Tuesday 29 July 2014

Questions over fuel price raise

Boh Herbert
Dear editor,

Following the upward readjustment of fuel prices in Cameroon a few questions are still begging for answers. Among them, the following:

1. Which country in the world, including the USA, does not provide subsidies to the poorest and most vulnerable of its citizens? We all know that the USA provides reduced school lunches; they provide government subsidized healthcare; they provide state and federal government funding for education; they provide subsidies for housing; food vouchers; etc.? The Brazilian example of "cash for work" subsidies which lifted millions out of poverty under President Lula da Silva has inspired initiatives in the state of New York.

2. Besides fuel subsidies, does the government of Cameroon provide any other subsidies that directly benefit the poorest of the poor in Cameroon? It is my understanding that even the limited list of subsidies provided by the US government do not apply to Cameroon's poorest and most vulnerable and that our poorest of the poor are lucky to even have fuel subsidies. Am I mistaken?


3. If, indeed, no other subsidies are provided to Cameroon's poorest and most vulnerable, why would the only subsidies being provided be recommended for scrapping? Is it because the poorest and most vulnerable of Cameroonians more well-to-do than the poorest of the poor of the USA who continue to benefit from subsidies? Are Cameroon's poorest being trampled afoot simply because they are voiceless and can be crushed without uttering a word in protest?

4. We know that the richest and most powerful Cameroonians beginning with the Head of State; his government; his legislators; top civilian and military officers all - let me repeat that - ALL of the richest and most powerful of Cameroon get 100 percent of their fuel paid for by the poorest of the poorest Cameroonians in the form of taxes. We know how much the Presidency, Prime Ministry, Ministries, get in fuel vouchers including to find their private trips to the village each weekend. Can advocates of scrapping show how by lifting fuel subsidies for the only Cameroonians who pay cash down will change this situation of reverse Robin Hood - stealing from the poor to give to the rich?

5. Where is the scientific, economic or financial study proving beyond all reasonable doubt that the fuel subsidies in Cameroon benefit the richest Cameroonians to the exclusion of the poorest? In other words, can anyone give us a study that shows beyond doubt that the poorest Cameroonians are not benefiting from fuel subsidies? Can anyone show us a study proving that the poorest and most vulnerable Cameroonians are made poorer by these fuel subsidies and are not helped by them?

6. If the poorest and most vulnerable Cameroonians do not, indeed, benefit at all from fuel subsidies, can they show us a study that outlines how the money saved by scrapping the fuel subsidies meant for the poor will henceforth be reinvested or better invested to promote the goals of lifting the masses out of poverty? We already know how funds meant to promote pro-poor programs under HIPC have been wasted in support of exorbitant projects such as the Second Bridge on the Wouri River benefiting companies from a certain colonial master. A new scheme masking another wolf I'm sheep clothing will not fool anyone - not anymore than the first one.

7. Lastly, but by no means the least important, can we know why certain subsidies (such as fuel subsidies) are not among the sacred cows? We know that some electricity subsidies, investment subsidies, import subsidies, etc. are sacred cows. Why is it that the electricity subsidy granted such profit making companies like Alucam can be maintained while fuel subsidies benefiting some of the poorest (who pay electricity at a higher rate than the very rich Alucam) are scrapped? Why does Alucam deserve these subsidies from colonial days and into the future (under the soon-to-be completed dams like Lom Pangar) while the poorest pay their bill for them? Why should rich multinationals get subsidized import duty or simply waived custom duty while the very poorest and most vulnerable Cameroonians cannot bring in a roll of toilet paper without being taxed through the nose?

Questions! Questions! No answers, unless the IMF and the Cameroon government have answers they can point us to.

Boh Herbert (Sent from my iPhone)

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