---------- Forwarded message ----------
From: John Ashworth <[email protected]>
Date: Thu, Apr 19, 2012 at 11:32 AM
Subject: [sudan-john-ashworth] "Insects" of South Sudan
To: Group <[email protected]>


A senior international church leader said to me yesterday, "many
statements, including those of AU and UN, seem to suggest that South
Sudan just woke up one morning and decided to invade and occupy
Heglig. And then they go ahead to apportion equal blame to the two
states. We have to find a way of countering this perspective." The
international discourse seems to be based on Khartoum's narrative.
This must be balanced with Juba's narrative, not in order to support
Juba's claim, but in the interests of resolving the problem. A
one-sided approach will not lead to lasting peace. As Juba's
Spokesperson Dr. Barnaba Marial says, “I think it is good that the
Security Council first listens to the story of Heglig, and I think
they have not listened adequately from our point of view" (article 6,
below).

Indeed South Sudan did NOT just wake up one morning and decide to
occupy Heglig. It should be remembered that President Salva Kiir has
always followed a policy of refraining from military action. In the
run up to the referendum and independence, he specifically instructed
his commanders not to be provoked by Khartoum's military aggression,
and not to retaliate. This policy proved remarkably successful and
helped to deliver a peaceful referendum and independence.

The President then continued to pursue a similar non-military policy
for 9 months or so after independence. Khartoum has walked out of
negotiations, made unreasonable demands (eg demanding more than ten
times the international standard fees for transit of South Sudanese
oil through its pipelines), abrogated agreements which it had already
signed (eg the peace deal with SPLM-N, the agreement on the status of
South Sudanese in Sudan, to say nothing of the Abyei Protocol),
continued its military occupation of the disputed area of Abyei,
harassed South Sudanese in Sudan, continued to attack South Sudan's
former allies in the Nuba Mountains and Blue Nile, siphoned off (or
stolen) a percentage of South Sudan's oil, attempted to build illegal
pipelines, forcibly occupied the disputed area of Jau, bombed refugee
camps and civilians well inside South Sudan, supported South Sudanese
rebel movements (and allowed them to abduct and forcibly recruit South
Sudanese in Sudan), stifled cross-border trade, and much more. As
article 5, below, points out, "the Khartoum government has been
launching ground and air attacks against [South Sudan] since it
declared independence July 9 [2011]". During all of this, South
Sudan's army did not retaliate offensively, limiting itself to pushing
SAF out of Jau but stopping when it reached the current border (which
is not the 1956 border). President Salva Kiir's policy of restraint
was not popular in South Sudan; people were asking, "What is the
matter with him?"

Now, after nine months of restraint in the face of intransigence and
provocation by Khartoum, South Sudan has finally decided to assert
itself a little, by following an SAF force which attacked South Sudan
back to their base, the disputed town of Heglig/Panthou, and ensuring
that it could no longer be used as a jumping off point for further
aerial and ground attacks on South Sudan. It also made the political
point that Heglig/Panthou is disputed, that the current border is not
the 1956 border, and that it is erroneous to insist that a town is
north or south of the 1956 border until the 1956 border has actually
been demarcated to the satisfaction of both sides. It seems to be a
very popular move amongst the people of South Sudan.

The result is that the international community leaps to blame South
Sudan, which has been so restrained for so long. At the same time,
President Omar Hassan al Bashir has now declared that his aim is to
change the government in Juba, which he has described as "insects".
Surely this is a rather serious matter, when a president declares that
he will take military action to overthrow the government of another
sovereign state? Can we now expect the international community to
severely censure Khartoum and make it clear that any attempt to change
the government of another sovereign state will be met with the
strongest possible sanctions? Can we expect them to cease their "moral
equivalence" and recognise that there is an aggressor here - and that
aggressor is not the "insects" of South Sudan? Urging both sides to
make peace is fine, but which is the side that has consistently
refused to make peace, and which is the side that has acted in a
restrained manner and genuinely tried not to be drawn into armed
conflict?

