In 2012 sudan s economy has been affected by falling oil revenues. Sudan political, economic and social conditions were difficult during 20112019. Agriculture is not contributing to a higher growth in the economy. Sudan lost 40 percent of its revenues and 90 percent of its exports due south sudan s secession in 2011. The sudan is a lowermiddleincome country transitioning to peace and development with the potential to reach the sustainable development goal 2 targets. Ahmed department of econometrics and social statistics faculty of economic and social studies university of khartoum sudan.
Those living below the poverty line have many difficulties in raising themselves out of poverty because most of their income is spent on essentials and never saved which eliminates the ability. Sudan is classified by the world bank as a lower middle income economy. Sudan economic impact, inflation, total reliance of oil, privatization, federal system, peace agreement, economic embargo, foreign debts, separation. Fieldwork management, analysis, supervision and execution were done by iri under critical guidance of orb. Arabi 110 a macroeconometric model for the sudan economy ahmed elsheikh m. Update on macroeconomic developments in sudan undp. Oil in south sudan implications from international experience james cust. Extent of corruption south sudan is not yet included in most governance. Cotton is the principal export crop and an integral part of the countrys economy and sudan is the worlds third largest producer of sesame after india and china.
World bank poverty and economic management network prem, south sudan, 2012 p a g e 3. The economy is estimated to have contracted by about 6. With rampant inflation, a foreign currency shortage, and a heavy debt burden, stabilizing the economy is a critical priority for the new government. The distance to frontier measure shows how far on average an economy is from the best performance achieved by any economy on each doing business indicator since 2005. Contribution of natural resources to sudans economy. Financial woes that played major role in protests that led to albashirs toppling continue during political deadlock. South sudan economic outlook african development bank. The economy of sudan has boomed on the back of increases in oil production, high oil prices, and large inflows of foreign direct investment until the second half of 2002.
Full government control over economic activities characterized the period of the 1960s, while an inwardlooking strategy dominated development policy during the. Amid stalemate, sudanese struggle to cope with economic. The ministry of agriculture in south sudan has announced its goal of boosting food production in south sudan to two million metric tons per year by 20. Sudan has battled with economic instability for a long time, partly caused by us financial sanctions that were imposed in 1997 in response to severe human rights violations and continuous government support for international terrorism bbc 3012017. This report is an indepth analysis of the political economy of south sudan, and it critically assesses the development challenges since independence. Key political developments in south sudan over the past year seem to be associated with the two accelerations of inflation in south sudan seen over the past year. The authorities responded in june 2012 with a comprehensive package of corrective measures, which laid the ground for a muchneeded adjustment process.
Despite being endowed with bountiful natural resources including very fertile agricultural land and vast number of livestock, including over 60 million cattle, sheep and goats. Conflict in south sudan and the challenges ahead congressional research service summary south sudan, which separated from sudan in 2011 after almost 40 years of civil war, was drawn into a devastating new conflict in late 20, when a political dispute that overlapped with preexisting ethnic and political fault lines turned violent. A main argument is that its political economy is fundamentally. A political economy analysis of institutions and incentives zachariah mampilly, ph.
Sudan national voluntary report the united nations. Economic collapse, decreasing oil revenues, with soaring inflation and food insecurity growth south sudan s economic collapse continues in fy2018, with output contracting, and inflation and parallel exchange market premium soaring. The average per capita electricity consumption in the. The new civil war in south sudan began in december 20. For instance, the social, economic and political costs of conflicts in sudan have. Aug 21, 2019 crs report r45794, sudan s uncertain transition.
The interruption of oil production in south sudan in 2012 for over a year and the consequent loss of oil transit fees further exacerbated the fragile state of sudan s economy. Sudan country economic memorandum world bank document. Current status of agriculture and future challenges in sudan. This paper asks a new question for the worlds newest country. Introduction there is no doubt that the civil war which took place in sudan casted a negative shadow over sudan s economy over the years. However, some characteristics that might suggest otherwise are that much of sudan s gdp consumption is by services and not agricultural production or the export of primary products. Prices in south sudan started climbing fast in the 2nd half of 2010 and had nearly doubled by the end of 2011. Full government control over economic activities characterized the period of the 1960s, while an inwardlooking strategy dominated development policy during the early 1970s and mid1980s. No claims are made regarding the accuracy of sudan economy 20 information contained here. The outbreak of civil war in south sudan damaged both economies depriving sudan of much needed pipeline revenues.
Recent developments in sudans fuel subsidy reform process. Economic development in sudan the sudan s economy has witnessed major transformations during the last three decades. It soon proved to be a disaster for the population, a threat to the integrity of the worlds youngest state and an embarrassment and. A shutdown in oil production after continued dispute over oil with sudan resulted in austerity measures, as south sudan relies 98% on oil revenues. Economic development unfortunately is very difficult to achieve, especially when almost 50% of the population is below the poverty level, like in sudan.
