---------- Forwarded message ----------
From: John Ashworth <[email protected]>
Date: Tue, 2 Aug 2011 14:03:10 +0300
Subject: [sudan-john-ashworth] Fw: Republic of Sudan's self-inflicted distress
To: Group <[email protected]>

1. Sudan's self-inflicted economic distress

The Khartoum regime's mismanagement, cronyism, profligate military
expenditure and exorbitant self-enrichment has brought economic
disaster to Sudan

Posted by Eric Reeves Monday 1 August 2011 07.00 BST guardian.co.uk

To understand the obstacles the nascent Republic of South Sudan will
face in the coming months and years, we must understand the intense
economic distress currently being experienced in north Sudan after
more than two decades of mismanagement, cronyism, profligate military
expenditure and exorbitant self-enrichment by the National Islamic
Front/National Congress party regime. Khartoum's recent military
actions in Abyei and Southern Kordofan, its support for destabilising
militia groups in the south, as well as its bombing of southern
territory can't be understood outside the context of what has already
occurred and what is impending in the economy of the north.

It is insufficiently appreciated how badly this economy is performing,
even before enduring what finance ministry officials acknowledge will
be a 37% decline in oil revenues ($2bn-$3bn annually) once the full
effects of southern secession are felt (most independent economists
put the figure lower, but still a huge loss of revenue).

The IMF has warned of a "permanent shock" to the economy. This comes
even as inflation is 15% and rising; foreign exchange reserves are
extremely low, hindering international trade; subsidies for oil and
sugar have been cut, prompting a number of protests; and more painful
cuts are coming. At the same time, the regime acknowledges the need
for much higher taxes. In a desperate short-term measure, Khartoum has
engaged in selling farmland to Arab and Asian investors, a terrible
decision from the standpoint of both national economic development and
food security.

Unsurprisingly, the Sudanese pound has experienced a de facto
devaluation of about 25% , as the money supply has grown at an
unsustainable rate. Growth in the economy has shrunk dramatically, and
gives signs of shrinking further. Gone are the days when foreign
journalists marvelled at the cafe bars that were gently misted in
various spots in upscale Khartoum and Omdurman.

But lurking behind this disastrous news is the biggest overhang on the
economy: $38bn in external debt at the end of 2010 (around $30bn in
the form of arrears, accrued largely under the NIF/NCP). Even in its
best years, the oil-dependent economy of the north could not begin to
service, let alone repay, this gigantic debt. It will continue to drag
the economy downwards unless the IMF and World Bank structure some
form of debt relief.

But this is where the regime's military behaviour along the border
regions collides with its economic prospects. So far the US and
Europeans have offered only tepid criticism of Khartoum for its
military seizure of the contested Abyei region and its increasingly
genocidal military campaign in Southern Kordofan. Even so, it will be
politically impossible for the Obama administration to remove Khartoum
from the state department list of terrorism-sponsoring nations while
ethnically targeted violence escalates in Southern Kordofan.

It was foolish of the Obama administration to make the issue of
terrorism one for negotiation: Khartoum either does or does not
support terrorism, and there is considerable evidence that it still
does, chiefly by funnelling Iranian weapons to Hamas. But the terms of
the "deal" do not include countenancing what has occurred in Abyei,
Southern Kordofan and other contested border areas (leave aside the
relentless suffering and destruction in Darfur).

The US also openly promised to assist Khartoum with debt relief if it
fulfills its obligations under the comprehensive peace agreement. But
Khartoum is far from fulfilling a range of obligations, leaving even
an expedient Obama administration with little wiggle room, given the
seriousness with which Sudan is taken by a substantial part of his key
political constituency.

But without debt relief, economic problems that are already deeply
threatening become insoluble. Some in the regime surely understand
this, and so the decision to adopt the current militaristic and
threatening posture towards South Sudan – just weeks after
independence – represents a triumph of the worst impulses within the
regime: nationalism, Islamism, embarrassment over "losing the south",
contempt for the international community, and a belief that more of
the southern oilfields can be brought by force into the north (around
75% of Sudan's proven oil reserves lie in the south).

It is this attitude that has led to the campaign of economic attrition
Khartoum is waging against the south, including a "currency war", one
that may prove extremely costly to both economies as the two new
currencies try to establish an international exchange rate.

