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اﻟﺮﺣﻴﻢ اﻟﺮﺣﻤﻦ اﷲ ﺑﺴﻢTHE REPUBLIC OF SUDAN Follow up to Sudan’s Report for THIRD UNITED NATIONS CONFERENCE ON THE LEAST DEVELOPED COUNTRIES Presented to ECOSOC GENEVA June 30 th – JULY25 th , 2003

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بسم اهللا الرحمن الرحيم

THE REPUBLIC OF SUDAN

Follow up to Sudan’s Report

for

THIRD UNITED NATIONS CONFERENCE ON

THE LEAST DEVELOPED COUNTRIES

Presented to ECOSOC

GENEVA June 30th – JULY25th, 2003

United Nations Conference on the Least Developed Countries Sudan Programme of Action for Development

2002-2010 CONTENTS: 1. Introduction: 1.1 Sudan Resource Base 1.1.1 Poverty and social development 1.2 Major Policy Shifts 1.3. Country Economic Performance in the 1990s 1.3.1 Economic Growth 1.3.2 Macro-economic Issues 1.4. Sectoral Contribution to Growth 1.4.1 The Agricultural Sector 1.4.2 The Industrial sector 1.4.3 The Service Sector 1.4.4 Infrastructure 1.4.4.1 Railways 1.4.4.2 Roads 1.4.4.3 Ports and Airports Facilities 1.4.4.4 Telecommunication 1.4.4.5 Energy 1.4.5 The Informal sector 1.5 Policy Responses and Structural Adjustment 1.5.1 The Comprehensive National Strategy 1.5.2 The Economic Salvation Programme 1.6 Structural Reforms 1.6.1 Normalization of Relations with the Donor Community 2. Factors Affecting Growth 2.1 Peace and Socio-economic Stability 2.1.1 Civil Strife and The Peace Process 2.1.2 Peace making Efforts 2.1.3 Promotion of Human Rights 2.1.4 Achievements in Human Rights and The Peace Building Process (2000-2003) 2.1.5 Governance 2.2 Human Resource Development 2.2.1 Population Profile 2.2.2 Health Care 2.2.3 Education 2.2.3.1 General education 2.2.3.2 Current Status

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2.2.3.3 Literacy campaign 2.2.3.4 School Environment 2.2.3.5 Challenges 2.2.4 Water Resources 2.2.4.1Water Supply 2.2.4.2 Achievements (2000-2003) 2.2.4.3 Water Supply Policies 2.2.4.4 Strategies 2.2.4.5 First Plan Under LDCs programme (2002-2007) 2.2.4.6 Achievements 2.2.5 Employment 2.2.6 Poverty Alleviation and Living Standard Improvement: 2.2.6.1 Introduction 2.2.6.2 Policies and Strategies to Alleviate Poverty 2.2.6.3 Special Programmes and Institutions 2.2.7 Women Development 2.2.7.1 Women Empowerment Efforts 2.2.7.2 Measures to Empower Women 2.2.7.3 Women in Decision Making 2.2.7.4 Achievements and Impediments 2.2.7.5 Women Efforts in Peace Building 2.3 Environment and Sustainable Development 2.3.1 Major Environmental Problems 2.3.2 Environmental Achievements 2.3.3 Limitations and Constraints 2.3.4 Challenges 2.4 Growth Challenges 2.4.1 Introduction 2.4.2 National Economic Performance 2.4.3 Performance of Main Productive Sectors 2.4.3.1 Overall composition of GDP 2.4.3.2 Revenues and Public Expenditure (2002) 2.4.4 Major Obstacles to Growth 2.4.4.1 Foreign Debt 2.4.4.2 Official development Assistance (ODA) 2.4.4.3 Foreign Direct Investment (FDI) flow 2.4.5 Resource Mobilization 2.4.5.1 Domestic Resources 2.4.5.2 Measures to Mobilize Resources 2.4.6 Challenges to External Sector Improvement 2.4.6.1 Foreign Trade 2.4.6.2 External Trade reform Policy 2.4.6.3 Sudan Implementation of the Trade Programme (2000-2002) 2.4.6.4 Export Sector Performance (1990-2002) 2.4.6.5 Problems of the Export Sector

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2.7 Improved Regional and International Cooperation 2.7.1 Sudan and the WTO 2.7.2 Support Needed from the International Community 3. The Programme of Action for the Ten Years 2001-2002 3.1 Introduction 3.2 Objectives: 3.3 Macroeconomic Development Perspectives 3.3.1 Macroeconomic Objectives of the Programme 3.4 Sectoral Objectives and Priorities: 3.4.1 Agricultural sector 3.4.2 The Industrial Sector 3.4.3 The Mining Sector 3.4.4 The Energy Sector 3.4.5 Basic Infrastructure 3.4.5.1 The Railway Sub-sector 3.4.5.2 The Roads Transport 3.4.5.3 The River Transport 3.4.5.4 The Sea Transport 3.4.5.5 Aviation Sub-sector 3.4.5.6 Communication 3.5 The Special Programme for the South and war torn communities 3.5.1 Broad objectives 3.5.1.1 Peace Building 3.5.1.2 Post-war rehabilitation 3.5.1.3 Specific Objectives and Priorities of SPFS 3.6 Priority Actions 3.6.1 Issues of Governance 3.5.1.1 Public Administration 3.6.1.2. Decentralization 3.6.1.3 Staff Capacity 3.6.2. Issues of human Development 3.6.3. Environment 3.6.4 Food Security 3.6.5 Poverty Alleviation 3.6.6 Capacity Building 3.6.7 Access to Markets 3.6.8 Actions by Development Partners 3.6.9 Technology and Scientific Research 3.7 The Proposed Investment Programme: 3.7.1. Investment by Sudan 3.7.2. Investment Requested from Development Partners

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3.8. Implementation. Monitoring and Evaluation 4. Civil Society Contribution to the Sudan Programme of Action: 4.1 Introduction 4.2 Civil Society Structures: 4.2.1 Traditional Social Structures 4.2.2 Modern Civil society Organizations Possible Civil Society Input to Sudan Action Programme 4.3.1 Resource Mobilization 4.3.2 Conflict Aversion 4.3.3 Social Development 4.3.4 Good Governance 4.3.5 Environmental Rehabilitation and Conservation 4.3.6 Technology and Scientific research 4.3.7 Contributing to Regional and International Cooperation 4.4 Obstacles for Civil Society Organizations: 5. Development Programme for the Southern and War-affected States for the Six Months After the Peace Agreement ANEXES

1. Introduction: 1.1 Preface: The Brussels Conference could represent a great opportunity for countries such as Sudan to participate in the establishment of concrete dialogues and mechanisms for cooperation that will guarantee consistent and coordinated action which could help the LDCs in strengthen their productive capacities, improving competitiveness and at the same time promoting private capital inflows. The third United Nations Conference ion the LDCs in this context has the following main objectives: to assess the result of the implementation of the Paris Declaration and the Programme of Action for the LDCs of the 1990s and to formulate new strategies and an Action Plan for sustainable development of LDCs for the next decade. The Conference intends more particularly to review the implementation of the international support measures, particularly to review the implementation of the international support measures, particularly in the areas of official development assistance, debt, investment san trade, and to consider the formulation and adoption of appropriate national and international policies and measures for sustainable development of these countries and their progressive integration into the world economy. 1.2 Sudan Resource Base Sudan is a multi-cultural, multi-ethnic and multi-lingual society, an Afro-Arab country, occupying a remarkable strategic position in the centre of the African continent that marks a melding point between Arabs and Sub-Saharan peoples. It shares its extensive borders with nine countries. Such juxtaposition engenders a mix of trade, culture, social, ethnic and other human ties built throughout history. With a total land area of 2.5 million km2 the Sudan is the largest country in Africa, extending from the hot arid North to the wet Tropics of the South. Current estimates out the population in excess of 30 million (2003), with an annual growth rate estimated at 2.6 percent, and a population density of 10.2 persons per km2. The effective population density on arable land exceeds 50 persons per km2, with 67 percent rural and 33 percent urban. Sudan has vast resource potentials and a sparse population, which qualify it to become a structurally food surplus country. It enjoys extremely diversified ecological systems that provide immense fertile land of about 80 million hectares, a large of livestock, (estimated at 132 million heads (2003) of sheep, goats, cattle and camels), natural pastures of about 24 millions hectares, forest area of about 64 million hectares in addition to considerable water resources from rivers, streams and rains with annual amounts of 109 billions cubic meters of water, in addition to ground water (an estimated 39 millions cubic meters). These arable vast lands provide favourable conditions for the production and raising of different crops and animal breeds. Agriculture remains the backbone of the economy, with an estimated contribution of 45 percent of GDP, 55 percent of employment, and 85 percent of export earnings in 1998. The main export items are livestock, sesame, cotton, groundnuts and gum arabic. In addition to its agricultural and animal resources, Sudan abounds with potential mineral wealth, of which petroleum is the most important, with 900 million barrels of proven reserves with prospects for additional reserves. Export of oil started in August 1999, and refined oil-products and natural gas in July 2000. The production and export of gold is increasing while numerous minerals together with non-mineral resources are also available in appreciable quantities and potentially tradable, posing a real addition to the industrial base of the country.

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The industrial sector still depends mainly on agriculture, vegetable oil, sugar, cotton, leather, animal feed and tobacco. The increased exploitation of these available natural resources will increase the agro-industrial potential investment opportunities and encourage the development of manufactures agricultural production. 1.2.1 Poverty and Social Development The economy has been growing in the last years at a faster rate, however, income distribution has not improved and poverty alleviation remains one of the main concerns of social and economic policies. Sudan’s per capita income is US$ 290. Poverty is increasing, through no reliable estimates of its depth and intensity are available. Recent growth of agriculture has not ensured nation-wide food security. Because of disparities in income, regional differences in the pattern of agricultural growth and disruption caused by the civil war. Social indicators for the 16 Northern states are lagging behind countries at the same level of per capita income. In the North, the adult illiteracy rate is 47 percent (59 percent for women). Life expectancy at birth is 53 years; infant mortality is 71 per 1000 live births. Basic social services, namely, education, health, water and sanitation, have seriously eroded as a result of the combined impact of civil conflict and natural disasters. Only some 30 percent of rural residents and 40 percent of urban dwellers have access to safe drinking water. Primary school enrolments have declined to about 56 percent. Access to health services is also limited.

Although there is no reliable quantitative information on living conditions in the South, poverty is reported to encompass virtually the entire population in the South. Aside from some fairly limited border trading with Kenya and Uganda, the cash economy has broken down completely. Employment (either formal or non-formal) is virtually non-existent. Access to social services is minimal. The bulk of the population is dependent on food aid from NGOs, UN agencies and bilateral donors. It is apparent that achieving sustained growth in Sudan has been hampered by civil war and the brain drain, as well as the deterioration of basic infrastructure and the lack of access to aid and foreign financing. Infrastructure bottlenecks, including deterioration of transport and irrigation systems and storage of electricity, have been severe. In addition, the country has often suffered from severe external shocks, including floods and drought, with the latter often resulting in recurrent famine. Nevertheless, there are strong indications that the economy improved in the 1990s after years of decline, reflected in the average five percent growth of real GDP throughout the 1990s based mainly on agriculture. 1.2.2 Major Policy Shifts Since independence Sudan has experienced poor economic performance, attributed to external as well as domestic factors, especially policy failures. The situation has, however, changed in the early 1990s when the country embarked on an extensive and vigorous structural adjustment and reform programme, which initiated radical changes in policy, instruments and the incentive system. It focused on key issues, such as, liberalization of trade and foreign exchange regimes, sound monetary and fiscal policies, phasing out of price controls and privatisation of public corporations. This programme for the Sudan was all the more important as it was a genuinely home-led endeavour. It was implemented in an environment of foreign hostility and prolonged war in the Southern part of the country.

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Some difficulties encountered in the first years of the programme had been resolved in the course of its implementation. The macro-economic policies pursued during the last decade, succeed in arresting the prolonged and severe structural problems, reversing the situation ands setting the economy on an appropriated path. Statistical data indicates that GDP has been growing by an average rate of 5-6 percent against an average rate of 1.2 percent during the period 1985/86–1990/91. Fiscal deficits were curbed to manageable levels and the inflation rate has been greatly reduced. The petroleum production and its exports have broadened the productive structure of the economy and enhanced its stability and efficiency. The government has enacted a wide range of concessions, privileges and guarantees, for the private sector - foreign and local. The high level of FDI (Foreign Direct Investment) witnessed through the last part of the 90's and to reach US$ 500 million in 2001 and 2002, and is expected to rise in 2003, indicates that the country has begun to reap the fruits of its successful programme. It is against this background, that Sudan enters the new decade with an ambitious, through realistic programme of action, based on an integrated strategy, aiming at sustainability, growth and human development. Key elements of this programme include: realization of peace in the South, continuation of the reform policies, with the aim of establishing a free economy, and creating a more conducive investment climate, removal of structural bottlenecks, utilization of idle capacities, alleviation of poverty, and enabling the country to cope with the globalization process. The Action Programme envisages the launching of a significant investment volume; with more than 75% expected to be implemented by the private sector. Meeting this target, will no doubt, require strengthening the economy's ability to absorb the envisaged investments. For that, the government has embarked on a comprehensive strategy of capacity building, starting with the organization of the government set-up; with efforts being exerted to remove administrative, economic and legal obstacles, that may affect the capacity of the private sector in playing a leading role in the investment process. Given the vast and diverse resources of the country, it is hoped that the set priorities will be maintained and the defined objectives will be realized, so as to achieve sustained growth. 1.3 Country Performance in the 1990s 1.3.1 Economic Growth Real growth has expanded at an average of more than five percent throughout the 1990's, with higher percentage growth rates in the last three years, reaching 7.6%. Through the years, the agricultural sector has maintained its primary importance in the economy, accounting for about 46.4% (2002) of total GDP. Given its important role, development of agriculture has an obvious impact on the overall real growth of the economy. A notable development in agricultural production in the 1990's is the emergence of livestock as a major export product in place of cotton, which was in decline, contributing 21.6% of GDP, at a growth rate of 7 percent in 2002. Livestock exports rose from US$ 22.6 million in 1990/1991 to US$ 120 million in 1998, while earnings from cotton fell from US$ 162.8 million to US$ 95.6 million during the same period, mainly due to factors including, reduction of the cotton area, decline of productivity and deterioration of the irrigation infrastructures. Outside agriculture, the major new source of growth is from oil production, providing an important boost to the economy. Al Geili oil refinery was inaugurated in July 2000 and currently

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Sudan is exporting crude oil, refined petrol and natural gas, generating some US$ 1,263 million in 2000 from a level of US$ 276 million in 1999. Growth during the 1990s was led mainly by agriculture, construction activities in the oil sector, with investments in this sector in the last three years, contributing significantly to the growth process. The general economic improvement has also been helped by other government measures, such as the containment of fiscal deficits, monetary growth and reduction of the rate of inflation which was running at over 100 percent in the mid-1990s, compared to 8.4 percent in 2002. The key structural reforms aimed at enhancing the efficiency of the economy, by liberalizing the trade and exchange rate regimes, phasing out price controls and privatizing public enterprises. Development expenditures funded by the Central government were minimal during the 1990s, rising from 0.5% to 0.8% of GDP between 1996 and 1998. An estimated 0.2% of GDP of development spending was self-financed by public corporations owned by the Government. Less than half of the development expenditure budget has actually been funded since the mid-1990s. The share of foreign financing of development projects was estimated at 10% in 1998. Under the decentralized federal structure, the central government has focused on agriculture, energy and mining. Agriculture accounted for 41 percent of the central government's development expenditures during 1996 - 98, while energy and mining absorbed about 25 percent of the development expenditures. The central government has responsibility for formulating social policy and for funding some social services, such as health, education and selected community services. The public corporations are financing investments in transportation and communication, providing these sectors with over 70 percent of their development expenditures in 1996-98. The corporations are commercially oriented to such areas as railways, ports, electricity, shipping and aviation. Reforms, including privatization of these corporations are carried out, with the stipulated programme for 2002 being pout to implementation. Actual exports amounted to US$ 780 million in 1999, compared to imports of US$ 1,412 million. Exports volume grew at nearly 13 percent during 1995 - 98, due to trade and exchange rate reforms and liberalization of export prices; with the exports becoming more diversified. The share of cotton and gum Arabic exports fell from 37 to 20 percent during 1994/95 to 1998, while gold, groundnuts, livestock and sesame rose sharply. The recent exploitation of petroleum stands to diversify exports further, and is becoming the first dominate export item, increasing from a level of income earning of US$ 276 million in 1999 to an estimated amount of US$ 1,263 million in 2000, representing about 70 percent of total exports, while non-oil products are estimated to increase from US$ 504 million in 1999 to about Us$ 544 million in 2000. The sustainable growth of GDP was accompanied by a qualitative change in economic structure. The relative contribution of productive sectors increased from 59.5% in 1996 to 65.5% in 1999. Whereas the services sector contribution decreased from 40.5%, to 34.4% for the same years. This structural change was due mainly to the combined growth rates of both plant and animal traditional production. Their contribution increased from 32% in 1995, to 35% in 1999. The prominent factors that contributed to the achievement of economic successes were:

• The impact of the vigorous reform policies applied, unleashing the economic potential of the country.

