Sudan's+Economic+History_nilo

Sudan’s Economical History

Sudan’s economy is heavily dependent on agriculture and oil (even though Sudan’s current production of oil is barely over half a million barrels a year). Cotton and gum Arabic are the main cash crops that Sudan grows, as well as wheat for internal consumption. Recently, the government has tried diversifying its cash crops but the low rainfall levels, poor infrastructure, poor irrigation, and poor transportation mediums have made this hard.  During the 1960’s Sudan grew 46%, then 170% in the following decade. By the 1990’s Sudan was only growing 26%. The devaluation of exported agricultural crops, which Sudan relied heavily on during the 1970’s, created a massive economical problem in Sudan. The nation had to turn to the IMF for help and today its foreign debt exceeds $17 billion. Sudan’s poor climate is not the only one to blame. The mentalities of government officials and policy makers in Sudan have only worsened the situation. The Islamic law implemented in Sudan discouraged Western nations from investing in the country. Also, the revolution of 1989 (the year when the military junta took control) caused Canada, the United States, and certain European nations to cut their development aid to Sudan. Sudan only started allowing their citizens to hold foreign cash in 1999. Recently, because of the rising prices of oil, the economic situation in Sudan has improved.

The main factors preventing Sudan from reaching its potential today is the situation in Darfur, not only because of refugee displacement or because of the wasted workforce, but most importantly because it discourages international aid. Though countries continue to send humanitarian aid to Sudan, very few continue to invest in the African nation. The United States have imposed a trade embargo against Sudan since the end of the 1990’s believing that Sudan harbored terrorists. Today, Sudan’s main oil companies are of Chinese, Malay, or Indian origin. Sudan also receives aid from the rest of the OPEC countries and other countries of the Arab League.