North-South Sudan economic war will not take prisoners
By John A. Akec
July 30, 2011 — If you think there are ethics to guide the current economic war that is taking shape between the Republic of Sudan and the newly independent South Sudan, be ready to be disappointed. As far as Sudan government is concerned, and in the words of its finance minister Ali Mahmud, his government is ready to do whatever it takes to protect North Sudan economy (Sudani, 12 July 2011, Issue 1992). Literally, that is what Sudan government has embarked on by fighting South Sudan economically hands off the glove, hitting hard under the belt, and taking no prisoners following the pattern of the 22-year war conflict that was waged against them by Sudan Liberation Army (SPLA) in the South and other areas of the North, a war that eventually led to separation of the South from the rest of the country on 9th July 2011.
What it is that the North is doing economically to the South that can be depicted in such harsh terms? And what has the new nation done to engender such an angry response from their erstwhile protagonists? Could anything have been done differently to avoid the economic war? And what kind of loss or gains we expect each party is going to incur in this unfortunate conflict? There are no easy answers.
How North Sudan is Waging its Economic War against South Sudan?
A few months in run up to South Sudan independence, the government in Khartoum stopped transportation of fuel and food items from the North to the South. Prices of the fuel rocketed in the South. People parked their cars in their homes and walked to work or risked spending long hours in queues to get a few gallons of petrol for arm and a leg. That fuel came from Kenya and Uganda. Then came the mass relief of Sudanese of Southern origin from the army and civil service in the North and ordering private sector employers to follow suite, a month ahead of declaration of South Sudan independence; a move that was roundly condemned by a wide spectrum of Northern Sudanese civil society which regarded it as inhumane and an attempt to export mass unemployment to the South.
In air travel, luck or coincidence was the ally of Khartoum government. The only 2 Fokker aircrafts owned by Feeder Airline were grounded by a manufacturer order, warning of faulty fog detection system. This is the only South Sudan based passenger-airliner connecting Khartoum and South Sudan main cities. Khartoum aviation authorities also refused to grant landing permit in Khartoum International Airport to Feeder’s new Boeing aircraft. That gave the Northern airliners a monopoly of air travel business between Khartoum and South Sudan. Airfares tripled beyond what many Southerners can afford.
A few days before the declaration of South Sudan independence, all accounts of South Sudanese institutions with central bank were frozen. The electronic banking system used by the Bank of South Sudan (BOSS) and ministry of Finance in the South and the Central bank in Khartoum whose server was maintained in Khartoum was closed down, making it impossible to move funds between BOSS and its branches and between BOSS and other commercial banks in South Sudan or anywhere in the world. Then North launched its new currency barely two days after South Sudan launch of its currency and declaring as illegal tender the 2 billons worth of Sudanese pounds currently circulating in the South, a move that will cost South Sudan US$ 700 million. Finally, the Khartoum government asked Juba to pay US 32 for every barrel of crude oil transported through their pipeline, the highest ever charge in the world for rendering similar service, according to South Sudan officials.
What has South Sudan committed against Khartoum to merit this severe punishment?
According to leading figures in Sudan ruling party, the National Congress Party (NCP), South Sudan government is doing everything it could to politically destabilize the North, although they would rarely admit publicly that such sentiments are behind their economic furry against the world’s newest nation.
Putting aside the unresolved issues over border demarcation and contested Abyei area, the government of South Sudan is being accused by Khartoum of supporting the recent armed insurgency in South Kordofan with potential rebellion in Blue Nile State, and extending help to Darfur’s armed movements. The statement by the President of South Sudan, Salva Kiir Mayardit, in his independence-day speech that he ‘will not forget the people of South Kordofan, Blue Nile, and Darfur, was interpreted in the North as a public confession to interfere in Sudan internal affairs.
