received fromagencies implementing sub-projects and reports from the managing units ofboth the FNE and PRODEC describing their sub-project monitoring work in thepreceding semester, again highlighting problems encountered and solutionsadcpted.

4.96 Supervision. The Lank would devote a large amount of staffresources to this innovative Project, financed in part from the Bank'sadministrative budget and in part from the special budget of theinternationally-supported SDA Unit in the Africa Region. The Bank'sresident mission in Yaounde would play an especially important role inProject supervision. A Project Launching Workshop would be organized withthe participation of Bank staff soon after loan effectiveness, to reviewwith Government and other staff concerned with the Project, the Project'sobjectives, its design and its first-year work program. The Bank wouldreview a random sample of subprojects financed by PRODEC and credits tosmall enterprises financed through FNE, to ensure that Project funds werebeing used for the purposes for which they were intended. The Projectwould undergo a mid-term evaluation not later than December 31, 1992.

V. BENEFITS AND RISKS

5.1 Benefits. The Project should bring benefits to the vulnerablegroups in the population, both in the short and long terms. It shouldresult in the formulation of cost-effective and well-oriented basicservices in the areas of population, health and education. It shouldfacilitate the participation of women in development both by improvingprograms directly targeted at women, and by ensuring that economic andsocial programs directed at the population at large fully take theinterests of women into account. It should enhance the creation ofemployment opportunities, notably for persons leaving the public sector,and offer training and re-training to better equip job seekers to findemployment. It would stimulate small self-help activities at the communitylevel run by the people who best understand the needs of local groups.Finally, the Project should help the Government to build up an informationbase on the location of poverty and its evolution.

5.2 Risks. One risk stems from the complex nature of the Projectwhich would involve many different Cameroonian agencies, not all of whichwould automatically move speedily to execute Project components inaccordance with Project objectives. This risk is complicated by the

50

presence of several external donors. A second risk is that there could be,despite the Government's strong commitment, resistance to the populationand women's components of the Project which may conflict with establishedcultural attitudes. A final risk arises from the innovative nature of theself-employment and micro-enterprise support programs.

5.3 The first risk would be reduced by the Project's modular approach(para. 4.4) which would simplify Project execution and facilitate thechannelling of external finance. The second risk would be mitigated by theintensive information programs to be carried out by the Government.Finally, the safeguards built into the self-employment and micro-enterpriseprograms will minimize risks associated with these innovative sectors, andboth would be subject to review after a limited testing period, andcontinued only if the review indicates that continuation was justified.

VI. AGREEMENTS AND RECOMMENDATIONS

6.1 During negotiations agreement was reached on the followingmatters:

a) the establishment of a health sector coordination mechanism notlater than September 30, 1990 (para. 4.22);

b) statements of population and health policies, which would bediscussed with the Bank and adopted and issued not later thanJune 30, 1991 (paras. 4.6 and 4.13);

c) A timetable for the introduction of the essential drugs and costrecovery programs throughout the public health system by December31, 1992, satisfactory to the Bank, the management of theproceeds from cost recovery at the level of each facility, andthe communication to the Bank of updated lists of the drugsconcerned by December 31 of each year (para. 4.14);

d) a program-budgeting system for MINSANTE, satisfactory to theBank, which would be defined by December 31, 1991, and the firstprogram-budget introduced in fiscal year 1992/93 (para. 4.20);

e) a Multisectoral Strategy to enhance the role of women indevelopment, which would be discussed with the Bank and adoptednot later than March 31, 1992 (para. 4.54);

f) ECAM's Users' Committee, which would be established not laterthan September 30, 1990 (para. 4.70); and

g) a mid-term evaluation of the SDA Project, which would take placenot later than December 31, 1992 (para. 4.96).

6.2 During negotiations understandings, the subject of supplementalletters (a-f) or attached to a letter of transmittal to the Bank (g), wasreached on the following matters:

51

a) a detailed implementation plan for the action program of thepopulation module including lists of the health centers andmaternities concerned, and criteria for the allocation ofresources (para. 4.9);

b) a detailed implementation plan for the logistics, procurement,and distribution of materials and equipment for each component ofthe action program of the health module (para. 4.19);

c) a plan for FNE start-up activities (para. 4.46);

d) a detailed implementation plan for the action programs of thewomen in development module (para. 4.60);

e) an operation plan for PRODEC (para. 4.64);

f) detailed implementation plans for ECAM and the price indices(para. 4.74); and

g) a matrix of the actions that the Government will take to addressthe social dimensions of adjustment (para. 4.2 and Annex 2).

6.3 The following would be conditions of effectiveness:

a) appointment of the members of the CTC/DSA and of its deputyadministrator and accountant (para. 4.76);

b) appointment of the advisor to the Director-General of the FNE(para. 4.46); and

c) establishment of the Project Account for the FNE and initialdeposit of CFAF 100 million therein by the Government(para. 4.85).

6.4 The following would be events of default:

a) a Bank finding that Government performance under the StructuralAdjustment Program was unsatisfactory (para. 4.2) and

b) A Bank finding that Government performance in the preparation ofthe statement of policy, the medium-term action plan and long-term implementation strategy for education was unsatisfactory(para. 4.32).

6.5 The following would be conditions of disbursements for thefollowing modules:

a) Education: for all categories of disbursements, satisfactorydetailed lists of materials and equipment for the action programand plans for their procurement Pnd geographic distribution(para. 4.32).

52

b) Employment: (i) for the FNE's formal vocational training andself-employment programs, the effectiveness of the ADBAgreements, constitution of the Board of Directors of the FNE,adoption of the organigram and operating procedures for the FNE,the execution of the FNE subsidiary agreement, and appointment ofthe manager of DAIR, of the manager of the FNE unit administeringthe self-employment program and of his advisor, all withqualifications and experience satisfactory to the Bank (para.4.46). and (ii) for the second phase of the self-employmentprogram, Bank agreement following evaluation of the first phase(paras. 4.50).

c) Community Development: for the sub-projects of the actionprogram, the effectiveness of the ADB Loan agreement and adoptionof guidelines for PRODEC sub-project selection, appraisal, andsupervision, acceptable to the Bank (para. 4.67).

6.6 Recommendation. On the terms and conditions proposed, theProject would be suitable for a Bank loan of U$ 21.5 million equivalent.

53

Annex 1: Page 1 of 4

Annex 1

Extractsl from the Government's Statementof Development Strategy and Economic Recovery: Human Resources

and Integration of the SocialDimensions of Adiustment

e. Human resources

The Government reaffirms its willingness to preserve what Cameroonhas achieved in the field of human resources and to undertake thefollowings

- examine the structural and financial situation of theeducation/training and health sectors;

- define the essential components of the Government's program inaccordance with the vital socio-economic objectives of thecountry;

- propose a strategy which takes into account the resources requiredto achieve the country's vital objectives, on the one hand, andthe appropriate budgetary allocations and borrowing policy on theother.

The above development strategy should help ensure that the processof structural adjustment does not result in the deterioration of themost essential social indicators.

i) Education/training

The main lines of action will be the following:

- prevent any decline in the current school attendance rate atthe primary school level;

- gradually improve the intrinsic quality of teaching at alllevels;

- strengthen training activities which are closely linked tothe effective demand in the labor markets;

- review the objectives of higher education in the light ofthe above and, within this context, revise the scholarshipaward system in order to make it more efficient and betteradapted to the new socio-economic conditions.

lThe complete text may be found in annex to the "Report of the Presidentto the Executive Directors on the Structural Adjustment Program in Cameroon"(Report No. P-5079-CM, dated May 16, 1989).

54

Annex 1s Page 2 of 4

ii) Health

The main lines of the strategy shoulds

- reflect priorities based on a re-examination of theepidemiological situation and national objectives such asthe promotion of mother and child care and responsibleparenthood;

_ promote preventive and primary health care in rural areas;

- improve the quality of health personnel through training andre-training;

- in hospitals, emphasize measures designed to rationalize thesystem, including the improvement of staff management andoutput, and above all, the ability of hospitals to playtheir role as referral institutions.

K. INTEGRATION OF THE SOCIAL DIMENSIONS OF ADJUSTHNMT

The central objective of the Development Strategy adopted by theGovernment is to reestablish sustainable growth with equity over the medium-term. But growth is not by itself a sufficient condition to reduce poverty andto improve the living conditions of households. Therefore the Governmentintends to implement, at the heart of its Structural Adjustment Program, aSocial Dimensions component with the following objectivess

(a) In the short- and medium-term, to protect the mostvulnerable groups of the population in the course of theadjustment program, as well as groups that are directlyaffected by adjustment measures;

(b) In the medium- and long-term, to promote the participationof the poorest groups of the population in the economicrecovery process.

The implementation of this component hinges on the design andimplementation of five complementary action programs in the following sectorstpopulation and health, education and training, employment, role of women, andinstitutional framework. In this context, the Government intends tot

- define a new national population policy, and mobilize thenecessary resources to implement it;

- define a new national health policy, aimed in particular atstrengthening and broadening the national primary healthcare program, including the introduction of a familyplanning component, and implement the Bamako Initiative, in

55

Annex 1: Page 3 of 4

particular an emergency program of acquisition anddistribution of basic supplies and essential drugs for theprimary health care system;

reorient the national policy for education and humanresource mobilization, and design and implement thecorresponding reforms and operational strategies, inparticulart (i) acceleration and improvement of training oftrainers for technical schools; (ii) redynamisation ofprofessional training as a function of market needs; and(iii) implementation of an emergency program of acquisitionof basic supplie.s for primary and technical schools;

establish program-budgets in all social sectors based onplanning by objective, including a core social expenditureprogram for the poorest groups in the population;

design and implement a series of actions aimed at promotingself-created employment and the reinsertion into the privatesector of laid-off civil servants and public enterpriseemployees, in particular through (i) technical and financialsupport for the creation of micro-enterprises; (ii) on-the-job training and short-cycle professional training, andsupport the implementation of these actions through settingup a fund for employment;

design and implement the reforms and operational strategiescorresponding to the national policy for the promotion ofwomen, including (i) the revitalization of the urbanstructures of MINASCOF; (ii) a special support for women inthe framework of the micro-enterprise creation program; and(iii) a program aimed at improving the productivity of womenin rural areas.

In order to achieve these objectives, the Government intends to:

reinforce the planning and coordination of socio-economicpolicy by (i) integrating distribution and employmentcomponents in the design of macroeconomic strategies; (i')reinforcing planning and coordination capacities of theMinistry of Plan, in particular for integrating humanresource strategies in the overall development strategy;(iii) reinforcing planning and programming capacities in allministries in charge of the social dimensions of adjustment,in particular for the design and implementation of program-budgets;

improve the follow-up of the evolution of socio-economicconditions of the various population groups, through theimplementation of a permanent household survey, and throughthe processing of available socio-economic statistics;

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Annex 1: Page 4 of 4

reinforce the process of participation of grass-rootsorganizations in socio-economic development, in particularthrough the establishment of a fund for communitydevelopment.

I

Annex 2: Page 1 of 12

Annex 2

Matrix of Actions

POPULATIOX

OBJECTIVES ACTIONS TAKEN MElASES PROPOSED TIMETABlE

I. Sectoral Policy: Definition of Creation of the National Population Analysis of demographlc trends and Jun. 1990Population Policy Commision and tho Interministorial implications for social and economie

Techniceal Comitee developent

Elaboration of polICy 90o1 by tho Inventory nd evaluation of June 1990National Population Commislon experience In family planning

Creation of a group for workshop Organization of provincial workshops August 1990preparation on the draft population policy

doe _ nt to promote nationalOrganization of a natlonal workshop coernwsus

Writing of draft population policy September 30,document 1990

Examination of the draft by the November 1990National Population Commission

Completion of the notional population February 23,policy documet 1991

Adoption and publication of the June _ 0, 1991national population policy document

It. Action Program. Extension of tho Family Development of tho high risk Elaboratlon of a reference document June 80, 1990slanning Program (SMI/PF) pregnancy program for the Family Planning Program

(SMI/PF)Nominotlon of people to dovelop theaction program Preparatlon of Invitations to bid for November 1990

family planning suppliesEvaluation of needs for supplies endpersonnel Follow-up of the Responsible Starting In

Parentbood Program Including review April 1991of "GO acttivities

Annex 2: Page 2 of 12

HEALTH

OBJECTIVES ACTIONS TAKEN MEASURES PROPOSED TIMETABLE

I. Soectoral Polity

a) Definition of health aector Organixation of a seminar for health Creation of the Higher Comeisslon on Jun 30, 1980policy practitioners to evaluato the the Hoalth Developmet (CSDS)

health systemSynthonize exleting data and sectoral July al, 1990

Creation of a Working Oroup on onalyse.acetoral policy development

Organization of provincial workshops October 80,Inventory and ayntheaiz oxisting on the constrainto on and optiona for 1990date and sectoral analyse3 aectoral policy

Organization of a national workshop Syntheale of racomandationa Dee mber 31,1990

Write draft health policy document February 1991

Adoption of the health policy and an June 191 toperational strategy for ita oolmplementatlon

b) Definition of coat recovery policy Pollcy deteroined Preparation of draft cgot recovery July 1990polley

Pollcy implementation tosts Starting April1991

Adoption and genralxzation of the December 1992policy and mebanisms for costrecovery

II. I,stitutional Strongthening

a) Strengthening of MINSANTE*s Signing of a technical assistance June so, 1990planning capacity Contract with ISP

Inventory of existing capacity and September go,evaluation of neod 1990

Elaboration of a plan to strengthen Novemer 1990MINSANTE In the areas of training.personnel, supplies, and equipmnt

Annex 2: Pag 8 of 12

Adoption of the strengthening plean December 1990

Preparation o training proam for February 1991MINSANTE peosonnel end rembr ofmanagement comaitten

Training of MINSANTE personnel snd Starting Marchmembers of manaoement comittasa 1991(traitring of trainers)

Evaluation and up-dating of the Annuallystr.ngthening plan starting 1991

b) Strengthening of MINSANTE 's Creatlon of a eoordination structure June 1990managoont capacity for the Populatlon and Health Modules

of the SOA Project

Recruitment of a consultant export in August 1990program budget

Development of methods of proram September 1990-budgeting for MINSANTE, taking into December 1991aceount the decline in vevrnmentresources while aiming to Improve thequality of health service. w

Prepartion of a droft progrm budget January 1992for fiscal year 1992-93

rIt. Action Prrog :

Improvement of bsnic health service Nmtination of people to develop the Preparation of invitation to bid for September 30,delivory and reversal of the tendency action progra. essential medicine, oquipment and 1990for the quality and scope of service uppiles, Including yearly vaaccne.to decline Evaluation of needs for supplies, upplies

equipmant. initil stock ofmeodlcines vaccine, and personnel Procuremont November 1990

Inventory and rasosignment of ollpersonnel In health centors to berehabilitated

a) Support for primary health Support for irimary health care, Annuallyservice., vaccination program and vaceinatlon cmpigns, EEC, and starting 1991IEC extension of the STO/AIDS program

Strengthening of the vaccination Annuallyprogram starting 1990

b) Extons.ion of the STD/AIDS prOgram Doevelopment of anti-AIDS program

An_t 2: Page 4 of 12

EDUCATION

OBJECTIVES ACTIONS TAKEN EASURES PRWOSED TIMETABLE

I. Sectoral Policy: Define fundaoental Preparatlon of Terms of Reforence In Creation of on intarmnistrial teask June 1990tmproveents In the education system to view of the preparatlon of the new forte (groups do pilotage) to pilotpermit a) maintaIning the quentitstive policy and etrotegy the design of nw sector policiesaievlewme_t In primary oducation,b) Improving the quality of education at oll Preparation of policy attemest Dckember 81,loevls, and c) improving the relevance of 19SDeduetion and training to the country'seconomic and social needso Preparation of long-ter Strategy and March 1991

medium-tem Action Plan

II. Institutional Strengthening: Siglning of a Tochnical Assistanc June 1990Strongthen the capacity of MINEDUC, MESIRES, contract with ISMPand the University of Yaound tot

Inventory of existing capabilities September 1990a) Plan their objectives and and evaluation of needaoporational etrategie _'

Estabilsment of a strengthoning plan November 1990 0for personnel training, supplies andequipmet In selected scbools

Adoption of the strengthening plan December 1990

Preparatlon of training programs for Jsnuary 1991porsonnel and members of managementcomeittees

Training of personnel and maebers ot Starting Marchmanagement committoee (training of 1991trainors)

