Abstract

This study provides an in-depth evaluation of the fiscal decentralization process in Cameroon, with a specific focus on selected councils in the South West Region. Fiscal decentralization, a key component of broader decentralization efforts, refers to the transfer of financial authority and responsibility from the central government to local governments. The primary goal is to empower local authorities by giving them control over revenue generation and expenditure management, allowing them to make decisions that directly impact their communities. In Cameroon, fiscal decentralization is expected to enhance local governance, improve service delivery, and foster regional development.

Using a case study approach, data were collected through interviews with local council officials, an analysis of financial records, and a review of government policy documents related to decentralization. This evaluation examines the level of financial autonomy granted to local councils, their capacity to manage and allocate funds, and the effectiveness of fiscal transfers from the central government. Key issues such as revenue generation, financial accountability, and the transparency of the decentralized fiscal process were explored.

The findings reveal that while some progress has been made in devolving financial authority to local councils, significant challenges persist. Many councils in the South West Region remain largely dependent on financial transfers from the central government due to their limited ability to generate their own revenue. Despite the establishment of decentralized financial structures, local councils often struggle with the lack of adequate human resources, particularly trained financial managers, which affects their capacity to efficiently manage the funds. In addition, many councils face issues with weak financial oversight and inadequate systems for monitoring how decentralized funds are spent. Transparency and accountability are recurring challenges, with limited mechanisms in place to ensure that funds are utilized effectively and for their intended purposes.

The study also highlights the unequal distribution of fiscal resources among local councils, which exacerbates regional disparities. While some councils benefit from better revenue-generating opportunities, others are constrained by their geographic and economic conditions. This inequality undermines the goals of fiscal decentralization, as it hinders the equitable distribution of resources and impedes balanced development across regions.

In conclusion, the process of fiscal decentralization in Cameroon has made strides, but more efforts are needed to overcome the persistent challenges. To fully realize the benefits of fiscal decentralization, there is a need for enhanced capacity building at the local level, better accountability frameworks, and more equitable resource distribution. Strengthening financial oversight and providing ongoing training for local government officials are critical steps to ensuring that the process leads to meaningful improvements in local governance and service delivery.

Keywords
Fiscal decentralization, local government, South West Region, Cameroon, revenue generation, financial management, transparency, accountability, regional disparities.