Worst, South Sudan is seen by the North as the linchpin of the West in the ‘war’ against Khartoum regime which the West has long accused of committing crimes against humanity in Darfur and possibly in South Kordofan. Recently, the NCP stalwart and presidential assistant, Nafi Ali Nafi, warned the South Sudan government to “distant itself from the West if they dream of building any cooperative relations with the North.” Read economic cooperation.
The Road Not Taken
South Sudan had six years to insulate itself from impacts of North economic embargo, or at least minimize such impacts. However, it would seem that no one saw it coming, or rather there are countless things that could have been done and they haven’t. Furthermore, South Sudan should try to be seen to play positive influence in Kordofan, Blue Nile, and Darfur- difficult yet worth trying. On their part, the Khartoum government should reach a fair deal with armed movements in South Kordofan, Blue Nile and Darfur, a settlement that is not less brave than the Comprehensive Peace Agreement (CPA) that successfully brought relative peace after 22 years of conflict.
Failing that, the Khartoum will continue to wage its brutal economic embargo on South Sudan, which will suffer greatly in short-term. However, in the long run, Khartoum risks provoking political uprising if it is seen to be incapable of achieving peace in the 3 areas as well as failing to forge beneficial relations with South Sudan.
The author is vice chancellor of University of Northern Bahr El Ghazal in South Sudan, and chairperson of Academics and Researchers Forum for Development, a think-tank and advocacy group formed by the South Sudanese academics and researchers. The writer edits a blog: www.JohnAkecSouthSudan.blogs…. To get in touch, write to: [email protected].
mohammed ali
North-South Sudan economic war will not take prisoners
Prof. John,
Well, it is obviously that you have tried to defend the RoSS and that is your right. Unfortunately, you mentioned what Khartoum did and totally ignored what Juba did. In such a site full of hatred and profani one would expect a man of your caliber to preach peace and reconcilation.This could only be done through telling the truth.
What you call economical embargo is not essentially true. In the past there are goods which can go to any part of the one country. For example sugar, for every state there was an allocated quota to be distributed according to the population and level of consumbtion. Sorghum can not be exported without a license for export.All goods exported to foreign countries should be paid for by foreign currency.Now you want us to continue dealing commercially with the south like before.Unfortunately , this can not happen, particulary as the SPLA rejected the currency agreement which it had signed.
The currency agreement was signed by the SPLA and I believe that was with the support of the IMF. What happened next? Just 9 days after seperation , they launched their new currency in violation of what they signed and this excately what provoked the angry response from the minister of finance. Haven’t the Government of Sudan been not aware and prepared to launch it’s new currency, this would have inflicted an unrepairable damadge to our econom.Obviously, this was a planned measure to de-stablize our economy, as priniting a new currency is not something which you can do over night!
South Kordufan, blue Nile and Darfur are part of Sudan and not of South Sudan.I am sure you understand very well what does that mean! Let us suppose that Salva Kirr talk about Blue Nile and South Kordufan was just a moral support, what about Darfur? The notorious Pagan was telling us before seperation that Darfurians are in their country and they are free to move in any part of it. If that was playing with words that at that time now it is playing with fire.We have all the time being hearing that the SPLA is harbouring Darfurian rebels to play a role in solving the problem.Neither me or you are naieve to believe this!Now the SPLA is still harbouring rebells from Sudan, they appear regyulary in the SSTV and threaten us from there. Nobody in the SPLA denied that.Not only that , the SPLA openly claim proudly to support them.You will say that the Government of Sudan is supporting the rebells in the South.Well, the SPLA failed to give any evidence, while the SPLA is giving the evidence by itself for it’s support for the rebells.To be fair, at least the Government of Sudan is not admitting that , while the south is “brave” enough to admit that!
You also mentioned Abyei, but you failed to give an honest and true account of what had happened! At least Sudanese soldiers were ambushed and killed while they were being escorted out of Abeyei. This was not the first time. Salva Kiir who was at that time still the VP of Sudan apologized to UNMIS but failed to apologize to Sudanese soldiers families.He promised in Khartoum that he will expel Darfurian rebells out of the South.He broke his promise!