Note that South Sudan has offered to withdraw from Heglig/Panthou if
the UN puts a neutral force there (articles 2 and 6, below), an offer
which the international community is unlikely to accept because
Khartoum will not agree. Again, which side is refusing to make peace
in Heglig?

I don't think I will ever understand the international community!

The BBC makes two errors in article 1, below. Firstly, it is not true
that Heglig is "generally recognised as Sudanese territory". Many
analysts who actually know what they are talking about (as opposed to
journalists, diplomats and politicians) argue that it is disputed.
Millions of South Sudanese, Nuba and others "generally recognise" that
Heglig belongs in South Sudan. Secondly, both sides do NOT "claim"
Abyei. South Sudan claims that the residents of Abyei should have the
referendum which they were promised in the Comprehensive Peace
Agreement to decide whether Abyei should be part of Sudan or South
Sudan; Khartoum has blocked the referendum and occupied the area
militarily.

John

BEGIN

1. Sudan president seeks to 'liberate' South Sudan

BBC 19 April 2012 Last updated at 01:03

Sudan President Omar al-Bashir has said his main goal is now to
"liberate" the people of South Sudan from its rulers following recent
border clashes.

The former rebel Sudan People's Liberation Movement (SPLM) has ruled
South Sudan since it seceded from Sudan in July 2011.

President Bashir described the SPLM as "insects" that needed to be eliminated.

Fighting between the two countries has now spread to another area,
further adding to fears of all-out war.

South Sudan seized the Heglig oil field - generally recognised as
Sudanese territory - eight days ago. On Tuesday fighting broke out
north of Aweil in South Sudan, about 100 miles (160km) west of Heglig.

The South Sudanese military said 22 soldiers had been killed, with
casualties on both sides.

'Disease'

Mr Bashir told a rally at his party's headquarters that the SPLM
needed to be removed.

"We say that it has turned into a disease, a disease for us and for
the South Sudanese citizens. The main goal should be liberation from
these insects and to get rid of them once and for all, God willing."

The reference to insects is an apparent play on the SPLM's Arabic name.

He told the crowd that his message to the SPLM was: "Either we end up
in Juba and take everything, or you end up in Khartoum and take
everything."

The BBC's James Copnall in Khartoum says the comments sounded like a
declaration of war.

President Bashir also predicted that "within a few hours you are going
to listen to good news from your brothers in Heglig".

Sudan army officials made similar comments when they started a
counter-attack on Friday.

After President Bashir made his comments a South Sudan minister called
for negotiations. "We can only resolve this through talks with the
African Union," Minister of Information, Barnaba Marial Benjamin, told
Agence France-Presse.

On Tuesday international envoys to Sudan told the United Nations
Security Council that both sides were "locked in the logic of war".

A Sudanese foreign ministry official said Sudan would end the
occupation of Heglig "by hook or crook".

Our correspondent says civilians in both Sudan and South Sudan are
volunteering to join paramilitary forces.

But he says others are involved in protest movements, saying they do
not want this war against people who were recently their fellow
citizens. They feel bad leadership has led them to the verge of
all-out war.

A non-Sudanese source close to the border talks told the BBC that
during years of discussions before its independence, South Sudan never
claimed Heglig as part of its territory.

In a separate development, the world's newest country became a member
of the World Bank and the International Monetary Fund on Wednesday.

Analysis

James Copnall
BBC News, Khartoum

President Bashir's speeches can be divided into two categories. In the
first he reads a pre-prepared speech, and sticks to it. In the second,
he improvises - and often takes a much harder line.

This latest effort clearly fits into the second category. If the
President acts on his words, Sudan and South Sudan are at war.

The essential messages - that he intends to get rid of the SPLM, and
what started in Heglig can only finish in Juba or Khartoum - can mean
only this. President Bashir may calculate that in difficult economic
times he needs an external enemy to unite the nation behind.

But the Sudanese Armed Forces are already overstretched. They haven't
been able to fully overcome rebellions in Darfur, Southern Kordofan
and Blue Nile, and they also failed to hold onto Heglig.

