Introduction

Globalization is the word used to describe the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information. As the world has grown more connected, goods and services flow from one country to another. To put this into perspective, frozen vegetables produced in Cameroon are consumed in Canada, while cassava flakes (Garri) are exported to Belgium, France, Lithuania, and Switzerland. Meanwhile, Cameroon imports French wine, German cereals, and Indonesian rice, just to name a few. Similarly, engineers from China and India are employed in infrastructure projects in Cameroon, while Cameroonian financiers are employed remotely by American and European firms. This is globalization.

In Cameroon, agriculture contributes more than 20% of non-oil gross domestic product and employs 60% of the active population, 75% of which are women. The Government of Cameroon’s 2009–2019 “Growth and Employment Strategy” identifies the agriculture sector as the engine for economic growth and job creation and recognizes the need for agricultural diversification, increased productivity, and large-scale investments in the sector.

Across the world, there has been a backlash against globalization, as only a few people have benefited. The election of Trump in the U.S., Brexit in the UK, and the resurgence of the far-right in France can be attributed to globalization. So how can we make sure the agriculture sector and farmers, in particular, benefit from globalization? We will look at three strategies to illustrate how farmers can best benefit from Globalization in Cameroon. However, one should first look at the state of agriculture in Cameroon.

The state of agriculture in Cameroon:

Cameroon’s exports are dominated by primary products, especially agricultural products such as rice, cassava, and cereals ranging from wheat to sorghum. Agriculture contributes 17% of GDP, employs over 60% of people in the informal sector, and is an important lever of economic growth. Over 80% of food produced in rural areas is consumed in urban centers such as Yaounde, Bamenda, and Douala. However, some of these products are exported, although exports depend on domestic trade policy. When there is a shortage, the government imposes export restrictions to support domestic demand and prevent prices from rising significantly.

In the 1990s, after the oil price crash, Cameroon engaged in structural reforms and liberalized its trade policy. This means the government reduced price controls, export restrictions, and embargoes. During this period, the government lowered export and import duties, supporting the exports of various food products. This caused exports to increase, but only large producers and the more industrialized portion of the agriculture value chain benefited. With this in mind, it is important to enact and reinforce existing strategies to ensure smallholders can benefit from free trade with the rest of the world.

Boosting Local Capacity: seeds and fertilizers

A few programs seek to provide farmers with seeds and fertilizers. For example, the government’s Wave program from the Institute of Research for Agriculture and Development (IRAD) is designed to boost cassava output and reduce the risks of bad harvests. In recent months, the minister of Scientific Research, Madeleine Tchuiente, distributed 1 million seeds to farmers, while IRAD has undertaken the wave program to research and support cassava output.

Meanwhile, GAFSP is a joint US $6 million World Bank/IFC solution focused on Cameroon’s three largest value chains— cassava, maize, and sorghum—which are grown by over 75% of the farms and set to benefit over 150, 000 farmers. The project is part of a comprehensive initiative that pulls together public and private partners and resources to support the sustainable development of agriculture in the country. Programs designed to boost access to seeds and fertilizers should be scaled to ensure that smallholders benefit. For example, a national registry should be created for all small farm holders, where their signatures must be used as evidence that seeds and fertilizers have been distributed.

To measure the impact on output, small farm holders should sell to local buyers, vetted by the state, to ensure their products can be measured and adequately remunerated. Such an outcome will ensure that we effectively measure the impacts of such projects. Similar quantitative approaches are applied in projects such as PIDMA, sponsored by the World Bank. Farmers need seeds and fertilizers but must be trained in more advanced farming techniques. This will boost production capacity and increase agricultural output over the long run. Boosting local power should extend beyond providing seeds and fertilizers. farmers need to be trained on low-cost modern methods of farming.

Reducing Information Asymmetry: information on exports

Farmers have not benefited from globalization because they are not knowledgeable about the processes, procedures, and approaches to international or cross-border trade. The data for traders can be found on the Ministry’s website, but small-scale farmers are unlikely to understand these processes nor trade directly with other countries. Instead, their output will likely be bought and consumed in local markets without a local buyer or export agency that can now export their products to other markets.

Smallholders should contact local buyers to ensure that their coffee, cocoa, plantain, and cassava are brought upon harvest. This will ensure that they earn a decent wage even as these can be subject to the conditions in global markets. However, the government should envisage a stabilization fund to support farmers when the price of agricultural products plummets in international markets. More established farmers can contribute to such a fund, while smallholders can pay a minor contribution to insurance when the price of essential commodities falls. Farmers with all the information they need will likely sell their output in Cameroon, Africa, and other countries.

Coordinated investment in infrastructure:

Policymakers should coordinate investments in infrastructure to ensure that there are roads that link rural areas to urban centers. This is currently being done, but not fast enough and does not reflect the issue’s urgency. Many rural areas in the Western region and the North West remain disconnected from the realities of farmers in these regions. For local farmers to benefit from globalization, policymakers should ensure that farmers can access urban centers and facilitate distribution across borders to boost their contribution to global trade.

Conclusion

Can Farmers Benefit from Globalization? Historically, the more established farmers with tools and resources can benefit from globalization more readily. But we must champion policies that will boost free trade and ensure that farmers across Cameroon can benefit from free trade. In a world of falling internet costs, greater consumer demand, and an increasingly globalized marketplace, farmers shouldn’t be left behind.

Henri Kouam, Chair, CEPI.