CGD in the News

FACTBOX - Unanswered Questions for North, South Sudan (Reuters)

February 08, 2011

CGD was mentioned in a Reuters article on the challenges facing northern and southern Sudan.

From the Article:

Sudan's crippling debts, now heading towards $40 billion, could be one of the main obstacles to the talks. The north is determined to translate international goodwill over its acceptance of the referendum result into debt forgiveness and says it expects the south to help sway creditors. The challenge of shifting Sudan's debt is a huge one and the north may be left dangerously disappointed if relief is not forthcoming. Problems include the complexity of the debt burden, the widespread economic reforms Sudan would have to make to qualify for multilateral debt relief and other factors that are outside the south's control.

The ability of multilateral creditors to take action is hampered by U.S. sanctions, which cannot be lifted until Khartoum resolves its still-festering Darfur conflict.

Nearly 90 percent of Sudan's external debt is owed to bilateral and commercial creditors, with their own requirements, according to a paper by the Center for Global Development. The paper concluded it might take at least three to four years to clear unsustainable debt, plenty of time for the north to lose patience with the process and look for scapegoats in the south.

North and south leaders have reached stalemate over the ownership of the central flashpoint region of Abyei.

The fertile region is claimed by rival armed communities aligned to the north and the south. Abyei residents were supposed to have their own referendum last month on which half of the country to join. Disagreements over who qualified to vote left the process in limbo and the vote did not take place.

Both sides have already clashed since the end of the north- south civil war in 2005, most recently in the build-up to voting in the southern referendum.

Any unilateral move by the south-linked Dinka Ngok to claim Abyei as their own would almost certainly spark conflict with the north-linked Misseriya. Most political solutions, like a simple north-south partition of the territory, have already been proposed and rejected by one side or another. Abyei remains the most likely place for full fighting to reignite.

Read the Article.