Recruitment of a consultant export In August 1990program budget

b) Manage their resources and DOevolopment of methods of proream September 1990programs more officiently while budeting for INDEDUC, taking into December 1991taking budgetary restrictions Into account the decline In Covernmentaccount resources while aiming to improve the

quality of education services

Preparation of draft prgram budget January 1992for fiscal year 1992-98

AneFx 2: Pae 5 of 12

III. Action Program: Improve tho quality Establishment of a lhot of teachers' Deinition of distribution plan for September 1990

of primary and secondary/technical education oanuals, equipment, and teaching aids thseo cuppllea and teaching aidsand proent d ellns In the level of school for MI4EDUC in acordanco withattendance by ensne of quiekly supplying guideline developod with the Bank Request bids for manuale, school October 1990

need reources bencheo, equipment, and teaching aideEstiatsation of the coat of thosematerials

Annex 2 Pago 6 of 12

EMPLOYMENT

OBJECTIVES ACTIONS TAKEN MEAStRES PROPOSED TITABLE

I. Creation of a ame structure for the Creation of a National Employment Internal organization of FME and October 1990promotion of employ20nt fund (FNE) cotn nced by private and dbptton of operational procedurespublic employrs, wage-arners anddoner

II, improvem_t of the flow of Crato within the FtE a Reinsertion October 1990tnfornation In the labor mrket Assistance Servic, to counsol andorient job seokers, particularlythese leaivng the public sector

Develop an information systea on the October 1990functtening and porformance of thelabor market

Identification of 76 lnittiol public tinderta e a survey of the types. July 1990enterprise to be reotructured, charactrisetics, and skillh of peoploprivatized, or closed likely to leave tbhso public

enterprises

III. Improvemwt ond adaptation of the Estebiish progrms of suppor "- on- October 19S0supply of labor the-job training and apprtnticess M, 0'leading to further employmene .1. On-the-job trainingEstablish PAIR within FN£ in vio,s 01 July 1SS02. Apprenticeships undertaking ctions of coordination,assistance ln program design, andS. Formal training channeling of candidates toappropriate Institutions

Reinforce the actions of OIC Cameroon StartingIn carefully selected areas Oecember 1990

Renforce the actlvities of the Rapid StartiagProfessional Toalning Centers and the December 1890Handicraft Centers

Encourage and support the training Startingprograms of other local or Decembor 1990international PWOOs in areas of oeed

Finish the inventory of existing July 1990Institutional capacity forprofessional training

Annex 2: Pe" 7 of 12

IV. Stimulation of the dtetnd for labor Establi h a progran of support forseIf-a_ loyment

1. Self-e_ploymnt (I) Pilot phase December 1090

(11) Mld-term evaluation December 1992

January 1993(iii) Possible secon" phase

2. Micro-enterprIses Establish a program of techntcal *ndfinancial assistance to ,xisting andnew micro-enterprisee whicb geeratecmployment

(I) Pilot phase Dcember 1990

(Ii) mid-term evaluation December 1992

(111) Possible second phase January 1998

a. Increase the demand for labor Studies to be undertaken by MIPS in

In the Public Investment Program view of steadily increasing laborIntensity of PIP projects:

(i) devolop criteria for project December 1990 a'selection which take manpower Intoaccount

(ii) Identify labor intensive December 1990projects

V. Improve the functioning of the labor National Labor Survey: pilot phase Recruitment of a consultant export in September 1990

market over the medium and long tor surveys on manpoer

Finish the National Lebor Survey December 1992

Study the possiblity of creating a March 31, 1990volunteer service os a "oans ofgiving youths practical workexperience

Annex 2: Pao e of 12

WOMEN IN DEVELOPMENT

OBJECTIVES ACTIG5 TAXEN MEASWRES PROPOSED TIMETABLE

I, leoilopment of a National Stratesy and Diteeusions of term of reterence Literature *earch of studie on the October 1990ction Plan for the inteogration of oemen In situation of wo-en In Caoro.. *nd

all development actions, and the development Establtehment of the Consultative identific tion of knowledge gSY.of policies to be followed by other Cositt.e for the promotlon of woewnministries that will ntOegrate the interests Inventory of aoeniet active In the October 19S0of women Into ecttoral program. area of Womba In bevlopsent

Research program on the situation and Starting Marchporticipation of women In key Sectors 1991of the economy

Formulation of a national strategy March S1, 1992and multisectoral action plan as wellas machaniam for Itsoperationalisation

II. Technical and Institutional Signature of a decree creating a December 1990strengthening of UD(ASCOF Planning, Coordination and Evaluation

Unit within MINASCOF

Strengthning of MINASCOF's technical Supply necessary uipoment to the January 1091 ZIcapscities for planning, coordination Planning Division (Di-vision do laand evaluation of all activities Planitf4ation)concerning tho fuller Integration ofcome In developmet Evaluation of the human resource and June 1991

technical oepertise In MINASCOF

Collaboration between MINASCOF and Starting Junethe other ministries to rationalize 1991the various rural oxtension *ndconunity devolopment services

Introduction of key indicators of the Starting Junesituation and contribution of woma 1989In the Permanent Househoid Survey

Annual publicetion of a progreos Starting 1992report on the situation of woman

Croation of an administrative unit to June 1990supervise the WID module activities

Reorientation of MINASCOF'a mandate Signature of decree establishing the September 1991towards a normative, conceptual and reoriented role of MINASCOF A spedl-coordination role. fyng operationalization of noew man-

date through system of Institutionallinks with key ministries

Annex 2: Page 9 of

III. Bludgeting Rocrultm2nt of an International December 1990Soclo-economlst consultant

Definition of a budgeting mchanilm Fiscal yearto ensure the sustained and effective 1892-93iOplementation of tho eultisoctoralaction plan

NY. Action Progras

A. Rationalization of women"ssupport structures

a. Develop_nt and establishement of Development of terms of reforence for Training of teach)ng personnel of Starting July

a phased program to improve the the study on the rationalization of urban centors 1991

Impact of MINASCOF*s urban support IINASCOF's urban servicosservices (Woomene Homes Social Trainlng of Managers of selected Starting July

Conters, etc.) urban support structures 1991

Des1gn and publication of manuals for Startingthe improvment of Hom Econics Soptember 1991programs

Study on Improving the management of Startingurban support services and on Decemeor 1990reinforcing mechanims of self-financing eW

Improvement of Home Economics courses Starting JuneIn urban support centers by 1991reorienting them towards Income-generating skills and adding familyplanning program

Submission of a list of eolected Starting JulyUrban Centers 1990

Implementation of recommendations of Starting maythe study 1990

Training Program for rural anieators Starting May

b. Strengthenin of the mediating 1991

role of MINASCOFV* rural supportservices Supply necessary equipment to rural Starting may

animators 1991

B. Launching of the Information, Development of methods for Evaluation of the proposed activitieos Starting August

Education and Comuntecation Program Iplementing the Progam for seltf-fitnancting and IEC activities 1991

(IEC) suggested by solected Urban Centers

Supply Urban Canters with necessary Starting Aprilequipent in order to ca ry out self- 1991financing and IEC activittes

Annex 2: Peg" 10 of 12

Orp° niation In the reinforced urban Startineservices of coursoo and msminor for Octobor 1991adult -enen on the creation andmonagemt of Income oneratingactivitios and on literacy

Recruitment of an internotional Augut 1991conoultant expert In IEC

Lounchi e3 of the IEC campaign StartingDecembr 1991

C. Mid-term evaluation Joint mid-term eveluation December 1992

0o

Annx 2: Peg 11 of 12

coMMITY DEVELOPET

esJECTMS ACTMON TAI0 EWASm PROPOSED gV TiAE

I. Reinforcmeont of co_nwnity participation Project. identifled and appraleod tn Eatabishment of manage2ent unit July 1990

in soclo-economic development four clties

Creation of a Comunity Oevlopmet ge of oe., .Ba procedures 1990Program Financing of pilot projects November 1990

Full Implementation of program in January 1991four ares

-J

Annex 2: Page 12 of 12

PUNNING CAPACITY AND INFORIATION BASE

OBJECTIVES ACTIONS TAKEN MEASURES PRlPOSED TIMETABLE

r. Intogration of the social dimeneion Integration Into the Oeclaratioa of Bring the social accounting matrix up January 1991Into the development of macro- Developpent Strategy to dateeconomic strategios

Reinitiato the soneral oequlibrium Januory 1991model

Dovelop ability to illustrate January 1991consoquencos of alternativo economicpolicies (scenario.)

rr. Reinforcement of the ability to Consumption budget ourvey (EBC) 1983- User's Committee Establishment Septembre 1990follow the evolution of soci-econoeic 84conditions at the household level Prority Survy

Data processing and publication of - Pro-survoy activities July - OctoberEBC's results 1990

Preparation of a technical survey - Field Date Collection November -document December 1990

- Data processing and analysis January -August 1991 oa

Init.rated Surve- arc-surv ty aetivitie August - July

1991

- Field Data Collection August 1991 -July 1992

- Data processing and analysis August -December 1992

Priority and Community Surveys January -Dcember 1998

Third Priority Survey January -December 1994

III. Follow the evolution of prices Price Index collection sminar Organize the data collection and keop Startingthe price indices up to date January 1990

69

Annex 3: Page 1 of 8

Annex 3

Population and Health ProgramsObiectives:

1. The population and health modules of the SDA project aim atassisting the Government in three areast

(a) Sector Policy Development: The Project would support Governmentefforts to prepare a national population policy, a health sectorpolicy and operational strategy, and an essential drugs and costrecovery program;

(b) Institutional Strengthening: The Project would improve theinstitutional capability of the Ministry of Health (MTNSANTE) bystrengthening the strategic planning, financial management, andcoordination capabilities of the ministry and by instituting aprogram-budgeting process to improve resource efficiency in thesector; and

(c) Action Program: To reverse the decline in quality and coverageof existing services, the Project would re-equip and revitalizebasic health care facilities and strengthen curative andpreventive services in the priority areas of immunization,primary health care, family planning, and communicable diseasesincluding sexually transmitted disease control and AIDS; tomobilize domestic resources for non-salary operating expenses,prior to nation-wide expansion, the essential drugs and costrecovery programs would be tested.

The combination of policy reforms, institutional development, and theaction program would lay the groundwork for a future sector reform program.

Sector Policy Development

2. Population Policy. A National Population Policy Document wouldbe produced with the support of the Project. In order to carry out thistask, the Government has created a National Population Commission andappointed a Technical Committee to prepare material for a series ofnational and provincial workshops to build nation-wide consensus on policyoptions. The Project would support these activities and would finance thedrafting and publication of the policy document as well as the preparationof a medium-term action plan for the implementation of the populationpolicy objectives. The major objectives of this policy as identified bythe Commission would be to:

(a) establish equilibrium between population growth and thedevelopment of the country's resources;

(b) regulate fertility by educating the population on responsibleparenthood and by promoting family planning and birth spacing;

70

Annex 3: Page 2 of 8

(c) accelerate reductions in mortality and morbidity rates;

(d) upgrade the quality and productivity of Cameroon's humanresources;

(e) promote and improve the role and status of women in the socio-economic life of the country;

(f) improve the quality of life in rural areas and promote improvedurban planning;

(g) provide improved youth training; and

(h) intensify the fight against sterility.

This policy document would be promulgated by June 30, 1991. Specialtraining would be provided under the Project to Government staff in orderto build national capabilities to successfully implement the new policy.

3. During the next four years, family planning services would beextended to the provincial capitals and some divisional headquarters wherethere is an unmet demand for family planning services. The Project wouldfinance activities for extending these services including the provision ofequipment and medical supplies, contraceptive commodities, office supplies,staff training, logistic support, and supervision and evaluationactivities. The Project would also finance information, education, andcommunication activities to sensitize the population on the availability,uses, and benefits of family planning. Under this program, NGO activitieswould also receive financial support during this initial phase of expandingfamily planning services. Support to the family planning program wouldsupplement assistance the Government currently receives from UNEPA andUSAID. Project funds for this sub-component would amount to USS 0.2million for policy development, USS 3.5 million for extending maternallchild health and family planning services to the provinces and USS 1.0million for supporting NGO activities in family planning.

4. Health Sector Policy and Operational Strategy. The Project wouldhelp the Government refine its health sector policy and operationalstrategy. The major objectives of the new policy would be tos:

(a) give greater priority to primary health care than to high-cost,hospital-based curative care;

(b) drastically reduce the prevalence of communicable disease andinfections among children and women of child bearing age;

(c) give greater priority to maternal and child health end familyplanning;

(d) protect the general population against major endemic diseases;

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(e) develop community based services and promote increased co=Vunityparticipation in health care;

(f) develop a decentralized and efficient referral system of healthcare;

(g) define and adhere to new criteria for sector investments andstaff deployment which take due account of prevailingepidemiological situations, regional disparities in existingservices, population distribution, and implications for operatingcosts; and

(h) introduce an operational strategy which seeks to reduce the unitcost of health care.

A National Commission for the Development of a Health Sector Policy wouldreceive financial support and technical assistance in organizing nationaland provincial workshops on sector constraints and policy options, and inthe drafting of a policy statement which would be adopted by June 30, 1991.The new health policy statement would outline quantitative objectives andoperational strategies for achieving these objectives as well as mechanismsfor coordinating, monitoring, and evaluating medium term programs forimplementing the new sectoral policies.

5. Essential Drugs and Cost Recovery Policy. To ensure theavailability of essential generic drugs and to reduce the unit cost ofbasic services, the Government would develop essential drugs and costrecovery policies and set up and test appropriate mechanisms for theirimplementation. A central committee for essential drugs and MINSANTE'sprovincial delegations would be jointly responsible for developingmechanisms for implementing the Government's new cost recovery program.During negotiations agreement was reached with the Government that theessential drugs and cost recovery systems would be introduced in all publichealth facilities by December 31, 1992 once they have been developed andtested and that proceeds from cost recovery would be retained at the levelof each facility to replenish essential drugs supplies in particular. TheGovernment's drug procurement agency ONAPHARM would in the meantime benefitfrom reforms being carried out under the Structural Adjustment Program andwould assume the task of ensuring the continuous supply of essential drugsto the health care system.

6. Support under the Project for the development of the programwould include technical assistance for the design of the system and theessential drugs for a sample of health facilities in which the system wouldbe tested and evaluated. The Project would also support activities to setup and train members of local level management committees in stockmanagement and simple accounting and financial procedures necessary forensuring the success of the new programs.

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Institutional Strengthening

7. Strategic Planning Capacity. To improve MINSANTE's strategicplanning and investment programing capabilities, the Project would supportthe development and strengthening of planning and programming procedureswithin the Department of Studies, Planning and Statistics of the Ministryof Health (MINSANTE). New programming methods would be instituted at thecentral and provincial levels to improve and streamline the process ofproject and program design and implementation. Better coordination,information, and statistical systems would be instituted to ensure betterintegration of epidemiological, human resources, and financial data in thesector. The new system would be computerized and staff providedappropriate training to manage it. Staff training, technical assistance,office equipment including micro computers, vehicles, and recurrent costsfor developing the new planning systems would be financed under theProject.

8. Resource Management Capability. To improve resource allocationand increase the efficiency of human and financial resources in the healthsector, the Project would support management reforms in MINSANTE's centraland provincial units in the areas of program budgeting and human resourcemanagement and evaluation.

9. A program-budgeting system would be instituted to ensure thatannual budgetary allocations are made on the basis of clearly definedprogram targets. The development of the system during 1990-1992 wouldinvolve the establishment of norms and targets for budgeting processes andthe training of personnel at the central and provincial levels. The newsystem would enable MINSANTE to ensure that budgetary estimates incorporatenon-salary operating cost requirements and that existing imbalances inresource allocation are corrected in favor of priority programs.

10. Support would be provided to NINSANTE to improve financialmanagement and accounting as -n integral part of a management informationsystem. The improved system of program-budgeting should enable MINSANTE toidentify and justify the selective recruitment of specialists for keypositions in the health care system. The Project would support thestrengthening of the personnel service of the ministry to undertake apersonnel inventory, and to complete detailed job descriptions and staffprofiles which would ensure an equitable distribution of availableexpertise nation-wide. Improved management support would also be providedto the newly created maternal and child health services which haveresponsibility for developing and expanding priority programs in maternaland child health and family planning.

11. The Project would finance technical assistance services fordesigning and setting up the program budgeting system and introducingimproved human and financial management systems, staff training formastering the new systems, as wall as office equipment and suppliesincluding micro computers, vehicles, and the recurrent costs required fordeveloping the systems.

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Action Program

12. Improvement of Existing Curative and Preventive Services. TheProject would support the Government's program to revitalize primary healthcare services and reverse the decline in the quality of care which has beendue to past budgetary cuts and inefficient management. The revitalizationof primary health care services programmed for 44 administrative divisionsduring a four-year period would includes

(a) curative care for local communicable and endemic diseases; and

(b) preventive measures against:(i) major childhood communicable diseases,(ii) diarrhea,(iii) malaria,(iv) tuberculosis,(v) leprosy,(vi) intestinal parasites,(vii) sexually transmitted diseases; and

(c) special programs in areas affected by:(i) onchocerciasis,(ii) guinea worm,(iii) schistosomiasis, and(iv) trypanosomiasis.