South Sudan is also less well equipped militarily than Sudan, and
shutting down its oil resources deprived it of 98% of its revenue.

All out war would be disastrous for both, but that is the direction
they are heading.

Main disputes between the two Sudans

Transit fees the South should pay Sudan to use its oil pipelines
Demarcating the border
Both sides claim Abyei
The rights of each other's citizens now in a foreign country - there
are estimated to be 500,000 southerners in Sudan and 80,000 Sudanese
in the South
Each accuses the other of supporting rebel groups on its territory
The current spate of fighting is the worst since South Sudan's
independence last year, which followed two decades of civil war
between Mr Bashir's government and the SPLM.

http://www.bbc.co.uk/news/world-africa-17761949

END1

2. Sudan's Bashir vows to "liberate" South Sudan

Wed Apr 18, 2012 7:18pm GMT

* Border clashes worst since South Sudan seceded
* Prolonged fighting would damage fragile economies
* Rebels in Sudan's Darfur region also report attack

By Alexander Dziadosz and Ulf Laessing

KHARTOUM/JUBA, April 18 (Reuters) - Sudanese President Omar Hassan
al-Bashir vowed on Wednesday to "liberate" South Sudan from its ruling
party, a sharp escalation of rhetoric after fierce border clashes that
edged the African neighbours closer to all-out war.

There has been growing alarm over the worst violence seen since South
Sudan split away from Sudan as an independent country in July under
the terms of a 2005 peace settlement. Global powers have urged the two
sides to end the fighting.

South Sudan seized the contested oil-producing Heglig region last
week, prompting Sudan's parliament to brand its former civil war foe
an "enemy" on Monday and to call for a swift recapture of the flat
savanna region.

In a fiery speech to members of the ruling National Congress Party
(NCP) singing military songs, Bashir repeatedly referred to the
South's ruling Sudan People's Liberation Movement (SPLM) as "insects",
a play on their Arabic name.

"Our main goal is liberation of the southern citizens from the SPLM,"
Bashir said. "This is our responsibility before the Southern people."

He went on to predict "good news" from Heglig within a few hours, but
also suggested tensions would not end until the South's ruling party
collapsed. He did not specify how that might happen.

"The story began in Heglig, but it will end in Khartoum or Juba," Bashir said.

Shortly after the speech, South Sudan's army (SPLA) spokesman said the
South's forces had repulsed "a very big attack" on Heglig, which is
known as Panthou in the south. There was no immediate comment on this
from Sudan or independent confirmation of the claim.

Earlier on Wednesday, Sudan and South Sudan accused one another of
launching attacks on a new front. South Sudan's army said a total of
22 soldiers died in the fighting.

Both countries are economically dependent on oil. Any protracted
fighting would severely hit their economies.

"AN EXPLOSIVE SITUATION"

Distrust runs deep between the neighbours, who are at loggerheads over
the position of their border, how much the landlocked South should pay
to transport its oil through Sudan and the division of national debt,
among other issues.

South Sudan says Heglig is its rightful territory and has said it will
only withdraw if the United Nations deploys a neutral force there.

In Juba, around 1,000 South Sudanese gathered at a rally, chanting:
"Down with Bashir". They also criticised U.N. Secretary General Ban
Ki-moon after the U.N. Security Council had called on South Sudan to
pull out from Heglig.

"Down with Ban Ki-moon!" Alfred Lado Gore, environment minister and a
senior SPLM official, told the cheering crowd. "We managed to win our
independence and we will win Heglig and (the disputed region of)
Abyei."

Russia, a permanent U.N. Security Council member, called on South
Sudan to withdraw immediately to defuse "an explosive situation" in
Heglig.

Sudan said it had repulsed an attack on Tuesday by South Sudan's armed
forces near the Bahr al-Arab river, known as the Kiir River in the
south.