In South Kordufan and Blue Nile , according to the CPA the SPLA was supposed to disarm years ago. They failed to do so making different false excuses.Obviously the SPLA under the hegemony of it’s communist and leftist still harbouring the ideology of ” New Sudan” have different plans.The SPLA is still supporting Kordufan rebells on the bright day light!Al Hilue recieves his orders directly from the SPLA command.Khamis Jalab, Daniel Koudy , Thabita Butrus among many others and not to mention General Telephone Koko ( who is still improsoned on clear set up by the SPLA and Al Hilu) all of them oppose what Al Hlue did and condemend his rebillion.General Daniel Koddey , clearly and openly said that Al Hilue recieves his orders directely from Salva Kiir.
Southerners want their seperate country independent from us, they got it! Many stories were said about killing southerners in Khartoum and other parts of Sudan.Nothing had happened.Many remain in North Sudan, at least one million.They refused to go back, despite the threats and intimidations by the SPLA.The SPLA requested that they are allowed to remain in the north untill the GOSS is prepaired for such a huge influx of people.Their request was accepted.If the GOS had any plan or any malaicous intention, repatriation of such huge number of people will destroy the economy of the South within seconds!
Now in Addis Abba, again Pagan rejected the proposal of Thambo Embiki and claimed in a trimumphant language that the north had dropped it’s demands.That was not true! The north accepted the mediators proposals as something in the middle.If he wants to follow the tactics of Nivasha, by coming the next day with higher sealing of demands, it is different now. People were hoping the country would remain united and to stop the war, which dragged us decades bacward. Now we are two different countries, we are looking only at our national interest within a win-win frame.
Prof,
I think it is high time for people like you to look at the picture from outside the frame of hate and enemosity.We in the orth still call you our brothers. I haven’t seen any person on this site saying any positive word about us. The Jalaba, Arabs ” in a negative”, Mandukorrow , insulting our religion , prophit and everything which belongs to us. We do not do a simillar thing.We donnot hate you.The war was between the army and the rebells.Southerners were living and still living in every single town and village very peacfully and more than they can get in their homeland.Now we are two seperate countries who can live in peace without interference on the others internal affairs.This is quite easy and very fruitful.
Prof,
It is not right that we will bebfit in the short run and loose in the long run and the South will loose in the short run an benifit run.Am afraid that the opposite is true and not only that; if the GOSS follow this path of enemosity and hatred they will loose both in the short and long term.
I admired your previous article about millions living in the borders without caring about whichever government they belong to. These are the people who are going to suffer.We should not let them because of our greed and the politicans greed!
Ayuel Bong
North-South Sudan economic war will not take prisoners
Dr. John Akec, you came up with the most important points that I think if the government of south sudan will use them to get possible solution for our harshy economy while the people of south sudan should be patient because our economy will improve slowly even the northern government work hard to threaten the new nation economically,still our government capable to stabilize the southern borders and to give the farmers the opportunity to plant their corps.
AdierCien
North-South Sudan economic war will not take prisoners
In The Name Of The Trinity God Amen
Prof. John,
I was expecting your comment (article) about this mess Khartoumers trying to play on our economy and they have already did it. As a country, we’ve nothing to loose much because we have come to the point of having a choice. No one can tie our neck on wooden tool again, no nothing to worry us.
The biggest problem ever been in Sudan since Independent era which is at the corner now is the spontaneous change if the Khartoum govt do not pay attention to this then definitely The Republic of Sudan will be the last to gains its happiness under difficulty situation because Khartoumers don’t listen at one and they don’t respect other people’s life.
My message to our brothers in Khartoum is that ‘make South Sudan feels in peace then automatically you’ll gonna get lasting peace even better than the earlier united Sudan’.
God Bless Me And South Sudan.