The primary health care revitalization program would involve the re-equipment of health centers and first-level referral hospitals at the sub-divisional level in which the quality of care deteriorated as non-salariedoperating funds dried up. The Project would finance equipment, medicalsupplies, vehicles, staff training programs, consultant services, fuel,travel costs, and recurrent costs generated by the developmental phase ofthis program. To ensure adequate management and supervision of thisprogram, the Project would finance training activities for 45 Divisionalmedical officers and 100 sub-divisional public health officials. Programmanagement training provided locally would involve 938 staff working in 568health facilities. This sub-component would also include the financing ofan initial stock of essential drugs for the health facilities in which theGovernment's new cost-recovery program would be tested and evaluated. Theprimary health care rehabilitation program, which would complementassistance the Government is already receiving from GTZ, USAID, Save theChildren, CARE, UNICEF and WHO, is estimated to cost US$ 11.0 millionequivalent.

13. Support for MINSANTE's Information, Education, and Communication(IEC) Program. To ensure that the population, especially in rural areas,takes advantage of the primary health care services that are being up-graded through external assistance, the Project would support an integratedIEC program to create grater awareness of available services and theiruses, to promote early recourse to health care, and to promote preventivepersonal and community health practices. The Project would financeequipment, vehicles, training workshops, evaluation consultant services

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(3 months), supervision, and recurrent costs generated by the developmentof the program. The program to be managed by MINSANTE's Health EducationDivision would cost about USS 0.5 million equivalent.

14. Strengthening the Family Planning Program. The Project wouldsupport the strengthening of provincial family planning services and theextension of the high risk pregnancy management currently being implementedin five provincial centers. The strengthening of the family planningprogram would involve 65 maternal and child health care centers and 49maternities in ten provinces with the objectives of reducing maternalmortality by 50 percent in ten years and achieving a contraceptiveprevalence rate of 25 percent during a similar period. A decentralizedtraining and supervision system would be developed and put in place. Anannual evaluation system and improved family planning statistical reportingsystem would be supported through the Project. Support under the Projectwould include equipment and supplies for ante- and post-natal care,deliveries, family planning, nutrition education and surveillance, and forhealth education. Total support to this program would amount to US$ 3.5million equivalent and would be managed by MINSANTE's Maternal and ChildHealth services.

15. Support to NGO Activities in Family Planning. To accelerate theoperational targets it has set for family planning (par&. 14) theGovernment proposes to annually review NGO family planning activities witha view to supporting such activities through the Project. The familyplanning service of MINSANTE would be responsible for this periodic review,which it would carry out in collaboration with provincial family planningservices and the NGO's concerned. The allocation of resources to each NGOwould be on an annual basis and would be determined by annual performanceand demonstrated ability to successfully implement family planningactivities. Support to NGO activities in family planning would be limitedto direct service delivery activities, supplies, IEC activities, andtraining workshops and seminars for promoting safe motherhood andregulating fertility. The total cost of support to NGO activities in thisarea would amount to USS 1.0 equivalent over four years.

16. Support to the Sexually Transmitted DiseaselAuto-ImmunodeficiencySyndrome (STD/AIDS) Program. Support to the Government's STD/AIDS programwould complement resources from other donors and would aim to achieve tbefollowing objectives:

(a) sensitize the general population on the prevention of STD/AIDS;

(b) reduce AIDS transmission through blood transfusion;

(c) monitor the evolution of the epidemic in high risk groups;

(d) improve technical knowledge on local aspects of HIV infection;and

(e) put in place an efficient coordinating mechanism and logisticsupport for the STD/AIDS program.

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To achieve these goals, the Project would support educational campaigns inthe ten provinces, carry out training workshops for four laboratories perprovince, furnish supplies for HIV rapid tests, undertake seroprevalencesurveys among vulnerable groups, experiment on institutional care for AIDSpatients, carry out applied research and KAP studies on STD/AIDS, andstrengthen the management and coordinating capabilities of the STD/AIDSservice of MINSANTE. This support is estimated at US$ 0.4 millionequivalent.

17. Strenathening the Immunization Program. The Project wouldsupport efforts to improve immunization coverage among children and womenof child bearing age. This support would involve the training ofpersonnel, equipping of health facilities to successfully and regularlycarry out vaccinations, set up EPI supervision and evaluation systems, andmaintain a reliable and efficient cold chain. The Project would financerefrigerators, vaccines, vehicles, training workshops, and recurrent costsneeded to attain the Government's objective of 85 percent immnnizationcoverage for children under 20 months of age by 1994 and for setting up1000 fully operational immunization centers nationwide by 1994. Thisprogram, to be managed by MINSANTE's Department of Preventive and CommunityHealth, would be supported by the Project to the extent of USS 3.1 millionequivalent.

Costs

18. The base costsl of the population module are estimated at US$ 4.6million equivalent (US$ 4.7 million including contingencies and net oftaxes), distributed as follows (US$ thousands):

Policy ActionDesign Program Totals

Suporviaion/Evaluation e4 64

Training 188 10 208

Technical Equip-ment & Supplies -- 2,185 2,105

AdministrativoEquipment -- 262 202

Operations &Maintenance 8 345 858

Support to Prov-lncial Sorvicos 899 99

Support to NOOs _ 1.000 1.000

Totals 140 4,406 4,651

lBase costs include taxes and exclude contingencies.

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19. The base costs of the health module are estimated at US$ 19.9million (USS 19.0 million including contingencies, net of taxes)distributed as follows (in US$ thousands)s

Prim.Pollcy Ineti. Prog. Immun HelIth Infor- STD/ ModuleDesign Stren. BudAt. ixt. Care mation AIDS Menga. Total.

Per-sonnel -- -- 1o -- 86 59 -o 951

Tech.Asot. 6 S 192 114 7 -- -- 487

Train. 16 40B -- 162 8,151 IS8 17 - 4,102Travel -- -- 106 -- -- - 82 188Mod.Equip. -- -- -- 2,284 7,047 -- 167 -- 9,488A Sup.

Intor-mation 40 -- -- -- 40 45 115 -- 240Admin.Equip. - 527 184 96 525 27 24 6 2,208ape. A;b1nt. 8 26 71 -- -- 66 - 1.215 1.626

Totals 200 1,800 5a8 8,412 10,059 452 814 1,089 19,240Note: Operations and maintenance for the action programs Included under Module Management.

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Annex 4

Education Program

PREPARATION OF A POLICY STATEMENT ANDMEDIUM TERM STRATEGY FOR THE EDUCATION-TRAINING SECTOR

1. The principal objective of the work to be undertaken is topropose fundamental improvements in the education system to permits

(a) maintaining the quantitative achievements in primaryeducation;

(b) improving the quality of education at all levels;

(c) improving the relevance of the education and training systems tothe country's economic and social development needs.

2. The financial constraints of the Government on the one hand, andthe need to expand the education system to respond to demographic growth onthe other hand, require a concentration of available resources in areas ofpriority. In this context, the Government has decided to reassess thosepriorities, redefine its broad policies in the education sector, and toprepare a medium-term implementation strategy. To this end, it has decidedto create an interministerial task force, the 'Groupe de Pilotage," chargedwith preparing a Statement of Policy for the Education Sector and themedium-term strategy, for approval by the Council of Ministers and itssubsequent adoption by the Government. The "Groupe de Pilotage, would alsobe responsible for the coordination and follow-up of the implementation ofthe sectoral policy and the strategy.

3. The 'Groupe de Pilotage" would be chaired by the Minister ofNational Education (MINEDUC). Its Vice-Presidency would be assured by theMinister of Higher Education, Information and Scieutific Research(MISERES). It would be composed of permanent and ad-hoc members.Permanent members would be: a representative, each, of the Presidency, theMinistry of Plan, the Ministry of Finance, and the Ministry of Labor; thethree Inspector Generals, the Director of Technical Education andVocational Training, the Director of Primary and Maternal Education, andthe Chief of the Division of Planning of MINEDUC; the Director of HigherEducation and the Director of Scholarships and University Planning ofMISERES; the Vice-Rector and the Director of Academic Affairs and Planningof the University of Yaounde. Ad-hoc members would include the Ministriesof Social Affairs and the Condition of Women (MINASCOF), Health (MINSANTE),Agriculture (MINAGRI), and Public Administration (Fonction Publique). Animmediate task of the 'Groupe de Pilotage* would be to prepare an EducationSector Policy Statement, in which broad policy objectives, priorities andprincipal instrument for its execution would be defined. Concurrent withthis effort, a medium term education sector strategy containing specificsteps to implement the policy, including interim targets, programs, budgetsand an action plan describing the key reform measures required to implementthe strategy would be prepared. To assist the "Groupe de Pilotage" in the

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preparation of the medium term strategy and the action %Ian, the Groupewould call on the creation of six Study Groups. The Study Groups wouldalso be ad-hoc members of the "Groupe de Pilotage" and would serveinformally as Strategic Advisors to the Ministers of their respectiveMinistries. External consultants would be contracted by MINEDUC to assistthe Study Groups in the preparation of the strategy and action plan. Thegroup of consultants would be headed by an economist, and would includespecialists in each of the fields of review, which would work with each ofthe study groups to be created. The coordination of the work of theconsultants in its technical context would be managed by the Ministry ofPlan in its capacity of Chairman of the Study Group responsible forpreparing the Diagnostic and the Strategy; while the coordination of theadministrative aspects would be managed by the Cellule d'Animation et deSuivi du 'Groupe de Pilotage. To carry out the work detailed below, thefollowing Study Groups would be created.

4. The Study Group on the Costs and Financing of Primary andSecondary Education would be chaired by the Chief of the Division ofPlanning and Orientation of MINEDUC. Its members would include theDirectors of Technical Education, Primary and Maternal Education, SecondaryEducation, Education Projects, and Administration of MINEDUC; the Directorof Planning of MINPAT; and the Director of the Budget of MINFI.

5. The Study Group on the Costs and Financing of Higher Educationwould be chaired by the Director of Scholarships and University Planningand composed of the Director of Higher Education of NESIRES, Director ofAcademic Affairs and Planning of the University of Yaounde, the Director ofPlanning of MINPAT and the Director of the Budget of the Ministry ofFinance.

6. Specific issues on the quality of primary and secondary generaleducation would be handled by a Study Group on Primary and SecondaryEducation. The group would be chaired by the Director of Primary andMaternal Education, and composed of the Directors of Secondary GeneralEducation and the Director of Planning of the Ministry of NationalEducation. The Study Group would take into consideration the work to becarried out separately on the primary education curriculum and the qualityof primary school teachers as the initial step towards the implementationof an in-service teacher training program.

7. The Study Group on the Development of the Technical Education andVocational Training Strategy would be chaired by the Director of TechnicalEducation and Professional Training of MINEDUC and composed of the ViceRector of the University, the Director of Higher Education of MESIRES, theChief of the Division of Planning of MINEDUC, the Director of bmployment ofthe Ministry of Labor (MTPS), and a representative of CENAFOP. This groupwould also be able to call upon representatives of private sectorenterprises, the University and other higher education learning centers, asneeded.

8. The Study Group on Higher Education would be chaired by theSecretary General of MESIRES and composed of the Vice Rector of the

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University of Yaounde, the Director of Higher Education of MESIRES, theDirector of ENSET, the Director of CNE, and the Director of AcademicAffairs and Planning of MESIRES. The Group would call on the Directors ofother higher learning institutions ("Ecole Polytechnique" and "GrandesEcoles'). This Study Group would be able to call on the managers of eachfaculty of the University, as necessary.

9. A Sixth Study Group, chaired by the Director of Plan of MINPATand composed of the Chief of the Division of Planning of MINEDUC, theDirector of Scholarships and Planning of MESIRES, and the Director ofAcademic Affairs and Planning of the University would utilize the workcarried out by the other groups to prepare a diagnosis of the sector'ssystemic problems. In that context, the Study Group would call upon theassistance of all other study groups, as necessary. The work would bereviewed in detail by the 'Groupe Elargi de R4flexion", and, on the basisof a comprehensive review of that work, the same Study Group would proceedwith the preparation of proposals for the definition of sectoralpriorities, the analysis of policy options for sectoral reform, and thepreparation of a document defining proposals for a long-term strategy andmedium-term action plan for reform for review by the "Groupe Elargi deR4flexion".

9. The current institutional arrangements for the management of theeducation system require that each ministry be viewed as a separate entity.Accordingly, separate terms of reference would be provided for the Ministryof National Education and for the Ministry of Higher Educatiorn andResearch. The Ministry of Labor would participate, together with theMinistry of National Education, in the development of the technicaleducation and vocational training strategy. However, theinstitutionalization of the above Study Groups would enable the review ofissues common to these ministries in a comprehensive manner. In thiscontext, it is envisaged that the officials of each ministry that aremembers of a specific Study Group would be responsible for the carrying outof the part of the work which concerns their ministry. However, the StudyGroups would meet as necessary to plan, review, coordinate and produce asynthesis of the work.

METHODOLOGY

Ministry of National Education

10. More specifically, the reviews would dwell on the followingareas:

A. The Costs of the National Education System

i. The evolution of the budget 1985-1989, includingexpenditures on personnel, infrastructure maintenance,teaching materials and textbooks, teacher training,mobilization of school supervisors, as well asexpenditure of the Central and Provincial offices.

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Private Sector participation during the same period,including NGOs, and community-financed schools.

ii. The evolution of student enrollment during thesame period, at each level: primary, secondary general,secondary technical, and vocational. Regional andprovincial distribution by level.

iii. The rate of promotion in primary education of lastyear students and the application of administrativeprocedures guiding passing to the lower cycle ofsecondary general and technical school.

iv. The rate of promotion of last year general andtechnical higher secondary students. Application ofadministrative procedures guiding acceptance to theUniversity or other higher education institutions.

v. Repetition rates at each level, and exploration ofpossible causes.

vi. Drop-out rates at each level of the system.

vii. The teacher situation: number, distribution bylevel and region, urban vs. rural. Particularattention should be paid to the situation of primaryschool teachers in rural areas: qualified and non-qualified teachers, paid by the Government budget, orby the communities.

viii. The incidence of quality education on costs.

ix. Analysis of efficiency of the system.

x. Costs of education at each level, and costs of maintainingpresent trends.

B. Development of a Technical Education and Vocational TraininRStrategy

i. Analysis of the demand for technical and vocationaltraining.

ii. Evaluation of the system/relationship betweeneducation and economic activity (modern sector andinformal sector).

iii. Specific problems of existing technical educationprograms and of new programs being implemented,particularly in respect to their responsiveness to theneeds of the labor market.

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iv. CENAPOP programs, and other adult trainingcenters.

v. Evaluation of labor needs taking into account themacro-economic framework adopted by the Government inits Structural Adjustment Program.

C. Primary and Secondary Education

i. Primary Education Student Performances the testingsystem, availability of textbooks, the quality ofteachers, and other problems which bear on studentperformance.

ii. Access to primar" education and performance byfemale students.

iii. General Education Student Performance: sciencesand mathematics levels. The system applied for accessto the University.

D. Diagnosis

i. The structure of the system by level, therelationship between the public and private schoolsystem, and the beneficiaries of the system.

ii. The management of the system. Definition ofprincipal functions of the Ministry of NationalEducation, distribution of human resources, level ofdecentralization.

iii. The quality of education: relative priority ofqualitative vs. quantitative objectives. Availabilityof resources for programs or initiatives to improvequality.

iv. The appropriateness of the education system andprofessional training to respond to economicdevelopment objectives. The evaluation of thesecondary technical and vocational education, includingexisting programs and/or programs to be implemented.The relationship with higher education in terms of theinfluence of policies at lower levels on both thequality of higher education and the pressure to expandthe latter.

v. The financial constraints, including analysis ofthe budget, and possibilities for internal redeploymentof resources, as well as mobilization of additionalresources through greater private sector and

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beneficiary participation in the financing of theeducation system.

E. Definition if Priorities and analysis of Options for theNational Education System Reform

i. Definition of priorities to respond to majornational objectives.

ii. Analysis of policy options for sectoral reform,including their impact and financial incidence.

iii. A proposal for a long-term Strategy and medium-term ActionPlan for the National Education System would be prepared andintegrated into the overall strategy for the sector in a mannerthat would ensure consistency and internal coherence.

Ministry of Higher Education and Research

11. The reviews would concern the following:

A. Costs of Higher Education

i. The evolution of the current budget from 1985 to1989. Distribution of expenditure of the Ministry ofHigher Education and Research at the central andregional levels, Government transfers to the Universityand Grandes Ecoles, scholarships.

ii. Number, levels and distribution of higher levelprofessors. Levels of salaries and comparison withsecondary and primary school teachers.

iii. The evolution of student demand for highereducation during the period 1985-89, distribution atUniversity, ENSET and other higher learninginstitutions. Distribution by type of training.

iv. The scholarship policies and distribution ofscholarships during the period 1985-89. Proceduresgoverning qualification, repetition, and loss ofscholarship grants.

v. Repetition rates, distribution by type of training,and institution.

vi. The current situation of graduates. Do theyremain unemployed? Distribution by type of trainingobtained.

vii. The incidence of the quality of that educationin overall costs.

