Is the use of investment resources allocated to councils efficient in Cameroon?

Abstract

Abstract This study aims to evaluate the efficiency of investment resources allocated to councils in Cameroon. Data is drawn from the Local Development Observatory of the Special Council Support Fund for Mutual Assistance (LDO-FEICOM), the Ministry of the Economy, Planning and Regional Development (MINEPAT) and the National Participatory Development Program (PNDP) for 2010–2020 period. The efficiency of this method by the data envelopment analysis(DEA) enables us to archieve at least two important results. Firstly, the use of resources transferred to the Public Investment Budget (BIP) appears more efficient than those transferred to FEICOM and PNDP. This is due to the mechanism used in executing expenditure by the former which differs from that of other mentioned institutions. Secondly, the pooling of resources from the different structures increases the efficiency scores obtained, taking them to a level above those obtained for FEICOM and PNDP taken in isolation, even if the new scores remain lower than those for PIB. These results suggest an important policy implication that the use of investment resources allocated to councils through the PIB mechanism appears to be the most appropriate way to improve the use of investment resources allocated to decentralisation by the State and other agencies involved in financing local projects. Code JEL :H11, H21, H41, H70, H71, H72