John
North-South Sudan economic war will not take prisoners
Mr. Muhammed Ali,
Sorry if I have appeared to be siding with the view of South Sudan. Perhaps you need to reread my article. It is not true to say that that I have not mentioned what ROSS has done to generate the horrific reaction from the government of Khartoum. I have posed the question and provided some answers.
I think I said exactly all those you have mentioned: Which is accusation for supporting armed movements in S. Kordofan, Darfur, and potentially in Blue Nile. But remember these are allegations just as South Sudan accuses the North of supporting militia groups in the South. The fact that citizens of both sides take arms against their respective governments (South and North) puts the responsibility on each side to shoulder the burden of addressing the insurgency in their respective backyard. Blaming the South or the North will not resolve these insurgencies and allowing them to shape the economic coopreations between two Sudans will only bring more ruin to both sides.
There is no major disagreement over the fact that Abyei has been a contentious issue along and needs to be solved amicably. The shooting you are talking about was an isolating action of one officer and was not something approved at highest level, according to my information.
Regarding currency, I do not see how the South changing the currency ruin the economy of the North? Not economist myself but being the something that affects us daily, we all have the feel for economics. Remember when Sudan seceded from Egypt in January 1956, Sudan instituted issuing its currency immediately and both Sudanese pound and Egyption pound continued to be used in Sudan simultaneously and Egyptian pound was slowly phased out until it disapperaed back to its land of origin. Egypt did not rush to illegalise the Egyptian pound being handled in Khartoum nor issued a new currency to undercut the new Sudanese pounds as as we are seeing Khartoum doing it today. What our sisterly government is doing in Khartoum does not make any economic sense whatsoever unless the motive is vengeance for the alleged interference by the South in S. Kordofan and Darfur. There is enough trouble in those regions and one should not undermine their intelligence to rebel without ‘orders’ from Juba. Calling somebody a ‘stooge’ is dehumanising them. If Nuba, Darfurians, and Funj were fools theyw would not have taken arms alongside SPLA for 22 years only for them to hand over their guns to GOS without a fair political deal. Think about this MR. Ali. You do not need a ROSS to lecture them about the rights. Do you?
Back to currency, since June 2011 the central Bank of Sudan began to starve the South of the notes to the extend that affected money circulation in South Sudan. Hence both North and South had plan B tp which they reverted to. At this juncture South is more justified to get a new currency. You could not say the same thing about the North or Uganda, South next next trading neighbour. There are also other arguments the public is not aware of such as suggestion of monetary union by the North and its rejection by the South. What was needed was a win-win situation. However, it would appear the big brother has been using the muscle of a grown up to bully the little brother into unfair deal. You be the judge!
Finally, I would like to suggest that both the North and the South should distant themselves away from scoring short-term goals which in the long run will harm the relationships between the North and the South.
The North has lost unity. It needs to be more careful this time around not to lose brotherly relationships. By penalising the ordinary citizens of the South by closing its borders, it is not doing any good to future generations of the two Sudans. What is needed is opened border and 4 freedoms despite different currencies. Once we have two currencies it is going to be natural that we will buy or exchange each other currencies or use dollars to get goods from other the side.
South in long term is also as capable replicate the Northern treatment economically. What I have to acknowledge is that the general public in North Sudan is against what the ruling party is doing. And that is a ray of hope for the relationships of the two sisterly Sudans.
mohammed ali
North-South Sudan economic war will not take prisoners
Prof John,
Thank you for you friendly response.
I am not against your support for your country, this normal, natural and wanted.I will be stupid to ask you to be against your people.
The truth and facts will help both of us and both of our people.I agree that getting to the facts and the truth among the jungle of the politicians is not an easy thing. But there remain some facts which we cannot shy away from or deny!
First thing is hatered and enemosity, which greats huge mountains of mistrust.Nobody in the north , at least will show hatred publicly.Nobody can, allowed or it will be accepted from him to talk hatred against southerners. Still people are calling you brothers.