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viii. Costs of higher education. Financialconsequences of maintaining present policies.

B. Diagnosis

i. Analysis of the evolution of the demand for highereducation.

ii. The structure of the system: the relative prioritygiven to literary, legal and economic training andcomparison with other training (scientific, financial,etc.). Duplication of efforts: same training offeredby the University and other higher learninginstitutions.

iii. The effects of the present scholarship policy.

iv. The quality of higher education. Differences amonginstitutions.

v. The relevance of training provided by higherlearning institutions to the country's future economicdevelopusent needs.

vi. The financial constraints.

C. Definition of Priorities and Analysis of Policy Options for theReform of the Higher Education System

i. the priorities would be defined to correct thesystem's major deficiencies taking into accountGovernment's policy objectives and limited financialresources.

ii. The analysis of policy options would include areview of their impact on the system and of thefinancial implications.

iii. A proposal for a long-term Strategy and medium-term Action Plan for higher education would be preparedand integrated into the overall strategy for the sectorin a manner that would ensure consistency and internalcoherence.

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COSTS

I. The education module is expected to cost US$ 8.8 millionequivalent (including contingencies, net of taxes) as follows(USS thousands):

Action ModulePrograrm Manoent Total

Travrel -- MB-SO-

School Desks 2,250 2,250

Teaching Materials S,425 5,425

Equipesat, Operations A -- 17 17Maintenance

Pertonnel -- 1.041 1,041

Totals 7,676 1,155 0,880

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Annex 5

organization and Operation ofNational Employment Fund

1. The FNE is organized as a separate legal entity, reporting to theMinistry of Labor and Social Security (MTPS). It will be governed by aBoard of Directors, composed of 12 members representing both the publicsector and the private sector as follows:

a) A president named by decree;b) A representative of the Presidency;c) One representative each from the following ministries: (i)

Planning and Regional Development (MINPAT), (ii) Labor and SocialSecurity (MTPS), (iii) Industrial and Business Development(MINDIC), and (iv) Finance (MINFIN);

d) One representative of the Chamber of Commerce, Industry, andMines;

e) Three representatives of the following employers' organizations:(i) the Union of Cameroon Contractors (ii) the InterprofessionalGroup of Cameroon and (iii) the Professional Banking Association;and

f) Two representatives of the Union of Cameroonian Workers.

2. Board of Directors' meetings would be held in accordance with thebylaws, with each member having one vote. The Board of Directors wouldmeet at least twice a year and when it is in the FNE's interest to do so,in order to:

a) set the goals and approve FNE activities and programs;b) appoint the outside auditors and approve the annual audited

financial statements;c) approve the operating and investment budget;d) set general and financial policies;e) make decisions about the organization and management of the FNE;f) review and approve annual reports of FNE activities; and

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Management

3. An organization chart of the FNE is presented in Figure 1.

Board of Directore

GOftice of theAd Hoc Cow ltt..a Director Ceneral T chnical Acltonce|

Int rnal gudat andProsepr Evalustion

a imepleent nd hmoFar'insn ;ndT)crdin Assisting Aaagg a onit n F acitritieo

D)vison g s a Dlvosion

miitie,epcilyth TS

Interv ntlon i ( nUngts nites Tratins;n

Enterprs Unit

Emplot entUnit

Figur* es Organgzation Chart of tpee National Employment Fu

4. Day-to-day management is provided by a Director General chosenfor his managerial qualifications and skills in the private sector. TheGeneral Mana( er An responsible, among other things, forf

a) implementing the Board's decisions;b) coordinating, managing, sand monitoring FNE activities;c) acting as a liaison with the various partners in the MNEd) coordinating PN activity with policies determined by the

ministries, especially the MTPS;e) establishing relationships with donors interested in assisting

the FNE;f) preparing activity reports for the Board;g) approving the opening, the redeployment, or the closing of

Decentralized Intervention Units (see Annex 6);b) ordfering expenditures for FNE operations; andi) keeping the Board informed of pertinant issues.

S. The Director General will periodically evaluate the employmentsituation based on reports from the Employment and Training AssistanceService (see Annex 6). He may also convene meetings of ad hoc committees.

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comprised mainly of business leaders, to consult with them on trends andneeds in the job market.

6. For two years, an internationally recruited advisor would assistthe Director General on all aspects of his duties. The expert would be aneconomist specializing in employment, having extensive experience withmultisectoral organizations and funding institutions.

7. The FNE's operations would be conducted by four divisionst

a) the Employment and Training Assistance Division;b) the Program Division;c) the Internal Audit and Program Evaluation Division; andd) the Finance and Administration Division.

8. Employment and Training Assistance Division (DAIR). This serviceis described separately in Annex 6.

9. Program Division (DP). This Division would be responsible fort

a) designing, supervising, and monitoring all programs implementedwithin the FNE;

b) discusaing the programs with other agencies which mayparticipate in their implementation and preparing contractualagreements with such specialized institutions; and

c) monitoring financial commitments by program, within the l1.Sts ofbudget appropriations and in coordination with the Finance andAdministration Division (which would be responsible formobilizing financial resources).

10. The Program Division would be comprised of program managementunits. In the first stage, two units would be set up: the Micro-Enterpriseand Self-Employment Creation Unit, and the Training Unit.

11. The Micro-Enterprise and Self-Employment Creation Unit woulddelegate to specialized institutions responsibility for implementingservices to applicants to the micro-enterprise and self-employment creationprograms, and would have the tasks of: (i) identifying the institutions orNGOs that are competent in the fields of training, assistance, and projectfunding, and obtaining service proposals from such institutions or NGOs;(ii) analyzing these proposals and signing service-delivery and financingagreements with the institutions that are selected; and (iii) preparing andnegotiating loan refinancing agreements with approved financialinstitutions.

12. For job applicants, the Training Unit would be responsible for:(i) promoting job-training sessions in businesses; (ii) processing theapplications forwarded by the DAIR for training applicants in institutions,and directing those applicants to the appropriate training centers; and(iii) promoting the organization of apprenticeships by providing financialsupport to trainers. The unit would also: (i) maintain a register ofbusinesses that might participate in the program; (ii) disseminate to these

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businesses information about the benefits of the program and admissionsrequirements; and (iii) record requests from businesses and enter into jobtraining contracts with them.

13. In some cases, applicants would be directly referred toinstitutions approved by the FNE. Othei categories of beneficiaries, forexample, formal training applicants, must be grouped prior to training. Insuch cases, the Program Division would subcontract this task, and then putthe applicants in contact with the selected institutions, with which theywould enter into training contracts. In selecting training institutions,the FNE would be advised by specialized agencies, such as CENAFOP, fortechnical training, and ESSEC, for management training.

14. At the end of the year, the Program Division would participatewith the Internal Audit and Program Evaluation Division in an ex-postevaluation of projects implemented, and of the quality of training andassistance programs.

15. Internal Audit and Proaram Evaluation Division. This Division'spurpose would be to:

a) prepare the program and operating budgets;b) prepare the financial standards for program design and

implementation;c) suggest parameters for financial packages to be allocated to the

programs;d) audit all financial transactions carried out by the FNE,

especially contracts with the agencies implementing programs; ande) at the end of the year, make an ex-post evaluation of the

results and performance of each program, and compare theresults achieved with the goals that were set.

16. After these analyses have been made, the division would help theDirector General to incorporate its findings and recommendations in theannual report to be submitted for Board approval.

17. Finance and Administration Division (DFA). This Division wouldbe responsible for:

a) mobilizing resources from the various FNE partners and fundingagencies; and

b) cash management and FNE administration.

18. The Finance and Administration Division's main responsibilitywould be to administer the FNE's financial resources. These resourceswould come from Government contributions, donors, and eventually theprivate sector.

19. The Finance and Administration Division would manage the FNE on adaily basis. In this respect, its responsibilities would be tot

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a) post cash and bookkeeping transactions made for each FuEprogram;

b) pay the units' operating expenses;c) assist the Interual Audit and Program Evaluation Division to

prepare the program and administrative budgets;d) prepare the FNE's year-end financial statements, which would be

subject to an independent audit; ande) help the Director General prepare the annual report to be

submitted for Board approval.

Operating Procedures

20. The PNE would establish simple and effective operating proceduresthat are consistent with its structure and responsibilities. Theseprocedures would enable it to carry out internal audits and duly monitorprogram financing, including the enforcement of repayment terms for fundsthat have been on-lent.

Administrative Costs

21. The administrative (base) costs of the PNE come to USS 4.5million as follows (US$ thousands):

ReinsertionAdhnm- Assiotnce

istration Diviseon TOTAL

Consultant Srvices 712 382 1,044Recruited Perconnol 779 1,016 1,796Training 816 800 016Equipment and Suppiles 280 287 547Operetlng Expenditures 806 155 460Fuel 16 1S 29

TOTAL 2,407 2,084 4,491

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Annex 6

Employment and Training Assistance Division

Objectives

1. The Employment and Training Assistance Division (DAIR) of theNational Employment Fund (FNE) is designed to assist unemployed younggraduates or laid-off public sector employees to insert or reinsertthemselves into the private sector, as either employees or entrepreneurs.It will include an information unit to help these people, most of whom arenot familiar with the private sector, to find their way among training andemployment opportunities. The DAIR would respond to the followingobjectives:

a) collection, management, and circulation of information onemployment support programs, including those financed by the FNE,and on corresponding job and business opportunities;

b) reception and orientation of persons seeking jobs or retrainingby providing information about these programs.

2. The first objective would be achieved by collecting data on theoperation and performance of the labor market and on available training orretraining activities and programs. The information would be stored in acomputerized data base for easy accessibility and updating. This systemwould provide the basic information for the orientation of those seekingemployment in private activities.

3. The second objective would be achieved bys (i) receivingprospective employees or entrepreneurs and informing them of appropriateopportunities for jobs or small businesses, and of relevant training andassistance programs to facilitate their entry into the private sector; and(ii) interviewing and orienting these applicants toward the appropriateprograms.

Operation of the DAIR

4. The DAIR would perform three main functions: (i) informationcollection and updating; (ii) information management and circulation; and(iii) reception and orientation of applicants to appropriate training oremployment programs.

5. Information Collection and Updating. Information issued by theFNE Program Division and b7 various external sources would besystematically and regularly entered into the information system'sdatabase. The information stored would primarily consist of:

a) Statistical information on labor and employment, collected from:(i) the labor and employment markets, such ab: employment andunemployment figures for the formal and informal sectors,prevailing wages and salaries by category of occupation, and

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socio-economic indicators; and (ii) the FWE itself, on theopportunities arising from the programs it supports.

b) Data from job opportunity surveys to be conducted by the DAIR orothers identifying promising economic channels and opportunitiesfor jobs or micro-enterprise development; and donor fundedprojects to be implemented by individuals or associates.

c) Information on labor regulations and on investment and tax codesaffecting employment and the creation of micro-enterprises.

d} Consolidated information on FEE programs: (i) availablevocational training courses at training institutes; (ii)apprenticeship and on-the-job training opportunities; and (iii)available assistance for the establishment of small businesses orself-employment.

6. Information Management and Circulation. The date stored in theinformation system would be processed and circulated for the use of all FNEunits, either on line at the central level or on printed lists to bedistributed to the local units. The DAIR would therefore: (i) processinformation stored in the data base; (ii) prepare information lists andtransmit them to the local units; (iii) prepare informative brochures to bedistributed in selected places; and (iv) organize relations with the publicinformation media.

7. Applicants' Reception and Orientation. The DAIR would offerindividual reception and information services to the persons coming to theFNE for assistance. These services would consist of: (i) verifying thepotential applicant's suitability for participating in FNE activities (asthe first level of the selection process): (ii) informing qualifiedapplicants about the available FNE programs and listed employmentopportunities; and (iii) if the applicant desires creating an applicationfile (on computer) and arranging an appointment with a career adviser. Thecareer adviser would interview each qualified applicant and determine withhim the most appropriate employment or training programs according to hisinterests; professional qualifications and financial means; and wouldsubsequently orient him to available programs.

Organization and Personnel of the DAIR.

8. The DAIR would be decentralized for flexibility and quickresponse to information needs (job seekers outside the capital cannot beexpected to travel to Yaounde). Therefore, the DAIR would consist of (i)the DAIR head agency located at the FNE headquarters in Yaounde; and (ii)local agencies, called decentralized intervention units. The head agencyat the central level would be responsible for information collection andmanagement for the country as a whole, and for the reception andorientation of applicants from the Yaounde area. Decentralizedintervention units would be responsible for reception and orientationoutside of the Yaounde area. These would be created only where and as longas needed for direct intervention in the most flexible and 'demand driven,

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way in areas where critical employment problems arise (such as inrehabilitated public enterprises). Initially decentralized interventionunits would be located in Bamenda, Garoua and Douala. The latter unitwould be permanent, since employment problems are likely to be as acute inDouala as in Yaoundt. Mobile units might also be created at the centrallevel, to move to specific sites for short periods of time. Eachdecentralized unit would coordinate closely with the central level.

9. The DAIR would be headed by an informAtion manager responsiblefor the DAIR*s overall performance, and in particular for: (i) supervisingthe collection of information through: permanent links with the PNE programdivision and the decentralized intervention units for data collection; andperiodic contact with external sources (the Government, the commission forpublic enterprise rehabilitation, universities, private sector operators,donors, and others); (ii) supervising the circulation of information,including relations with the press; (iii) monitoring of the advisors'services to job seekers; (iv) consulting with the FNE Director-General onthe creation and closing of decentralized intervention units in accordancewith the employment situation in various parts of the country; and (v)supervising the organization and activities of the decentralizedintervention units. Each decentralized unit would be headed by a humanresource specialist hired as information manager/career adviser. The DAIRmanager would report to the FNE Director-General on all DAIR activities,including the preparation of the annual report, and discuss with him thehiring of DAIR personnel.

10. External consulting services would be contracted to advise on theestablishment of the information system. All staff would be hired underfixed term contracts, renewable when necessary. Local staff would be hiredfor periods not exceeding the duration of the decentralized interventionuni. itself (with extension possibilities). The initial DAIR personnelwould consist, at the central level, of two high level statisticians andmarketing specialists, one of them the information manager of the DAIR; amicro-computer specialist; two reception clerks and two human resourcespecialists working as career advisors. The number of advisors would beincreased if required by the demand for their services. In eachdecentralized unit, there would be one or two reception clerks and a careeradviser. The Douala unit would be larger, probably equivalent to twonormal decentralized units.

Long Term Outlook.

11. In principle, the DAIR would function only during the four-yearSDA project execution period. However, if there continued to be demand forthe DAIR' services after the completion of the SDA Project, the DAIR couldbe converted into a private structure. At that time, an evaluation of theDAIR's overall performance would assess its viability in the private sectorwithin the Cameroonian economic etLvironment; its ability to meet the needfor its activities; and its appropriate structure as a private entity.

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DAIR implementation and costing.

12. In order to effectively complement the public enterpriserehabilitation program, the DAIR should become operational as soon aspossible. The initial investment cost for the DAIR organization andimplementation is estimated to be USS 0.5 million equivalent includingconsulting services to set up the information system and to organize andimplement the DAIR's computerized management procedures (US$ 0.2 million).

13. The DAIR's operating costs would be about USS 0.5 million peryear when it becomes fully operational. The total operating costs over theproposed 4 year period would be about US$ 1.6 million.

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Annex 7

Programs of the NationalEmployment Fund

I. On-the-Job Training Program

1. Introduction. This program would make it possible for targetgroups of unemployed workers (redundant workers from the public,parastatal, and private sectors, as well as young graduates), to enter orre-enter the job market through training within a firm or small enterprise.

2. In the current economic context in Cameroon, it is essential tobetter adapt vocational training to employers' needs. Cameroonianbusinesses in the modern sector that succeed in adjusting to the newcompetitive environment and offer jobs will adopt competitive technologiesfor production. They will need more highly-skilled workers than in thepast. A high percentage of unemployed workers during the transitionaladjustment period will already have skills but will urgently need to beeither retrained or undergo training for new duties. However, thecountry's vocational training institutions currently provide primarilygeneral training that often does not meet firms' immediate needs. On-the-job training in businesses would make it easier for job-seekers to findwork and would ensure that the training offered is appropriate foremployers' needs.

3. Apprenticeship in Cameroon exists primarily in the informal orunstructured sector, whether of the traditional type (such as woodworking,basket making, forging, ceramics, leather), or the modern type, such as theproduction of goods and services in parallel and/or in contact with theformal sector.

