Local Governance and Resilient Communities Project

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Cameroon is a lower-middle-income country in Central Africa, which has been experiencing continuous internal and external conflicts that are compounded by the impacts of natural disasters and climate change. Cameroon is affected by three concurrent, complex humanitarian situations: Boko Haram violence in the Far North region; the influx of refugees from the Central African Republic (CAR) into the eastern regions (Adamawa, North, and East); and internal armed conflict in the North-West and South-West regions (NWSW), rooted in deep identity-related grievances and perceptions of structural inequality, with spillover effects in the West and Littoral regions. The NWSW conflict has entered its fifth year and has significantly destabilized the socio-political environment affecting approximately three million people - representing more than 70 percent of the population in both regions. Increasing intensity of natural disasters, as well as the impacts of climate variability and change on the natural resources that sustain livelihoods, further exacerbate ongoing conflicts. In the Far North region regions, dwindling water resources are a key factor in causing fishermen-herder conflicts and driving displacement. The ongoing crisis has increased poverty levels, destroyed livelihoods, and reduced human capital in both conflict-affected and neighboring regions. In 2021, 4.4 million people were estimated to be in need of humanitarian assistance, with the majority concentrated in the Far North and NWSW regions. The NWSW crisis alone is estimated to contribute to a 9 percent decline in the national GDP, if not resolved by 2025. By 2030, the national household welfare is expected to drop by more than 5 percent. Despite this, the occurrence of violence and conflict is increasing. The country has close to one million conflict-induced Internally Displaced Persons (IDPs), in addition to more than 420,000 refugees from Nigeria and the CAR as the cross-border areas continue to be impacted by violence perpetrated by extremist groups and armed militias. The UNHCR estimates that 52 percent of the refugees are women and girls, and 55 percent of internally displaced persons are children. The protracted nature of the displacement is putting pressure on resources and services in the host communities. Increasing and prolonged forced displacement is contributing to the weakening of community ties, and competition over scarce resources and services has led to increased social tensions. The host communities hold perceptions that IDPs and refugees are receiving preferential treatment by the Government of Cameroon (GoC) and development partners. If not addressed, this perceived inequity can undermine their peaceful coexistence. Despite an average annual growth rate of 4.5 percent of GDP over the past decade, poverty in Cameroon remains significant, with widening rural-urban inequalities. The extreme poverty rate is estimated at 25.3 percent in 2021, the same as in 2020, driven by the widening inequality in rural areas. Between 2001 and 2014, urban communities witnessed a decline in the poverty rate by 4 percentage points, whereas rural communities experienced an increase by 6 points. Rural areas, especially in conflict-affected regions, continue to experience deprivation in access to basic infrastructure and essential social services. Amongst rural households, only 43 percent have access to drinking water, 27 percent have access to electricity, and 32 percent have access to sanitation facilities, whereas the coverage of these services in urban areas is significantly higher at 96 percent, 90 percent, and 85 percent, respectively. The widening inequality and persistent poverty in rural areas also negatively affect the well-being of vulnerable groups, particularly children. The child mortality rate is significantly higher in rural areas at 92 per 1,000 births compared to 65 per 1,000 in urban areas, and the child stunting rate is at 36 percent, compared to 20 percent in urban areas. Cameroon is witnessing a concentration of poverty in specific regions, most of which are affected by conflict. The Recovery and Peace Consolidating Strategy for Northern and Eastern Cameron (2018-2022) reveals that, while the national average poverty rate is at 37.5 percent, the poverty rate is 74.3 percent in the Far North region and 67.9 percent in the North region, followed by the NW region (55.3 percent) and the Adamaoua region (47.1 percent). Unless addressed by specific policies, the persistence and geographical concentration of poverty in some regions are likely to widen regional disparities and inequality in the future.The impact of the COVID-19 pandemic on Cameroon’s economy has been significant, further adding stress to the country’s socioeconomic fabric. Prior to the COVID-19 global pandemic, Cameroon’s economy was heavily reliant on the informal sector. Informal employment absorbed 90.2 percent of the labor force and accounted for more than 50 percent of the country’s GDP. Containment measures, including the closure of the air and land borders implemented between April and June 2020, led to a contraction of economic activity with job and income losses both in the formal and informal sectors. Income losses, social distancing, and uncertainty associated with the COVID-19 outbreak caused consumption to fall. The pandemic-related crisis has disproportionately affected workers in the informal sector, and the resulting income loss and consumption decline are widely visible across the country. In the second quarter of 2020, public and private consumption contributions to real GDP growth declined by 1.3 and 1.9 percentage points, respectively. The gendered aspects of the impacts of policies in response to COVID-19 are clear as over 90 percent of informal sector workers are female. In February 2022, Cameroon gained access to the IDA19 Prevention and Resilience Allocation (PRA) that aims to support the Government’s efforts to reduce conflict risks and strengthen the country’s resilience to fragility, conflict, and violence (FCV). The PRA allocation will benefit all regions affected by FCV challenges by targeting the four key drivers of conflict and violence that Cameroon’ PRA eligibility note identified: (i) a weakening social contract with declining trust between citizens and state institutions; (ii) a centralized system, marked by clientelism and inequitable resource allocation, resulting in poor service delivery and unequal outcomes; (iii) marginalization of specific groups (by gender, socio-economic, age, language, geography); and (iv) growing ethnic and regional tensions, manifested by increasing hate speech and community violence. The PRA has posited that strengthening decentralization is crucial to building Cameroon’s resilience and preventing the escalation of conflict and violence. The project will build on and work in synergy with other operations to strengthen social inclusion by addressing the marginalization of some groups, especially women, and through community-based investments in rural municipalities that are most significantly affected by FCV factors.In this context, the proposed project’s aims o increase community access to basic services and climate resilient infrastructure and to strengthen local capacity to effectively manage resources and deliver services. The project intends to achieve this objective through (i) enhancing communities’ participation in local planning and governance, (ii) delivery of key climate-resilient community infrastructures, and (iii) strengthening decentralization processes and building the capacity of decentralized local authorities to manage resources and implement public investments.In particular, the project has two key pillars of interventions: (i) direct interventions at the community level to improve community infrastructure (Component 1), and (ii) strengthening capacities of decentralized local entities (Component 2). The project will combin