A Study Of Sudan's Economic Adjustment After The Secession Of The South Sudan

The Southern Sudan's officially declared independence on July 9,2011,marking the beginning of a new era in Sudan's history.Both Sudan and the Southern Sudan depend heavily on oil revenues.After the secession of Southern Sudan,Sudan's oil supply suddenly decreased,Sudan lost about 80% of its oil revenue and more than 90% of its foreign exchange income.Sudan is therefore under considerable economic pressure.Since the secession of the Southern Sudan,the Sudanese government has taken various economic measures to mitigate the economic losses in the national budget in accordance with the social-economic situation.As a result of the decline in oil supply,declining fiscal revenues and a generally depressed economic outlook have become major challenges to existing political,security and social-economic structures.The symptoms of the Arab spring are playing out in Sudan,especially as the country's economy is rapidly deteriorating from the rampant corruption and high unemployment that it now faces,and the overall economic situation is expected to worsen.The removal of some government subsidies for food and oil sparked street protests that reflected widespread concern about the continuing economic downturn.In this domestic environment,the government is doing everything it can to cut spending,find sources of income other than oil,and limit imports to make up for foreign exchange reserves.The measures taken by the Sudanese government,such as The Three-year Economic Emergency Plan(2011-2013)and The Five-year Economic Reform Plan(2015-2019),have not heated up the domestic economy,but made the inflation rate higher and higher.The Sudanese government's search for mineral resources other than oil is unsustainable and the country's economic structure remains deeply troubled.The defects in the economic structure and the external environment pose a threat to the survival of the Sudanese regime,while the economic restructuring made by the government is difficult to reverse the economic situation under the current regime.Building a competitive economic sector in Sudan will depend on structural reforms that will diversify the economy and support the development of non-oil sectors,such as agriculture,industry,forestry and tourism,and reduce dependence on imports.How to deal with the challenge posed by the economic crisis to the government will be the main issue for the future survival of the Sudanese regime.This paper will make a comprehensive analysis of the economic adjustment of Sudan after the separation of the Southern Sudan.Through the economic policies and industrial policies formulated by the Sudanese government,it will analyze whether Sudan can successfully transform its economic development in the face of the "Bankruptcy" of the national pillar industry — oil industry,and summarize the main challenges facing Sudan's economic development in the future.Make a brief reflection and assessment on the future development of Sudan's economy based on the challenges faced.