4. The informal sector includes activities typically characterizedby a small number of employees; low consumption of capital, techniques thatare not highly developed; family and basic or nonexistent management; amassive presence of independent workers, apprentices and family helpers;and finally, workers with low incomes. The informal sector is developingaround entrepreneurs that have a technical mastery suited to the needs ofthe domestic market. In Cameroon, this sector is largely urban and isconcentrated in the cities of Douala, Yaounde, and in some lesser urbancenters such as Limbe, Bafoussam, Edea, Bamenda, Ngaound6rd, Garoua, andMaroua.

5. The informal sector's ability to provide jobs is significant.The initial stage of employment in the informal sector is frequentlyapprenticeship. Although if this stage frequently goes hand-in-hand withunderemployment, low income, or low productivity, apprenticeships dogenerate new skills and create possiblities for productive labor. Theapprentices may later use their skills in productive positions in eitherthe formal or informal sector.

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6. Most entrepreneurs pay their apprentices, but in exchange, theapprentices pay for their apprenticeship. The payments entrepreneursreceive for training they provide amount to about one-third of the wagepayments made to apprentices. Such reciprocal payments are made both incash and consumables.

7. Objectives. The main objective of this program is to make itpossible for individua:.s who lose their job under the Structural AdjustmentProgram, and for other groups of the labor force affected by the currenteconomic crisis in Cameroon, to find jobs, by eliminating one obstacle tohiring. By lowering the cost of training and initial adaptation incurredby employers, this progrnm would encourage employers to hire new personnel,thereby creating jobs.

8. Selection Criteria. On-the-job training in the formal sectorwould serve two categories of beneficiaries: applicants for on-the-jobtraining, and private businesses which need trained employees. Selectioncriteria for both categories follow Potential trainees must:

a) have identified a firm that is prepared to hire them, subject topreliminary training within the firm (applic¶nts may receiveassistance in identifying such firms from the DAIR);

b) be able to carry out the tasks iL.herent in the job that the firmoffers them, as demonstrated by a conditional hiring letter fromtheir future employer;

c) have been unemployed for at least six months;

d) have not already taken part in another FNE Job-training program;

e) have not been employed during the previous two years by the firmthat would give them the on-the-job training;

f) agree to take the on-the-job training in accordance with themethods and procedures put into effect by the firm that wouldtrain them;

g) undertake to accept a job with the firm that trains them at theclose of the training period if the firm offers them one; and

h) if graduates, have obtained their degree at least one yearpreviously.

Employers in the formal sector must:

a) express their interest in hiring an unemployed worker who trainson-the-job and continuing to employ that person at lea t untilthe end of the training period;

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b) give trainees priority in employment at the close of the trainingperiod if positions are available (assuming satisfactorycompletion of the training);

c) not offer this on-the-job training program, financed by the PNE,to their current employees, or to those who were in theiremployment over the previous two years;

d) have over 20 permanent employees;

e) identify the type of on-the-job training they intend to give;

f) fully remunerate the trainees in accordance with the conditionsthey set forth in the terms of the subsidy agreement they wouldsign with the FNE; and

g) sponsor not more than 10 percent of their total number ofpermanent employees.

To be eligible for apprenticeship, applicants would have to meet thefollowing criteria:

a) apprentices must be between 18 and 35 years old;

b) they must not be immediately related to the trainer orentrepreneur (as father, mother, brother, sister, son, daughter,spouse);

c) they must be unemployed when they apply for the apprenticeship;

d) they must undertake to take the entire apprenticeship course tobe provided to them;

e) they must not have had any other apprenticeship training fundedby the PNE;

f) they may have undergraduate degrees or secondary general ortechnical diplomas (BEPC, CAP), or they may have left school(dropouts);

g) apprentices may assume part of any costs for apprenticeship.

Entrepreneurs-tradesmen would meet these criteria:

a) Entrepreneurs-tradesmen must have owned property for at leastthree years;

b) they must demonstrate, through their experience or skills, theability to train apprentices;

c) they must describe the duration and contents of theapprenticeship training they propose to provide;

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d) they must not be immediately related to the trainee (as father,mother, brother, sister, son, daughter, spouse);

e) they must undertake not to displace any existing employee to makeroom for a new apprentice they take on;

f) they must undertake to give priority to the trainee, if hedemonstrates the required skills, in filling any paid positionrequiring the type of skills the trainee develops;

g) they must pay the trainee the full payment to which he isentttled;

h) they must have no more than 20 employees or trainees in theiremploy.

9. Procedures. The existence of the on-the-job trairing programwould be publicized among employers, and among job-seekers received by theDAIR.

10. The FNE would fund on-the-job training by paying to thebusinesses a portion of the wages paid to the participants. This amountwould offset part of the cost of training new employees. This financialcontribution from the FNE would equal 18 weeks wages (but would not exceeda rate of CPAF 30,000 per week in the formal sector and CFAF 15,000 perweek in the informal sector), and would be paid to the business in fourequal installments over one year, provided that the trainee remains on thejob. A higher level of financial support, for example, 50 percent of thewage for the first year, would be granted in exchange for a commitment bythe employer to hire the trainee or apprentice at the close of the trainingperiod.

11. To become operational, and for the FNE to pay a portion of theon-the-job training costs in the business, a contract would be signed bythe three parties: the employer, the unemployed worker, and the FNE. Thiscontract would stipulate the terms of service of the trainee and the FNE'sfinancial contribution, and would commit the parties to provide basicinformation--at the time of the ex-post evaluation--about how the jobtraining program had operated.

12. Ex-post Evaluation. The FNE would ensure that an ex-postevaluation procedure is set up to determine the effectiveness and theefficiency of the job-training program. More specifically, based on asample survey of trainees and beneficiary businesses, the program audit andevaluation unit would, among other things, learn:

a) what has become of the persons who would have gone through theprogram: are they employed by the business that trained them, arethey unemployed, did they have access to another job, and if so,was the job-training program useful for them in finding the otherjob?;

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b) what was the actual financial contribution of the beneficiaries?;

c) whether the admission criteria set up at the time the programstarted were observed, and if not, why not, and the percentsge of"leaks' from the program and their causes;

d) the quality and effectiveness of channels for passing oninformation about the program's existence;

e) the training methods used by the firms, the on-the-job trainingcategories provided by the businesses: were techniques used thatcould be usefully employed in formal training programs providedby training institutions?;

f) the sectors which, by using the program, demonstrate a capabilityof creating jobs;

g) how frequently businesses used the program; and

h) what program design aspects should be changed to make the programmore efficient and effective.

II. Formal Training Proaram

13. Introduction. Many job-seekers who emerge during the period ofstructural adjustment will not be able to directly find jobs, and will haveto be more thoroughly retrained than is possible through on-the-jobtraining or apprenticeship. These applicants would be channeled to theformal training institutions. Training capability in Cameroon, in public,private or NGO facilities is not yet well known. Under thesecircumstances, given the urgency of the situation and the lack of awarenessabout the national network of institutions, a method must be implemented torespond in a flexible fashion to the retraining needs that would arise forunemployed workers during the peirod of adjustment.

14. Objectives. The main objective of the FNE's formal vocationaltraining program would be to enable job-seekers to quickly find jobs. Thisprogram would support vocational training efforts in two possible ways.First, it would contribute to funding job-seekers who wish to acquireadditional and sufficient vocational training. This financial contributionwould be calculated on the basis of the direct cost of the training. Itwould be paid directly to the training institutions for trainees referredby the FNE. The FNE9s contribution would supplement the payment made bythe trainee. Second, the program would fund development and strengtheningof a few vocational training institutions, notably COIC and the vocationaltraining centers of MTPS, to consolidate and expand their capabilities indelivering services to populations targeted by the FNE. Both parts of theprogram would be pursued simultaneously.

15. Selection Criteria. Under the first part of the program,Trainees would be selected in accordance with the following criteria:

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a) they must have been unemployed for at least nine months;

b) they must have come to the DAIR and filled out an application;

c) they must have had an orientation interview with the unit andmust have expressed their need for training;

d) they must agree to complete the training they would receive atthe selected institution;

e) they must agree to pay, in part, for the training;

f) they must agree to look for a job, even during the trainingperiod; and

g) they must undertake to provide information to the FNE about theirtraining and their status after this period during the ex-postprogram-evaluation phase.

The selection criteria for training institutions would be:

a) they must have recognized expertise in their field for thetraining they propose to provide, as demonstrated by their pastperformance;

b) for new training programs, the institutions would be required toprovide the FNE data enabling it to assess this new ability;

c) they must agree to train applicants for the scheduled duration,in accordance with the terms and conditions that would be setforth in an agreement between themselves and the FNE;

d) they must provide training programs appropriate for the needs ofgroups of applicants who are to be channeled into the program;

e) they must agree to help their trainees find a job after thecompletion of the training; and

f) if the institutions require financial assistance from the FNE tostrengthen or expand their services, they would present adetailed explanation of their needs and demonstrate theconnection between those needs and the delivery of trainingservices needed in the job market.

16. Procedures. Information on the formal training program would, onthe one hand, be passed on to job-seekers who come to DAIR, and on theother, to vocational training institutions.

17. The formal training applicants would fill out an application atthe DAIR. The procedure would be explained at that time and the followingpoints highlighted: (i) the obligation of a partial financial contribution

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from the training applicant; (ii) the waiting period that may occur (whileprospective trainees are being grouped) before obtdining the trainingfunds; (iii) the fact that the training institution would be recommended bythe FNE after a review of the application and after consulting with anexpert in vocational guidance and training.

18. These applications would be forwarded every week to the NE'sprogram unit. This unit, with the assistance of outside expertise, whichmay be provided by CENAFOP, would analyze the applications to group theapplicants optimally by type of training. Next, the institutions qualifiedto provide these types of training would be contacted and the applicationsforwarded to them, with an explanation of the type of training they werebeing asked to provide. An agreement would be signed between the traininginstitution and the FNE, identifying the terms and conditions of thetraining and of the FNE's contribution.

19. The FNE's contribution would amount to two-thirds of thevocational training costs, not to exceed 300,000 CFAF per trainee. Thiscontribution would be paid to the training institutions at the close of thesession. The applicants' contribution to the training would be paid at thebeginning of the session.

20. Ex-post Evaluation. The ex-post program evaluation should makeit possible to evaluate the effect on employment of the support providedfor vocational training. The following are the main points to be learneds

a) What became of the vocational training applicants? Did theycomplete the training successfully? Did they find a job? Is thejob related to the additional training that the FNE finanLad?

b) To what extent was the training relevant and how could it beimproved?

c) What were the problems in program administration, especially forapplicant guidance and selection of training institutions?

d) Is it relevant to continue this type of program, change it, oreliminate it?

III. Self-Employment Creation Program

21. Introduction. In the present context of the economic crisis andadjustment, job opportunities for graduates of the educational and trainingsystem, who formerly were largely dependent on the Government foremployment, are scarce. M*oreover, during the adjustment period, graduateswill have to deal with competition from employees dismissed from thepublic, larastatal and private sectors, who already have vocationalexperience. In these circumstances it is worthwhile to support thecreation of self-employment. Such a program is not easy, since fosteringself-employment may encounter obstacles in the mentalities of the targetgroups. Young graduates hope to find fields where their careers would beclear-cut and entirely laid out for them. Those who lost their jobs in the

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public, parastatal and private sectors, have developed living &.d workinghabits that make them ill-inclined to the self-employment option.

22. Cameroon is only beginning to gaini experience in supporting self-employment. However, several institutions have undertaken such programs.The Ecole Nationale Sup$rieure de Polytechnique, with support from AFCA,has established a unit to provide assistance in setting up businesses.CAFEH (Cellule d'Addquation Formation Emploi), which aims to promote jobsfor young graduates of universities in the economic field in Cameroon, hasdone something comparable. Similarly, the Centre de Creation desEnterprises of Yaounde, an initiative of Canadian and Camerooniancooperation, attempts to help individuals create profitable business?s bypreparing a business plan, supervising start-up, and monitoring progress.This center would be used as a support point for sponsoring applicants tocreate self-employment, as a supplement to its current activity.

23. Another relevant program is being planned by OpportunitiesIndustrialization Center-Cameroon (COIC), a non-governmental organization,with a practical training center located in Buea, intended for poor youngmen and women. COIC plans to develop a franchising system for its graduatetrainees. These people should be able to create their own jobs after theirtraining period in Buea. Franchises would be established in four areas indemand in Cameroont automobile mechanics, construction, furniture making,and catering.

24. Obiectives. The self-employment program aims to stimulate andsupport the initiatives taken by unemployed workers and traininginstitutions to create self-employment. The main objectives are to:

a) raise awareness and change mentalities and behavior, vhicn aretoo heavily marked by an aversion to risks;

b) provide self-employment applicants with techniques for setting upbusinesses;

c) contribute to the start-up of new businesses that generate atleast one job; and

d) provide follow-up support to self-employed people.

25. Selection Criteria. This program is mainly intended for twomajor categories of participants: (i) young graduates of technicalvocational training institutes and graduates of high3r learninginstitutions (technical, management); and (ii) redundant workers frompublic, parastatal, and private businesses. Young graduates must meet thefollowing specific criter*a to be admitted into the programs

a) they must be recent graduates from their training institution,and recommended by institutions;

b) they must submit a realistic self-employment project;

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c) they must be able to demonstrate that they have a minimum levelof technical and business expertise in the field they intend toenter, and must demonstrate management skills; and

d) they must be willing to make a financial investment in theirself-employment, using equity in an amount equal to one-third thecost of the project.

Redundant workers must have the following profile for admissiont

a) they must have been dismissed within the twelve months thatprecede the date of their application;

b) they must present a realistic self-employment project;

c) they must have technical and business expertise in the plannedactivity and have experience in management; if this is lacking,they must undertake to receive in advance management trainingfrom a specialized institution (such as APICA);

d) to the extent possible, they should seek support from anorganization willing to sponsor them and assist them in theirself-employment project; and

e) they must be willing to make a financial investment in theirself-employment using equity in an anount equal to one-third thecost of their project.

26. Procedures. Two types of procedures would be followed under theself-employment creation program. The first would be when a sponsoringagency provides assistance, and the second when there is no sponsoringagency. In the first case, the PNE would enter into agreements withsponsoring institutions for the young graduates or unemployed workers vhohave submitted their project for creating self-employment. Such agreementswould provide overall funding packages to the above mentioned sponsoringinstitutions, which would decide upon the assistance in question.Financial support to the ultimate beneficiaries would be transferred viathe same institutions after the project agreement is signed by the ultimatebeneficiary. The sponsoring institutions would be compensated for theirservices. The amount of assistance under the creation of self-employmentwould be a maximum of CFAP 1,500,000 (US$ 5,000 equivalent) per ultimatebeneficiary. In the second case, in which the applicants have not found asponsoring institution, the self-employment projects would be assesseddirectly by the FNE, which would use o-.tside expertise, especially frominstitutions that have sponsored other applicants. Project agreementswould follow a procedure similar to the preceding case and would providethe same maximum benefit of 1,500,000 CPAP per ultimate beneficiary. Inview of the poor repayment experience with small loan programs in Cameroon,and of the urgency to start the program, financial assistance tobeneficiaries would be in the form of grants.

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IV. The Support Program for Small and Micro-enterprises

27. Objectives. One final program of the FNE to foster job creationfor those most affected by the economic crises and the structuraladjustment measures, would be a support program for small and micro-enterprises. The purpose would be twofold: (i) to foster the establishmentof new businesses, and (ii) to improve the performance of existingbusinesses and support creation of new jobs.

28. The target populations of the support program for small andmicro-enterprises fall into five priority groups:

29. Young graduates of institutions of higher learning and technicalinstitutes who have poor opportunities for employment because ofs thehiring freeze in the civil service, the reorganization of the publicsector, and the problems experienced by private companies due to pooreconomic conditions.

30. Redundant workers from public or private businesses, particularlythose who are more highly educated and entrepreneurial, should be receptiveto help in creating their own micro-enterprises (5 or more jobs),

31. Manage a of existing small businesses, with low investment (underUS$ 1,000) and very few employees, could improve their resultssignificantly and _ationalize theit management by developing their salescapabilities, by modernizing their production machinery, and by increasingtheir working capital. To achieve this, they need assistance in the formof appropriate advice and small loans, which implies gaining formal-sectorstatus. Improving the performance of these small businesses would make itpossible to create new jobs, and would also prepare for the after-crisisperiod, through the gradual emergence of competitive small businesses.