• The successes of macro-economic policies in removing controls and distortions characterizing the decade of the 1980s, resulting in the mobilization of resources towards productive sectors, away from tertiary activities.

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• Favourable climactic conditions for seven successive seasons. • The stability in the government systems, despite civil war in the South, foreign hostilities,

and the stoppage of external financial assistance. (Annexes 5-14 denote statistically the performance of the economy 1990–2000) 1.3.2 Macro-economic Issues The economy had entered into deep structural problems by the end of the 1980s. prominent among them was the major budgetary imbalance represented in excessive expenditure, growing at a much higher rate than revenues. This had resulted in escalation of the budget deficit with increased borrowing from the banking system. Official data show that the budget deficit reached more than 9.8 percent of GDP in 1989, as compared to an average deficit of 2.4 percent for the preceding 8 years. Revenues were substantially dependent on indirect taxes, to an average level of 5.0 percent of GDP. Meanwhile, the annual average contribution of direct taxes was less than 1.0 percent of GDP, while the non-tax revenues reached an annual average of 2.0 percent of GDP during the 1980s. Low tax revenues, large expenditures and lack of access to external financing, have made sound fiscal policy performance difficult. Similarly, development financing and effective public resource management was extremely difficult. During the period 1994 - 1996, for example, revenues fell from 8.2 percent to 7.7 present of GDP, while expenditure rose from 7.5 to 8.6 percent of GDP. Even if the revenues from the 26 states of the country are taken into account, the total revenue ratio would be about 12 percent of GDP at most, compared to the LDCs average of 18-20 percent. A programme of tax reform to enhance the efficiency of the tax system through the introduction of a VAT (Value Added Tax) is under implementation. Domestic savings are also particularly low at about 5 percent of GDP. Inflation was high in the early 1990s reflecting wide fiscal deficits and domestic credit expansion. Crop failure and shortage of basic food items, and increases in the domestic price of key imports, especially petroleum, also fuelled inflation. The abolition of most administered prices since 1992 allowed high prices to be reflected in the open market. However, recently inflation declined from a peak of 133 percent in 1996 to less than 10 percent by the end of the last year as the government adopted tighter policies, especially strict monetary measures. The trade balance had suffered progressively large gaps, as a result of increase of imports at higher rates than exports. The gap rose from US$ 362 million in 1980, to US$ 848 million in 1989. The average growth rate of exports during the 1980s was 1.8 percent as compared to 7 percent for imports. Export earnings, fluctuated due to their dependence on primary goods of unstable international demand and low prices. The scant response of exports from that period had protracted devaluation from achieving one of its most important objectives of boosting exports. It is also observed that the rate of increase in export proceeds were not proportionate to the progressive increases in export volume insinuating a worsened terms of trade. The slow down of foreign aid associated with political conditionalities during the second half of the 1980s had exacerbated the problem of external balance. Instead, financing became more closer to trade than development. Likewise, the problem of foreign debt and debt payment obligations have resurfaced and constitute a heavy burden to the balance of payments as well as the national budget. Since the mid-1990s merchandised imports have risen faster than export. The composition of exports changed as agriculture production has improved. Food imports fell from 18 percents of

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total imports to 14% during 1994 - 98, while the import of manufactured goods rose from 29% to 41%. However, due to severe shortages, import of foodstuff products rose again to a level of nearly 20% of total imports, while petroleum represented about 13%. For 2001 the ratios are estimated to be 23% for foodstuffs, but less than 2% for import of petroleum, while imports of manufactured goods would represent about more than 75% of total imports. The import growth widened the trade deficit by 6 percentage points to 15 percent of GDP during 1995-98. Private remittances of Sudanese working abroad were a major source of inflows helping to finance the external gap. But if the deficit is still important, due in part to the inflow of capital goods finance the investments in the oil sector, it tends to be progressively due to domestic substitution for oil imports that is affecting the current account balance positively. The primary current account deficit (excluding interest due and public transfer) which was equivalent to 6.7 percent of GDP in 1997, is estimated to have been decreased to 3.8 percent of GDP in 1999, with an estimated figure of 2.2 percent for 2002. The main challenge to external financial management is indeed a heavy external debt burden, which amounted to some US$ 20.5 billion in nominal terms by the end of 1999, representing an estimated 21.5 percent of GDP. In nominal terms, about 28 percent of the total is owed to Paris Club creditors, 27 percent to OPEC countries (mostly Saudi Arabia and Kuwait), and 18 percent to multilateral creditors. Commercial debt (banks and suppliers) accounts for 23 percent of the total. Among the multilateral creditors, the IMF is the largest creditor (US$ 1.6 billion), followed by the World Bank (US$ 1.3 billon). Among the Paris Club creditors, the largest amounts are owed to the United States (US$ 1.5 billion), the United Kingdom (US$ 0.9 billion), and France (US$ 0.8 billion). The total debt stock (including arrears), which is not eligible for rescheduling (multilateral mainly) is still by far beyond the country's ability to repay. 1.4 Sectoral Contribution to Growth 1.4.1 The Agricultural Sector Among the three main agricultural systems, irrigation contributes 27 percent of agricultural GDP, and produces most of the cotton, wheat, sorghum, sugar cane, legumes orchard crops, sunflower, peanuts and green forage, with a total area of 2million hectares, of middle and small farm size. The contribution of this sector to the GDP decreased from an annual average of 17 percent in the eighties to 12 percent in the nineties. This decrease is due to many factors, the most important of which are related to the nature, magnitude and pace of implementation of the economic reform, but also to poor infrastructure and management, high cost of financing and inadequate agricultural technological packages. The government continued to follow the strategy of food self-sufficiency up to the end of 1995, expanding the area under cereals at the expense of cotton in the irrigated sector. As a result, the contribution of the sector did not exceed 15 percent of GDP in the best seasons. However, notwithstanding the deterioration in the terms of trade by more than 20 percent, cotton - the main crop - had responded positively to the reform policies in the first half of the nineties, realizing a significant increase in production of over 30 percent annually on average. Wheat production also increased after a long period of stagnation, whereas groundnuts, the second most important cash crop, declined progressively by more than 10 percent a year due to its weak productivity and to the inadequate policies directed to it.

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Rain fed agriculture depends on two modes of production, one is mechanized and the other traditional. Annual area under traditional farming is estimated at 7.6 million hectares, producing sorghum, millet, groundnuts, gum Arabic and other minor products, with minimal imported inputs. The sector had registered appreciable growth in the last 7 years, due to both strong macro-economic policies and favourable climactic conditions. Its contribution to GDP had risen from 18 percent in the 1980s to 33 percent in the 1990s, with the highest contribution from livestock, 21 percent, followed by cash crops, 6.9 percent, forestry, 3.2 percent, and lastly mechanized production 2.5 percent. This fact denotes that output structure and growth of real output had moved in favour of plant and animal traditional sector, both of which had showed a steady output increase since 1991/92. however, the productivity of the sector is still very low compared to minimum international standards. Mechanized rain fed produces sorghum, sesame and sunflower in an area of 6 million hectares of 426 hectares farm size hired by individual farmers from the state. Productivity of all crops with the exception of Sun flower, had deteriorated due to expansion of cultivation in marginal lands, without any due attention given to soil conservation. The government has recently issued strong directives for farmers to allocating 10 percent of the cultivable land to plant green belts as a precondition for granting bank financing. Area under forests had been constantly eroded due to drought, bad distribution of rains and the uprooting of trees fro energy use. Range land also suffered from the same factors in addition to the adverse consequences of wide devastation of vegetation cover of poor Savannahs Belt due to mal-practices of land use, cyclic droughts and land degradation, and the type of socio-economic development that had taken place. The consequences were increased environmental imbalance, food shortages, worsening of living standards and large-scale population movement towards urban centres. Natural resource balance has started to recuperate, following more than six consecutive years, from 1995 on, of good rains. A sustained rural development should be based on rational use of natural resources and protection of the environment. The government, together with the international community, made combined efforts in providing relief and undertaking rehabilitation and development programmes to help rural people affected by famine. A significant development has been the provision of supplementary irrigation systems, by the construction of dams across seasonal streams and making use of ground water, with the provision of essential services. Some of the most prominent projects implemented, with the help of the international community, were the Jebel Mara Rural Development Project for provision of extension services, the Nuba Mountains' Development Project of Intermediate Technology, the Western Savannah for Integrated Rural Development, En Nuhud Small-Holder Agricultural credit, the Southern Roseires for Agricultural Development, and the White Nile for Agricultural Services. With achieved successes, these projects had some specific constraints that impeded their sustainability, including:

• Weak participation on the part of national authorities and the projects beneficiaries. • Heavy dependence of foreign financing and implementation, reducing sustainability on

completion. • Remoteness of location form decision-making, exposure to insecurity, and

discouragement of qualified staff. • Poor consideration of socio-economic, demographic and related factors, which affect

service delivery, cost recovery and environmental protection. • Inadequate coordination, in the case of some projects, among donor agencies sponsoring

the projects.

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1.4.2 The Industrial Sector: As of the 1950s the government took a leading role in industry, a policy then cherished by successive governments, and the public sector became the major investor in industry. In subsequent developments a number of major import-substitution ventures were established by the public sector including sugar, textiles, cement and metal industries, whereas the private sector specialized in edible oil,, soap, chemicals and household utensils. In the seventies a sizeable amount of the total investment was directed to manufactured consumer goods, such as food processing, leather and textile industries. The implementation of the import-substitution strategy was heavily dependent on imported inputs and on technologies, under the protectionist polices of, tax holidays, subsidies, financing at concessionary terms, incentives and exchange rate subsidies. Other than protectionist policies, the structural weaknesses of industry had been perpetuated by the orientation of production towards final consumption. Such orientation did not observe the major difference in consumption patterns at sectoral, geographic and social levels, and between income groups. In addition to the high physical capital-intensity relative to labour-intensity, the industrial sector continued to be haunted by other serious structural problems of which:

• Intra and inter industrial linkages are feeble both from the point of view of inputs and outputs. This is reflected in low demand impulses, affected by an increment of industrial output.

• Limitation of the domestic market and poor access to international markets, as real value added measured at world prices are low.

• Policies of subsidies, exemption under investment laws and regulations, and import substitution have impaired industry. With price/cost distortions, low capacity utilization, low labour absorption, investors have distanced themselves away from potentially long-term investments, and indulged in shot-term quick yielding - trade-related investments.

Amid these drawbacks, there emerged the sugar industry as a successful investment. Kenana Sugar Factory is a good example.

Box (1) Kenana Sugar Company (KSC):

Kenana Sugar Company, the largest integrated sugar project in the world, is located 250 kmsouth of Khartoum. On its 25th anniversary, KSC announced record sugar productionof 403,500 tones for the 2000/01 season. KSC now holds world records in terms of yield at49.5 tones of cane/acre. Behind KSC success is a combination of Western technology, Arabfinance, and the rich natural resources of area (climate, fertile soils and the Nile waters).

KSG is a joint venture between The Government of Sudan, Kuwait Real Estate InvestmentConsortium, The Government of Saudi Arabia, The Arab Investment Company S.A.A, SudanDevelopment Corporation, The Arab Authority for Agricultural Investment & Development,Consortium of Sudanese Local Banks, Lonrho Plc., Nissho Iwai Corporation & Gulf FisheriesCo. W.L.L. Authorized capital amounts to US$ 590 million, the paid up US$ 561 million. KSG employs up to 16,000 workers (50% permanent), and provides education and healthcareto the 100,000 people who are estimated to depend on the plant. It also makes Sudan self-sufficient in sugar, the domestic market consuming some 150,000 tonnes, and providesvaluable export earnings. KSC is also supporting scientific research and vocational trainingand providing education, health and electricity supply services to the estimated 100,000population of the area

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1.4.3 The Services Sector The services sector includes all non-agricultural and non-industrial activities. The most important of these are transport, communications, commerce, banking and the public services such as, education, housing, health and other social services. The contribution of the services sector tote GDP was estimated at 50 percent in the year 1973/74 and 54 percent in 1990/91. Of the major issues which accompanied the growth of this sector in the 1970s and 1980s, and which were targeted by the economic policies of the 1990s are the following:

• The unbalanced growth of the tertiary sector, brought about by the expansion of government expenditure, inflationary pressures, price subsidies and other economic structural weaknesses.

• The rapid growth in the government and semi-government agencies, organisations and corporations have weakened the government administrative structures and led to more administrative and legal controls over the economy, trade, mobilization of capital, and factors of production and encouraged a rivalry attitude amongst government agencies over financial and physical resources. Such developments impinged heavily on the ability of the state machinery to manage the economy.

The contribution of the services sector to the GDP had progressively decreased in the 1990s, due to policies favouring the productive sectors through provision of financing, various administrative, financial and monetary incentives, reduction of government spending and budgetary control, aimed at rationalizing aggregate demand. Such policies were reflected in a reduction of contribution of the services sector, to GDP from more than 50 percent in the 1980s to 35 percent in the 1990s. Moreover, the contribution of government imports had registered a reduction from 11 percent during the period 1986/87 - 1990/91 to 7.4 percent during the period 1992 - 1999. 1.4.4 Infrastructures The large area of the country and its fragile ecological nature in most of its parts, require expansion in basic infrastructure in such a way that helps to preserve, develop and transcend the specific natural characteristics of the socio-economic and cultural environments. Despite the extensive effort wielded by the state to expand and develop basic infrastructures, it is still far from meeting the gross need investment. Foreign aid before slowing down due to sanctions had played a significant role in the development and expansion of infrastructure. Apparently the rehabilitation and expansion of basic infrastructure networks, require huge investments that are beyond the county's ability in the foreseeable future. Policy measures have been pursued, to liberalised basic social services to recover costs, and encourage the private sector and popular initiatives, to mobilise resources towards infrastructure development. Such policies have successfully contrived to mobilise resources for the development of infrastructure, but with excessive pressures spawned on the general budget and domestic resources. The developments that have taken place in infrastructure and basic services are summarised below: 1.4.4.1 Railways: They are the main transport mode for goods and passengers. Currently the length of rail line is about 5,896 km, with carrying capacity raised, from 1,400,000 tons in 1992, to more than 2

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million tons in 1999. Such capacity could have been doubled if the planned investments especially in communications and maintenance were realised. 1.4.4.2 Roads: The length of the roads network is in the order of 5,000 km, of which 2,700 km are asphalt roads. Some continental, primary, secondary and tertiary roads are being financed and constructed by Sudan's own resources. Yet, work progress is very slow due to foreign exchange shortages. 1.4.4.3 Ports and Airports Facilities There are three sea ports on the Red Sea, namely Port Sudan, Suwakin and Bashayir. These ports are being developed and expanded to accommodate the progressive development in the volume of international sea traffic. There are also three international and ten local airports linking the country with the outside world and neighbouring states. Both the Sea Ports Corporation and the Sudan Shipping Lines facilitate the transportation of foreign trade. Intra and inter trade relations are expected to grow with neighbouring landlocked countries, and countries in the regions of the COMESA and Arab Free Trade Zone, and other countries. Such developments require rehabilitation of the existing infrastructure facilities together with expansion of sea, air and road networks, to meet the increasing demand of goods, transportation and transit trade. 1.4.4.4 Telecommunications A 'great leap' forward occurred in the field of telecommunications, following privatisation of the communication sector. Optical fibres network circuits increased to 3,450 km by 1999, and international circuits to 1,028 and exchange capacity increased to 280,000 lines. Also a major shift occurred in the field of satellite communications, through the use of digital technology. 1.4.4.5 EnergyThe country’s which biomass83% of total energy), petrocontinued throcontribution repetroleum rosechange in thenvironmentaltraditional ener

Box (2): Sudanese Telecom Company Ltd. (SUDATEL) Sudatel is a joint venture Company established in 1993 by the SudanGovernment, Qatar Telecom Company, the Dubai Telecom Company asmain shareholders. It has developed & expanded its services to the extentthat Sudan is now well connected with the outside world, and internally withdigital technology, constituting about 98% of the telecom network and withteli-density leaping from 1.1 to 4.0 telephones per 100 persons. Thecompanies generate profits had risen from US$ 24 million in 1997 to US$60 million in 1999. This has encouraged foreign investors to participate in anew capital stock, which increased the total capital invested to US$ 250million.

