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    Karen Pearl
    Sudan has experienced high economic growth and rising income levels but still faces significant development challenges. Nearly half the population lives below the poverty line, and poverty rates vary greatly between urban and rural areas as well as across states. Sudan's development has been hampered by ongoing conflicts since independence, which have drained resources and diverted attention away from development goals. However, recent peace agreements provide an opportunity to focus on improving livelihoods and consolidating peace if the government invests in institutions and draws on international support for post-conflict recovery. Sudan also faces debt problems dating back to the 1960s that have constrained the economy and access to concessional financing.

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    Image 9

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    Karen Pearl
    24 views2 pages
    Sudan has experienced high economic growth and rising income levels but still faces significant development challenges. Nearly half the population lives below the poverty line, and poverty rates vary greatly between urban and rural areas as well as across states. Sudan's development has been hampered by ongoing conflicts since independence, which have drained resources and diverted attention away from development goals. However, recent peace agreements provide an opportunity to focus on improving livelihoods and consolidating peace if the government invests in institutions and draws on international support for post-conflict recovery. Sudan also faces debt problems dating back to the 1960s that have constrained the economy and access to concessional financing.

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    Sudan has experienced high economic growth and rising income levels but still faces significant development challenges. Nearly half the population lives below the poverty line, and poverty rates vary greatly between urban and rural areas as well as across states. Sudan's development has been hampered by ongoing conflicts since independence, which have drained resources and diverted attention away from development goals. However, recent peace agreements provide an opportunity to focus on improving livelihoods and consolidating peace if the government invests in institutions and draws on international support for post-conflict recovery. Sudan also faces debt problems dating back to the 1960s that have constrained the economy and access to concessional financing.

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    24 views2 pages

    Image 9

    Uploaded by

    Karen Pearl
    Sudan has experienced high economic growth and rising income levels but still faces significant development challenges. Nearly half the population lives below the poverty line, and poverty rates vary greatly between urban and rural areas as well as across states. Sudan's development has been hampered by ongoing conflicts since independence, which have drained resources and diverted attention away from development goals. However, recent peace agreements provide an opportunity to focus on improving livelihoods and consolidating peace if the government invests in institutions and draws on international support for post-conflict recovery. Sudan also faces debt problems dating back to the 1960s that have constrained the economy and access to concessional financing.

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    1 Overview: Context and Objectives

    1.1 Introduction
    1. Sudan has had one of the highest growth rates amongst Sub-Saharan African
    countries and a rapidly rising per capita income, with per capita GDP of
    US$1,500. Nonetheless, the country's human development outcomes remain
    weak. Sudan ranks 154 out of 169 countries in UNDP's 2010 Human
    Development Index, especially relative to the fact that income per capita GDP
    exceeded $1,500 or roughly 25 percent higher than the Sub-Saharan Africa
    (SSA) average. In 2009, Sudan was the third largest producer of crude oil in
    SSA, behind Nigeria and Angola, although Sudan's production was only about
    30 percent of Angola's. Despite the rising per capita income, the incidence of
    poverty is high, with 46.5 percent of the population is below the poverty line.
    There is also significant variation in the incidence of poverty between urban and
    rural areas as well as between states in the Federation. The incidence of poverty
    in Khartoum state is 26.0 percent and 69.4 percent in North Darfur.

    2. The road to sustainable broad-based development in Sudan has been


    hampered by a number of country-specific challenges that render Sudan's
    experience unique from other post-conflict countries in the region. Since its
    independence in 1956, Sudan has been mired in several conflicts, with the
    exception of 1972-1983; the period after the Addis Ababa Peace Agreement was
    signed. These conflicts have led to huge loss of life and have severely
    debilitated the country's capacity for development. Development projects in
    areas affected by armed conflict were often undermined by insecurity and weak
    and disintegrating socio-economic fabric of communities. Exodus or influx of
    IDPs created environments not conducive for meaningful development
    initiatives. International isolation, the Darfur conflict, and the tenuous North-
    South relationship diverted attention from the development agenda and its
    impact on bringing peace and security. In recent years, most of the civil
    conflicts, including the rebellion in Southern Sudan have been resolved. But
    armed conflict continues in Darfur, with risks of conflict emerging in some
    other areas. These past and ongoing conflicts pose challenges for governance,
    human development, and poverty reduction in Sudan.

    3. The people and Government of Sudan will need to build institutions for peace
    and development and shift resources and attention from war to investing in the
    future. With the three peace agreements and ongoing efforts for a lasting and
    comprehensive peace agreement in Darfur, Sudan has its greatest opportunity in
    a generation to concentrate on improving the lives of Sudanese and consolidate
    and sustain peace. Support from the international development community,
    particularly drawing from the accumulated international experience on post-
    conflict recovery and peace building, will enhance the prospects for sustained
    peace and economic developments. As building peace and security creates
    additional expenditure obligations such as financing the reintegration of
    displaced persons and new institutions associated with the peace agreements,
    the financial support from the international community will be crucial.

    4. Sudan's debt problems can be traced back to the 1960s when the country
    embarked on large-scale industrialization, financed in part by foreign borrowing
    on non-concessional terms, and accompanied by government heavy regulation
    of the economy. The resulting heavy debt burden has shaped the evolution of
    the country's economy and its performance over the past 20 years. The arrears to
    International Development Association (IDA), the African Development Bank
    (AfDB) and other development agencies have prevented normal relations with
    these agencies and constrained access to concessional financing. Sudan's
    external debt, which amounted to US$37 billion at end-

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