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13 - Understanding and Avoiding the Oil Curse in Sudan

Published online by Cambridge University Press:  05 July 2016

Ibrahim Elbadawi  and
Hoda Selim
By
Kabbashi M. Suliman
Ibrahim Elbadawi
Affiliation:
Dubai Economic Council and Economic Research Forum (ERF), Egypt
Hoda Selim
Affiliation:
Economic Research Forum (ERF), Egypt
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Summary

Abstract

This chapter examines the impact of the oil boom, blessing or curse, on Sudan’s economy, analyzes the key features of the country’s growth experience before and after the commercial production of oil and articulates their underlying political economy issues. The results show that the contribution of oil to real growth has been strong; however, Sudan is confronted with the Dutch Disease and grave fiscal management challenges. Moreover, the political economy regime engendered by the elites’ distributive politics tends to magnify the impact of shocks and it worsened the procyclicality of fiscal policy and contributed to the excessive currency appreciation. Overall these factors have contributed to premature de-industrialization, diluted the economic and social impact of the largely oil-driven growth and further weakened the state institutions. The policy implications of these findings are indicated.

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Chapter
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Understanding and Avoiding the Oil Curse in Resource-rich Arab Economies , pp. 421 - 460
Publisher: Cambridge University Press
Print publication year: 2016

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