: consumption of energy reached about 13 million tons of petroleum equivalent of (fuel wood, charcoal and agriculture and animal residues) contributed about of

primary energy consumed, (the household sector consumes about 93% of this leum 12 % and electricity 5 %. The structure of this primary energy balance, ugh 1980s decade, had slightly changed during the 1990s with biomass duced to reach 78% of the total consumption of energy. The contribution of of 15% and electric energy to 7%. Improvement of the energy balance implies a e composition of traditional versus renewable energy, and in favour of protection, through reduction in biomass consumption, and an increase in gy consumption, specially from hydropower sources.

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1.4.5 The Informal sector: The “parallel” sector continued to contribute considerably to economic and social activities, particularly in the realm of small modern and traditional rural industries, handicrafts, folklore and quarry industries, in addition to agriculture and services. These activities shrank under subvention policies and market and price distortions that followed economic stagnation. However, with the implementation of the liberalisation policies, the parallel sector increased its contribution to an estimated level of 30% of the GDP. Women play a pioneering repel in these parallel activities. 1.5 Policy Responses And Structural Adjustment Programme (SAPs): 1.5.1 The Comprehensive National Development Strategy (1992 – 2002): A medium – term Economic Salvation programme (1990-1993) was formulated in 1990 to address the structural and reactive the stagnant economy. The programme attempted to mobilise internal and external resources available, reform economic systems and structures, and create a conducive environment for the promotion of investments and production. It was clearly aimed, although not explicitly, at redefining the role and functions of the public enterprises, liberalising the exchange rate and removing administrative, economic, and legal controls protracting the role and active participation of the business community, local and foreign investors and other operators in the economic =sphere. 1.5.2 The Economic Salvation Programme (ESP): The Economic Salvation Programme (ESP) laid the ground for the adoption of a longer- tern Comprehensive National Strategy covering the period 1992-2002. This strategy has been implemented through three medium- term programmes, which aimed at intensifying the liberalization process and overcoming the difficulties encountered in the implementation of the ESP. The new programme was a recent attempt to initiate positive changes in Sudan through a comprehensive planning process. It called for full collaboration between the Government, individual citizens and security at large in fostering development, strategic reform priorities are follows: First, economic reference including, privatization and liberalization measure for creating an open trade regime and macro–economic stability. Second, environmental conservation and control of soil degradation of marginal dry lands (that constitute 85% of productive land area in the country). Third, development management and capacity building to execute instructional reforms, made pertinent by the decentralization of the administrative system into 26 federating states (implemented in 1994) with the necessary devolution of power to achieve efficient economic and institutional reform management. Fourth human resources development and employment creation to address population and development issues including, the growing gap between economic growth and population growth, poor basic social service in education health, nutrition and safe drinking water as well as, issues of urban growth and uneven rural- urban population distribution. The achievements of the programme were as follows: 1. Agriculture and the export sectors have resaved greater and care. Prominent policies that have addressed agriculture included, liberalisation of prices of commodities and export, and establishment of bank portfolios for financing agricultural corporation, to operate on commercial basis . Moreover, differential taxes rates were introduced for bank companies to encourage production and enhance productivity. Financial reform policy measures encompassed expansion

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of tax base, improvement of revenue collocation methods, the application of sales tax, revision of ser vice delivery charges to cover actual costs, removal of subsidies from some commodities, and the adoption commercial investment system to attract savings of the Sudanese working abroad. This letter system became an important source for financing of production inputs. Also, a barter transaction system was adopted, within treasonable limits, together with partial relaxation of the exchange rate. 2. The economy responded to these policies and moved from the stage of stagnation, which characterized the period of the 1980s, to high resource mobilization and, consequently , the growth of GDP increased from-0.2 percent in 1989/90 , to 1.2 percent in 1990/91 , and then to 8.9 percent in 1994/95. Yet this rapid growth was confronted with several policy shortcomings, the most important of witch were the raise in the rate of inflation, to a climax of 133 percent in 1996, the sharp deterioration of the exchange rate, and the overall increase in the production costs. The situation was further aggravated by excessive money supply growth and the rise of government borrowing from the banking sector, associated with wide relaxation in public finance some police targets. 3. The first years of the programme implementation faced unfavourable natural conditions. Rainfall of less than the annual average contributed to spawning a food gap. The situation worsened in the aftermath of the development of the Gulf crisis with the seizure of foreign loans and did and sharp reduction in the flow of transfers of the Sudanese working abroad. It became evident that perpetuation of such problems would have far reaching implications on the programme objectives and the presumed results. It also appeared was an urgent need to expand 4. The programme and reading it in a comprehensive and holistic manner, addressed all policy shortcomings impairing the economy. It was recognized that, the success of any reform aimed at a reasonable measure of economic stability, depends in the first place on containing inflation. In the second half of the 1990s policy measures tried to curb the excessive increase in inflation rates which reached an unprecedented level. Strict measures adopted, to tramline and control public spending and increase domestic revenues, lead to positive changes to a redaction of the budget deficit from 4 percent in 1992/93 to 1 percent of GDP in 1999, limitation of Government, public corporations and the private sector borrowing from the banking system.meanwline commercial banks reserves with the Central Bank were raised. All these steps combined together to recede the growth in the money soppy, from an aggregate annual rate of 83 percent during the period 1990-1995 to 22.6 percent in 1999. This had effectively reduced inflation rate to 14.2 percent in 1999. At the same time, policies for combating inflation and stabilizing exchange rate were augmented with financial policies aimed at increase of prediction. Bank financing for the productive sectors increased from SD34 billion in 1996, to SD 53 billion in 1999, with an annual average of SD44 billion, compared to an average annual financing of SD4 billion during the first half of the decade. Policy measures of gradual liberalization strategy exchange rate had succeeded in stabilizing the national currency. The committee used to determine exchange rate was abolished and repaired by a median rate system. These had been accomplished with the central bank intervention to birding the gap in the demand for foreign exchange. The Commercial bank were thus obliged to establish windows of foreign exchange dealing, and the procedures for customs declaration of foreign currency gap between the parallel exchange rate exchange rate was then disentangled and foreign exchange market stabilized.

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Within the framework of policies for mobilization of resources, increase of domestic savings and building of foreign reserves, wide reforms were carried out in the sphere of re-structuring and reforming for the financial system. These included reformation of the banking sector, establishment of a foreign exchange market, implementation of ambitious privatization programmes for the public sector gradual liberalization of foreign trade and payment regimes, tariff reform and improvement of customs procedures and the liberalization of foreign exchange dealings while facilitating and monitoring its movements. A plan for comprehensive tax reform was implemented with a great measure of success that raised the level of financial effort. Tax revenues contribution to GDP increased from 6.8 percent in 1996, to 8.5 percent in 1999 (with an average annual contribution of 7.5 percent during the period 1996-1999). However, the aim of increased dependence on direct taxes was not accomplished. Direct taxes maintain their ratio of GDP, of 2 percent 1999, while indirect taxes contributed an annual average of 4 percent during the same period. On the other hand public expenditure had increased form 7.4 percent of GDP in 1996 to 9.4 percent in 1999, with an annual average of 8.4 percent. Tax reforms had influenced the mobilization of idle productive capacities and increased saving, investment and growth. Following the removal of a wide range and direct indirect subsidies, the liberalization of services charges and prices of commodities, the public corporations, companies and enterprises depended upon own resources in financing their cornet expenditure. They managed to rehabilitate and maintain their physical assets and financing their development projects. The parastatals henceforth achieved financial surpluses of SD14.4 billion in 1997, against SD 0.9 billion in 1992/93. Average development expenditure, during the first year of the programme, registered 14% of the public expenditure, with lower ratios in the mid-years and increased ratios in subsequent years. Basic infrastructure and essential services expenditures have continued to receive government and popular support, which rendered total investment much higher than what appear in the official statistics. However, the public sector investment level remained far less than the target of the programme, due mainly to scarce foreign financing. Export performance has improved and the sector was able to generate average proceed of US$648 millions during the period 1996-1999, compared to an average earnings of US$449 millions during the first half of the 1990s.

Box (3): Government Islamic Financial Instruments (GMC) & (CMC) (Musharaka) The Ministry of Finance and Economy and the Bank of Sudan have initiated theGovernment Musharaka Certificate (GMC) and the Central Bank Musharaka Certificate(CMC) as Islamic unary- free instruments with the main objective of securing domesticfinancial resources required for the budget, fostering investment, promoting savings,strengthening liquidity management and required for the budget, fostering investment,promoting savings, strengthening liquidity management and providing the opportunity forthe development of open market operations. GMC & CMC have been successfully implemented, through auction sales of certificates.Profits generated through these auctions are the highest ever spawned by any other line ofvestment in Sudan

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It should also be mentioned that the implementation of the programme was constrained by the lack of commitment from the part of the international community to provide aid, a factor that limited the scope and impact of the programme confining its objective to partial liberalization in addressing some sectors of the economy, and forced the Government to adopt shock therapy solutions, which led to servile negative economic and social hardships during implementation. It became evident that a strong support of the donor community to the Economic Salvation programme could have led to the achievement of better results with a reasonable time pace and appropriate instruments 1.6 Structural Reforms The increasing role of the state in economic activity in the Sudan had stared since the colonial era, with the initiation and management of several projects. Such role expanded. 1.6.1 Normalisation of Relation with the Donor Community The Sudan continued its endeavours within its strategy to improve its relations with bilateral, regional and international financial intuitions, specially, with the International Monetary Fund (IMF). A staff-monitored medium-term programme covering the period 1999-2001 was agreed upon with the Fund. The programme contained a package of macro-economic reforms and polices, aimed at the creation of an economic climate commensurate with the requirements of the situation and qualify the economy to benefit form the accumulated drawing rights. This is considered a shift in the relations between the Sudan and the IMF, which commended the performance record of the economic. The executive Board of the fund issued a decision on 27/8/1999, considering the Sudan as a co-operative State. It was followed by restoring the country’s voting and other related rights in August 2000. The decision gave a strong impetus for the Sudan to normalize its relations with bilateral, regional and international financing organizations, and papering the conditions for the release of financial aid previously blocked due to sanctions, such as that pertinent to Lome’ Convention, encourage the flow of foreign direct investment (FDI) and official development assistance (ODA). Normalization of relation with external creditors is underway. By end of 2000, Sudan had normalized relation with four creditors (two non-Paris Club bilateral and two multilateral creditors) and continued to maintain good relations with two multilateral, IFAD and the IDB. The Government of Sudan recognizes that, bringing the country debt to a sustainable level, will require continue strengthening the growth oriented policies it has followed in the past years, but also to improve further relations with major external creditors and donors, as a precursors to the mobilization of substantial financial assistance from the international community, and particularly the necessary financial resources required throughout the period up to and including the eventual resolution of the external debt problem. Discussions are on-going between the Government of Sudan and donors. The member states of the European Union and Sudan reviewed recently the political dialogue that had taken place over the past year and judged it to have been very useful in terms if enhancing mutual understanding. It was decided to extend the dialogue for a further year with a view to completing normalization of relations and re-establishing full development co-operation at the end of that period. It is expected that the dialogue would focus particularly on questions relating to peace process in the south, and human right, democratization and civil liberties issues.

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2. Factors Affecting Growth and Development: 2.1 Peace and Socio-economic Stability 2.1.1 The Civil Strife and the Peace Process: One of the most significant constraints to socio-economic resilience is the daunting civil war that has been going on, posing and threatening national unity and impeding sustained economic, political and social development, since the 1950’s. The period of the 1990’s witnessed an unprecedented severity and expansion of the scope of the civil war causing economic losses in human lives, resources and instability for the population, in all parts of the country. The war has continued to have a devastating effect on the economic, social and basic infrastructure in the South. The ramifications of this war have extended beyond the war zones where normal life had come to a halt, and extended to other areas in the form of huge influx of displaced people causing major demographic structural changes and constituting imminent threat to the national social security and exerting pressure on the meagre services available at the receiving ends. Poverty and pauperism have ramified at the periphery of major towns, where the displaced came to settle, threatening the stability of economic and social environment, and may abort the reform process. In addition to these displaced persons in need of humanitarian assistance, there are those vulnerable communities who are living either within conflict zones or in peripheral areas, where life is precarious and coping strategies – including such fundamental strategic areas as nutrition, water/sanitation and education – were reduced to the bare minimum. In other areas, late and erratic rainfall is putting further pressure on the livelihoods of populations already suffering the effects of socio-economic marginalization. The Sudan Government is fully aware that this conflict has caused the loss of many lives, destroyed the economic structures and social structures in the South, led to the displacement of the majority of its population and their migration to the North and caused widespread poverty, destitution and unemployment, has seriously engaged in efforts during the period of the 1990’s to end the war in the South. The government has outrightly announced its readiness to make peace through preparing the climate for talks, announcing repeatedly a cease-fire from one side, granting general amnesty for all those who carried arms against the state and agreeing on Operation Life-line to save the lives of the citizens who are exposed to hunger and disease, even in areas under the control of the rebel movement. S1989, the government and the rebels entered into twelve rounds of talks – outside the framework of (IGAD) Initiative, held at Addis Ababa, Nairobi, Frankfort, Abuja and Entebbe. The initiative by the Inter-Governmental Authority for Development (IGAD) that was launched in 1994 has set a strong momentum. The process was started with the opening of passages for transport of relief requirements to all war-affected areas. The agreement was a signed between the Government and two factions of the SPLA/M in concurrence with the agreement for the separation of the humanistic issues to which Sudan was fully committed. Although several attempts of mediation were made during the 1990’s, the IGAD Initiative remained the main frame within which tangible results were achieved.

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2.1.2 Peace-Making Efforts: The Government of National Salvation has continued, since assuming power on the 30th of June, 1989, to place peace and an end to the war among its prime objectives, and has worked genuinely and zealously to find a a solution to the war in the South. The government convened numerous forums and conferences and has responded to all initiatives and peace efforts, regional and international. The government has given an unparallel response to demands of Southern as they relate to the specificities of culture, participation in power and a just division of wealth. The IGAD Initiative has remained the most important regional effort in pursuit of a solution to end the war, given the regional and international backing to the initiative and since it has received the approval of both sides. The Joint Libyan-Egyptian Initiative and Nigerian efforts to participate in widening the circle of pursuit of peace, that will preserve the unity of the country and achieve the hopes of all groups. In spite of the obstacles that the initiative faced at various stages, nevertheless, the efforts did not stop, until the positive momentum that preceded Senator John Danforth, as the Special Envoy for Peace in Sudan, who put forward practical steps that moved the peace effort. The first implementation was the achievement of a cease-fire in the Nuba Mountains. This has been described by observers as a successful attempt to achieve peace, the parties to the conflict have attempted throughout the past year to develop a comprehensive peace agreement for the Nuba Mountains. This peace process has received another push by the appointment of Britain of Ambassador Alan Gaulty special peace envoy to Sudan, to complement the American, British and Norwegian efforts and the efforts of the European Union and the IGAD Partners’ Forum with preceding efforts. Against this background and reflecting the abilities of the Sudanese to overcome difficulties and obstacles through rational and direct dialogue, the Government and the SPLA/M signed the Machakos Protocol on the 20th of July, 2002, after reaching agreement on the two main issues forming the source of disagreement throughout recent years, namely, religion and state and a just division of wealth. The Machakos Protocol received widespread popular acclaim and the blessings of all political forces and regional and international backing. The Protocol was sealed by the meeting between the President if the Republic, Omer El Beshir and Dr. John Garang on the 27th of July, 2002 in Kampala, bearing witness that it represents the will of the Sudanese and their desire for security, stability and development. Nevertheless, dissenting voices are heard, whether from the internal or exiled opposition, calling for the negotiations to be opened to all elements of Sudan’s political, social, southern and northern communities, whether they bear peace tidings or not, claiming that this is the only way to plug loopholes that may appear in the agreement, though this seems unworkable in practice. The parties returned to continue the Machakos round on the 18th of November 2002 after a guarantee by the rebel movement on the cessation of hostilities. The parties explored the sharing of power and wealth, and in the debate emphasized the following:

1. A review of the Constitution. 2. The relations between various levels of government. 3. The elections during the transition period. 4. The National Capital. 5. Southern representation in the civil service. 6. Formation of the National Council and State’s Council. 7. Southern representation in federal ministries. 8. The presidency and the position of the leader of the rebel movement.