On the other side it is horrific! It is on the TV, Newspapers, internet and political rallys it is the norm to show and express hatred towards Arabs, jalabba, mandokorrow or what ever you call us.It is becoming as a credential of patriotism to show your hated. Look at what is Pagan doing ..bye bye .. Khartoum… and if Dr. Machar didn’t pull the mice from on the day of celebration it would have been disasterous; not only that he went to disconnect the loud speaker from Machar! Is this a behaviour of a responsible states man who should negotiate peace.
Prof. you donnot need to be an economist to know that launching a new currency is harmful to our economy. There was agreement to phase the Sudanese pound slowly from the south, as what happened with the Egyptian pound.Pagan admitted this, and recently they agreed to abide by it.The agreement stipulates that the south should handle bag the north with old pound.The SPLA launched it’s currency and refused to hand over the old pound! They can later smuggle it and buy dollars for 5 or 6 pound and the economy in the north will collapse. All the preperations were done secretly while in the agreement , the north was supposed to assist and print the new money.The agreement stipulated that both currencies should go together for 9 month, which is in the best interest of the South.Now , they found that it not good for them to continue with their plan and that was harmful to them they agreed to go back to the agreement. Ironically, the agreement was wittnesed by all the mediators and was supported by the IMF!
Darfurian rebels are in the South.It is not allegations. Salva Kiir, Pagan, Luka Piong and many others admit that, they never deny it! We can go on arguing about this for centuries, but the fact remain that Al basheer extended his hand for co-operation and said clearly we donnot want to set fire in our neighbours country, while Salva and others did and doing the opposite in a defiant and challenging way and openly! You may argue that Basheer is playing with words, which is possible , but let us be positive about it and build upon his intention and treat him the same way.Let us be clear to both side, your problems are your problems, neither should interfer.This a simple message and easy one!War is not going to solve nobodies problem!
The north had lost unity , that is true. But, though you are happy now; from my point of view I donnot think southerners has gain much from being a seperate country.Prof. the south was independant since 2005 with more rights than now! Now you are ruling only yourself, before you were ruling even the north in every single state and you have the right to contest to rule the whole country. We donnot have any right to an office job in the South!It is also right that we should not loose the brotherly relationship, and we working towards that; but people like Pagan and the SPLA ( most of them) are not working towards this!
We can go arguing about the past for decades .Now let us turn the page and look positive to the future! You have the right to have relations with any country on Earth, but for both of us our relationship should the best.Millions of people donnot care about who is on power in Juba or Khartoum and donnot know about borders, visas, passport or whatever we the ” intellectuals” consider is ‘ modern” or ” civiliazed” . Let us give these people the right at least in peace far away from our selfish wranglinging! We have got everything , they got nothing!
Thanks Prof.
Chanson
North-South Sudan economic war will not take prisoners
Dr John Akech.
Thank alot for your wisdom/ your wise article.You said it all and I think what government of Khartoum has done by blocking/closures of the main road which is connecting North-South was like;the last kick of dying horse and suicide mission as well.Why do I say that? Is because what they have done have not faced us alone.But Its also back fire them one way or other.They have available goods for the marketing and there is no enough market for their goods/commodities to be sold.Which is hectic and hell for their producers too.
South Sudan is independent country of her own.We,ldn’t be dependent on them at all.It is now atime for our new country to produce an independent thought.North are not smarters than us,They are not energetic than us and their Land is not fertile than our land.What we need to do is to do something for boosting of our lifespan soon than later and by making this endeavor. Government MUST come up with agriculture policies and this can even be the source of employment to the Youths.
Price is soaring all over the country and the government is watching.traders on the other hand have taken merits/advantages over closure of the roads, by monopolizing citizens.I think chamber of commarces should do something before it,s getting late.
Thank once again Dr. Akech.
God bless ROSS.
Chan.