A Turning Point For Sudan In Handling Its Domestic Challenges
10 May, 2020
Minister of Finance Ibrahim al-Badawe
For all practical purposes the donors’ conference hosted by Paris last week was a non-event. It brings to memory the old saying by the veteran US diplomat Joseph Sisco who described the series of fruitless meetings to discuss the Middle East question that its only purpose was to keep eyes focussed on the football up in the air.
To be fair, during the meeting the World Bank announced that the Multi-Donor Trust Fund is ready and a 100 million euros have been committed already with more expected during the coming donors’ conference.
Then there is the second significant piece of news. The venue of the conference has shifted from Kuwait to Berlin.
Sudan should take a note of that as well as the meagre outcome of the series of Sudan Friends meetings across the globe so far.
Moving the donors’ conference meeting signals to the difficulties faced by the Gulf countries’ economies out of the twin disasters of Covid-19 coupled with the dramatic drop in oil prices. Moreover, in the case of Saudi Arabia things are getting more complicated with leaks beaming out of Washington that it is reviewing its 75-year long defence pact with the Riyadh. Unconfirmed reports spoke about withdrawing some of the Patriots systems protecting some Saudi cities and oil installations.
But more important is what is happening in the oil market, which provides the Gulf countries and Saudi Arabia in particular with strategic weight and fiscal muscles. The current downturn in the market is not yet one of the typical cycles and that an expected rebound is a matter of time.
Unlike previous rounds, this time the market is witnessing destruction of demand that is fuelled by new technologies like fracking in US, deep water drilling in Brazil and oil sands in Canada, all eating on the conventional oil market share. In addition there is the growing anti- fossil fuels movement that is moving out into the public domain and the expected acceleration of working from home in the post-Corona world, all are expected to have an impact on future oil demand even after going through the economic depression that is engulfing the world and nobody knows how long it will last or how deep it will be.
Sudan has been a beneficiary, where Gulf countries provided an alternative market to its labor force, who have been helping their extended families back home and indirectly the economy. The Gulf countries have been bailing various governments in Sudan over decades and providing direct investments with Kenana Sugar Co. is standing as a shining example.
With Gulf economies now subject to painful fiscal measures of adjustment because of reduced income Sudanese as individuals and government are finding that one option is closing down.
That is why the offer by France to organize, “a high-level conference involving the participation of international private sector, on the political, economic, financial and also investment prospects of the Sudanese transition,” read the statement from the Paris seventh meeting of Sudan Friends.
The message is very clear and needs to be taken seriously by Sudan government and various political forces. There is no solution or economic help coming from abroad. It has to start home and the private sector could be the vehicle for that. Luckily some companies like DAL have already started this process thus setting up an example for others to follow.
This should be a turning point in the country’s handling of its problems and how to go about its issues of nation building.
The causes of looking abroad could be rooted back in history since the country has been colonized by two foreign powers: Britain and Egypt. Political powers found it conducive to play one against the other and developed the habit of looking for solutions into foreign capitals be it for peace with rebel groups or for economic help even in meeting natural calamities like heavy rains or floods.
The post-Corona world will not have spare capacity to help others, because it is facing daunting questions on various socio, politico-economic issues. The post-Corona world differs drastically from the one before it and needs different handling.
Against all odds and various scenarios to topple or change the Ingaz regime, with foreign backing, through soft landing or the barrel of gun, but the youth embarked on an unexpected, extended peaceful demonstrations and a sit-in that forced the change.
The challenge now is how to turn that power into something positive to build the country.
E N D
SS/AS
Post your comments
Photo of the Week
Khartoum (SudanNow) — The denial of Sudanese students the opportunity to sit for the Sudanese Certificate exams will remain a black mark in the record of Chadian authorities. It represents a clear violation of one of the fundamental human rights principles enshrined in international law and a denial of the historical relations between the two peoples. It also disregards Sud...
More-
19 January, 2025
Fate Tragedies
Port Sudan (Sudanow) - Magda's tears rolled down her cheeks, as she threw her exhausted body on the dilapidated car seat next to the window. She cast a look at her house, her home. But it never occurred to her that this would be the last time she would behold that place dear to her, that neighborhood where she was born and raised, now she was sixty-seven.She was immersed in her reveries when the car set off, jostling her and brining her...
Contact Us
Address: Sudan News Agency (SUNA) Building, Jamhoria Street, Khartoum - Sudan
Mobile:+249 909220011 / +249 912307547