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Among the most important agreements in this round was the cessation of hostilities on the 15th of October, 2002, this was extended up to 31st March, 2003, the unimpeded access for humanitarian aid in all areas of need, agreement that the three areas of dispute, the Nuba Mountains, Southern Blue Nile and Abyei, are not part of the South, and are to be resolved outside the IGAD Initiative in a forum not overlapping with the Machakos’ rounds. The United States invited both parties to the conflict to informal meetings in Washington on the 18-19th of December 2002, with the aim of initiating a debate in aid of solving the contentious issues that arose in the last round of talks. This was an acknowledgement by the United States of the advances made in the negotiations. After much manoeuvring by the two sides and the US Congress’s legislation on peace in Sudan, the third round of talks began in Keren, Kenya on the 22nd of January 2003, in which the negotiations over the three areas were postponed, an extent ion to the cessation of hostilities was signed and the formalisation of the agreements reached on the division of power and wealth through a memorandum of understanding. The second round of negotiations began in January 2003, these were earmarked to discuss the three areas, this round was attended by delegations from the three areas, despite the difficulties in agreeing on legitimate representatives from these areas. The round made some progress on the Nuba Mountains and the Southern Blue Nile, though discussion on Abyei deadlocked over SPLA/M objections to the head of the government delegation from Abyei. The round also made progress in extending the cessation of hostilities to June 2003, and a renewal of the agreement on civilian protection for one year, to end on the 31st of March 2004. On the 2nd of April 2003, on the President of the Republic’s visit to congratulate the newly elected Kenyan President, Mowai Kiyabaki, The President met the leader of the SPLA/M, John Garang under the auspices of the Kenyan President. The leaders underscored the necessity for their joint efforts to achieve a signature on a comprehensive peace agreement in June of 2003. On the 6th of April the third round on security protocols began in Keren. The two sides agreed on the agenda to the round, the round ended on the 16th of April with an agreement to pickup negotiations in mid-July 2003. 2.1.3 Promotion of Human Rights: The Ministry of Justice had assumed the responsibility for the human rights dossier since 1992, in collaboration with concerned governmental and non-governmental agencies. The Constitution of the Republic of Sudan promulgated in 1998, conforms with basic principles of human rights, enshrined in the laws and international covenants. It guarantees internationally recognised basic human rights and democratic rights. This was followed by Partisan Law (1998), the General Elections Act, the Press and Publications Act, the Workers Trade Unions Ac, the Farmers and Pastoralists Organisations Act and the Constitutional Courts Act, for the guarantee of rights and freedoms. Several achievements have been made in this field during the past few years, which were recognized and welcomed by the international community, as represented by the General Assembly of the UN and the Human Rights Commission in Geneva. During the last two years, the following were realised:

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2.1.4 Achievements in Human Rights and Peace Building Process: 2000 – 2003: 1. Signature on an agreement for technical cooperation between the Government,

represented in the Consultative Committee on Human Rights and the United Nations Human Rights Commissioner in Geneva in March 2000.

2. Passage in 2000 of law for political parties, granting the right of political activity without previous registration with the exception of parties contesting elections.

3. Improvement in the political climate, which has led to many political luminaries to return to the country, among them the leader of the Umma party, Sayed El Sadig El Mahdi, and the ex-President Jaffar Mohamed Nimeri, And the former President of the Council of Head of Sate, Sayed Ahmed El Mirghani.

4. The efforts by the state to succour large numbers of refugees and displaced, which met with approval from the International Community.

5. Establishments of the CEDAW Committee in 1999, and its restructuring in January 2002 paling it directly under the President’s Office.

6. The report put out by the UN Security Council, dated 28th September 2001 raising the sanctions imposed on Sudan since 1995.

7. Establishment of many infrastructural projects in areas of petroleum production and exploration.

8. Agreement of the Government to the establishment of an independent national body, and a workshop within the context of aid to it.

9. Fulfilling Sudan’s obligations by publishing a number of regular reports in this field, such that the Sudan is now one of the few countries doing so.

10. Signature of a cessation of hostilities agreement between the government and the SPLA/M in the Nuba Mountains under international auspices and monitoring.

11. Establishment of a Consultative Council for Christian Affairs within the Ministry of Religious affairs.

12. Signature of the Memorandum of Understanding to end all military operations between the Government and the SPLA/M, dated 15th October 2002.

13. Opening of all passages to humanitarian aid delivery by land and air to all areas affected by war.

14. Signature of the Machakos Protocol between The Government and the SPLA/M as a national agreement to solve issues in place of disagreement.

15. Establishment of the National Council for International Humanitarian Law, presided over by the minister of Justice, and membership by various concerned parties.

16. As a result of all the progress achieved in human rights, an end to the sanctions imposed on Sudan was declared in the latest round of the Human Rights Commission (59th session).

2.1.5 Governance: The Sudan adopted the Federal System of rule since 1992, comprising 26 states. Each state has its own government and directly elected legislative council, with subordinates of elected local councils and grassroots organisations that all feed into a federal system. The system guarantees the direct participation of citizens in the management of public and local affairs, their rights in political freedom and in participating in economic and social development. Such participation will nourish the spirit of national unity, and separatism and transpose the cultural diversity into country, economic, social and political advantages. With its environmental characteristics, social and cultural diversity the Federal System was the suitable government system that has been accepted by the people of Sudan. The process started with the 14th Constitutional Decree and ended with the 1998 Constitution. The aim was to absorb

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the numerous issues related to participation in power/authority, wealth sharing, and the expression of identity; separation of religion from state; establish understanding of freedoms; opening space for political and social organisations and their self expression and acknowledgement of their role in building society, and champion the constituents of the social fabric. To achieve these goals the federal system created the following mechanisms and tools:

1. Establishing mechanisms for division of resources and power. 2. Promulgate constitutional legislation to organise the methods of governance and

participation. 3. Coordination of relations and development of mechanisms of communication. 4. Establishment of federal structures (executive and legislative), through which twenty six

states were established. Each one with a executive and legislative body, constituted of a Governor, Ministers and 143 municipalities, each with its executive and legislative branches.

Following the assessment of the federal experiment (2002), a new law for Local Government was issued for 2003. The Law aims at delegating wide powers to municipalities that they may gain necessary financial resources in exchange for the required public services and security, strengthening the executive and legislative structures and defining the vertical and horizontal relations of government. Among the prominent features of this law:

1. Defined the powers and responsibilities of the municipalities in opposition to the previous system up to 1998, devolving the process to state governments.

2. The law developed the executive bodies of the municipalities, strengthening the powers of the council president (the popular organ), the Commissioner (as per the constitution; to be elected by the Governor in consultation with the President of the Republic), as it devolved the executive and legislative powers of the districts to the new municipalities.

3. Organised the relations between the executive and legislative bodies of the municipalities. Gave the municipalities a wholly elected bodies and defined its relations and responsibilities and other state bodies erasing confusion and overlap between administrative bodies.

4. Restructuring of the local governments, paring them from 674 to 143, and the organisational structures, such that at the head of every municipality sits a Commissioner, a deputy, four administrative bodies, a security committee. Also granting the states powers to form administrative units with the State Ministerial Council defining the responsibilities of these units.

5. Underlined the vertical and horizontal relations, solving local government issues, represented I the following:

a- The President of the Republic establishes the municipalities on recommendation of the states' governments.

b- The state Governor appoints the commissioner in consultation with the President.

c- The Governor appoints the municipal Executive Director in consultation with the Commissioner.

d- A Municipal Security Council presided over by the Commissioner responsible to the State Security Council.

e- The Commissioner is accountable to the State Legislative Council. f- The Sate Ministerial Council may dissolve the Municipal Council with the

approval of the State Council. g- Power of the State Council to overrule decrees by the municipality. h- Grants authority to the States' Governments to draw up bylaws governing legal

rulings.

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2.2 Human Resource Development: 2.2.1 Population Profile: Sudan, linumber accordingeducation Sudan isless thannegative Urban ceemanatinWestern desertificin securin The sharadverse erefugees Yet, whirepeated cooperate A large-sskilled mimpact ocontributduring theconomiceffects on

Box 1: General Profile Sudan Low

income countries

Total population (million) - 2001 31.7 2,511 Av. Annul population growth rate 2.1 1.9 Labour force % 2.7 2.3 Urban population (% of total population) 37 31 Life expectancy at birth (years) 56 59 Infant mortality (per 1000 live births) 81 76 Child malnutrition (% of children under 5) Access to and imbrued water source (% of population) 75 76 Illiteracy (% of population age 15+) 41 37 Gross primary enrollment (% of school- age population) 56 96 Male primary enrollment (% of school- age population) 60 103 Female primary enrollment (% of school- age population) 51 88 Source: World Bank. 2002.

ke other developing countries, is characterised by a young population structure. The of population under 15 years constitute about 45 percent of the total population, to the last census (1993). This requires huge financial resources to meet the \cost of , health, and social care services at the family and state levels.

confronted with massive population movements and a rise of internal migration from one million in the 1970s to 1.3 million in the 80s and about 3.4 million in the 90s with consequences on both home and receiving areas.

ntres, particularly the national capital, Khartoum, were exposed to great pressures g from increased population influx ceased by the mass movement of people from and Southern Sudan pushed out by civil strife and successive waves of drought and ation. As a result annual growth rate of urban population is about 6 %. Difficulties arise g essential services and unemployment and the proliferation of tertiary activities.

ing of long common borders with nine countries, and the escalation of conflicts and nvironmental conditions in the region also led to a great influx of over one million into the country. They caused pressures on services, the environment and the economy. le the international community refrained to provide humanitarians aid because of the breakouts of conflict in the area, the refugees' countries of origin were reluctant to in repatriating them, causing the continuity of the problem.

cale migration had taken place to the Gulf States in search of jobs, many of them highly igrants constituting a considerable loss to the country’s human capital. The negative f such exodus is partially compensated by migrants' financial transfers, which

ed to bridging the gap of the balance of payments, and the drop of international aid e 90s. Financial transfers to families have also enabled these families to adjust with the reform circumstances. As this migration is mainly male structured, different social the role and status of women and other members of the family have taken place.

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2.2.2 Health Care: Sudan suffers from acute and complex health problems. The cycle of poverty, malnutrition and loss of productivity exposes the population and put it at risk of serious diseases such as malaria, Tuberculosis (TB), malnutrition, diarrhoea, and Acute Respiratory Infections (ARI). The expansion of heath facilities has not matched the growth in population over the years, and the war has destroyed many previously operating facilities. Ineffective coverage is manifested in lack of infrastructure, inadequate drugs and medical equipment, and the lack of skilled health personnel. Continued displacement of population resulting from the chronic conflict and/or adverse environmental conditions has also overstretched the country’s social service institutions, including health, even in the areas where it used to be adequate. Lack of access to populations and the limited infrastructure has impeded the ability of the government, as well as the non-state health actors to provide assistance and services. Very little is known about access to health service and health status in war-extended states. This is because the Health Information System (HIS) is weak or non-existent, and data on health indicators and health services coverage is scanty and inaccurate. Generally speaking, the majority of the people living in the war zone or the war-affected areas have limited or no access to basic health care because it is either inadequate or not available. The limited and inequitable access to essential child and motherhood health care services accounts for the high infant and maternal mortality rates, which are, respectively, 68/1,000 and 509/100,000 live births. Neonatal deaths estimates at 31/1,000 live births represent 40% of total infant deaths. In Sudan, 86% of women deliver at home with less than 57% attended by skilled personnel. The Safe Motherhood Programme is one major initiative implemented aiming at improving motherhood services and making pregnancy safer, through the Eradication of Harmful Traditional Practices programme and the Emergency Obstetrics Care Programme, has contributed to improve the situation. However, the programme is constrained by the dispersed nature of population settlements, lack of trained personnel and the high illiteracy rates. HIV is another growing problem in Sudan. 8,669 cases of HIV have been reported since 1986, and the number of estimated HIV infected cases has risen to 600,000 in 2001, a rise of 50% from its level in 2000 (400,000). The recently conducted sentinel sero-surveys revealed a prevalence rate of 1.6%. Sudan is facing a real challenge to stem the spread of disease among its people, midst of whom many became infected because of lack of knowledge. Some sexual habits and practices in addition to FGM continued to adversely contribute to the accentuation of the spread. The Multiple Indicator Cluster Survey (MICS 2000) revealed that 84.6% of women aged 15-49 years in rural areas and 57.9% in urban areas are not knowledgeable about HIV/AIDS. Only 33.3% of women in southern states had heard about the problem. HIV/AIDS continues to be a major concern in Southern Sudan. Although sero-prevalence studies are not common in Southern Sudan, the prevalence rate is felt to be rising dramatically. The blood donor records in one hospital at the Ugandan border in 1999 show alarming figures (18.6%), which give cause for grave concern for this and other parts of Southern Sudan. And because AIDS is opportunistic, those carrying the disease cab easily fall prey to life-threatening illnesses such as TB. Communicable diseases are widely dominant, with a high likelihood of outbreaks, to which the national health care system is not equipped to combat. Malaria is now considered endemic throughout the country and continues to feature as the major health problem in Sudan causing 7.5 – 8 million episodes and 35,000 – 40,000 deaths per year. It is estimated that about 80

21

percent of those visiting health facilities have caught malaria. Among children under-five, Diarrhoea and ARI prevalence rate are 28% and 17% respectively, and diarrhoea prevalence reaches as high as 40% in some States. The annuals risk of infection for tuberculosis equals 1.8%, and this indicates that for every 100,000 there are 90 infective cases.

Sudan repowhere the incidences strife delay In 2002 anacute water Endemic ddiseases likpermanent recent dochealth of in Routine imin 2001, wshortage oNeverthelein targeted The preval2001. The ratio of 1 adherence Micronutrimorbidity goitre rate A fundamepoverty stahealth hazaenjoy modpercent of areas affec

Box 2: Estimated Malaria episodes 7.5–8 million/yearDeaths due to Malaria 35–40,000 /year. Bilharzias prevalence among school children in irrigated areas 28 – 76%. HIV/AIDS prevalence rate 1.6% (2003) TB prevalence rate 1.8% Incidence rate of thyroid goitre 22% The rate of nutritional blindness (estimate) 1-4.8% The incidence rate of ARI (estimate) 24.4% Incidence rate of anaemia > 90% (1997). Sources population data sheet (UNFPA, CBS) and MICS2000.

rted 80% of Guinea Worm cases in the world, and remains one of the few countries disease has still not been eradicated. While in the northern part of Sudan the disease have been reduced by 98%, it still remains endemic in the South and the ongoing civil ed the effort of eradicating the disease.

d early 2003 there have been continuous outbreaks of epidemics such as Meningitis, y and bloody diarrhoea, measles and yellow fever.

isease such as water-borne disease like Bilharzias in central states, and vector-borne e Sleeping Sickness and Lymphatic Filariasis that continue to be a leading causes of physical, social, economic and psychological disabilities. Unfortunately there is no umented information on prevalence rates of these diseases or their impact on the dividuals in the areas where they are endemic.

munisation coverage of the six antigens remains stable at the low level of 51% - 65% hich indicate a marked deterioration from 1996. This was markedly attributed to f funds, logistic support, cold chain problems and weal capacity of states. ss, due to infrequent and inadequate access to facilities among high-risk populations areas, routine immunisation remains below optimum level.

ence rate of malnutrition is alarmingly high, increasing from 18% in 1995 to 23% in situation is equally critical for women in drought-affected areas with an estimated in 4 women malnourished. Nutritional status among infants is poor due to low

to exclusive breastfeeding, and inappropriate introduction of complementary feeding. ent deficiency remains a serious health problem that contributes significantly to high and morality rates. Iodine deficiency remains a predominant problem with a national of 22%.

ntal feature of the health situation is its association with environmental health and tus. Lack of adequate sanitation and environmental health services represent another rds. Over one third of the population (34%) don't obtain clean water. Only 11 percent ern sewage systems, while 56 percent are using traditional sanitary systems, and 33 the population are not using any sanitation facilities. The situation is also worse in the ted by the war, where there are no statistics.

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The ongoing peace talks represent an opportunity for Sudan and offer a ray of hope that war might shortly be ended. Nonetheless, a post-conflict Sudan, as peace will facilitate greater internal population movement as well as with neighbouring countries, is expected to experience a high recurrence of communicable diseases in regions with increased mobility, higher numbers of children susceptible to vaccine-preventable diseases, high incidence of conflict-related psychological disorders and physical disabilities e.g. caused by landmines and HIV/AIDS transmission is likely to accelerate dramatically. It is regrettable that the resources available for health are very meagre compared to actual needs, representing a major obstacle that impedes the effort of development and reform of Sudan’s health sector. This situation is further aggravated by the extensive brain drain of the specialized and trained cadre and severe drop in external assistance to the sector, which resulted in weakening the capacity in health services provision, planning and management, and thus decline of the sector's effectiveness.