"Limited forces from the SPLA carried out an attack on the area to
divert the efforts of the armed forces working to liberate the Heglig
region," the state-linked Sudanese Media Centre quoted a local
military official as saying.

The report said the fighting took place 62 km (39 miles) south of
Mairem which, maps show, is on the boundary between the Sudanese
regions of South Kordofan and Darfur, the scene of a separate
insurgency against the Khartoum government.

South Sudan's military spokesman, Philip Aguer, confirmed the clashes
took place but said the SPLA had not tried to enter Sudan's territory.
The fighting broke out after southern troops were shelled while trying
to collect water, he said.

"They reacted, and fighting erupted between them," Aguer said. "Our
forces crossed the river, crossed the bridge briefly, but the command
recalled them back."

He said 15 Sudanese soldiers and seven SPLA troops were killed,
figures impossible to verify independently.

In a sign rebel groups in Sudan might be trying to take advantage of
the tensions, insurgents based in Darfur said late on Tuesday they had
destroyed a Sudanese military base and taken control of a town.

The reports from a faction of the Sudan Liberation Army (SLA) loyal to
Minni Minnawi could not be independently verified, and Sudan's army
spokesman was not immediately available to comment.

In Khartoum, Sudanese foreign ministry official Omer Mohamed told
reporters Sudan would continue to press diplomatic as well as military
efforts to recover Heglig. "We have to end the occupation by hook or
crook, by either way."

The 15-nation U.N. Security Council on Tuesday reiterated its call for
Sudan to stop air strikes and South Sudan to withdraw from Heglig. It
also discussed imposing sanctions on the countries if they did not
stop the clashes.

Sudan said sanctions should only be directed against South Sudan, who
it accuses of violating its sovereignty. (Additional reporting by
Michelle Nichols at the United Nations and Steve Gutterman in Moscow;
Editing by Maria Golovnina)

http://af.reuters.com/article/sudanNews/idAFL6E8FIE4E20120418?sp=true

END2

3. Bashir vows to “free” South Sudan’s people from SPLM

April 18, 2012 (KHARTOUM) – Sudan’s President Omer Al-Bashir escalated
war rhetoric against South Sudan on Wednesday, saying that Khartoum’s
goal is to rid southerners of the ruling Sudan People’s Liberation
Movement (SPLM) in Juba.

Sudan and South Sudan have been fighting around disputed border area
of Heglig since it was occupied by the southern army last week amid
growing fears that the recently-separated countries are heading for
all-out war.

Addressing a mobilization rally organized by the youth sector of his
ruling National Congress Party (NCP) in Khartoum, Al-Bashir promised
that the coming hours will bring “good news” from Sudanese forces
fighting, as he said, on the outskirts of Heglig.

He accused South Sudan’s ruling party, the SPLM, of seeking to execute
what he termed as the agendas of world powers to oust the government
in Khartoum before threatening to do it the other way around.

“Either we end up occupying Juba or you end up occupying Khartoum but
the boundaries of the old Sudan can no longer fit us together, only
one of us has to remain standing” Bashir said.

The Sudanese president said that liberating Heglig would be the first
step towards achieving the main goal which, according to him, is to
“completely annihilate” the SPLM, describing it as an insect that must
be crushed.

He further pledged to liberate South Sudan’s people from the SPLM and
correct in the process what he described as their “mistake” of helping
the SPLM to rule in Juba.

“We have promised the south’s people to free them from the SPLM rule
immediately and we bear a responsibility before the south’s citizens
after we contributed to establishing the SPLM rule in the South” he
said

Al-Bashir vowed that Sudanese forces will teach South Sudan a lesson
in ’Jihad’ and patriotism.

He disclosed that he told the head of the AFrican Union (AU) mediation
team Thabo Mbeki not to get too happy after the accord signed last
month in Addis Ababa because the south’s leaders are "agents" being
played by world powers.

According to Bashir, the former South African president acknoweledged
that he was right in a phone conversation that took place after the
Heglig events.

