The investment of social security reserves during periods of crisis: The experience of Cameroon

The crisis which Cameroon has been going through since 1986 has affected the various sectors of its economic and social life. For the first time since its establishment, the social security system administered by the National Social Insurance Fund is experiencing serious difficulties. After a period of financial surplus during which it accumulated substantial reserves, the product of the Fund's contributions has not covered its expenditure since the 1988/89 financial year, thereby obliging it to draw upon its reserves to balance its budget. After examining the fundamental criteria which have to be followed in the investment of social security assets, in accordance with the objectives and principles governing the financing of the system, the author of this article looks at the various types of investment undertaken by the Fund during its period of prosperity. “he resulting assessment leads to a series of recommendations for the formulation of a sound investment policy and the rational management of social security investment portfolios”.