Box 3: Total fertility rate 5.9 Home deliveries 83% Maternal mortality ratio 509/100,000 LBs Under-five mortality rate 105/1000 LBs Contraceptive utilization rate 7% Female genital mutilation is over 90% The rate of exclusive breast feeding (at least 4 months) < 20% Routine EPI coverage 51-65% (2001) Usage of iodised salt is 0.5–0.6% Source: UNFPA & CBS, 1999 and MICS, 2000

Yet, despite all these difficulties, the sector has exerted great efforts aiming at improving health status through the implementation of several programmes and activities. With regard to policy setting, the health sector has set the 25-year Strategic Plans of Health (2003–2027) and development of 5-year plans for many disease control programmes such as Malaria, HIV/AIDS and TB National Control Programmes. Some health indicators have shown remarkable improvement, where the Under-Five Mortality Rate has declined from 143/1,000 live births in 1990 to 105/1,000 live births in 1999. Maternal Mortality Rate has decreased from 556/1,000 women in childbearing age in 1990 to 509/1,000 in 1999. The expected age at birth has shown significant increase between 1973 and 1993, from 46 years to 54 for men, and from 50 to 57 for women. The PHC programme stepped giant steps forward in the provision of health services during the past decade, and new strategies were emphasised, which led to considerable improvement in quality of PHC concept in Sudan, such as Health Area System, Polio Eradication, Rollback Malaria Strategy, Basic Development Needs and Safe Motherhood. There has been an exponential growth in medical and allied health professions education institutions during the last decade, as a part of the national higher educational reform policies. (See Table 2.1)

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Table 2.1: The Increase in Number of Medical Schools 1990 – 2001

Faculty No. Before Educational Reform

No. After Educational Reform

Private Colleges

Increase %

Medicine 3 24 5 700% Pharmacy 1 8 5 700% Dentistry 1 8 5 700% Laboratories 1 7 6 600% Public Health 1 5 0 400% Radiology 1 4 2 300% Nursing 1 7 2 500% Optics 1 1 0 0%

Appreciable progress has been made in some of the communicable diseases and vaccine-preventable disease control programmes, particularly TB, Malaria and EPI, that were implemented in a fruitful collaboration with and through support of international donors, such as the Global Fund, GAVI and Rotary Club and the UN agencies such as the WHO and UNICEF. The National Tuberculosis Control Programme covers 22 states out of 26. The Horn of Africa Initiative is following up the remaining four States. Detection rate is 67.2% and cure rate is 77.2% in 2001. A diagnostic centre is established for every 100,000 persons and a therapeutic centre for every 33,000 citizens, implementing the Directly Observed Therapy Short (DOTS) course strategy for all over the country. The achievement of the polio eradication programme demonstrates how adequate funding and proper management results in effective outcomes. The cold chain has been totally reconstructed. Ten double rounds of National Immunization Days (NIDs) have been conducted including all accessible areas in the South since 1994, with high coverage of under-five children. During the NIDs in 2002, over 5.8 million children, including IDPs and returnees, were vaccinated. A house-to-house strategy was adopted in 2000. Transmission of the wild Polio virus appeared to be interrupted, and there has been no evidence of wild Polio virus transmission since April 2001. Rollback Malaria Strategy has been implemented in most of the 26 States, and Malaria incidence has shown remarkable reduction where more intensified Malaria measures were introduced. The HIV/AIDS Control Programme has set the National Strategy for combating the disease, and has gained the highest-level political support. Yet, the lack of finance hinders the implementation of this strategy. With the imminence of peace is imminent, the Federal Ministry of Health and WHO is embarking not only on preparing to take measures for savings lives of returnees, but also for the rehabilitation and reconstruction of the health care system destroyed in the conflict - an aim requiring a solid information base and a comprehensive planning. A Post-Conflict Health Policy Framework has been developed, and a comprehensive health system study is currently under way. The objective is that health can be used in the enhancement of peace building and rehabilitation through facilitating return to normal situation and supporting long-standing development.

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2.2.3 Education: Sudan wielded strenuous efforts in the field of education during the last decade. The number of schools of basic education has increased from 7,720 to 11,962 and the number of students increased from 2 millions to 3.5 with an annual growth rate of 5.6 percent. Since the convening the Third UN Conference for the LDCs Group in Brussels (in 2000) Sudan exerted substantial efforts in the field of education at all levels. 2.2.3.1 General Education

1. Ten years after first Conference on Education Policy in 1992, the second Conference was convened in 2003. The main objectives were to assess the situation of general education throughout the country and its achievements, identify weaknesses and areas needing improvement, identify problems and suggest solutions to these problems and to draw a future vision of education. Specifically the focus was on two areas:

a. Rereading of the goals and objectives of education in Sudan and its relevance and compatibility with actual life realities and the new vision for the future.

b. Reviewing education structures, regulations and its general policies in the light of the new vision.

From that conference, the following policies were endorsed: i. Concentration on general education, increase of intake and improvement in quality.

ii. Achieving equality and balance in education opportunities States, between rural and urban areas and between boys and girls and ensuring access to education for the special groups. iii. Employing education for peace building and the dissemination of peace culture and in consolidating social security and international cooperation.

2. In line with Sudan’s international commitments for the implementation of the Dakar

Conference goal of "Education for all", a National Plan was drawn up to achieve Universal education by 2015.

3. With support of UNICEF and UNESCO, Sudan implemented a comprehensive survey for the educational sector, and experts from the two organizations presented the results of the survey to Sudanese professionals to incorporate them in their future plans and policies.

2.2.3.2 Current Status of General Education:

1. Pre-School education: Of the 1,388, 453 children in Pre school age (age group 4–5 years), only 354,306 are actually enrolled (2000/2001), i.e. 19% of the total, half of them females. These are enrolled in 7,991 educational institutions, looked after by 11,981 teachers. Plans are laid out for the intake for pre-school to reach 50.7% by 2010/2011, at an annual rate of increase of 10% and ensuring gender balance in enrolment.

2. Basic Education: The number of schools increased from 11,962 to over 13,000, with about 4 million children enrolled, and the enrolment rate rose from 51.6 % to 57%. The plan aims at raising intake to 80.5% by 2010. By the year 2000, the gap between boys and girls was brought down to 8 points. The State, in collaboration with UNICEF, also drew up a plan to enrol 30% of girls by the year 2005/2006. At present girls enrolment relative to boys is at 89% and the target set is 96.7%.

3. Secondary Education: According to the 2000/2001 education census, 276,643 boys and 238,640 girls are enrolled in 1,664 schools. The number of secondary student population has been growing at an annual rate of 6.8%. State policy is to expand and develop education to accommodate all students passing the Basic school certificate exam. The main challenge is that of the 21,515 secondary school teachers, 61% are not trained on the new curriculum.

25

4. Technical Education: The 1990s saw the government emphasis on technical education and vocational training. This has been translated in the Comprehensive National Strategy (1992-2002) that adopted the philosophy of tying education to the job market and introducing work and production into the core of secondary curriculum. Plans have been laid to increase vocational training by 60% but achievement has been far from target. As the 25-year plan (2003–2027), has over that State directive of technical education be raised to the level of academic schooling starting 2003. Table 1 shows the situation of technical schools (2002/2003). All these schools however are in poor conditions (buildings, equipment and teaching materials) and are in need for rehabilitation, the estimated cost of which is about 59 million Sudanese Dinars (US$ 227,000). To meet the objective of increasing technical education by 60%, technical education was introduced to secondary schools curriculum and an ambitious programme to increase the number of technical schools in all states, adding 100 schools at a total cost of 29.3 million Sudanese Dinars (US$ 113,000). (Table 2.2)

2.2.3.3 The Literacy Campaign Two groups are primarily targeted by the literacy programme:

1. Children aged 9–14 years, totalling about 3,125,000, 70% of them girls. 2. Illiterates aged 15 – 45 years, numbering 8 million, 80% of them females. The state aims

at raising the reading ability of these by 65%. Training of 4,259 teachers to implement the National Plan designed by the state to implement the literacy campaign and achieve the set target by the year 2007, at a cost of US$ 200 million, 40 million of which has been allocated. 2.2.3.4 School Environment To improve the school environment, the following has been accomplished during the two year-period 2001 – 2003:

1. Seats were provided to 350,000 pupils and 6,000 teachers within the national programme of school seating.

2. 2000 computers and 2000 printers were distributed to schools and education institutions. 3. Refurbishing 15 Basic schools, 120 classrooms and 40 teachers offices 4. Supplying equipment, solutions and other necessary materials to 150 laboratories in

secondary schools. Activities planned during the 10-year plan (2000-2010) include:

1. To provide full seating for the remainder of pupils (1,100,000 pupils) 2. To provide fully equipped laboratories to all secondary schools (building, equipment and

materials) 3. Refurbishing and rehabilitation of 500 schools (primary and secondary) 4. Refurbishing dormitories for teachers in all rural basic schools 5. Supplying computers to all Basic and secondary schools.

Table 2.2: Technical Schools (2002/2003)

School Type No. No. of Students No. of Teachers Industrial 39 8,289 696 Trade & Commerce 51 9,099 398 Agricultural 6 712 62 Women 5 692 49 Vocational Training Ins. 34 5,566 - Total 135 24,358 1,205

Source: Technical Education Administration

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Table 2.3: Proposed Technical Schools and Estimated Cost

Specialisation Cost of School SD No. Total Cost SD Vocational 639,880,000 23 14,648,240,000 Agriculture 232,922,000 29 6,754,738,000 Trade & Commerce 172,646,000 19 3,280,274,000 Women 161,069,400 29 4,985,512,600 Total 100 29,368,764,600

Source: Technical Education Administration

Table 2.4: Primary and Secondary Schools Situation 2002 No. of Students & Gender

No. of Teachers & Gender

Level Year No. of Students

Rate of Growth

Total Female %

Growth Rate

Total Female %

Rate of Growth

1990 7,682 51,520 - Basic 2002 11,991

3.8 3,545,328 45.4

4.9 133,242 63.1

8.2

1990 568 247,052 - 6,945 - Secondary 2002 2,043

11.3 475,301 51.4

5.6 21,431 45.4

9.8

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Table 2.5: Enrolment by State, Age Group and School Level, 2002/2003

Pre-School Primary Secondary State Population 4-5 yrs %

Enrolled Population 6-13 yrs %

Enrolled Population 14-16

yrs % Enrolle

Northern 33,117 19,290 58.2 181,054 119,867 66.2 38,614 2,925 7.6 River Nile 52,314 23,755 45.4 191,403 164,864 86.1 63,420 27,851 43.9 Khartoum 259,464 57,996 22.4 853,435 739,706 86.7 295,111 137,609 46.6 Gezira 209,402 49,905 23.8 722,185 582,925 80.7 239,429 94,340 39.4 White Nile 95,999 19,389 20.2 345,655 212,320 61.4 112,734 26,315 23.3 Blue Nile 37,779 7,000 18.5 142,192 59,685 42.0 49,945 4,818 9.6 Sinnar 73,525 15,730 21.4 269,250 169,651 63.0 91,593 19,055 20.8 N. Kordofan 97,864 8,113 8.3 395,045 245,511 62.1 119,032 17,423 14.6 S. Kordofan 70,913 8,670 12.2 278,655 101,889 36.6 97,180 6,697 6.9 W. Kordofan 73,467 5,815 7.9 275,047 135,727 49.3 92,327 8,098 8.8 N. Darfur 95,300 16,164 17.0 344,907 166,067 48.1 116,521 23,896 20.5 S. Darfur 176,943 13,980 7.9 938,125 215,022 22.9 224,334 19,119 8.5 W. Darfur 99,027 2,284 2.3 378,933 105,584 27.9 134,060 6,397 4.8 Red Sea 37,292 6,543 17.5 148,422 88,975 59.9 51,774 16,734 32.3 Kassala 86,319 9,021 10.5 313,232 137,074 43.8 110,441 14,934 13.5 Gadarif 91,166 1,100 1.2 321,484 163,131 50.7 231,112 17,983 7.8 B. El Ghazal 137,051 9,197 6.7 492,852 41,843 8.5 169,517 1,638 1.0 Equatoria 76,440 3,659 4.8 293,611 43,863 14.9 93,352 4,133 4.4 Upper Nile 91,919 1,795 2.0 350,232 51,624 14.7 109,459 3,008 2.7 Totals 1,895,301 279,406 14.7 7,235,719 3,545,328 49.0 2,439,955 452,973 18.6

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Table 2.6: Technical Schools Proposed for to be Established over the next 5 Years and their Distribution by State

Region State IndustrialSchool

Agricultural School

CommercialSchools

Women’s Schools

Total Region Total/ %

Khartoum - 2 - 2 4 Gezira - 1 - 2 3 Sinnar - 1 - 1 2 Blue Nile 1 1 - 1 3

Central

White Nile - 1 - 1 2

14 River Nile 1 1 - 1 3 Northern Northern - 1 - 2 3

6

Red Sea - 1 - 1 2 Kassala 1 1 - 2 4

Eastern

Gadarif - 1 - - 1

7 N. Kordofan - 1 - 1 2 S. Kordofan 1 1 2 1 5 W. Kordofan - 1 - 1 2 N. Darfur - 2 - - 2 S. Darfur - 2 - 2 4

Western

W. Darfur 1 1 - 1 3

18 Upper Nile 2 1 1 1 5 N. Bahr El Ghazal 2 1 2 1 6 W. Bahr El Ghazal 1 1 1 1 4 Warrap 2 1 2 1 6 Lakes 2 1 2 1 6 Jongeli 2 1 2 1 6 Unity 2 1 2 1 6 Bahr El Jebel 1 1 1 1 4 W. Equatoria 2 1 2 1 6

Southern

W. Equatoria 2 1 2 1 6

55

Total 23 29 19 29 100 100 2.2.3.5 Challenges: In addition to the difficulties and material challenges relating to resources, mentioned above mentioned above, the education sector is faced with important qualitative or non-material challenges that have largely been a result of the massive expansion that took place since 1990, particularly in higher education where the number of universities multiplied from five to twenty seven universities distributed in all twenty six states in addition to the numerous number of private universities and colleges. Also the number of students admitted annually to higher education increased by seven fold from 6 thousands to 43 thousands with an annual average growth rate of more than 19%. These new challenges include: 1. How to improve the quality of education that has been negatively affected with regard to the standard level of writing, reading and mathematics 2. How to address the rise in school dropout rates particularly among girls and in rural areas. 3. How to strike a balance between the different levels to education to warrant a viable system 4. The high percentage of untrained teachers in basic (40.4%) and secondary schools (61%) 5. How to reduce the draining of the sector from trained teachers through a system of material and non-material incentives 6. How to prepare within the education system the skills necessary to up-grade the workforce to enable it contribute to achieve sustainable socio-economic development, particularly organizational, managerial and market-oriented skills and to enhance its competitive position.

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7. To introduce innovative and intellectual policies that would enable learners make use of and interact with the emerging and relevant technologies and make use of the global information revolution 8. The challenge of promoting research and technological developments through universities and research institutions.

Population Aged 4-5 years Enrolled in Pre Schools

0

500000

1000000

1500000

2000000

Male Female Total

Total Enrolled

Population Aged 6-13 years Enrolled in Basic Schools

01000000200000030000004000000500000060000007000000

Male Female Total

Total Enrolled

2.2.4 Water Resources: 2.2.4.1 Water Supply It has been clearly evident that the provision of an adequate water supply for the population and livestock in a dry country like Sudan has been reported as an enormous challenge to the moderate financial resources of the government. Despite the efforts of the government and the supporting agencies to achieve full coverage of the water demand, and the intensive government programme towards the promotion of the water supply activities achievement has been far below needs. However, several successful achievements have been realized since the year 2000 and progress is mounting in the establishment of new water supply sources in urban and rural areas. Water consumption rates have increased in both rural and urban areas, whereas the average rural consumption increased by up to 20 litres per capita/day particularly in the areas where intervention has been undertaken since the year 2001. Improvements have been achieved in several urban areas particularly in the Southern States. The national quarter century plan for domestic water supply has targeted full coverage of domestic water supply at an assumed rate of 150 litres per capita/day in urban areas and 20-40 litres per capita/day in rural areas. Sanitation is a relatively weak component in the water services programme, whereas only 5% of Khartoum’s population are served by a central sewage service, compared to 20% by house-flush systems, 55% pit latrines and no proper sanitation facilities for the population living in the suburbs of the urban area. Sanitation services in the rural areas cover about 20% of the rural population, using pit latrines and the majority of rural population defecate in the open and among the bushes.