These calculations are disastrous, and in the short run can only
diminish oil revenues further: the south will fight with great
determination to preserve its territorial integrity, however
resolutely it has resisted provocation so far. Khartoum has only one
rational economic decision to make under the circumstances, even from
a purely survivalist perspective. But though always capable of a
vicious low cunning, Khartoum's serial génocidaires have never been
considered men of reason. The consequences of their worldview are now
conspicuously on display, and nowhere more so than in the disaster
towards which the northern economy is moving.

http://www.guardian.co.uk/global-development/poverty-matters/2011/aug/01/sudan-economic-distress-khartoum

END1

2. Sudan’s Taha says country to apply Shariah, warns Al-Bashir’s detractors

July 31, 2011 (KHARTOUM) – Sudan’s vice-president Ali Osman Mohamed
Taha has revealed preparations to enforce Islamic Shari’ah laws in the
rump of the country after South Sudan broke away last month.

Taha, addressing a public rally in Al-Hilaliah area south of the
capital Khartoum on Saturday afternoon, said that Islamic laws would
be applied in the country, especially against those rejecting it and
detractors of President Al-Bashir.

“We will cleave with a sword those who have overstepped their limits
and acted insolently against the Sudanese people, their president or
Shari’3ah,” Taha told the crowd.

He warned against “plots being hatched by Sudan’s ambushers,”
threatening them with defeat. The Vice-president went on to downplay
the impact of South Sudan secession, saying that the split makes
Sudan’s stronger not weaker.

It is not clear who the vice-president meant to threaten but Taha’s
highly rhetorical and strongly worded statements mark a shift from his
normally mild statements.

His call for applying Shar’iah coincides with growing calls by
conservative and Muslim fundamentalist groups for the establishment of
an Islamic constitution in the country following the split of South
Sudan.

(ST)

END2

3. Sudan’s NCP downplays opposition threat of overthrowing government

July 31, 2011 (KHARTOUM) – The ruling National Congress Party (NCP) in
Sudan dismissed threats made by opposition parties that it will pursue
regime change given what it sees as the illegitimacy of the current
government.

The chairman of the National Consensus Forces, an alliance of 11
opposition parties, Farouk Abu Essa, told reporters after a meeting of
opposition leadership that they agreed on the illegality of the
government and the need to work on a comprehensive change through
peaceful political means.

Essa added that the next stage "will witness the mass mobilization for
the objectives that we agreed on".

Sudanese opposition assert that following the separation of the South
on July 9th, the government in the North has lost its constitutional
legitimacy which was triggered by wide scale changes that impact the
drivers which brought the National Congress Party (NCP) dominated
government to power.

But the NCP media officer Ibrahim Ghandour said that law is clear on
dealing with armed movements that seek to topple the government. He
expressed skepticism over remarks made by the Popular Congress Party
(PCP) leader Hassan Al-Turabi in which he hinted at coordination with
Darfur rebel groups.

Ghandour said that Turabi’s background as lawyer makes him an unlikely
candidate to take that route. He called on opposition parties to seek
democratic means to reach power stressing that the NCP received its
mandate through elections which took place last year.

The NCP official hailed the head of the Democratic Unionist Party
(DUP) Mohamed Osman al-Mirghani describing him as a "patriotic" man.
He said statements attributed to al-Mirghani in which he said that he
does not intend to participate in the upcoming government will be
taken seriously only if conveyed formally to the NCP.

The ruling party headed by President Omer Hassan Al-Bashir is holding
talks with opposition parties namely the DUP and the National Umma
Party (NUP) to convince them to join the new cabinet. But the progress
of the talks remain unclear.

In a related issue, Bashir has urged all parties and all components of
Sudanese society to also submit their views on how the new
constitution should be crafted.

The NCP has made it clear that post-secession Sudan will be governed
by Islamic law and that Arabic language will be the state’s official
language.

(ST)

END3

4. NCP to Impose Law against Supporters of Armed Groups

Posted on Monday, August 01 @ 00:15:00 UTC by admin
Sudan Vision
 By: Al Sammani Awadallah

Khartoum – National parties that deal with Darfur armed groups for the
purpose of toppling the government will face strict legal measures,
the National Congress Party (NCP) warned Sunday.

Information Secretary of the party Ibrahim Ghandour told the press
that General Secretary of the Popular Congress Party PCP Hassan Al
Turabi is a law man, adding that his recent statements revealing his
communications with Darfur armed groups for the purpose of
overthrowing current regime incriminate him before the law.

He added that Turabi's statements downplaying the participation of
Mohammad Osman Al Merghani can be taken as media consumption, pointing
out that the matter is left to direct meeting between Al Merghani and
NCP leadership.

Ghandour confirmed that Al Merghani is a national figure, expressing
his party's confidence on him, adding that NCP has no reasonable
assumption to get skeptical towards his national stances.