The full impact of the current conflict on south sudans economy has yet to be. The issue of how much money the sudanese government should receive for the oil pumped in south sudan but transported through sudan s pipelines and exported via sudan s infrastructure was particularly. Sudan s economy remains fragile despite the sanctions removal, particularly since the country remains classified as a sponsor of terror which limits access to debt relief and international financial aid news 1712019 fp 372018. The outbreak of conflict in december 20, combined with falling crude oil production and prices, meant that gdp fell significantly between 2014 and 2017. The government of sudan has attempted to address heightened economic and social challenges through the introduction of austerity measures. Economy, agriculture and food security although endowed with rich natural resources, sudan is an extremely poor country amongst others as a result of social conflict and civil war. Jan 27, 2020 since the economic shock of south sudan s secession, sudan has struggled to stabilize its economy and make up for the loss of foreign exchange earnings. Sector structure in 2012 and by simulation in 20 % of gdp 159. Strategic plan 201217, which aims to diversify the economy away from oil to. World bank poverty and economic management network prem, south sudan, 2012 p a g e 4. In the context of the 20 article iv consultation with sudan, the following. Data was collected via facetoface interviews from april 24 may 22, 20. The ministry of finance and national economy has been the primary actor promoting change, with the support of the central bank and key figures in the.
Pdf the development complex, rural economy and urbanspatial. Sudan real gross domestic product gdp is expected to grow modestly in 2012 and 20 owing mainly to the loss of oil revenue and population following the secession of south sudan in july 2011. The total number of customers connected to the network is about 22,000 customers. South sudan hopes to attract agricultural investors from gulf arab states, israel, china, the netherlands and fellow african countries in order to increase production of basic food items such.
Training of the poll researchers was performed by opinion research business orb, an international opinion research firm. Pdf juba, the capital of south sudan, is the fastest growing city in africa, exhibiting the most. This resulted in an estimated gni fall of over 20 per cent. Sudans economy and prospects for external stability, with the potential to recreate the mid. From 1997 to date, sudan has been working with the imf to implement macroeconomic reforms, including a managed float of the exchange rate.
The economy of south sudan is one of the most oil dependent economies in the world. Since the economic shock of south sudan s secession, sudan has struggled to stabilize its economy and make up for the loss of foreign exchange earnings. The most commonly quoted measure of the importance of an economic sector or industry is the size of its contribution to the a nations national gross domestic product gdp. On october 20, a national budget for 20 2014 was passed by the national legislative assembly with an increase from the 17. Decisionmaking and governance performance in the republic. With the support of the international community, sudan has been pursuing a transformational reform agenda focused on. Jan 27, 2020 the economy of south sudan will remain linked to sudan for some time, given the existing oil infrastructure. As illustrated in figure 7, at the end of 2010, the initial pickup of 0. This preliminary development finance assessment dfa for sudan was.
South sudan development plan republic of south sudan. The latest oil price slump adds to a series of shocks to hit south sudan s economy in the space of just three years. It particularly focuses on the period after the august 2015 agreement for the resolution of. Economic collapse in sudan is rapidly accelerating sudan. Sudan s unemployment rate is 20% 2012 while on average it is about 9. Gdp growth registered more than 10% per year in 2006 and 2007. A main argument is that its political economy is fundamentally atypical. Economy profile of south sudan doing business 2020 indicators in order of appearance in the document. Decisionmaking and governance performance in the republic of. Economic activity was disrupted by measures to contain the spread of covid19social distancing, and restrictions on. The development complex, rural economy and urbanspatial and economic development in juba, south sudan. The main subsistence crops produced in sudan are sorghum 3,045,000 tons, millet 1,499,000 tons, wheat 168,000 tons, cowpeas, beans, pulses, corn 65,000, and barley. This has reduced economic growth, and resulted in doubledigit consumer price inflation, which, together with increased fuel prices, triggered violent protests in september 20. Sudan staff report for the 20 article iv consultation key issues context.
Pdf on aug 4, 2014, badreldin mohamed ahmed abdulrahman published economic policies and development in sudan 2000 20 find, read and cite all the research you need on researchgate. The covid19 pandemic has delayed new investments in the oil sector, with oil production expected to decline by 5. First, in 2012 oil production was shut down in response to sudan confiscating south sudanese oil at port sudan. Interim strategy note fy20142015 for the republic of sudan. Overview of corruption and anticorruption in south sudan.
Sudan african economic outlook african development bank. From this perspective, sudan s official national accounts. The theme of this issue is the core of sudan life and the main driving force for its economy. Per capita electricity consumption in south sudan is about 1 3 kwh, the lowest compared to the rates in its neighbouring countries. All suggestions for corrections of any errors about sudan economy 20 should be addressed to the cia. The government of sudan has attempted to address heightened economic and. Recent macroeconomic and financial developments south sudan s nascent economic recoverydriven by the 2018 revitalized peace agreement, rising oil prices, and a resumption in oil productionwas derailed in 2020 by locust invasions, floods and the covid19 pandemic. This preliminary development finance assessment dfa for sudan was made possible by the guidance of the state minister of the ministry of international cooperation, h. Suliman department of economics faculty of economic and social studies university of khartoum sudan aerc research paper 243 african economic research consortium, nairobi september 2012 rp 243 dd 1 14012014 15. Country economic memorandum realizing the potential for. South sudan, a country highly dependent on oil and foreign aid, is desperately poor and lacks accountable public institutions. Islamicoriented military regimes have dominated sudanese politics since independence from anglo.
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