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i) So far there is no institution for sanitation in Sudan. A successful nationwide initiative was carried out jointly between UNIOCEF and the National Water Corporation, employing a beneficiary approach. The programme has proved very satisfactory in the provision of water supply and rural sanitation services.

ii) Urban sanitation is the responsibility of the Ministry of Housing and Public Utilities in the capital towns of the sixteen states, while rural sanitation is the responsibility of the ‘Mahalias’ (Councils).

NWC in cooperation with UNICEF are launching a very successful rural sanitation programme accompanying the implementation on a large scale Community Hand pumps Water Supply Programme, which is implemented at the county level, whereas, the water programme is used to boost the execution of the village latrines under the community participation system. 2- The Broad Objectives of the LDCs Ten Year National Plan, 2001-2010

1. Attain full coverage of adequate and safe water supply for both urban and rural population off Sudan by the end of the quarter century national plan through the provision of 150 litres per capita/day for the urban population and 50 litres per capita/day for the rural population. The management of the water supply will be entirely based on a cost effective tariff to ensure the sustainable service of the water supply sources.

2. Establishment of sufficient water supply sources at the areas where the livestock herds are raised, and at the traditional rain-fed agricultural and gum Arabic belt areas all over the country.

3. To attain full coverage of sanitation means of excreta disposal in urban areas through large-scale extension of the existing sewage system and household septic tank systems; to attain safe and hygienic sanitation in rural areas, with emphasis on pit latrines, and to extend hygiene information among the rural population to improve their hygiene practices.

Table: 2.6 Available Rural Water Supply Sources

Type of Source NO. Designed

Capacity (A)

Actual Capacity (B)

Water Quality

B as % of A

Water yard; comprising borehole with powered pump

4,500

450,000

315,000

Safe water

70

Community hand pumps / water points 12,000 60,000 45,000 Safe water 75 Open dug well 5,000 25,000 15,000 Unsafe water 60 Ground reservoirs 800 160,000 128,000 Unsafe water 80 Slow sand filters 350 17,500 7,000 Safe water 40 Total available supply 712,500 510,000 71.5

Table 2.7: Water Supply and Demand Levels

Area Demand Supply Coverage % of Demand

Urban 1,500,000 780,000 52 Rural 2,350,000 510,000 21.7 Total 3,850,000 1,290,000 33.5 S as % D 52 21.7 33.5

2.2.4.2 Achievements (2000 – 2003): The overall achievement in the provision of the domestic water supply designated under the least developed countries proposed programmes and the volume of work performed during the period (2001 – 2003 is shown in the following table:

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Table 2.8: Achievements in the Water sector 2000-2002 Year Boreholes/p

ower pump Dams Ground

reservoirs Slow sand filters

Boreholes with hand pump

Urban Treatment Plant

Financing

2001 200 9 9 8+7 reh. 750 1 Saudi Govt. 2002 104 14 42 7+16 reh. 830 2 Sudan Govt. 2003 16 10 5 5 450 Sudan Govt.

2.2.4.3 Water Supply Policies:

• To attain sustainable water supply sources with proper management system to account for fair enough revenue to cover the full cost of operation, maintenance and depreciation cost to secure sustainable services of water sources.

• Adoption of appropriate technologies with emphasis on simple technology in rural areas. • Empowerment of the rural community and the beneficiaries’ participation to contribute in

the implementation, operation and management of the water sources at the village level. • To adopt appropriate means assumed tom maintain the link between the provision of

water with the environmental aspects to reduce the over exploitation of the grazing, trees chopping and the health hazards that decrease human productivity.

• Support water research to identify the efficient management of water resources and to carry out an assessment of water resources to secure conjunction development, safe use and protection of both the ground and surface water resources.

• To encourage the private sector to invest in the domestic water supply business provided that strict rules and regulations should be drawn to prevent the mal-utilization of water users.

• Capacity building to improve the management and technical skills of the water sector staff at all levels.

• Institutional set up of the water sector and to promote the propose cooperation between the federal and state level authorities to improve and smooth the performance and to develop the future activities of the sector at large.

2.2.4.4 Strategies The first phase of the 5 year plan (2003 – 2007) has set the general and specific objectives as an interim phase within the substantial national strategy framework, which is extending up to ten years to attain full coverage of a safe water supply for both rural and urban populations as the following:

• To bridge the gap between the present supply situation and the actual demand for urban population on a household connection supply to attain an average consumption of 50 – 90 litres per capita/day.

• To provide adequate safe water supply for the rural population from sources close to their dwellings at an affordable cost to attain a consumption rate of 20 litres per capita/day with excess water supply to maintain household vegetable gardens and to raise family animals to improve the nutritional status and to increase income at the village level. Rural water supply sources shall provide sufficient water for the livestock, rain fed agriculture area and gum Arabic belt year round.

• Rehabilitation of the deteriorating water supply sources with emphasis on the replacement of the obsolete and low efficiency systems and the introduction of simple cost technologies, particularly in rural areas, in addition to the establishment of new water supply sources.

• The most needy areas, vulnerable groups and Guinea worm affected areas shall be prioritised in the water supply and supply and sanitation programmes.

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• To encourage the use of the renewable energy technology in remote areas to reduce the cost of transport and the difficult provision of fuel and spare parts.

• Training, capacity building at top and medium management levels and to improve the technical skill of relevant labour to sustain operation and maintenance aspects.

2.2.4.5 First Plan under the LDCs Programme (2003 – 2007): a. Activities of the Rural Water Supply programme

• Construction of 1,500 rural water yards, comprising deep boreholes installed with powered pumping units, elevated tank and within the premises piping networks to tap stands for humans, and water troughs for livestock.

• Rehabilitation of 2,000 rural water yards of the same features as the above yard. • Drilling of 5,000 slim boreholes fitted with community hand pumps. • Rehabilitation of 5,000 hand pumps. • Construction of 75 earth dams across seasonal water courses • Construction of sub-surface reservoirs for harvesting the seasonal runoff. • Rehabilitation of 450 sub-surface reservoirs, “hafirs”. • Construction of 325 slow sand filters for rural communities. • Rehabilitation of 100 slow sand filters.

The overall cost of the programme implementation is US$ 95,375,000. b. Activities of Urban Areas Programme: Description Amount UD$ El Fashir water supply project (WSP), comprising boreholes (BH) at Sag El Niaam basin and transmission line (TL) of 40 km length

25,000,000

Nayala WSP from BH at Baggara basin, 90 km from Nyala 35,000,000 El Gineina WSP 755,000 Port Sudan WSP (treatment plant and TL) 250,000,000 El Gezira WSP 150,000 El Damazin WSP 1,700,000 El Rosieris WSP 1,320,000 Sennar WSP 2,265,000 Singa WSP 755,000 Rabak WSP 566,000 Kosti WSP 1,510,000 Medani WSP 20,000,000 Muglad WSP 1,500,000 Babanusa WSP 1,000,000 Abu Zabad WSP 1,500,000 Total Cost of Urban Programme 341,511,000 2.2.4.6 Achievements: The achieved programmes have added an annual amount of 28,000,000 M3, which will obviously improve the overall access of the domestic water supply particularly in the rural areas. The overall cost of the achieved programmes was equal to US$ 38,524,000. The fund required to implement the remaining programmes of the five-year plan is US$ 398,362,000

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2.2.5 Employment and Sustainable Livelihood The labour force in Northern Sudan has grown from 6 millions to about 8 millions during the period 1990 - 1999. It is estimated now (2002) at 9 millions. The most noticeable features about Sudanese labour force are (a) the young nature of the population joining the labour market, (b) the large increase of female labour participation rates, and (c) its fast growth rate. The labour force continued to grow at a rate of 4 percent exceeding the annual growth rate of the population. Approximately 1.8 million jobs were generated during the period 1990 - 1999. About 90 percent of these employment opportunities emanated from the informal sector due to contraction in both public and private sector. The informal sector absorbs more than 65 percent of the urban labour force. However, with the decking absorptive capacity of this sector the burden is tilted towards the formal sector for generating more employment opportunities. Total number of unemployed people accounted for about one million in 1990 and 1.3 million in 1996, representing about 15% of the labour force, the majority of them in the rural areas. At that rate, the number is estimated to approach 2 million at present. Besides, those in agriculture do not work for more than 90 days/ a year, because of the seasonality of the activity. Inefficiencies also prevail among most of the low wagers and those who occupy jobs that are below their professional experience and qualifications. It is important to note that about 20 percent of higher education graduates are among those unemployed. Since 1996 the employment structure since has been dominated by agriculture (55%), followed by the services sector (10%) while industry, transport and construction sectors absorb 5%, 6% and 3% respectively. Broad agriculture and rural sectors absorb about 77 percent of the labour force, whereas the urban employment structure is highly diversified, with the important professions for males in services (24%) and trade (21%), and for females in different professions (29%). However, the recent discovery of oil and the start of export is expected to boost the construction, service and other production sectors through attracting investments. That together with the high prospects of realizing peace, raises the prospects of increasing demand for both skilled and unskilled labour in the effort of reconstruction and rehabilitation. Shortage of employment opportunities in agriculture, its seasonality, particularly in the rain-fed sector and the low rainfall and its ill-distribution, have contributed to the poor outputs of agriculture in some years and impinged negatively on food security. It has also led to the increase in poverty and it is estimated that extreme poverty has affected about 30 percent of households in the rural areas. With an average family size of 6 members, and the rate of family support as 90%, each employed worker supporting an average of 3 persons, indicating that families are postulated as social guarantors for members of the community. This high economic dependency ration further contributes the increase in poverty and to depress incentives to increase labour productivity. Employment, which is characterised by low workmanship concomitant with wage levels short of meeting basic needs of life, is also rising, particularly in urban areas. Polices of progressive increases in nominal wages have been applied but with rates much lower than the increase in nominal prices. Also the current social programmes designed to alleviate poverty and mitigate social costs of economic adjustment proved insufficient A high level council has been constituted to revise the programmes and policies of poverty alleviation, to prepare and monitor the implementation of the strategic programme for poverty eradication and to mobilise efforts towards this goal.

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The main challenge and risk is that unemployment rate is highest among the young portion of the labour force, estimated at 10% for the age group 25-54 years.

Table 2.9: Unemployment Rates by Age group Age \ Years Economic Contribution Rate % Unemployment Rate % 15 - 24 36 28.4 25 -54 65 10.3 55 -60 61 12.1 65+ 49 11.4 Total 15 and more 52 15.1

2.2.6 Poverty Alleviation and Improving Living Standards: 2.2.6.1 Introduction: During the 1990s, efforts to alleviate poverty were stipulated in the Ten Year Comprehensive National Strategy (CNS). The CNS addressed poverty alleviation explicitly in its objectives, priorities and implementation strategy. Its major targets include the redistribution of wealth the promotion of 'Takaful' (mutual support of impotent members of society) amongst people; promotion of productive employment; doubling the revenues collected through 'Zakat', 'Awqaf' (endowments) and other social support funds by 20 fold and distributing them to the poor. The CNS also called for establishing a body for coordinating the initiatives of government agencies, social support funds, and other agencies dealing with takaful and poverty alleviation. Apart from a number of general commitments to supporting vulnerable groups and the implementation of such objectives as the assessment of the extent of poverty and the establishment of a database, the main specific measures related to special funds and institutions set up to support these groups. Chief among them, are the Zakat funds. The priorities set in the CNS include establishment of a bank for takaful and construction of low-cost housing units. Several agencies charged with implementation at the national level, such as: the Takaful Fund, the National Social Insurance Fund, the Zakat Fund, and the Students Support Fund, among others. Implementation of the programme was scheduled to proceed in three phases and each state is responsible for planning and implementation of similar comprehensive strategies at their level within the duration period of the CNS. The CNS provides for vocational training in rural areas and the creation of new trades, emphasising training programmes for women, youth and the elderly. The CNS also aims at improving the situation of women by mainstreaming their role in Sudanese society, creating new avenues for them to play instrumental roles in the social, economic and political reformation of the country, and providing services to meet their basic needs. A series of targets for poverty reduction were adopted as global targets to be reached around the year 2015 by the various UN backed Global Summits during the 1990s and were reaffirmed in the Millennium summit MDGs in 2000 such as the reduction of the proportion of those in extreme poverty (1990) by 50 percent by 2015, the reduction of infant mortality by one third and child mortality by two thirds of their 1990 levels, universal access primary education and clean water ..etc. During the last two decades Sudan has been experiencing increases in the scale and dept of poverty and despite the poor economic and social indicators available, its negative consequences

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on the quality of life of large segments of the population is quite evident. Limited employment and income generation opportunities, inadequate social services and imbalanced economic and human development and as a result of environmental degradation and/or armed conflicts all contributed to the vicious cycle of poverty. The civil conflict, in particular, has exacerbated the problem through the displacement and dislocation of the population causing loss of productive assets, the slow down or obstruction of investment and development efforts and deepening the state of unbalanced growth and development between the different regions of the country. Although some progress had been realized with regard to closing the UN-defined HDI gap, relative to other LDCs, that progress was slow. Against all composites of the HDI, it appears that the country is facing great difficulty in reducing poverty. After years of progress, the trend seems to be slowing down. Information on the number of people living in poverty are somewhat controversial but most sources indicate that the percentage of population living below the poverty line in Sudan is growing. Indicators of rising poverty include the decline of per capita income from over US$ 500 in the late 1970s to around US$ 290 at present, high infant and under-5 mortality rates of 108 and 170 per 1,000 live births, a maternal mortality rate of 525 per 100,000 births, literacy rate of 47 percent (58% among males and 35% among females), the low rate of access to safe drinking water and a high incidence of infectious disease, including the endemic such as malaria. The causes of poverty and the forces behind its rapid spread result from economic, social and environmental factors combined. The civil strife, related conflicts and natural disasters have exacerbated the problem, by diverting scarce financial and human resources away from development. Moreover, during the 1980s and early 1990s, drought and severe food shortages, precipitated a massive rural-to-urban population migration. Intermittent floods also continue to have a negative impact on food production and supply, intensifying further the dislocation of population communities and provoking labour migration and population movements into different regions of the country. 2.2.6.2 Policies and Strategies to Alleviate poverty To improve standards of living and economic conditions for all Sudanese and to increasee anti- poverty programmes and unemployment programmes, the following has been pursuedby the State since the early 1990s: 1. The eestablishment of a social sector to develop and oversee the resources of social funds and orienting them to support the poor, retirees and students, and the design of programmes to combat poverty and unemployment 2. Introducing nnumerous tax relief programmes to improve living standards and to reduce the negative impacts of the economic reform policies and aid the laid-offs, and to stimulate production and mobilize additional resources, other than the State's. 3. Completing the Poverty Alleviation Strategy Programme. 4. Designing policies that would support and strengthen NGOs in recognition of the vital role played by many national and international NGOs in supporting the needy and the vulnerable. Several NGOs have taken the lead particularly in supporting IDPs, women and the urban poor through IGA and small credit programmes and/or provision of essential social services. 5. Implementing Emergency Programmes such as the productive families programme, water supply and primary health care support. 6. Supporting a policy of the Strategic Grain Reserve to ensure the stability of prices and food security.

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7. Systematic wage increases. In 2002 wages were raised by 10% in 2002, an increase higher than the inflation rate and a new allowance is planned for 2003 to bridge discrepancies in wage scales. 2.2.6.3 Specific Programmes and Institutions: a. Zakat Fund: Through the Islamic Zakat Fund the main objective of the social protection policy is reducing the severity and negative impact of poverty among the weaker segments of society and enhancing self-reliance through the provision of productive assets. Total expenditure by Zakat during 2001 was 4,191 million Sudanese Dinars (approx. US$ 16 million), benefiting 686,838 families all over Sudan. Total Expenditure on social protection by the Zakat Fund (2002) exceeded 14 billion Sudanese Dinars (approx. US$ 54 million), an expenditure rate of 83% of the Zakat collected. Expenditure also included supporting health institutions and covering or contributing to cost of medication for large numbers of the population.

Table 2.10: Zakat collection and Distribution 1998-2002

Year 1998 1999 2000 2001 2002 Total Collection 8738.4 10,682.5 11,909.1 13,460.5 15,791.6 60,572.1 Distribution 7528 8,538.3 11,490.6 12,556.1 13,953.9 54,066.9

b. The National Retirement Fund: The fund has:

a. provided productive assets to 15,000 families headed by retired persons. b. provided direct food support to 19,000 households. c. covered education fees for 685 students from retired persons families. d. provided support for medical treatment of the retired.

c. The Social Insurance Fund: During the year 2001 –2002, about 30,500 came under the social insurance umbrella, with a total expenditure during 2002 of 5,227 million Sudanese Dinars (US$ 20 million). d. Health Insurance: The numbers covered by health insurance have been constantly rising from 1.4% o\f the population in 1995 – 97 to 8.3% in 2002 (Table 2.11).