(ST) http://www.sudantribune.com/Bashir-vows-to-free-South-Sudan-s,42308

END3

4. Sudan, S.Sudan clash on new front as UN mulls sanctions

Wed Apr 18, 2012 10:09am GMT

* Border clashes worst since South Sudan seceded
* Prolonged fighting would damage fragile economies
* Rebels in Sudan's Darfur region also report attack

By Alexander Dziadosz and Khalid Abdelaziz

KHARTOUM, April 18 (Reuters) - Sudan and South Sudan accused each
other of launching attacks on a new front near their contested border,
stoking fears of a return to all-out war in the oil-producing region.

The reports of the fresh fighting south of the Sudanese town of Mairem
late on Tuesday came as the U.N. Security Council discussed imposing
sanctions on the African neighbours if they did not stop the
escalating border clashes.

There has been growing alarm over the worst violence seen since South
Sudan split away from Sudan as an independent country in July under
the terms of a 2005 peace settlement.

South Sudan seized the contested oil-producing Heglig region last
week, prompting Sudan's parliament to brand its former civil war foe
an "enemy" on Monday and to call for a swift recapture of the flat
savanna region.

Both countries are highly dependent on oil. Any protracted fighting
would severely damage their economies and disrupt the surrounding
region.

Distrust runs deep between the neighbours, who are at loggerheads over
the position of their border, how much the landlocked South should pay
to transport its oil through Sudan and the division of national debt,
among other issues.

ACCUSATIONS

Sudan said it had repulsed an attack on Tuesday by South Sudan's armed
forces (SPLA) near the Bahr al-Arab river, known as the Kiir River in
the south.

"Limited forces from the SPLA carried out an attack on the area to
divert the efforts of the armed forces working to liberate the Heglig
region," the state-linked Sudanese Media Centre quoted a local
military official as saying.

The report said the fighting took place 62 km (39 miles) south of
Mairem which, maps show, is on the boundary between the Sudanese
regions of South Kordofan and Darfur, the scene of a separate
insurgency against the Khartoum government.

South Sudan's military spokesman Philip Aguer confirmed the clashes
took place, but said the SPLA had not tried to enter Sudan's
territory. The fighting broke out after southern troops were shelled
while trying to collect water, he said.

"They reacted, and fighting erupted between them," Aguer said. "Our
forces crossed the river, crossed the bridge briefly, but the command
recalled them back."

In a sign rebel groups in Sudan may be trying to take advantage of the
tensions, insurgents based in Darfur said late on Tuesday they had
destroyed a Sudanese military base and take control of a town.

The reports from a faction of the Sudan Liberation Army (SLA) loyal to
Minni Minnawi - one of the three most prominent rebel groups in the
region - could not be independently verified, and Sudan's army
spokesman was not immediately available to comment.

The 15-nation Security Council on Tuesday reiterated its call for
Sudan to stop air strikes and South Sudan to withdraw from Heglig.

"Council members discussed ways to leverage the influence of the
council to press the parties to take these steps, and included in that
a discussion potentially of sanctions," U.S. Ambassador to the United
Nations Susan Rice told reporters.

Rice, who is the Security Council president for April, gave no further
details on possible sanctions that could be imposed.

On another diplomatic front, South Sudan's President Salva Kiir is due
to make a state visit to China - a major investor in both Sudan and
South Sudan - before the end of the month.

South Sudan's Information Minister Barnaba Marial Benjamin said Kiir
would discuss "strengthening bilateral relations - political,
economic, everything" and that the Heglig crisis would also be on the
table.

"I think they (China) have influence, and so their role is important," he said.

South Sudan has accused Sudan of launching air strikes on some of its
major oilfields. Sudan has denied launching air strikes but said its
ground forces had attacked southern artillery positions that had fired
on the north.