32. Women entrepreneurs are the fourth target group in the program.The goal would be to facilitate access to credit for women already workingin business, especially in the commercial sector. Assistance to thissensitive group should be channeled through existing professionalorganizations, such as the Groupement des Femmes d'Affaires Camerounaises,the Association d'Appui aux Femmes EntrepreAeurs, and the Association dePromotion de la Femme Africaine, with possible technical support fromcertain specialized NGOs, such as APICA, INADES Formation, Centre deFormatior, et d'Education Populaire, and Organisation Canadienne pour laSolidarite et le Developpement, and participation of international fundingagencies, such as the Canadian Agency for International Development and theWomen's World Bank.

33. Civil servants who have taken advantage of early retirement arethe fifth target group. This group would receive a monetaryindemnification as part of early retirement. Some of them would want tocontinue working by setting up businesses and by increasing employmentopportunities for others. In this conmext, they would need assistance tostart up businesses, to futd them, and to begin and monitor operations. Insome cases, they may need additional financing provided as loans.

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34. Procedures. An analysis of similar programs over the last fewyears in Came -. and in comparable countries reveals the problems inimplementing operational formulae to reach the target populations and toenable them to benefit effectively from a micro-enterprise support program.These problems are severely felt in Cameroon since the parastatalstructures that were intended to perform this function are no longeroperational.

35. The first step would be a two-year experimental phase that wouldbe used to test and compare different support formulae and assess thecapabilities of various possible project partners, funding institutions,training and proficiency centers, and consulting firms and assistanceagencies.

36. The goal at the close of the first phase would be to enable thedesign of a broad, effective system. Several possible channels of supportfor sponsors and entrepreneurs should be tested, and lessons should belearned from the experiments.

37. The experimental phase would include five components:

a) establishing a management unit within the FNE for promoting,coordinating, and evaluating the experimental program'sactivities for supporting small and micro-enterprises;

b) making a study of the regulatory environment for smallbusinesses;

c) starting up a pilot funding operation to establish about fiftymall businesses, with investments between 1.5 and 20 millionCFAF (US$ 5,000-65,000 equivalent);

d) selecting and testing several training agencies for futureentrepreneurs and business advisers; and

e) developing analytical capabilities for bankable applications inselected financial institutions.

38. After two years the experimental phase would the subject of anin-depth evaluation by the Government in consultation with the Bank andother donors. A budget is planned to fund the evaluation using nationalindependent consultants (3 man-months) and outside consultants (3 man-months). The evaluation would take into consideration similar experimentsin Cameroon. It would be used to make new proposals to launch the secondphase of the program with higher levels of funding. This second phasewould also be the subject of an evaluation when it ends.

39. Program Management Unit. The unit would be responsible, withinthe FNE's Program Division, for the detailed design, organization,implementation and ongoing evaluation of the means of developing smallbusinesses. It would include: (i) one national expert for two years, and

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(ii) one internationally recruited adviser specialized in small businessmane-ement and financing (two years). It would also receive assistancefrom short-term consultants, both national and international, for theindividual operations described below (12 man-months).

40. Study of the Regulatory Environment for Small Businesses. Manybusinesses are thwarted by an oft-meddlesome bureaucracy and tax and otherregulations that are not suited to the current situation of economiccrisis. Thus many businesses hesitate to formalize their activities, whichwould actually facilitate their growth, especially by providing access tobanks and government contracts. A study would be done by aninternationally-recruited consultant, with assistance from a Cameroonianexpert, to highlight the major obstacles and suggest ways to streamlineadministrative procedures and regulations, and simplify tax requirements.

41. Funding System for Small and Micro-enterprises. This wouldinclude three components:

a) A US$ 2 million line of credit, would be made available torefinance SOZ of loans made by specialized financial institutionswhich express interest in taking part in the program, and whichpresert bankable micro-enterprise projects for which they arewilling to assume the full credit risks.

b) Grants, of up to US$ 1,500 equivalent in each case, would be madeto help prepare and analyze bankable applications by thefinancial institutions involved. These banks would be givenincentives to develop skills in medium-term loans to smallbusinesses, and to encourage recourse to specialized independentconsultants.

c) Technical assistance would be provided to banks to make theirloan services to small and medium-sized businesses moreeffective. Such organizational support would be provided bynational consultants, banking specialists (3 man-months), and ifneed be, by international consultants.

42. Financing for selected financial institutions would beestablished by the management unit on a case-by-case basis, according tothe rate of loan commitments to small and medium-sized businesses. Thus,the most dynamic banks would benefit from increased resources. Threefinancial institutions interested in lending to small and micro-enterprisewere identified during appraisal, and would be used to the extent thattheir own resources turn out to be insufficient. These are: (i) theCameroon Cooperative and Credit Union League, (ii) la Caisse Communald'Epargne et d'Investissement, and (iii) l'Union des Caisses Populaires deYaoundt. The latter institution would only be used if it becomesoperational in granting loans to small businesses.

43. The FNE would lend 802 of the needed resources to the financialinstitution as and when it approved a loan to a micro-enterprise. Thefinancial institution would pay interest to the PNE at the World Bank

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lending rate at the time of payment, and would charge the borrower acommercial rate, currently 12 percent, giving the financial institution aspread of about 4 percent. The decision to grant a loan to an entrepreneurwould be made solely by the financial institution involved, at its o1inrisk.

44. One of the tasks of the FNE management unit would be to evaluatethe capabilities of these financial institutions. Additional financialinstitutions may be qualified, subject to FNE and donors' approval, to usethis facility.

45. Assistance and Advice on Business Activities of the TargetGroups. A major problem would be to develop consulting capabilities inadvising small and medium-sized businesses. Considering the deficienciesexperienced by CAPME and FOGAPE, such assistance should be provided by theprivate sector.

46. Several NGOs, some professional organizations, private consultingfirms, and independent consultants, have already expressed interest in thisactivity, and should be selected according to their performance inestablishing plans for business projects, and providing consulting servicesto existing businesses to improve management and productivity. Theexperimental program would include a special budget of US$ 100,000 torecruit and compensate consultants for this assistance function. A smallgroup of advisers would be selected who could benefit from a grant forsupplemental training lasting from six to twelve months.

47. Selection of Vocational Training and Management TrainingInstitutions for Business Developers and Advisers. Many young graduatesand redundant workers, women as well as men, will need to take advantage ofshort term training (three to six weeks) on procedures and steps forsetting up a small business, as well as on production techniques andelementary management rules. Certain NGOs, such as IPD, APICA or OIC, haveoffered their services in this field. A budget of U$ 100,000 would beavailable to enable the FNE to subcontract training modules to thesebodies.

48. The Possible Second Phase. This phase would last two years andwould aim to intensify activities that were successful during theexperimental phase. Ongoing outside assistance to the management unitwould no longer be necessary. It would be replaced with temporary outsidesupport given by an international consultant who would act on a periodicbasis (three times one month during the first year, and once during thesecond year). Support for financial institutions would be extended to newcommercial banks if they are willing to assume responsiblity for technicalsupport to micro-enterprises and assume the full credit risk. The amountof the line of credit would be increased substantially if the results ofthe first phase warranted, and so would allowances for preparing bankableplans, training, and consulting services to trainers and entrepreneurs.Business supervisors would also be evaluated for long-term training.

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49. The second phase would also conclude an evaluation, to beperformed during the twenty-first months by the Government, in consultationwith the Bank and other donors. Funds for the evaluation (2 man-months fora national expert and 2 man-months for an outside consultant) are includedin the Project.

V. Costs

50. Estimated costs for the FNE programs are as follows:

(US$ million equivalent)On-the-Job Training 4.4Formal Training 5.9Self-Employment

First Phase 2.3Second Phase (if warranted) 7.7

Small and Micro-EnterprisesFirst Phase 2.0Second Phase (if warranted) 4.2Studies 0.2

26.7

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Annex 8

Women in Development Prosram

I. Policy and Institutional Framework

1. In order to provide a suitable policy and institutionalenvironment for a comprehensive approach to WID issues, the Government hasdecided to initiate a process of reorienting the mandate of the Ministry ofSoci&l and Women's Affairs (MINASCOF) towards a normative, conceptual andcoordinating role and of strengthening its technical and institutionalcapacities, in order to broaden the scope and impact of Government actions.While strengthening its direct actions to develop the skills and incomeearning potential of disadvantaged women through its outreach program, theMinistry would gradually become a abridging", rather than primarilyexecutive, agency, focussing on the conceptualization, development,coordination, and evaluation of WID strategies. In this new context,!INASCOF would be responsible for coordinating, monitoring, and evaluatingthe design and implementation of interventions of other line ministries andNG0s aimed at increasing women's access to social and productive serviceswhile gradually limiting its own action programs to those areas where ithas a clear comparative advantage, such as the dissemination of informationfor and about women.

II. Components

2. To support this approach, three components would constitute thecore of the WID modules

a) policy and institutional measures to strengthen MINASCOF'stechnical capacity as a normative, coordinating, monitoring'.and evaluation agency;

b' the development of an operational strategy and an associatedmultisectoral strategy to provide a coherent framework tointegrate women in all development actions and to identifykey sectoral strategies for Government and donor support;

c) specific actions to (i) launch an Information, Education andCommunication program; and (ii) reorient existing supportservices for women towards the development of cost-effectiveand sustainable productive activities.

3. Costs of the WID module are estimated at US$ 5.7 millionequivalent, distributed as shown in the table attached to this annex. Thestructures and programs involved in the module are illustrated graphicallyin Figure 1.

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III. Institutional strengthening of MINASCOF

4. The reorientation of MINASCOF's mandate and the successfulimplementation of the multisectoral WID strategy require the establishmentof proper institutional linkages and the strengthening of MINASCOFscapacity forplanning, coordin- SMCTURESation and, MINPATevaluation. A decreeestablishing aPlanning, Coordin- n(Oafgce of th Uinitr)ation and Evaluation _ IsDivision (CPCE) o n C r , D Tas Forcwithin MINASCOF not Ievce ntonatio nd WM Tk ForceSsov1c 1Doeumenttion _.later than December Service31, 1990 is beingprepared by theGovernment. A decree PRNOGRAMestablishing thereoriented mandate of Suport ZEC rogram Monit rin a Wd Sttegy

MINASCOF and theServie and0 and Multi-MINASCOF and the Evaluation Sectoraloperationalization of Action Planthis mandate throughproper institutional Figure 1: Structures and Programs of the VID Nodulelinkages withrelevant ministries,would be adopted by September 30, 1991.

5. The CPCE would be responsible fort

a) coordinating the preparation of the WID strategy and itsmultisectoral implementation plan for the integration ofwomen in the development process;

b) coordinating the implementation of the multisectoralstrategy, by making sure that it is taken into account innational and sectoral planning by means of the linkagesreferred to above;

c) in the area of information and statistics, (i) creating adata bank which would permit the monitoring of the impact ofgovernment interventions on the status and role ofCameroonian women and would make possible the yearlypublication of a progress report on key indicators followingthe analytical framework defined in the multisectoralstrategy; (ii) participating in the design and analysis ofthe permanent household survey to be set up under the SDAProject; and (iii) promoting gender-disaggregation in allGovernment data collection;

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d) evaluating the human resources and technical expertiseavailable within MINASCOF to identify needs for redeploymentand retraining to support the reorientation of its mandate;

e) reorganizing the planning and programming process withinMINASCOF to ensure the timely availability of properresources to operationalize the reoriented mandate (thiswould be put into practice in the programming and budgetexercise from fiscal year 1992-1993 on);

f) establishing a system for monitoring and evaluation of thefield actions of MINASCOF, focussing in the short tenm onsupervising the reorientation of the urban and rural supportservices for women and on the evaluation of the Information,Education and Communication program.

6. The CPCE would also be responsible fort

a) the introduction of the principles of cost-recoveLy,participation, and responsabilization in the ministry'ssupport services, in order to enhance the long-term viabiltyof the Ministry's actions;

b) the definition and integration of priorities in order tofocus particular attention on the most vulnerable groupswhile broadening opportunities for women in general.

7. The Project would finance technical assistance, equipment neededby the CPCE Division, training of its management staff, the organization ofseminars, and local travel.

IV. Multisectoral VID Strategy and Imilementation Plan

8. The objective of this component is to develop a coherentoperational strategy and implementation plan to ensure the participation ofwomen in the growth and economic recovery process by improving theirwelfare and their ability to respond to a changing economic environment. Anumber of sectoral studies would be financed under the Project to providean analytical and conceptual basis for the formulation of the strategy andQassociated implementation plan.

9. Based on an initial assessment of issues1, these studies wouldaddress the legal, administrative, and sectoral constraints affecting women(education, population and public health, agriculture and environment,labor, self employment and financial sectors). Special emphasis will beplaced on improving women's access to credit. Other studies would focus onwomen's associations in Cameroon and appropriate information, education andcommunication strategies. Finally, an analytical framework would bedeveloped for monitoring the welfare and role of women vis-&-vis the

1VID Country Assessment Cameroon, White Cover, August 1989.

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various macro-economic and sectoral policies. Generic guidelines for thepreparation of the multisectoral strategy are attached to this annex (pages8-9). Detailed terms of reference for the first of these studies on thefactors affecting girls' school enrollment and participation are includedin the Project File. The recommendations resulting from these studieswould be incorporated in the formulation of the multisectoral strategy andwould be discussed with the respective line ministries and other relevantstructures in a series of consultation seminars. In preparation of thisresearch program, MINASCOF would undertake an inventory of present actionsin the area of Women in Development in Cameroon, as well as an inventory ofstudies related to this subject to provide a comprehensive overview ofexisting knowledge and experience on the subject. Completion of the WIDstrategy report and associated implementation plan is planned for March1992, with implementation of the strategy scheduled from fiscal year 1992-1993 on.

10. An interdisciplinary Task Force, with representatives of theGovernment, the private sector, and NGOs, as well as the academic world,would be established to formulate this operational strategy under theconceptual leadership of MINPAT, with MINASCOF assuring the operationalcoordination of the implementation of the strategy. The Project wouldfinance consulting services and related preparatory work for the strategy,as well as the organization of seminars.

V. Information, Education and Communication Program

11. The primary objective of this action would be to produce anddisseminate effective information materials to reach four categories ofpeoples (i) disadvantaged women; (ii) decision-makers; (iii) people workingwith women at the grassroots level (rural animators, community developmentagents, personnel of the social centers and women's centers, NGOs); and(iv) the Cameroonian people in general.

12. For each of the categories above, appropriate messages andinformation channels need to be defined, taking into account thelinguistic, ethnic, cultural, and ecological diversity of the country.Initially, priority would be given to information on and for women in theareas of focus of the SDA Project. Particular attention would be paid tothe development of innovative approaches. Evidence has shown that the useof popular music and plays are more effective means to reach broadcategories of the population than the typical presentation throughlectures. Distribution of video and audio cassettes would be organizedthrough both the media and face-to-face communication by field workers.Efforts would be made to reach women where they concentrate (e.g. atmarkets and maternal and child health services). The urban and ruralsupport services for women and the mass media would also be used todisseminate information. A proposal on the objectives of and proceduresfor conducting this program is included in the Project File.

13. The Information and Documentation Service of MINASCOF would havethe primary responsibility for this action. The Project would financetechnical assistance, equipment of the Information and Documentation

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Service and training of its staff, as well as the production of IECmaterials.

VI. Reorientation of SUPport Services

14. MINASCOF's rural animators, social and women's centers have madea contribution to the enhancement of women's welfare and participation inthe economy. However, the impact of these activities has been limited bytheir focus on promotion of traditional and/or non-functional skills whichdo not lead to gainful employment for women. Moreover, the emphasis hasbeen on the construction of new physical infrastructure (social and women'scenters) rather than on making existing services effective. Given thegeneral lack of support services in urban areas, and the limited access ofwomen to rural extension services, these outreach services are necessary tofill the current gap.

15. This component would support the reorientation of MIINASCOF'soutreach services towards the development of skills and income generatingschemes to provide productive self-employment for disadvantaged women. TheEducation Service of MINASCOF would have the primary responsibility forthis action.

16. Urban outreach services. In urban areas, a phased program wouldbe adopted to assist the more functional of the social and women's centersin: (i) improving their training programs for young girls; (ii) increasingthe centers' cost-recovery capacity through the development of incomegenerating activities linked to on-the-job training for "home economics,trainees; (iii) organizing seminars and courses for adult women; and (iv)developing outreach activities. Implementation of the program would bedependent on an on-going evaluation of existing urban centers torationalize their management, improve their performance, and select themost functional centers to be supported under the Project. The terms ofreference for this study are included in the Project File.

17. Training programs for girls would be reoriented towardestablishing viable microenterprises. Thus, specialized courses would bestrengthened, arrangements made for on-the-job training, and courses on howto set up and manage microenterprises added to the program. Specialattention would be given to preparation of credit applications. Followingthe successful example of the Women's Center in Douala, to reduce drop-outrates, courses in responsible parenthood will be included in the programs.The P:oject would finance the production of textbooks and teachingmaterials as well as the training of one teacher per selected outreachcenter.