Table 2.11: Number of People Covered by The Health Insurance Programme 1995-2002

Year No. of pop. covered Coverage % 1995 – 97 413,110 1.4 1998 1,109,376 3.7 1999 1,352,645 4.5 2000 1,713,400 6.4 2001 1,938,559 7.1 2002 2,036,020 8.3

Geographically, coverage also expanded to the Southern Sudan, including Bahr El Ghazal, Southern Equatoria and Western Equatoria States. A total of 751,898 families was covered by health insurance during 2002, spread over 17 of Sudan’s States.

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e. The Savings and Social Development Bank: Established in 1995, the Bank is one of the main mechanisms for poverty alleviation at the national and local levels. This bank provides credit to small producers and poor households utilising simplified lending procedures to promote income generating activities. f. Other Social Development Programmes f.1 Graduate Employment Programme In the efforts of poverty reduction, a programme for the productive employment of graduates has been designed, with total cost of US$ 39 millions, to employ graduates in the four states of Blue Nile, White Nile, Western Kordofan an Gezira. The programme is funded by Sudatel, a national private company. f.2 The Productive Families Programme In 2002, some 9,272 families received credit and 29,342 received productive assets, with a total cost of 819 million Sudanese Dinars (US$ 3.15 millions), spread over 12 states. f.3 Social Dialogue Programme In line with then growing recognition by the state of the role civil society organizations, and in coordination with concerned ministries, the Ministry of Social Welfare started a programme package to improve the programme of and maximise the utilisation of capacity of CSOs including:

a. Legislative reform to develop and unfold the capacities of CSOs. b. Starting a broad discussion between all concerned to develop a strategy for social

dialogue as an alternative to conflict and a mechanism for problem solving. c. The encouragement of NGO’s networks to enhance their role in realizing national unity

and social integration. A law legalizing the establishment of networks has been issued and a few networks have emerged.

2.2.7. Women Development: 2.2.7.1 Women Ema. The 1998 NationSudanese to be equawhich ensures wome

Box 4: Sudanese Women Profile Indicator Status Women % of Population 48.12% Women basic education rate 45.3% (1999) Women in the labour force 27.3% (1993) Women in the workforce 07.8% Women labour force in agriculture 79.2% Women in the irrigated agricultural sector 49.0% Women in the rain-fed agricultural sector 57.0% Women in the civil service 10.0% Women in industry 06.7% Women headed households 25.0% (1993) Allocated political quota representation 10.0% Women members of Federal Parliament 05.0% (1999) Women members of States' Assemblies 04.3% (1999) Source Kuku & Jamal, 2002

powerment Efforts: al Constitution: Article 12 of the national (1998) constitution accords all ls before the law as regards rights and duties with no discrimination by sex, n’s rights

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b. Country Strategy Note (CSN): UNDP’s its efforts at the country level, initiated dialogue with the government of Sudan resulting in CSN which represent one of the UNDP’s instruments to consolidate and integrate the development assistance to meet the development needs of the country. The sub-group on “Women in Development” identified three priority areas for the inclusion in the CSN, including (a) women participation in social, political and economic aspects of development; (b) women taking part and endorsing regional and global strategies in conformity with national women strategies; and (c) the concern about external assistance of UN agencies, bilateral donors and INGOs. c. National Comprehensive Strategy (NCS) 1991-2002: A major step in the Sudan government effort to promote women status was the adoption of the national comprehensive strategy (NCS) 1992-2002. Women’s needs and interests were specifically stated in a special section with the declared objective of addressing them. The NCS calls for bridging of the gap for women and, accordingly, the following measures were identified as priority issues:

a. Giving absolute priority to women development and the satisfaction of their needs; b. Ensuring the integration of women in development process; c. Consolidating and safeguarding what has so far been achieved in the area of

women rights; and d. Implementation and enacting of legislation promulgated in favour of women and

completion of legislative framework that consolidates women rights e. 15% of the development budget was allocated to Women Programmes.

2.2.7.2 Measures Taken To Empower women: During the last decade, the global emphases on the empowerment of women as a pre-requisite for economic and social development, the lobby and pressures excreted by women groups and other civil society organizations together with the declared commitment made by Sudan government to that objective, have all resulted in a some progress at several levels. That progress was the result of the work performed by several ministries but particularly by the civil society supported by UN agencies and INGOs .The prevailing conscious for supporting women in Sudan has motivated further government and non-government organizations to engage in the process of women empowerment. Though the change is slow, the progress was sizable in view of the obstacles and/or regulations rooted in the traditional ethno-cultural and class structures of society that used to disempower and subjugate women. In the process, several ministries were involved including Ministries of Social Welfare and Development, International Cooperation, Education and Health and several institutions such as Ahfad University for Women, Gezira University, National Population Council ..etc.. The following are the main areas where some progress has been made: 1. In pursuit of strengthening the capacity of national human resources, which is a pre-requisite for women’s empowerment, extensive work has been conducted in the form of developmental programmes, which address health, reproductive health, eradication of FGM, education, poverty alleviation, peace building and promoting women’s rights. 2. At the policy level, the 4th Country Programme (2002-2006) stated clearly as one of its main objectives of creating an enabling environment, that "Advancing gender equity and the empowerment of women, elimination of all kinds of violence against women are corner stones of population and development-related programme" - principle 4, ICPD Programme of Action. 3. Capacity building and training: Different Ministries and civil society organizations and academic institutions, in most cases with the support of some UN agencies and internal NGOs, have conducted some training activities addressing women’s issues, such as: leadership training

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for rural women, workshops on gender mainstreaming, gender analysis, income generating activities and women self-empowerment skills, women’s rights in Sharia'a Law, International Conventions and. workshops on peace building and conflict resolution 4. Advocacy training workshops e.g. on reproductive rights and on the eradication of FGM. These workshops targeted religious leaders, youth groups, health workers, national media personnel. 5. Awareness raising workshops targeting rural and grass root women all over the country. 6. Economic empowerment through provision of income generating activities and credit programmes to poor women and households, which has proven successful in enhancing the soci-economic status and empowerment of women, particularly in the context of displaced women. 7. Policies and Programmes: Since the early 1990s a women development section has been established in most government ministries. Also The efforts by CSOs, NGOs and particularly women groups have contributed to make the concern of addressing women’s issues gradually evident at ministerial levels. Several ministries are trying to device policies that embody the concept of gender equality and gender sensitivity. This particularly evident in the field of health where plans and programmes have been developed including the National Safe Motherhood Programme, which focuses on reproductive health, eradication of FGM, increased use of Family Planning and Improved Obstetric Care to address the increasing rates of maternal and child Mortality. 8. Research: extensive research was conducted during the last decade on women-specific issues, rights and involvement in the development process. Also a sizable Educational materials was produced, including training packages and text books, particularly by Ahfad University for Women 9. A major women empowerment programme was launched in 2002 with a total budget of about US$ 54,000 funded jointly by UNFPA (87%) and Sudan Government (13%) to be implemented under the General Directorate for Women (GDW) at the Ministry of Welfare and Social Development, in collaboration with relevant institutions. The programme duration is 5 years (2002-2006) and its main objectives are

a. Strengthening the General Directorate for Women (GDW) and its units at the States' level; b. Preparation of a National gender policy and Plan of Action; c. Capacity Building for focal points in five ministries on Gender mainstreaming at federal and State levels; and d. Establishing an efficient monitoring system to ensure gender mainstreaming in selected ministries.

Programme components the include:

1. A policy oriented survey 2. Training federal and state levels 3. Fellowships on gender and development 4. Workshops to develop gender empowerment indicators 5. Advocacy seminars at federal and state levels 6. National workshops on CEDAW, presentation of research findings, gender sensitive data,

Preparation for Beijin+10 7. Participation in regional and international workshops on women issues; and 8. Publication

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10. In June 2003 the Minister of Welfare and Social Development issued a Ministerial decree, forming a National Committee for the Promotion of Women. membership of the committee include representatives of all concerned ministries and departments, civil society organizations, research institutions, journalists and the members of the National Assembly. The main responsibilities of the committee are

1. proposing general policies, programme and legislations that would promote women and the family

2. Working to realize the empowerment of women and their integration to consolidate the social fabric

3. Monitoring and evaluation of what has been achieved with regard to progress 4. Formation of specialized committees to address issues of concern to women

2.2.7.3 Women in Decision Making Processes: As a national priority the participation of women in decision making at the national, state and local levels viz-à-viz was pursued in the form of legislative and administrative measures in order to influence policies and political decisions that would promote the status of women. At present the percentages of women in parliament is 10% representation in local and popular committees, 5% in the State councils of the northern States, 11% in Khartoum State and 8% in the assemblies of the southern States.

a. The percentage of researchers included in the roster from the total sample population was 32.5% males and 9.2% females.

b. Among academicians females constitute 12.5% as opposed to 87.5% males. c. Women represent only 6.5% of independent consultants and NGO practitioners d. In the national CCD roster only 19.2% are females’ versus 80.8% males, indicating

also the discipline and gender gaps. 2.2.7.4 Achievements and Impediment: a. National Policies and Developments Affecting Women: 1. Development Policies in the Country: The period 1990 - 2000 was characterized by the acute economic crisis reflected in declining per capita income, welfare shortage, inflation pressure and increasing unemployment. The situation was further complicated by the rapid implementation of SAPs in the early 1990s, which led to intensive rural urban migration. 2. Conflict and Instability: Armed conflicts and particularly the civil war in the south continued to drain the scarce national resources, and halted development efforts particularly in the southern region. These increased the burden on women, raised considerably the ratio of female-headed households and rooted many women from their home areas (IDPs). The number of women headed-households is estimated to be 26% of the general population and 59% of the total IDP households. 3. Poverty: Sudan is considered to be one of the poorest countries in the world. It ranks among the 25 poorest countries. The statistics on the number of people living below the poverty line vary greatly between various sources. Several studies have confirmed that women, particularly rural women, are among the segments of population are more susceptible to poverty than others In fact, that led to the recognition that gender equality is one of the factors of specific importance for poverty eradication. Some efforts have been made to integrate a gender perspective into poverty alleviation programmes. One major step by the Government to incorporate a gender perspective in the national polices was the

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National Plan for the Advancement of Women (1998-2002), Micro Credit and other financial instruments for women have emerged as example means for economic empowerment, and have widened economic opportunities for some women in particular in rural areas 4. Imbalances in the Labour Market: According to the Ministry of Manpower (MOM), the participation of women in the labour market amounted to 27%, most of them in agriculture in rural areas and the informal sector in towns. In the private sector females are much less than in the public sector. (13% to 8.3% of the total labour force). However, despite the increase in the number of working women in the formal sector, their participation rate in certain professions and positions is still low compared to men, particularly in the leading posts (Table 2.12).

Table 2.12: Women’s Participation Rates in the Public Sector Posts Female % Special top posts 0.0 Top management posts 9.2 Administrative posts 22.3 Administrative supervisors 23.2 Clerical posts 47.2

SourceN. Kuku & A. Jamal, 2002 Unemployment rate is 28% for females, 21.4% in rural areas, much lower than that in urban areas (37.3%). Such conditions of unemployment and the poor professional skills explain the tendency for self-employment among women particularly in the informal sector that absorbs about 49% of the working women who are estimate to constitute over 80% of the labour force in the sector. 2.2.7.5 Women Efforts in the Peace Building Process: Sudanese women NGOs exerted a lot of effort to advocate the culture of peace and lobby for peace building at national, regional and international levels. In addition to the workshops, training and awareness raising at grassroots level, during the last three years Sudanese women from North and South, from within the country and the SPLA areas have crossed the political lines and made several joint declaration calling for peace. The above account of activities in support of women empowerment in Sudan, indicate that much is being done to respond to women's needs and rights .Yet still much more are needed to enhance women capacities and realize their empowerment, including:

1. Introducing strategic planning for realizing women’s’ rights. 2. Increase women representation in power and decision making levels, possibly through

adopting positive discrimination policies and affirmative actions 3. Strengthening women units in different ministries as most of them are still weak in

technical capacity and poor in resources and decision making powers 4. Strengthen networking and partnership between concerned ministries and civil society

organizations for promoting the cause of women 5. Strengthen the role of media in supporting women’s rights and publicising women’s

efforts in development, their achievements and the challenges they face. 2.3. Environment and Sustainable Development 2.3.1 Major Environmental Problems:

1. Desertification and deforestation 2. Deterioration of biodiversity (Plant species and wildlife) 3. Deterioration of urban environment and pollution

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4. Adverse environmental impact of armed conflict 5. Drop is soil fertility 6. Seasonality of rains and floods 7. The accumulation of silt and clay behind irrigation dams and silting of irrigation canals. 8. Aquatic weeds, especially water hyacinth and their negative impact on the efficiency of

irrigation pump schemes located on the White Nile. 9. The loss of about 40 billion m3 of water annually as a result of evaporation ion at the

Sudd area, the swamps of Bahr El Zeraf and River Sobat. 2.3.2 Environmental Achievements and Ongoing Efforts: The 1990s witnessed some important accomplishments in the area of environment, including 1. In line with Rio Summit (1992) declaration and conventions, Sudan initiated several institutions to oversee the implementation of environmental commitments These included the formation, for the first time, of the Ministry of Environment, the High Council for Environment and Natural Resources (HCENR), together with ten environmental councils at the state level were established, the National Drought and the Destertification Control Unit (NDDCU). 3. The Sudan has signed and ratified several protocols and conventions in the field of environment including the Convention of Biodiversity, the Convention for Combating Desertification, and the Framework agreement on Climate Change and Ozone Depletion. 4. The country initiated a national strategy as well as various sectoral strategies, programmes and action plans including the National Comprehensive Strategy (NCS) (1992-2002), Poverty Eradication Strategy (2000), Capacity 21 Programme (Sudan), the National Bio-diversity Strategy, the National Action Plan (NAP) to Combat Desertification (1998), Capacity Building for the UN Framework Convention on Climate Change, Sudan’s National Water Policy (1999), the Forest Outlook, and the National Population policy (draft). 5. Increased awareness of environmental education and emergence of several environmental research and education institutions, including collages and faculties for environmental studies established in a number of government and private universities, the Centre for Desertification Studies (University of Khartoum) ..etc.. At present four GEF-supported programmes are being implemented under the High Council for Environment and Natural Resources (HCENR). These are; 1. Climate Change Prorgramme: Activities include:

a. In collaboration with Boston university and Stockholm environmental Institute, the project is currently conducting a research on environmental strategies to increase human resilience to climate change in Sudan, implemented in collaboration with a number of NGOs. b. Completed a proposal for Preparations of the National Adaptation Plan of Action and the proposal has been submitted to GEF, through UNDP for funding. c. Produced a publication on Sudan’s First National Communication on Climate Change Report. This will be submitted to the Conference of Parties to the Climate Change Conventions.

2. Dinder National Park Project (DNPP): The Project is sponsored by the GEF and UNDP and implemented by the Higher Council for Environment and National Resources (HCENR) in collaboration with the Wildlife Resources and Environment Conservation Centre General

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Administration (WECGA). The project total budget is around US$ 1,250,000 and duration, 3 years to end in December 2003. The project goals are conservation of biodiversity and sustainable utilization of the biodiversity through the integration of the local communities in areas surrounding the Dinder National Park in the park's management and conservation. The project succeeded in raising awareness about the park and its conservation, and in promotion of environment of good will and mutual benefits between the park and surrounding community. The park’s staff infrastructure were improved through building permanent camps, improvement of working conditions, training and capacity building in general ecological base-line data, so reports are completed and hence a draft of the management plan for the park is developed through contributions of all the park’s stakeholders. The management plan for Dinder National Park will be a model to facilitate for the other 25 protected areas in the Sudan. The community programme established basic socio-economic surveys and followed the intensive awareness programmes by establishment of around 20 Village Development Committees (VDC). Capacity building of communities is approached through training a number of VDCs and sponsoring community projects, such as, introduction of gas stoves, bee keeping, community forestry, improvement of traditional agricultural practices and running a revolving fund to support community projects. The management plan of DNPP is following bio-sphere models and zonation is proposed to accommodate sustainable utilization of the parks natural resources in the ‘transitional zone’. Furthermore, DNPP is working with the 3 states surrounding the park; Sennar, Gedarif and the Blue Nile, to adopt a land use plan in areas around the park that will reduce conflicts and trespassing into the park by the neighbouring communities. The management plan of DNPP includes a 5-year Action Plan, which will be used as a fund raising tool. The DNPP will end in December 2003, to be followed by a consolidation phase, which will include emphasis on training, sustainability of successful models, community programmes and development of pilot models in the transitional zone of the park. 3. Sustainable Development: The Higher Council for Environment and Natural Resources in collaboration with the UN Sustainable Development Commission and the National Council for Strategic Planning convened a workshop in February 2003 to explore the ways and means of making sustainable development concepts as an inherent part of the Sudan’s 25-year Strategic Plan. 4. Biodiversity Project: The project is in its second phase under the title ‘Assessment of the Capacity Needs of the Country, Specific Priorities in Biodiversity Management and Conservation Project in Sudan” with a total budget of US$ 100,000, funded by GEF. The first phase ended in 2000 and has developed a National Biodiversity Strategy and Action Plan (NBSAP). The budget for proposed projects in the action plan is US$ 120 million. Second phase has started in January 2003. the working groups have been formulated and work is started in May 2003. 5. Bio-Safety Project: The agreement has just been signed and the project is effectively starting July 2003.