South Sudan seceded from Sudan in July, six months after a referendum
agreed under a 2005 peace deal that ended decades of civil war that
killed more than 2 million people. (Additional reporting by Michelle
Nichols at the United Nations; Editing by Andrew Heavens)

http://af.reuters.com/article/sudanNews/idAFL6E8FI3Q820120418?sp=true

END4

5. Sudan's President Threatens to Overthrow South Sudan

By Salma El Wardany and Jared Ferrie - Apr 19, 2012 12:59 AM GMT+0300

Sudanese President Umar al-Bashir vowed today to overthrow the South
Sudan government, as the south pledged to defend itself and called for
a return to negotiations.

“Our main target from today is to liberate South Sudan’s citizens from
the Sudan People’s Liberation Movement,” al- Bashir said in a speech
aired on Sudan TV. “This is our responsibility before our brothers in
South Sudan,” he said.

South Sudan’s deputy information minister, Atem Yaak Atem, said the
Khartoum government has been launching ground and air attacks against
his country since it declared independence July 9, and accused Sudan
of trying to overthrow his government by supporting militia groups.

“We don’t see any reason for full-scale war as long as there is room
for negotiation,” he said today by phone from Juba, the South Sudanese
capital. “We have been telling them we are ready for negotiation.”

South Sudan seceded from the north following a 2005 peace deal that
ended two decades of war. It assumed control over about three-quarters
of the formerly unified nation’s daily oil output of 490,000 barrels.
Most of the crude is pumped by the China National Petroleum
Corp.,Malaysia’s Petroliam Nasional Bhd. and India’s ONGC Videsh Ltd.

Sudan said today it’s calling on the UN Security Council to end South
Sudan’s week-long occupation of the oil-rich Heglig region. South
Sudan’s army seized the region, which both countries claim, on April
10 after a series of border clashes, prompting Sudan to withdraw from
African Union-led negotiations and to mobilize its army.

“The story began in Heglig, but will end in Khartoum or Juba,”
al-Bashir said. “There are two choices: Either we end up in Juba or
they end up in Khartoum. The old borders cannot take us both.”

While the south would defend itself, Atem said his government has “no
plan to attack or occupy anybody’s territory.”

END5

6. UN Urged To Listen To Heglig’s History: Government

The South Sudanese government yesterday responded to the United
Nations’ proposed sanctions on her if it did not withdraw her troops
from the contested oil rich region of Heglig.

By Waakhe Simon Wudu
JUBA, 19th April 2012 [Gurtong]

The UN yesterday morning has threatened to impose sanctions on Sudan
and South Sudan if they did not cease from current hostilities that
are now worsening humanitarian situation in the two countries.

Despite South Sudan’s position to withdraw from Heglig, the United
Nations needs to listen to the history of the militarily ceased region
from the Sudan Armed Forces (SAF) last week, the government’s
Spokesperson Dr. Barnaba Marial said.

"Well, it is a very unfortunate sort of proposed decision. I think the
best thing is to get informed why Heglig has now become a "hot spot"
that can even lead to imposition of sanctions,” Dr. Marial told the
media in Juba.

“I think it is good that the Security Council first listens to the
story of Heglig, and I think they have not listened adequately from
our point of view. We would be glad to tell them about the story of
Heglig which is Panthou that it is part of South Sudan," Marial said.

Prior to the Sudan People’s Liberation Army (SPLA) take-over of
Heglig, tensions between the two nations are now high as they resorted
to war of statements with Khartoum branding South Sudan government her
“enemy”.

Meanwhile South Sudan reiterated her commitment for diplomatic talks
with Khartoum, on Monday Marial stated six conditions the
international community should take into consideration before her
withdrawal from Heglig.

“The issue of withdrawal on the government side is not an issue. It is
an indication we are moving towards peace. But certain conditions must
be met,” Marial said.

He pointed six conditions that were already sent to the international
community; the United Nations and the African Union, (AU) he said.

