Globalization and the Economy of Sudan

Sudan has been plagued in the recent years with violence that some countries declare a genocide. Its economy has been affected by the conflict, with some articles claiming the economy is in free-fall. “Inflation continues its relentless rise in Sudan, despite “official figures” suggesting otherwise. The connection between fighting in Jebel Amer (North Darfur) and the Khartoum regime’s desperate need of foreign exchange currency has become steadily clearer.” (Sudan Tribune)

One could debate the ways that globalization is affecting the economy of Sudan, but I believe Sudan is caught in a transitional stage between being a developing and developed country. Steger described a globalized country as a place with “tight global economic, political, cultural and environmental interconnections and flows that makes most of the currently existing borders and boundaries irrelevant.” (Steger, 8-9) With the independence of South Sudan taking 75% of the oil reserves from Sudan, the economy is struggling to reach its peak. The country cannot find political stability. Omar al-Bashir is the current leader of Sudan, but opposition groups continue to rise against his regime. In January, al-Bashir had many opposition leaders arrested because they signed a charter known as the “New Dawn Charter”, pledging to overthrow al-Bashir and create a democracy (IRIN Humanitarian News). I think that until the country finds political harmony, their economy will continue to suffer. However, Zakaria makes a great point. He says that in this day and age, economics is trumping politics and the threat of wars and cops have lost much of their ability to derail markets (Zakaria, 19). There is no definite proof right now on how the economy is being shaped by the turmoil, but I still believe it has a negative effect on total gross domestic output.

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Sudan is a member country of the United Nations. It joined December 11, 1956.  Membership is granted to any “peace loving country” approved by the General Assembly. However, Sudan does not sit on any major council of the UN.

Sudan has attempted to work with the IMF multiple times, but in 1993, “the IMF suspended Sudan’s voting rights and the World Bank suspended Sudan’s right to make withdrawals under effective and fully disbursed loans and credits” (Wiki). Both Sudan and South Sudan operate on the Sudanese pound, and the exchange rate is about 1 American dollar to 1.3 Sudanese pounds currently.

Posted by Courtney Doll

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