18. To strengthen the cost-recovery capacity of MINASCOF's urbanoutreach centers, the Project would provide financial support for thelaunching of income-earning activities. These activities would have tomeet the following criteria: (i) they must be linked to on-the-job trainingfor the centers' students; (ii) they must be in areas that lend themselvesto the eventual establishment of small enterprises by the students; and(iii) they must be justified by a feasibility study comparable to those

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required by PRODEC. A financing package has been earmarked for eachstructure included in the Project. The directors of the inc'uded centerswould receive management training to be offered by a qualified NGO.

19. Every urban outreach center included in the Project wouldorganize seminars for adult women on the subject of creating and managingsmall businesses. These seminars would be subcontracted to qualified NGOs.Special attention would be given to the organization of pxograms tailoredto the learning capacity the beneficiaries.

20. The Project would also finance certain promotional activ.,tiesorganized by the urban outreach structures. The activitiei intended arethose that seek to reach as many people as possible at the lowest costpossible (liaison bulletin, loud-speaker etc.,. A fin icing package wouldbe earmarked for each structure included in the Project.

21. Rural outreach services. This component would gradually reorientthe activities of MINASCOF's rural animators. Their role would becometwofold, emphasizing: (i) information and consciousness-raising activities,and (ii) liaison between rural women and the services of the specializedGovernment agencies. This reorientation would initially focus on the areasof concentration of the SDA Project. The Government has agreed to initiatea process of consultation with the relevant line ministries to reach anagreement on the redefinition of the role and respons;.bilities of thevarious rural outreach structures prior to project implementation toeliminate the current overlapping and duplication of responsibilities amongdifferent services. The Project would finance technical assistance,training and logistical equipment needed.

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Estimated Bas. Costs (USS thousand)

Institutional Strent.henl no

Toehnical Assistance - Consultants 420Personnel SolMissions - Training - Seminars U42Equipment 8(9Operation and Maintenance 381

T;g

Definition of WID Stratern and Multisectoral Im.lemntatlon Plan

Technical Assistanco - Consultants 416Missions - Training - Seminars 887Equipment 105Operation and Maintenance s8

Intormetion. Education and Communication Program

Technical Assistance 82?Misslons - Training - Seminars 190Equipment 75Production of IEC Materials 860Operation and Mlaitsnanco s0

Reorientation of SuppOrt Services

Technical Assisance 82?Missions - Training - Seminars 78CStudies 29Publication 21Equipment 741Operation and MIintenance 14i;m"Administration Unit

Personnel 48Equipment 5Operating and Maintenance 12

Total 6,780

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MULTISECTORAL STRATEGY FOR THE INTEGRATION OF WOMENIN THE DEVELOPMENT PROCESS

1. Objectives

The overall objective of the multisectoral strategy andimplementation plan is to achieve the more effective integration ofCameroonian women in the socio-economic development process by improvingtheir capacity to respond and adapt to macro-economic and sectoralincentives.

In concrete terms, the multisectoral implementation planwill consist of the following:

a. Diagnostic study

- a quick and effective diagnostic study of the current s1tiationof Cameroonian women: economic status and role, identificationof main constraints encountered and against which concrete actioncan be taken (lejal, socio-economic and cultural constraints);

- assessment of existing information and statistics, identificationof gaps;

- evaluation of government policies and strategies having an impacton the status and role of women, institutional framework,specific actions;

- evaluation of other pregrams: those of NGOs, donor agencies etc.- summary of past experiences _.n order to identify inrovative and

successful approaches;- evaluation of the capacity and potential of women's groups and

associations in order to promote productive activities.

b. Formulation of key strategies

- strengthening and expansion of basic data collection(disaggregated by gender), research and analytical evidence onthe economic and social factors that have impact on women;

- formulation of an analytical framework (key indicators) formonitoring changes in the situation of women under the effects ofvarious macro-economic and sectoral incentive policiess

- formulation of specific sectoral strategies, policy measusres,concrete activities and identification of the resources needed toput these strategies into operation;

- identificatinn of innovative approaches to test within specificareas aimed at developing empirical evidence;

- identification and articulation of appropriate institutionalchannels in order to operationalize the strategies developed andto ensure their monitoring and evaluation.

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2. Main aspects to be studied

a. Role and contribution within the household:

- traditional ialelfemale roles;- decision-ma'.ing process within the household;- origin and istribution of resources within the household;- use of tia division of tasks, multiplicity of women's tasks and

impact on ?roductivity and income and also on access to socialand productive services.

b. Women as economic agents

Present and potential role of women within the economicsectors, constraints that limit their productivity and revenue. Factorsthat limit their capacity to respond to macro-economic and sectoralincentives: mobility and access to information, resources and markets(e.g. labor, inputs, financial services, commercialization)

- agricultural production, stockraising and natural resources,taking regional variations into account (ecological, ethnic andcultural);

- nonagricultural sectors: participation in the labor market,informal sector.

C. Access to social services

Factors responsible for the low level of education,information, nutrition and health and their impact on the productivity andincome of women, the welfare of the family and on the economy in general.

- education;- health, population and nutrition.

3. Preparation of the Multisectoral Strategy

The Government will invite an expanded interdisciplinarytask force to plan the next phases in the formulation of the strategy(sector-specific terms of reference together with the expertise required,the timetable and coordination of the work).

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Annex 9

PRODEC Organization and Operation

1. Obiectives. To strengthen the Government's policy of support tograssroots activities, a primarily urban Community Development Program(PRODEC), with initial funding of US$ 5.0 million equivalent, would be setup under the Project. PRODEC would provide a financial and institutionalmechanism to support, through grants, community groups' endeavors toimprove their welfare, by providing social infrastructure and serviceswhich are beyond the government's capacity to prov'.de, and by generatingproductive activities. The Program, targeting the urban poor, wouldprovide financial assistance to community groups and individuals who needfinancing for: (a) small-scale social infrastructure benefitting thecommunity, (b) social services for the community in the areas of hygiene,health, education, training, and nutrition, (c) training and managementsupport in simple business skills, and (d) small-scale income generatingactivities (micro-enterprises) sponsored by groups or individuals.PRODEC's field agents would also inform potential beneficiaries about theassistance the program could provide and assist them in preparing projects.

2. Target Groups. The urban population has been particularlyaffected by the present crisis and will also feel the effects of theadjustment and restructuring measures included in the Structural AdjustmentProgram. Consequently the principal target groups for PRODEC funding wouldbe the most vulnerable strata of the urban population. While theparticipation of rural populations in the nation's development is also ofcritical importance, this goal would be promoted primarily through theproposed Food Security Project being prepared for Bank financing, ratherthan through PRODEC.1

3. The main groups to which assistance would be directed includes

a) those below the poverty level, defined as those whose incomes areinsufficient to provide for basic needs (at present the data tomeasure this level are inadequate but should gradually improve asdata from the household survey become available and areanalyzed);

lTo prevent a duplication of structures and activities, the Government hasestablished a division of labor between PRODEC and the proposed Food SecurityProject. Activities in the social sectors, such as health, hygiene, watersupply, and education, would fall under PRODEC, as would artisanal production(including the production of agricultural tools) and non-agricultural services.In contrast, agricultural production (inclusive of livestock, forestry, andfishing), storage, marketing, small-scale transformation of agriculturalproducts, and small rural infrastructure (e.g., roads, ponds, bridges) would becovered by the Food Security Project. Both projects would support managementtraining in their respective areas of activity.

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b) households lacking access to basic services, essentialinfrastructure, and other forms of support; and

c) women and children (especially pregnant and lactating mothers andinfants).

4. Project Selection Criteria. Social projects are intended to meaetthe needs of target groups in the areas of social services (such ashygiene, health, education, training, or nutrition) and socialinfrastructure. The criteria for the selection of these projects would bet

a) the projects should reflect the expressed needs of the community;

b) the projects should be capable of becoming self-sustainingt theyshould generate enough revenues to cover their operating costs;

c) the promoters of the project should have, or be capable ofacquiring, the ability to manage and administer the grant and theproject;

d) PRODEC would not provide grants for the construction of buildings(although the completion of buildings could be considered).

5. For-profit projects should meet the following criteria:

a) the activity should create employment;

b) the financial feasibility of the project should be demonstratedtthe project should maintain a positive cash flow and becomeprofitable within a reasonable time period;

c) the promoters of the project should have, or be capable ofacquiring, the ability to manage the project;

d) the promoters of the project should contribute (financially or inkind) a minimum of 50 percent of the project's cost, with aminimum financial contribution of 25 percent.

6. PRODEC projects are intended to be primarily small-scale, costingbetween CFAP 100,000 and CFAF 10 million (about US$ 300 and US$ 33,000equivalent, respectively).

7. PRODEC Organization and Management. In order to assure the rapidand efficient channeling of funds to beneficiaries the management structureof PRODEC must be flexible and decentralized. To this end, a relativelylight structure has been created as part of the CTC/DSA with a smallmanagement unit in Yaounde and four field agents (aantennes") and smallProvincial Committees in Yaounde, Douala, Bamenda, and Garoua (see Fig. 1).The eventual expansion of PRODEC to other provinces could be envisaged ifadditional financing were to become available.

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Technica ICoordlinsti.0

8. To supervise the comm "coordination and financial (CC/M)

management of PRODEC, amanagement unit (Cellule duProgramme de DeveloppementCommunautaire) has beencreated under the Project's npovi,,DnI PowncII Pr Ynfl

Central Coordinating CoDitt

Committee (CTC/DSA), with aUnit Chief (Chef du CellulePRODEC), a project PAe-

assistant, and a secretary. u Yrmsa 9?u

The Unit Chief, hired by andresponsible to the SDAProject Administrator, would Figure 1: PRODEC Organizationsupervise the work of thefield agents, and review the reports submitted by the ProvincialCommissions. One of his first tasks would be to prepare, and submit to theCTC/DSA for approval, an Operational Manual for PRODEC. A projectassistant would help plan and review programs, and help supervise the workof the field agents. The bookkeeper of the SDA Project Management Unitwould keep the accounts of the PRODEC program and its management unit.

9. The identification, appraisal, selection and supervision ofPRODEC projects would take place at the provincial level. In each provincewith a field agent, a small committee would be established that would meetevery month or two (depending on demand) to review applications submittedby the PRODEC field agents.2 These committees would be composed of fot,rindividuals: the Governor's Economic Councilor (Conseiller Economique) whowould serve as chairperson, the Provincial Delegate (Delegue Provincial) ofthe planning ministry, the Provincial Controller (ContrOleur Provincial desFinances) of the finance ministry, and the Mayor of the provincial capital.The field agents would serve as secretaries to the Provincial Committeesand prepare the Committees' minutes and reports which would be sent to theUnit Chief. They would also review the feasibility of projects submittedto them, help prepare project identification sheets (model projectidentification sheets may be found at the end of this annex), presentapplications to the Provincial Comittees, engage in public relationsactivities to bring PRODEC to the attention of potential beneficiaries,supervise projects, and prepare progress reports prior to meetings of theProvincial Committees. In order to inform the community of PRODECactivities, promote the exchange of information and collaboration withinthe community, and provide a channel for feedback to the PRODEC agents andprovincial committees, the field agents would organize quarterly meetingsof the community groups, NGOs, and other organizations involved (or

2Provincial committees could eventually be established in other provincesif the provincial government so desired and if one of the field agents identifiedpotential projects in the province concerned.

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potentially involved) in the identification and/or implementation of PRODECprojects.

10. At the end of the Project, arrangements would be made for theadministration of PRODEC to pass into the hands of the planning ministry oranother ministry of the Government's choice.

11. The Proiject Cycle. The projectcycle would consist of (i) the bottom-up AM F^s RIN

process of project identification and F"; ^ M. tD,Iapproval, and (ii) the top-down process of cx /Mproject funding (see Fig. 2). The field t tagent would identify and/or receive project LG"_{"¢alideas, assist the project promoters in thepreparation of funding requests, have themcleared by the relevant ministry (e.g.. 4projects related to health would be clearedby the Ministry of Health), then presentthe requests to the provincial committee,with his recommendations. For projects Figure 2t The Project Cyclecosting less than 3 million CFAF, thecommittee would then approve or reject the project. If approved, the fieldagent would have the Unit Chief request that the Caisse Autonomed'Amortissement authorize disbursement to the beneficiary and notify thefield agent of the disbursement. For purposes of supervision, the minutesof the Committee meetings, accompanied by the files of all projectsconsidered, would be sent to the Unit Chief following the meetings.

12. For those projects costing 3 million CFAF or more, the projectfile would be submitted, with the recommendation of the ProvincialCommittee, to the Administrator of the CTC/DSA for approval. Projectscosting more than 5 million CFAF would also require the approval of theBank (projects would be considered approved if the Bank did not respondwithin 15 working days). If approved the Unit Chief would request that theCaisse Autonome d'Amortissement authorize disbursement to the beneficiaryand notify the field agent of the disbursement. For larger projects fundscould be disbursed in tranches after verification by the field agent ofproject progress.

13. The Pilot Phase. Following the identification mission the WorldBank contracted four local consultants to identify and prepare pilotprojects in the cities of Bamenda, Douala, Garoua, and Yaounde. By the endof the appraisal mission, these consultants had identified some 59potential pilot projects for funding during the start-up phase of theprogram. Following are some examples of these projects. They are listedhere in order to give an indication of the type of intervention that isenvisaged, though these particular projects may or may not be financed.

a) Yaoundes Neighborhood Water SupplY. Five years ago the springwhich provided water to the neighborhood of Mendong (on theoutskirts of Yaounde) was destroyed. The community group Bia,composed of 62 families in the neighborhood and supported by

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MINASCOF, has negotiated a water supply project with the CameroonNational Water Company. While the city of Yaounde willcontribute substantially to the project, the group needs to raisesome CFAF 2 million (about US$ 7,000 equivalent) to complete theproject. The group has requested a grant of CFAF 1.5 million(about US$ 5,000 equivalent) from PRODEC.

b) Garoua: Crafts. Garoua has a long tradition of craftsmanship.In order to expand employment and income in the town, themunicipality plans to open several small boutiques to sell localcrafts to the tourists who come to visit the area. Severalgroups of artisans, including leather workers, silversmiths,embroiders, and seamstresses, would like to use PRODEC financingto expand and improve the quality of their production, whichwould be marketed through these boutiques. These micro-enterprises are seeking financing ranging from CFAF 200,000 toCFAF 2.9 million (about US$ 650 to US$ 9,500 equivalent).

c) Bamenda: Christian Women's Fellowship (CWF) Students' Hostel. In1987 the CWF, a Presbyterian service organization with some 2,500members, decided to build a hostel to house female high schoolstudents who come to Bamenda from rural areas. The group raisedCFAF 4 million (about US$ 13,000 equivalent) and has nearlycompleted construction of a first building. An additional CFAF6.5 million (about US$ 21,000 equivalent) is needed to completeand equip the building and to begin operations.

d) Douala: Garbage Collection. In the squatter settlements ofDouala there exists considerable unemployment and unsanitaryliving conditions. In one neighborhood youths have begun agarbage collection service as means of addressing both problems.Households will pay a small fee to have their trash removed on aregular basis. It is estimated that CFAF 5.2 million (aboutUSS 17,000 equivalent) is needed to get this service working on asustainable basis.

14. The community development module would cost US$ 5.8 million(including contingencies, excluding taxes) as follows (US$ thousandequivalent):

ADMINISTRATIONTravel 46Training 23Equipment 76Vehicles 64Operation and Maintenance 124Personnel 470

802PROJECTS 5,000

5,802

122

Annex 9: Page 6 of 10

Project Identification SheetSocial Project

Community Social Services, Infrastructure, Training

I. Summary Description of the Pro3ect:

Project Type: Describe the activity, its purpose and goals.History: Describe the origins, development. and current statusof the project.Beneficiaries: Who will benefit from the project?Management: How will the project be organized and executed?Describe the existing management competence and experience of thestaff.

II. Financina:

To what extent can the sponsors of the project contribute, financially orin kind, to the project?

A. Financina Needs:Describe what needs to be financed.

B. Financing Requested:

Purpose of Grant: What, specifically, will the grant beused for?Amount Requested:

C. Contribution of the Beneficiary:

Financial Contribution:Personal contributionSales of goods and servicesOther

Contribution in kind:LaborMaterialsOther

D. Other Sources of FinancinRs

Grants from GovernmentGrants from Foreign AgenciesOther

123

Annex 9s Page 7 of 10

III. Evaluation of Project Viability

To be eligible for a PRODEC grant, the project must able to sustain itselfafter receiving PRODEC funding. This means that the project must be ableto cover its operating andlor maintenance costs.

A. Expected 2Perating/Maintenance Costes(per month or year)

B. Expected Revenue:(per month or year)

Sale of Products-ServicesOther Sources of Income

Expected revenue should be at least equal to expectedoperating/maintenance costs.