1. There must be immediate cessation of hostilities along the border areas.
2. There must be immediate demarcation of the agreed upon border areas.
3. There must be immediate demilitarization in all the contested areas
and deployment of international monitors.
4. There must be immediate end to the continuing of exploitation of
natural resources in the disputed areas.
5. In reference to the disputed areas we would like to prefer the
international court of arbitration because if we can not agree in the
AU we can go for international court of arbitration in The Hague so
that it's decided upon, and
6. There must be immediate withdrawal of Sudan Armed Forces from Abyei

Last Tuesday, the SPLA  recaptured Heglig after repulsing the Sudan
Armed Forces from the region. The International Community has so far
condemned the move, calling the military occupation “illegal” and
South Sudan to immediately withdraw her forces from the area.

However, South Sudan has insisted with President Salva Kiir last week
warning unless the international community intervenes with equal
justice on the two countries; SPLA will not withdraw and will head up
to Abyei also a disputed region.

Dr. Marial has of latest reiterated that; “our statement is very
clear. The government of the RSS is committed to the viability of two
states….we would like to make this clear. The RSS is fully committed
to negotiations and does not wish to engage in military confrontation.
We are still on defensive.”

Analysts have however expressed critical economic challenges if UN
meant to impose the sanction on the infant nation with one of the
highest maternal, child mortality rate and illiterate population in
the world.

http://www.gurtong.net/ECM/Editorial/tabid/124/ctl/ArticleView/mid/519/articleId/6828/UN-Urged-To-Listen-To-Hegligs-History-Government.aspx

END6

7. Sudanese conflict may hinge on which economy falters first

April 18 2012 at 05:00am
iol Business Report

The outcome of the dramatically escalating border fighting between
Sudan and South Sudan is more likely to be determined by which of the
two faltering economies collapses first than by relative military
prowess.

South Sudan, which seceded from Sudan in July last year, seized the
disputed Heglig oilfield last week, edging the two former civil war
foes closer to full-blown conflict than any time since the South
gained independence. But rather than sparking an all-out military
confrontation, each side’s aim may now be to target one another’s oil
facilities and wait for their opponent to crumble under armed
insurgencies, popular unrest and fuel shortages.

“It is a question of which side can maintain the basic governance and
military structures longer,” a Sudan expert with government contacts
said, speaking on condition of anonymity.

The two countries have already driven their economies to the brink of
implosion since South Sudan split away, cleaving the vital oil
industry in two. Squabbling over oil payments and border fighting has
withered combined crude output – previously the main source of foreign
currency and state revenues for both countries – from around 500 000
barrels a day before partition to just over a tenth of that.

Food prices are soaring on both sides of the border and their
currencies are reeling as officials scramble to make up for the sudden
loss of revenues in countries that were already reeling from years of
war, mismanagement and US trade sanctions.

But despite their weaknesses, both sides have consistently reckoned
they have the upper hand on their foe, partly explaining why fighting
has escalated despite the obvious fact that neither side can actually
afford to fight a war.

“Khartoum is fighting for its survival,” said Peter Bashir Gbandi, a
deputy for the ruling Sudan People’s Liberation Movement (SPLM) in
South Sudan’s national assembly, during an emotional Juba panel debate
packed with bellicose comments and broadcast live on radio. “Khartoum
is economically khallas, collapsing,” he said, using the Arabic word
for “finished”.

Uprisings

With popular uprisings convulsing the Middle East, many in South Sudan
have predicted Sudan’s President Omar Hassan al-Bashir, in power since
a 1989 coup, will soon meet the same fate as leaders in neighbouring
Egypt and Libya.

If the South can hold out a few months longer, the reasoning goes,
Sudan’s people will surely overthrow their government and replace it
with a regime more receptive to Juba’s demands.

Khartoum, on the other hand, sees a good chance South Sudan – already
hit by domestic rebellions, horribly violent cattle raiding and
widespread poverty – will soon run out of money and descend into
ungovernable chaos.

The result is what Harry Verhoeven, a University of Oxford researcher
who has studied Sudan extensively, calls a “war of attrition”, in
which both sides wait for the other to crumble internally or run out
of the funds and fuel needed to wage war.