Further, Ghandour confirmed to press that measures by opposing parties
aiming at toppling government bear nothing new, affirming that current
government gained legitimacy on populations' will, advising those who
look forwards to overthrowing government to prepare for the coming
elections a shift from sticking to irrational stances.

Ghandour told press that no time has been identified for the meeting
between Al Bashir and Al Mahadi, pointing out previous continuous
meeting between the two leaders conducted within the framework of
relations between the two parties.

Commenting on current negotiations between north and south in Addis
Ababa, Ghandour said that the negotiations were decided to go ahead
for two additional days to complete issues that have been negotiated
prior to official announcement of south secession, confirming
continuation of negotiations so as to reach for comprehensive
resolutions.

He affirmed that NCP is adopting reconciliatory discourse, expressing
party's desire to reach for resolutions preserving human rights.

He cleared that government is committed not to relinquish of the
amount previously decided on oil transit through north, ascribing
government's stance to insertion of oil transit as part of government
budget. He said that dialogue on the issue hasn't been closed yet.

http://www.sudanvisiondaily.com/modules.php?name=News&file=article&sid=78801

END4

5. Sudan denies making concessions on oil transit fees

July 31, 2011 (KHARTOUM) – The Sudanese government on Sunday denied
statements made by a senior official in South Sudan yesterday in which
he claimed that Khartoum withdrew the rate of $22.8 per barrel it
proposed on oil coming through its pipelines from its Southern
neighbor.

The landlocked Republic of South Sudan (RSS) called the fee put
forward by Khartoum as "daylight robbery" and threatened to seek other
venues for exporting its oil.

Pagan Amum, minister of Peace and chief negotiator of RSS, said that
in talks with Sudan in Addis Ababa it was agreed that the fee of $22.5
would be dropped and pricing in accordance with international norms
would be used.

"This discussion brought to an end the attempt to impose
discriminatory surcharges by the government of Khartoum, who announced
they would impose $22.8 per barrel. They have withdrawn officially
this position," Amum said.

"We will be paying pipeline fees...and also we will be paying transit
fees that are within the international practices and standards," he
added.

But the government sponsored Sudanese Media Center (SMC) website
quoted state minister of finance and head of Khartoum’s delegation for
economic negotiations Al-Fatih Ali al-Sideeg as saying that no such
understanding was reached on transit fees and that discussions did not
even tackle the issue of renting pipelines saying that the latter is
to be determined by the oil ministry and RSS.

The Sudanese deputy governor of the Central bank Badr al-Deen Abbas
also described Amum’s remarks as "incorrect". The pro-government
al-Rayaam newspaper quoted unnamed sources as saying that the economic
talks with RSS in Ethiopia have collapsed.

The sources said that RSS refused proposals tabled by head of African
Union (AU) panel Thabo Mbeki and stuck to its position on fees charged
for using Sudan’s pipelines.

Sudan already built in the transit fees into the budget and estimated
that it will generate $2.6 billion annually at the rate of $22.5 per
barrel the South exports.

South Sudan became an independent state earlier this month following
its citizens’ overwhelming vote in favor of secession from the North
last January. Both sides however, have failed to resolve a wide array
of issues that could prove toxic in their future relationship.

In particular the oil-rich nation could not agree with Sudan on how
much fees should be assessed for exporting crude through its
pipelines.

(ST)

END5
______________________
John Ashworth

Sudan Advisor

[email protected]

+254 725 926 297 (Kenya mobile)
+249 919 695 362 (Sudan mobile)
+27 82 853 3556 (South Africa mobile)
+44 750 304 1790 (UK/international)
+88 216 4334 0735 (Thuraya satphone)

PO Box 52002 - 00200, Nairobi, Kenya

This is a personal e-mail address and the contents do not necessarily
reflect the views of any organisation

-- 
The content of this message does not necessarily reflect John
Ashworth's views. Unless explicitly stated otherwise, John Ashworth is
not the author of the content and the source is always cited.

You received this message because you are subscribed to the Google
Groups "sudan-john-ashworth" group.
To post to this group, send email to [email protected]
To unsubscribe from this group, send email to
[email protected]
For more options, visit this group at
http://groups.google.co.za/group/sudan-john-ashworth

-- 
You received this message because you are subscribed to the Google Groups "JFD 
info" group.
To post to this group, send email to [email protected].
To unsubscribe from this group, send email to 
[email protected].
For more options, visit this group at 
http://groups.google.com/group/jfdinfo?hl=en.

Reply via email to