C. Timing:

How long will it take for the project to become viable,i.e., before expected revenues become adequate to cover theexpected operating costs?

IV. Training Needs:

Describe any training needed to ensure the success of the project.

124

Annex 9: Page 8 of 10

Project Identification SheetMicro-Enterprise

I. Summary Description of the Activity:

Describe the activity, the administrative and management capacity of theentrepreneur, the number of employees hired (or family labor) and their jobdescriptions, future plans/goals of expansion. diversificationl. etc...

II. Evaluation of Financing Needs:

A. Investments

Quantity or Size Value/Unit Total value

LandBuildingsEquipment

Total:

B. Working Capital Needs

Working capital should cover an appropriate percentage of theoperating costs defined below. Indicate why you chose this amount.

Amount:

C. Other Sources of Financing

What other sources of financing are available for the project, e.g.,personal savings and contributions, financing from tontines, otherloans, government or foreign grants and subsidies, etc...

Sources of Financing Amount (CFAP)

LoansPersonal ContributionsTontinesGovernment Grant-SubsidyForeign GrantRetained Earnings

Total:

D. Financing Requested:

Total investment needs plus working capital needs minus other sourcesof financing (A + B - C):

125

Annex 9s Page 9 of 10

III. Evaluation of Project Viability

'What is the additional income expected if the loan is made to theenterprise, e.g. how many more products can be made, how much more of theseproducts can be sold, and at what exp'cted price per unit? Will theenterprise be able to reimburse the loan? How long will it take for theproject to become viable, i.e., before the project begins to generate therevenues necessary to repay the loan (be sure to take this time lag intoaccount in determining working capital needs above)? Are thore any specialconditions which might effect the enterprise's ability to repay the loan?Provide projected profit and loss and cash flow statements for the nextthree years using the following examples:

PROFI AND LOSS STATEMENT

PresentValues Year 1 Year 2 Year 3

A. Operating Revenues

Sale of Products and Services(specify items)1.2.

Total:

B. Operating Costs

1. Salaries2. Raw Material3. FuelIElectricity4. Rent5. Maintenance6. Other Expenses7. Depreciation

Totalt

C. Operating Income (A - B)

D. Non-opersting Income

E. Non-operating Expenses

1. Other expenses2. Interest payments

F. Pre-tax Income (C + D - E)

G. Tax

H. Net Income (F - G)

126

Annex 9: Page 10 of 10

CASH FLOW STATEMENT

PresentValues Year 1 Year 2 Year 3

A. Cash ReceiDts

1. Sales of Products and Services2. Equity Investments3. Loans

Total:

B. Cash Disbursements

1. Operating Costs(as above less depreciation)

2. Interest Payments3. Repayment of Debt (principal)4. Tax5. Capital Expenditures

Totalt

C. Balance (A - B)

IV. Training needs:

Describe the existing competence of staff and what is needed in the way oftraining.

127

Annex 10 Page 1 of 3

Annex 10

Cameroonian Household Survey Plan of Operation

Introduction

1. The Cameroonian Household Survey system (ECAM) would provide arapid and regular source of data on the standard of living and the socio-economic statu* of households during the adjustment process. The ECAM wouldinclude 3 types of survey 2 Priority, Integrated and Community.

Basic principles

2. The 'CAM would enhance the capacity of the Planning Ministry(MINPAT) to gather, process and analyze socio-economic data on households.It would be built upon the continuation of the Consumption-Budget Survey(EBC) conducted in 1983-84, and would provide follow-up analysis of socio-economic household indicators.

3. A User's Committee would be set up by September 1990 to assurethe relevance of collected variables and the appropriate use of thesevariables in the design of actions which would aid vulnerable households.The Committee would be composed of MINPAT's partners (e.g., MINSANTE,MINEDUC, HINASCOF, MINAGRI) and would give advice on various aspects ofSCAM, particularly on questionnaires and the analysis plan.

Methodology

4. The ECAM methodology and documents would be based on the SDAprototype surveys designed by the World Bank SDA Unit and adapted toCameroonian needs. During the project life span, there would be a PrioritySurvey in 1990, an Integrated Survey in 1991-92, followed by Priority andCommunity Surveys in 1993 and a Priority Survey in 1994.

5. The Priority Survey would be designed to identify vulnerablegroups and to monitor Cameroon's key social indicators. It would beadministered to a large sample of approximately 18,000 households and woulduse a short questionnaire. Data collection duration would not exceed3 months. Data analysis would be available approximately two months afterthe collection of data.

6. The Integrated Survey would provide the necessary information toinvestigate the complexity of the impact of adjustment on differenthousehold groups and to establish the relationship between macro-economicpolicies and their effect at the household level. It would be administeredto a sample of about 4000 households and would use a more comprehensivequestionnaire than the priority survey. This questionnaire would bedesigned to integrate data in areas includimng: demography, health,education, economic activity, consumption, savings, and nutrition. Thedata collection exercise would last for a year.

128

Annex 10: Page 2 of 3

7. The Community Survey would provide key information on changes atthe intermediate level between macroeconomic policies and households, suchas villages, community services, markets, and health centers.

8. The Sample Desi8n of the various surveys would be consistent.The particular sample drawlng would be designed during the pre-surveyactivities. Basically, tV: sample design would be done in two steps. Theprimary sample frameworks would be the list of enumeratior areas of theSecond National Population Census. Therefore, close collaboration would beestablished with the National Directorate of the Second Population Census.This sample base would be evaluated and would be updated if necessarythrough punctual actions. The primary unit (first stage) would be drawnfrom this base and a list of households would be established. From thislatter list, the final household sample (second stage) would be drawn. Thesample desigi for the community survey would be designed during pre-surveyactivities.

9. Data Processing and Analysis. Data would be entered at theprovincial level and then processed at the Central Statistical office inYaound#. After verification, data from each of the three types of surveysand the EBC would be organized into a socioeconomic data base. The firstpublication, Preliminary Results of the ECAM, would be distributedimmediately after data from each survey are processed. A global analysisplan would be established based on the SDA Analysis Plans and adapted toCameroon's needs. Living Conditions in Caweroon Households would bepublished after each survey and would serve as the basis for a seminar onthe results of the ECAM open to all users.

10. Monitoring and Evaluation. Special attention would be paid tomonitoring the various stages of the surveys to ensure the high qualitv ofthe data.

Organization

11. The ECAM would be Implemented by the Statistics and NationalAccounting Directorate (DSCN) of MINPAT. The Director of DSCN would be thenational director of the ECAM and the Chief of Census and Survey CentralBureau (BCRE) would be the technical director. The ECAM would be composedof (i) a Central Unit consisting of four sections; data collection, dataprocessing, data analysis, and administration and accounting; and (ii) tenteams based at the field offices located in the statistical offices of theProvincial Delegations. The location of these field units would depend onthe selection of the sample (it is possible that the sample selection wouldleave some provinces out of the process). However, at this stage it isassumed that five of them, which would be equipped by the proposed Project,would be located in Douala, Yaounde, Bafoussam, Bamenda and Garoua. Theother sections would be equipped through the Bank-financed EconomicManagement Project (PAGE).

12. Each team would consist of one supervisor, two interviewers, oneanthropometrist, one driver, and one keyboard operator based at theProvincial Delegation.

129

Annex lOt Page 3 of 3

Execution

13. The analysis and the evaluation of the EBC has been takingplace in 1989-90, The first Priority Survey would take place in 1990-91:preparatory activities including User's Committee meetings from July toOctober; field data collection: November-December 1990; data processing,analysis, publication, and Seminar of presentation: January to March 1991.The Integrated Survey data collection is planned from August 1991 to 1992after 4 months of specific preparatory activities. The data processingwould start just after the field operations and the preliminary resultswould be published in December 1992. After that the second Priority Surveya-nd the Community Survey would be conducted in 1993 and the third PrioritySurvey in 1994.

Project Support

14. The Project would allocate costs of US$ 3.3 million for ECAM asfollows (including contingencies, net of taxes):

USS thousandInternational Consultants 221Internal Travel 734Equipment 218Vehicles 215Training 288Building Renovation 86Personnel 1,113Operations and Maintenance 458

3,333

130

Annex 11s Page 1 of 1

Annex 11

Organizational Structure for the SDA Project

Presidency of theRepubl Ic

I Iterainisterial Council for theSupervision of the Structural

Adjustment Program

TEOGCAL CWORODIATIEN COAME (CYC/DSA)

Ministerial Repre.ntativos: Others:MINPAT MIASSCOF Preetdent: Representative - PresldencyMINSANTE MiPS Adminisatsrator Secretary General - fNEMINEDUC mIPI. Representative - CAA

NSS!RESMINAT

rConqult nts on Or3uiantlteon| ConsultanGoniIOf Plannin rga uotin8

- u- tt IPRUDEC

Assistant Unit ChiefAdministratori ~Project AssC

AccountantSe¢retry

ProvincialdApCntsttee

Field Agents

Annex 12t Page 1 of 1

Annex 12

Cost Estimates for the SDA Proiect(USS millie. eqIval-nt)

(includig cettingeOleCe. excluding taxes)

Pl annlgCo_w.lty Capacity and SDA

V.a tn DevelopEent InBorastlos P'Jeoct

POUCll Health Education Ewlot Dov.1i4t IPOE1 hs b*nt TtlConouteFnt Serviez -. 0 0. --- A.1f - 0 1. T0 9lSB

Training 0.8 1.6 0.0 0.7 1.6 0.0 0.7 0.1 6.0Equlpaet and Supplies a.0 12.8 7.7 0.9 0.0 0.1 0.6 0.1 26.2

Operating Expendlitras 0.1 0.? 0.1 1.1 1.1 0.1 1.2 0.a 4.7Fuel 0.1 0.9 0.0 0.2 0.2 0.1 0.2 0.0 1.6Sub-Projects (PRODEC,FNE,POP) 1.0 0.0 0.0 26.6 0.0 5.0 0.0 0.0 82.6Salaries 0.0 0.9 1.0 0.2 0.4 0.0 8.1 0.S 6.1

TOTAL PROJECT COSTS 4.7 19.0 B.8 83.1 6.9 6.9 7.4 1.0 8C.7

132

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133

Annex 14, Page 1 of 1

Annex 14

SDA Prolect Procurement

IBRD Procurement Arrangements by Module(US$ millions)

(including contingencies, excluding taxes)

NOTICe LCB OiHER APPL. TOTAL

Educatlon- School Okesk 2.2 2.2- Teoaching manuals and materials 1.8 1.0Totals -b T: 4 0u

EmialoWntMTPS ExpendituresConeultants' services and training 0 0.7

- Equipment and vohtele3 0.8 0.1 o.a- Operating costs O.t O.t

FNE Expenditures- Consultant services 1.4 1.4- Equipment and vehieles 0.2 0.2- Operating costs 0.8 0.3- Vocational Training 1.0 1.0- Ooods and Services for:

Solf-employment phase 1 2.0 2.0Self-employment phase 2 6.5 6.5

Totals 0 6 - T12 T Tsommunltz Dev-lo mt- Consultent oerviecA 0.4 0.4- Goods and services 2.5 2.5Totals -W T T U TPlanning Catcity A Information Base- Consultants' service and training 0.1 0.1- Vehicles and equipment 0.0 0.0- Operating costs 0.1 0.1Totals Is 0I 0 0 0I

PrgJeet Administration-Training 0.1 0.1- Vehicles and equipment 0.1 0.1- Operating coot 0.8 0.8Total a0 0 -U WX -i4i

Other7- Repayment 0.8 0.0

TOTAL 0C 6 T.rT il 6

134

Annex 1S: Page 1 of 1

Annex 15

Estimated Government Cash Flow(in millions of US1)

FY91 FY92 FY98 FY94 FY9f FY98 FY97 FY98 FY9D FYOO

OUTFLOWProjectA. Population 0.6 1.2 1.2 1.0 0.8 0.1 0.1 0.1 0.1 0.19. Helth 2.9 C.1 6.0 8.4 1.9 0.0 0.4 0.4 0.4 0.4C. Education a Trlaing 1.1 4.1 2.2 0.7 0.8 0.1 0.0 0.0 0.0 0.00. Employment 0.6 5.6 7.5 9.8 7.7 2.6 0.0 0.0 0.0 0.0E. Wo in D wlopm 0.6 1.0 1.a 1.8 1.1 0.4 0.8 0.8 0.8 0.8F. Cou_nity Dev.(PROD C) 0.2 0.7 0.9 1.5 1.0 0.7 0.0 0.0 0.0 0.00. Planning Capeity Info. 1.2 1.2 1.6 1.8 1.4 0.5 0.4 0.4 0.4 0.4H. SDA Project Ian 0.0 0.2 0.2 0.2 0.2 0.1 0.0 0.0 0.0 0.0(ioss salaries of curren staff)- -- - - - -TOTALS 7.2 19.8 19.9 19.1 16.2 6.1 1.2 1.2 1.2 1.2

Debt ServicingA. I=RD Loan 0.8 0.6 0.6 0.4 0.4 2.6 2.5 2.6 2.5 2.5B. Other Donor's Loans 0.0 0.0 0.0 0.0 0.0 1.0 2.4 2.4 2.4 2.4

TOTALS 0.8 0.6 0.5 0.4 0.4 4.8 4.9 4.9 4.0 4.9

am= sa am= -= s mm u. 00 MTOTAL OUTFLOIS 7.5 19.0 20.4 19.5 15., 9.4 0.1 0.1 0.1 0.1

DonorsA. IBRD 2.2 5.4 4.5 3.4 8.2 2.8 0.0 0.0 0.0 0.0S. Other Donors 4.9 12.4 11.0 6.9 0.4 7.2 0.0 0.0 0.0 0.0

TOTALS 7.1 1t.7 16.1 12.3 11.6 10.0 0.0 0.0 0.0 0.0

Cost RecoveryTOTALS 0.0 0.0 0.2 0.0 1.1 1.4 1.0 1.0 1.0 1.0

man- - -m - mm

TOTAL INFLOWS 7.1 17.7 18.2 12.9 12.7 11.4 1.0 1.6 1.0 1.0

INTOTAENTAL COSTOTALS -0.4 -2.1 -4.2 -4.8 -2.0 2.0 -4.4 -4.4 -4.4 -4.4

135

Annex 16: Page 1 of 2

Annex 16

Documents in the Proiect File

1. Etude Economique Conseil, "Installation of Program Budgeting,"Montreal, July 1989.

2. Etude Economique Conseil, "Republic of Cameroon, NationalEmployment Fund, Feasibility Study, Montreal, July 1989.

3. Institut Panafricain pour le Developpement, 'Coordination desActions du Gouvernement, des ONG et des Organismes Internationaux auCameroun,' DouaL , Aott 1988.

4. Ministare du Plan et de l'Am*nagement du Tdrritoire et Programmedes Nations Unies pour le Developpement, "Les Organisations nonGouvernementales et leur Contribution au Developpement Socio-Economique duCameroun,' Yaounde, Juin 1988.

5. World Bank, Social Dimensions of Adjustment Unit, "Activities ofNon-Governmental Organizations in Cameroon," Washington, March 1989.

6. World Bank, Social Dimensions of Adjustment Unit, 'CountryAssessment Paper, Cameroon,' Washington, June 1989.

7. World Bank, Social Dimensions of Adjustment Unit, 'Elementsd'Evaluation de 1'Enqufte Camerounaise aupres des MHnages,' Washington,April 1989 (in French).

8. Detailed Cost Tables.

9. Terms of Reference for:

a) Study of Business Conditions as they Affect the Formal andInformal Sectors.

b) Small and Microenterprise Development Advisor.

c) Consultant for the Planning Services of the Ministries ofEducation, Health, and Social and Women's Affairs.

d) Multisectoral Action Plan for the Integration of Women in theDevelopment Process: Education and Vocational Training Sector.

e) WID Module: Information, Education, and Communication Program.

f) Study on the Rationalization and Improvement of the Efficiency ofMINASCOF's Urban Outreach Services.

136

Annex 16: Page 2 of 2

10. Module Operation Plans:

a) Population

b) Sant6

c) Emploi -- FNE

d) Femmes et Developpement

e) Organisation et Operation du PRODEC

f) Enqugte Camerounaise aupras des Menages

g) Organisation de la Collecte, du Traitement et de l'Analyse del'Indice des Prix & la Consommation

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SOCIAL DIMENSIONS OF ADJUSTMENT PROJECT

A L"octions of PRODEC"s * National capitals D N.Regionl Offices Province capitols s -.w . /-Lp

0 Division capitals /

Paved roads. national 0 Sub-division capitals

- Unpaved roads, notional v District capitals

--- Unpoved roads, provincial o Other towns

-------- Unpoved roads, district v Airports

Railroads

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.. Ports --- International boundaries If

Setuements with over 5o,ooo poutation In 198S 6 F_,

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