With its MiG and Antonov planes, Sudan still has a huge advantage in
terms of air power, which even South Sudan’s military spokesman admits
Juba’s forces can do little but “take precautions” against. But even
before Heglig fell, Sudan was fighting insurgencies on three fronts –
the western Darfur region and the South Kordofan and Blue Nile border
states – and South Sudan may be betting Khartoum cannot afford to
stretch the military further.

“As we speak now there are demonstrations in Khartoum. You cannot
fight, you cannot open another front in southern Sudan if you already
have four fronts to fight,” SPLM deputy Gbandi said.

That may explain why South Sudan’s rulers have been unrepentant about
the occupation of Heglig, even under pressure from the US and other
global powers.

In a speech to parliament last week, South Sudan’s President Salva
Kiir chided UN chief Ban Ki-moon for asking him to withdraw his
troops. “I told him you don’t need to order me because I am not under
your command. I am a head of a state.“

Fuel prices

Juba’s defiance was probably a sign it believed it could catalyse
regime change in Sudan, Verhoeven said. “If Khartoum falls, of course,
the SPLM thinks we’re looking at a very different game and everyone
will forget their gamble.”

And yet many in Khartoum’s ruling National Congress Party are likely
to take a similar view of the South, despite the shock of losing
Heglig. Officials often contrast Sudan’s diverse economy with that of
South Sudan, which depended on oil for 98 percent of state income.

“If there will be war after the loss of oil it will be a war of
attrition. But it will be a war of attrition hitting them before us,”
President al-Bashir told state television a few days after the South’s
oil shutdown.

Sabir Hassan, a former central bank governor who co-chairs Khartoum’s
economic negotiations team, insists the country is still better off
than its southern neighbour despite the chance it will have to import
more fuel now.

“In the south there is no economy as such. It is a salary-based
economy,” he said. “Experience has shown that our economy has some
resilience when it comes to facing such crises. We have had crises
which were very similar to this before.”

Some foreign experts and advisers estimate that South Sudan may
struggle to pay for imports and support its currency within a couple
of months without outside help, as assessment officials in Khartoum
are certainly aware.

Oil shutdowns

The loss of Heglig knocked out about half of Sudan’s 115 000
barrel-a-day oil output. Landlocked South Sudan shut down its own
roughly 350 000 barrels a day in January in a row over how much it
should pay to export crude via Sudan.

And while friendly governments could offer some financial support to
avert economic disaster in either country, both may struggle to secure
enough loans to see them through the crisis, especially while the
threat of war looms.

A flashpoint for both countries is fuel prices – a red line for unrest
in many poor countries this year, such as Nigeria. Sudan and South
Sudan have seen long queues as motorists tried to stock up on petrol
in the past week. Four filling stations in Juba visited at the weekend
had run out of fuel.

In Khartoum, rumours have spread that the government may have to cut
fuel subsidies after losing Heglig, despite official assurances that
the state has enough reserves to handle the crisis.

Food prices are another worry. The loss of foreign currency from oil
revenues has driven up the cost of imports, especially in South Sudan,
where staples like rice and tomatoes are trucked in at a premium from
Kenya and Uganda.

Any halt or delay in state salaries could also make it harder for
either side to keep its government functioning. In Bor, the capital of
South Sudan’s Jonglei state, a government worker this month said his
ministry’s budget for cleaning, water and other services had already
been halved under government austerity measures. “When it touches
salaries, this is where the problem comes in,” he said.

There are similar risks in Sudan. One Sudanese economic expert with
political ties estimates that three quarters of the budget goes to
Sudan’s military, security forces and high-level officials. If true,
that does not leave much room to trim spending without hitting
sensitive areas.

“The government is unable to get us out of this miserable situation,”
the expert said. But he said a bloody political transition could lead
to a “Somalia situation”, and fear of chaos like that affecting the
failed state could deter many Sudanese from rising up. – Reuters

http://www.iol.co.za/business/business-news/sudanese-conflict-may-hinge-on-which-economy-falters-first-1.1278311

END7
______________________
John Ashworth

Sudan, South Sudan Advisor

[email protected]

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