Planned liberalism
From Wikipedia, the free encyclopedia
Planned liberalism (French: Libéralisme planifié) is an economic policy followed in Cameroon since the 1960s that aims to merge the best concepts of capitalism and socialism.[1][2] Abel Eyinga sees it more as an African Dirigisme[3] while Pierre Chauleur saw it more as a humane variant of socialism.[4] It had characteristics of a planned economy,[5] economic nationalism and crony capitalism.[6] Another view is that planned liberalism is neo-Keynesian.[7]
During Ahmadou Ahidjo's Presidency
In 1965, Cameroon changed its economic philosophy from African socialism under the guidance of its first president, Ahmadou Ahidjo. Under planned liberalism, the state began regulating and managing natural resources and guiding foreign investment into specific economic sectors or geographic areas. In the process, the government has partnered with foreign firms to set up various parastatal enterprises (They can be considered as government-affiliated entities designed to meet commercial and state capitalist objectives[8][9]). Meanwhile, it has encouraged private enterprise, investment, and the operation of market forces.[10] Capitalism had led to economic development worldwide, but also to a growing gap between rich and poor. Socialism attempted to tackle economic inequality through a planned economy, but this model did not lead to a direct improvement in the citizens' lot. Liberal planning, according to Ahidjo, led to direct prosperity. Ahidjo said that "there was no longer an absolute gap between the two formulas" (i.e., Marxist socialism and Western capitalism),[11] Ahmadou Ahidjo himself was a anti-communist.[12] Cameroonians were encouraged to start their own (modern) companies so that a private sector would emerge, and the country opened its doors to foreign investors who were encouraged to invest their money in mixed companies (half private, half government ownership). However, when the economy declined in the 1970s and 1980s, the government decided to privatize the mixed companies. The intention was for the former state share to end up in the hands of Cameroonians (economic nationalism). It is a strongly interventionist and has a nationalist doctrine. An important political aspect of liberal planning was that Western investment increased while the non-aligned foreign policy could be continued. Full identification with the West was thus not possible. Because liberal planning was primarily seen as an economic model rather than a political one, the Ahidjo government did not consider it necessary to democratize the Republic of Cameroon.
Abel Eyinga traces the theory of liberal planning to Gaullist economic doctrine and sees liberal planning as "the African equivalent of 'participation'."[3] According to him, the concept of liberal planning first emerged around 1965 in Gabon, where the concept—possibly elaborated differently than later in Cameroon—was embraced as an economic ideology.[3]
To develop, with a view to the future, all the resources of the country, the President of the Republic of Cameroon at that time has set himself the objective of self-centred development and the doctrine of "planned liberalism", which he defines as follows: "We intend to submit, henceforth, our international economic relations to our objectives of internal development, that is to say, we intend to promote a truly integrated economy, characterised by effective control of the principal factors of development." It is, at bottom, a humane socialism which seeks its path pragmatically.[4]
President Ahmadou Ahidjo El Hadj explained this choice at the time by declaring: "The most dynamic factor in our start is, we believe, our choice for liberalism in economic matters; liberalism, thanks to which the prospect of legitimate profit encourages initiative and thanks to which freedom fertilizes the imagination. But, it is a question of an ordered, selective, non-anarchic liberalism; one that finds its fulfillment within the previously defined framework of the Plan. In economic matters and particularly in matters of investment, we believe more in the favorable psychological effects of freedom and confidence than in the results of actions due to constraint. In the current national and global situation, this policy of liberalism is without a doubt the best for our country and consequently the most in accordance with the interest of our people. It represents the happy conjunction between the ideal of development towards which we tend and reality. It expresses this realism from which we cannot depart in our action. We therefore say out loud that private investments, national or foreign, will always be welcome in Cameroon and will find the guarantee of their full profitability in the operations of our investment code, precisely designed in the spirit of our liberal option. Let us also say that this, however, does not exclude the possibility, or even the necessity, of a public or mixed sector, an instrument in the hands of the government to drive, control or guide the entire national economy while at the same time safeguarding the fundamental interests of the State."[13]
However, adapting the traditional economy to the modern pace of development that the president seeks cannot be achieved by the State alone, given its financial means. It will therefore be done in line with a "planned liberalism", that is, by refusing the anarchic surge of uncontrolled initiatives, while also seeking to direct and contain the pressure of creative activity. To achieve this, the government will turn to the private sector, which it considers the most dynamic agent of development. The major options are presented within a flexible, adaptable framework that outlines paths to desirable economic balances.[4]
A. Ahidjo said about planned liberalism: "We wish (...) to lay the foundations for a social democracy which rejects every idea of alienation of man, even if this alienation carries within it the promise of a better life for our children and grandchildren. We are therefore in favour of liberalism, a modern, planned liberalism, that is, one that is kept in check by state regulation. We therefore regard private ownership of the means of production and their utilisation for private profit as a sign of progress."[14]
Kamé Samuel a main "ideologue" of Ahmadou Ahidjo, did not hesitating to quote Hitler and Goebbels or to refer enthusiastically to the "Nazi Youth" and to the "UNR organizations during the military coup in Algiers". The French ambassador to Cameroon, Jean-Pierre Bénard, in a report addressed to his hierarchy, recognizes that "Mr. Kamé does not hide his preferences for a fascist-style policy". This is also the opinion of Paul Audat, a colonial administrator who was close to Kamé "He is a student who became a fascist. A single-party fascist, a supporter of the absolute power of the head of state, who was always very virulent against the UPC." If Kamé Samuel influenced planned liberalism is not known.[12]
Critics claim that planned liberalism has failed due to widespread corruption, overwhelming government bureaucracy, almost no development of the country[15] and ill-advised government backing of certain foreign investors. These faults became evident during the economic crisis of the mid-1980s. Cameroon, under Paul Biya, has increasingly turned to the privatization of state-owned industries to stimulate its economy.[16]
During Paul Biya's Presidency
Paul Biya the second and current President created a similar ideology with the name Communitarian liberalism, the difference between planned liberalism and communitarian liberalism is that communitarian liberalism is more supportive of privatization,[16] but the idea of a third way is still part of the ideology.[17]
While the National Union for Democracy and Progress embraces economic liberalism and anti-socialism[18] they also advocate for planned liberalism.[19][20]