Sudan: Referendum, Country on the Brink of Change

From MISNAJan. 28, 2011

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Sudan: Referendum, Country on the Brink of Change Sudan: Referendum, Country on the Brink of Change

“While the South takes big steps toward secession, the Sudanese government finds itself at a crossroads. In fact, we cannot forget that even as the lights are shining on Juba, it is what will happen in Khartoum that shall determine the region’s future,” said Nasredeen Abdulbari, a political analyst at the ‘Sudan Tribune’ and human rights activist who spoke to MISNA about the complex challenges that Sudan will face on the eve of the very likely independence of the Southern regions.

“The almost certain separation of South Sudan, perceived as a trauma by most Sudanese citizens in the North is a given. However, the government of president Omar Hassan al-Beshir is being fingered as the most responsible for this secession. The opposition parties, never as in this moment, have risen up against the National Congress Party (NCP, the government party) criticizing the economic effects that this event will bring with it” said Abdulbari.

He added that “inflation is constantly growing having reached 12% while the central bank is frenetically trying to stabilize the currency while the government risks losing 75% of its oil reserves”. Even if growth prospects for the long term are better in the North than the South, analysts agree in suggesting that the South’s secession will have a strong impact on the Sudanese economy.

“Now the country makes 475,000 barrels a day of oil, 350,000 of which comes from the South. Those in charge in Khartoum aim to reduce this reliance with new exploration that should yield fresh deposits, which will, however, burden the central coffers until that time,” adds Abdulbari. He says that the announced ‘austerity’ program, which includes absurd cuts to basic items “will not only provoke malcontent in the population, it will be unable by itself to balance the scale”.

In this scenario, the issue over the status of the oil region of Abyei, where a referendum was to have been held along with the one in South Sudan, it could serve to compensate losses. An accord dated January 17 provides for a discussion of the issue in the context of post referendum negotiations, along with economic issues and the definition of the borders.

“What I happening is an extremely delicate situation in which the international community and the countries of the area will be called to play a fundamental role,” says Abdulbari, underlining that “Even to the South with the arrival of some 180,000 people since the start of October, and a further 100,000 expected in March, prices have soared exponentially; not to mention the fact that the new state will have to start from scratch, in an area that still shows the signs of the civil war, with few water sources, still significant tribal differences and a total lack of infrastructure”.

In such a context “investors, Africans as well as Arabs, Chinese and Americans have already started to come sensing the birth, more than a new country, of a new market in which to invest and import,” said Abdulbari. He noted that external actors “ should not underestimate the role of guarantor for the peace of a solid connection between the two countries’ economies”.