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6. Other Achievements: • 2000 Sudan Joined POPS Agreement • In March 2000, a framework legislation for environmental protection, was enacted,

containing general provisions for the protection of the environment and the achievement of sustainable development through the inclusion of environmental dimensions in the design of all development and investment projects as a basis for approving them

• In 2001 the framework legislation was developed into a full-fledged legislation "The Environmental Law" that was passed by the National Assembly and signed by the President in.

• 2003 Sudan joined the Bazel Convention 2.3.3 Limitations and Constraints: Although Sudan has put in place institutions, strategies, policies and programmes in its endeavor to achieve sustainable development, these initiatives face a number of challenges and constraints that need to be dealt with if the objectives of sustainable development are to be realized. These include: 1. Lack of a national strategy for sustainable development: The formulation of the strategy for sustainable development is an important undertaking to:

a. consolidate the gains of the National Comprehensive Strategy and avoid its limitations; b. harmonize the various action plans and strategies and fill gaps left by previous activities and provide coherence to the rather scattered sectoral efforts; c. institutionalize the process of consultation, negotiation and consensus building; d. build capacities to solve complex and inter-related problems; and e. provide a framework for strategic thought.

2. Limited awareness: There is limited awareness about the environment, which transcends to the level of inability to understand all the social, economic and physical interactions and prevents the holistic attack on environmental problems and perpetuates the fragmented sectoral approach. 3. Limited capacity of the Ministry of Environment and Other Key Ministries: This Ministry of Environment has a wide mandate in the fields of environment and is supposed to play a coordinating role and guide the process leading to sustainable development. Yet, its structure and budgetary resources are so limited that they handicap it from playing the roles stated in its mandate. The same applies to the Higher Council for Environment and Natural Resources, which is the technical arm of the Ministry in the field of environment. Equally, most of the technical ministries suffer from the lack of qualified and/or committed cadre as a result of the brain drain or lack of motivation. At the state level, the situation is even worse and even serious, where in addition to the limited technical capacities, there is also the confusion in the respective roles and responsibilities between various state bodies and between the State and Federal institutions. 5. Poor mechanisms for effective participation and Government-Civil Society partnerships: Creation of mechanisms for effecting participation of civil society, private sector and research institutions as well as the creation of the conducive atmosphere is a necessary prerequisite for positive participation. 6. Civil strife and instability. 2.3.4 Challenges: 1. Decentralization of environmental activities:

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As mentioned earlier, the country has a federal structure with 26 States. Lack of clarity in the 1998 constitution’s division of responsibilities on environmental issues has led to conflicts and loss of perspective. As most of the problems have roots in local activities and participation and cooperation of local authorities are important in finding solutions to these problems. In fact, local authorities maintain the environmental infrastructure, implement social and economic development projects, establish local environmental policies and set regulations. They also play a vital role in mobilizing and educating the public to promote sustainable development. Under such circumstances efforts are to be made to create the adequate local organizational structures with capacities and legislative support to guide grassroots environmental activities. Capacity 21 programmes advocate decentralization of environmental and development decision-making. There is recognition that different levels of government and society have different interests. Hence, it is important to shift authority to the appropriate level and to build capacities to effect that authority to and decentralize the sustainable development process. Ten Environmental Councils were established at State levels but only two of them received support to upgrade their institutional capacities. The failure to get political support, in the form of funding and/or structures, represent a major constraint to the process of decentralization. 2. Capacity Building: One of the fundamental prerequisites for the achievement of sustainable development is capacity building. Capacity 21 project tried to build innovative approaches in that area to meet the challenges of environmental degradation, social inequality and economic decline. It tried, through the HCENR, to disseminate the philosophy and approaches of sustainable development through training, learning by doing, institution building and decentralization of environmental activities. These efforts, in view of the weak capacities of key ministries because of their lack of trained manpower, underdeveloped technology, poor coordination, lack of networking and lack of environmental information system, were too little to make an impact. Therefore, concerted efforts are needed to create environmental awareness at all levels to integrate environmental dimension is social and economic planning, encourage popular participation, democratization of environmental action, access to information and, above all, strengthen institutions and reform legal and policy environment. 3. Peace Building and the Rehabilitation of the War Zones: The negative environmental costs of civil strife and conflicts have increased substantially during the last decade with their impacts extending far beyond the conflict zones. All studies have showed that the costs of conflicts in terms of ecological degradation has been too high and is bound to increase as long as the conflicts continue, both at the macro and micro household levels. Peace that is now appearing in the horizon will add the new challenge of rehabilitation of the areas destroyed by war. Rehabilitation here is not only an economic and environmental necessity but also an important mechanism for consolidating and sustaining peace.

46

2.4 Growth Challenges: 2.4.1 Introduction: During the last decade, the Sudan was influenced by political, social and economic events and security problems that occurred within neighbouring countries. The region of the Sahel, also witnesses cycles of climactic fluctuations and natural disasters that expel a great number of refuges and displaced people fleeing to Sudan They constitute destabilizing factors to the very texture of the society and poses security hazards especially at the bordering sates of the country. The Sudan, hosting large numbers of refugees, has honoured its responsibilities and borne that brunt of receiving, accommodating and nurturing a huge number of refugee from neighbouring countries and dispenses sizeable portions of meagre resources – desperately needed for its own people, whereas the international community is therefore called upon to grapple with these developments and provide sufficient, quick and long-term relief to these refugees and displaced people infesting the country. To overcome the constraints ascribed to the large size of the country and to the dispersal of population, huge investments, that are difficult to secure from domestic sources, are needed to rehabilitate and expand infrastructure in the field of road, rail, river and air transport, modern communication, electricity, irrigation, water supply and sanitation, health, education and other infrastructures. Such investments require huge foreign finance, with easy terms, because of their nature and long gestation periods. The delay or failure in realizing such investments force people to leave their homes and migrate to towns where essential services are available and work opportunities are easy to find, especially tertiary activities. The consequence of urban drift is not limited to pressure and rivalry attitude over the meagre essential service deliveries and resources, but most important to the uprooting of population from their original home lands to which development opportunities could be facilitated presumably by the state. Federal rule has been established since 1992 with wide devolution of power and wealth sharing to the then, newly formed 26 States. Ordained by political, social and economic conditions of the country and aspirations of its people, the Federal System in its inception has constituted a heavy burden on the central budget. While some states are now becoming self-reliant, others continue to depend on financial provisions from the central budget. These provisions are required for development projects, services delivery, poverty alleviation and the provision of requirements in social and economic development. The private sector that started to develop rapidly after the Second World War and continued to thrive through the 1950s and 1960s, was strongly weakened by in the 1970s by the coercive actions of nationalization and confiscation which led the contraction in its productive activities, its loss of confidence and to the capital out flows. But, it regained some confidence in the late 1970s, with increased quantitative and qualitative activities but its productive activities regressed sharply due to further perpetual distortions, controls and bottlenecks during the 1980s. The economic liberalization policies and privatization programmes, adopted in the early 1990s, have opened the door wide for the private sector to resurge and play a leading role in the process of development. But its response to these policies was not to the expectations. It still suffers from structural weaknesses and needs to be assisted make use of the new policies and play the role expected from it, particularly with the developments that are taking place in international trade liberalization and the quest of Sudan to accede to the WTO, which makes the private sector in need of developing its investment, managerial, technical and marketing capacities. The private sector capacity to invest will be greatly enhanced in the context of cooperation with foreign

47

partners soliciting joint-venture investments. The government, therefore, endeavours to foster the development of private business through contemplating the participation of private sector institutions in the preparation and design of policies and programmes in addition to facilitating joint contacts with foreign counter-parts. The export sector is one of the most important sectors targeted by the liberalisation policies. This is because appreciably sustained increase in export earnings is purported to reinforce the country’s capacity to attain sustainable growth and improve the economic environment, and spur savings and investment. To grapple with export-orientation the government had directed a package of policies, measures and arrangements, aimed at providing incentives to promote exports and encourage economic operators to increase production, and improve the quality and competitive position of exportable commodities. Yet, what was actually achieved was far less than expectations, for reasons related to the nature of these exports and to the ability of producers and exports to improve the competitive positions for most export commodities. Moreover, unfavourable terms of trade and the declared and undeclared trade boycott from the main trading partners, have contributed to lowering exports performance through to the nineties.

2.4.2 National Econom a. Inflation: Averageincrease is attributable m

T Jan Feb 2001 3.8 3 2002 9.8 10.6

Source Central Bea b. Money Supply: Tot2001. (Table 2.14)

Money

M2 MoneyPublic

Source: Ba c. National Currency currency and in order indicative pricing was i

Box 6: Key Economic Ratios (2001) GDP US$ billion 12.5 Gross Domestic investment/GDP 17.7 Export of goods and services/GDP 13.5 Gross Domestic Savings/GDP 13.9 Gross National savings/GDP 6.7 Current account Balance -10.6 Total debt/GDP 122.5Total debt service/exports 3.3

ic Performance:

inflation rate was 8.4% during 2002, compared to 4.8 in 2001. The ainly to the increase in money supply. (Table 2.13)

able 2. 13: Inflation Rate 2001 and 2002

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Av. 1.1 2.2 6.9 7.8 6.5 6.5 3.9 5.4 3.6 7.4 4.8

9.6 9.4 5.8 6.4 3.5 6.8 10.2 10.5 9.8 8.4 8.4 reau of Statistics

al capital stock increased by 30.3% in 2002 compared to 22.5% rise in

Table 2.14: Money Supply in US$ Million (2001-2002) 2001 2002 Change Change %

Supply 432.213 563.267 131.054 30.32

271.387 352.263 80.876 29.8 in circulation 153.836 193.582 39.746 25.8 bonds 117.551 158.681 41.130 35.0

160.826 211.004 50.178 31.2 nk of Sudan

Prices: Within the free market policy adopted with regard to foreign to develop it and maintain stability in currency prices, a system of

ntroduced in 2002 by the Bank of Sudan. The price is given daily to the

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banks to take into account in determining their daily exchange prices, under the supervision of the Bank of Sudan. This contributed to a noticeable price stability during 2002. Average price of the Sudanese Dinar against the US dollar during 2002 was 263.3 compared to 257.4 in 2001 (Table 2.15)

Table 2.15: Exchange Rate to the US$ Dollar 2001 and 2002

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Av. 2001 257.0 257.3 257.5 257.3 257 257.4 257.4 257.1 258.3 259.3 257.2 261.42 257.4 2002 261.4 261.7 261.5 262.5 263 263.4 264.4 264.7 264.9 264.91 264.4 262.45 263.3

Source Bank of Sudan d. Trade Balance: The economy continued to register a negative trade balance in 2001 and 2002 amounting to US$ 602.2 and 497.3 Million respectively. The increase in the deficit was a result of the rise in imports from US$ 2,300.9 million in 2001 to 2,446,4 million in 2002, a rise of 6.3%. This despite the increase in exports in 2002 to 1,949.1 recording a rise of 14.7% over the previous year. (Table 2.16)

Table 2.16: Trade Balance 2001 and 2002

Year 2001 2002 Total 1.698.7 1.949.1 Oil exports 1.376.6 1.510.9 Non-oil exports 322.1 438.2

Export Value

Annual Change -60% 14.7% Total -2.300.9 -2.446.4 Import Value Annual Change 48.2% 6.3%

Trade Balance -602.2 -497.3 2.4.3 Performance of the Main Productive Sectors: 2.4.3.1 Overall Composition of the GDP: In 2002, agricultural sector maintained the lead contributing 46.4% of GDP, followed by the Service sector (30.9%), while the industrial sector contributed 22.7%, thanks to the expansion in mining and oil production. a. Agriculture: The Agricultural sector maintained its leading position in the economy, contributing 46.4% to the GDP for the year 2002, compared to 45.6% for 2001, with a growth rate of 7.6% compared to 4.7% for the years 2000 and 2001. This rate is attributable to the improvement in the rain-fed sectors that grew 14.6% for the mechanized sector ands 23.8% for the traditional sector. The irrigated sector growth rate declined to 1.4% compared 12.3% in the previous year. Animal resources and forestry recorded their highest contribution to the GDP ever. (Table 2.17) The agricultural sector was distinguished in 2001/2002 due to the good rainy season and limited agricultural pests that negatively affected previous seasons. Food crops produced increased from 3274 thousand tons in the 2001 season to 5,292 thousand tons in the 2001/2002 season (+61.6 %), mainly in the rain-fed sector.

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Table 2.17: Contribution of the Agricultural Sub-sectors to GDP and Growth Rates (2001-2002)

Sector Growth Rate % Contribution to GDP 2001 2002 2001 2002 Total Agricultural sector 4.7 7.6 45.6 46.4 Irrigated 12.3 1.4 13.4 12.9 Mechanized Rain-fed 5.4 14.6 1.1 1.2 Traditional Rain-fed 12.0 23.8 6.3 7.3 Livestock 6.0 7.0 21.7 21.9 Forestry 5.0 4.0 3.1 3.1

Durra production increased by 80% form 2,488 thousand tons to 4,470 thousand tons primarily due to the increased areas brought under cultivation and the good rains. The area under remained the same with a drop in production from 303 to 274 thousand tons i.e. productivity per feddan dropped to 900 kg. The area under Millet increased from 5,237 to 6,800 feddans, total production increased to 578 but productivity per feddan declined. There was a slight drop in areas under sesame, groundnuts and cotton causing a drop in the production of these crops.

Table 2.18: Area and Productivity of Grains

Areas (1000 feddans) Production (Thousand tons) Year 2001 2002 2001 2002

Dura 9981 13672 2488 4470 Wheat 279 275 303 274 Millet 5237 6800 483 578 Fopod grains 15497 20747 3274 5295 Grain Surplus/deficit - 1253 386 Ground nuts 3482 3646 947 990 Sesame 4477 3780 282 274 Oil seeds 7959 7426 1229 1264

The livestock sector contributed 21% to GDP with an annual growth rate of 7%. The total number of the national stock (2002) is about 130 million heads, showing a 3% increase over the previous year (Table 2.19). With the increase in the stock size, animal products have also risen.

Table 2.19: Animal Stock by Tyupe 2001-2002 Year 2001 2002 % Increase Cattle 37709 38902 3 Sheep 46568 47589 2 Goats 39520 40719 3 Camels 3155 3273 4 Total (heads) 126952 130483 3

b. Transport: During 2002, the four sub-sectors; Sea transports, the ports, Railways and Air transport generally registered high performance records that in some cases exceeded the targets set for the year. As shown in Table (2.20), performance was much better in export than import and the weakest was the sea transport, which has sharply regressed.

Table 2.20: Transport Sub-Sectors Performance 2002 Compared to 2001 Sub-sector Exports Imports Total Tonnage Passengers Port Sudan Port + 6.5 +10.0 - - Osman Digna Port +58.5 - 8.1 - - 20.7 Railway +34.0 + 12.0 + 6.0 - 16.0 Sea transport +126.0 -56 -10 - 47.0 Air - - +31.0 + 3.0

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c. The Oil sector: A great improvement occurred in the sector’s performance in 2002 as a result of increased in export as well as the crude used locally. Performance was 115% of the pre-set target, with a total value of 200.6 billion Sudanese Dinars, compared to 149.7 billion in the previous year. A total of 60.2 barrels was exported, shared 51.3 millions to the exploring companies and 10.9 million barrels to the Sudan government, compared to a share of 7.8 million in 2001. The total revenue from local sales during 2002 was 126 billion Sudanese Dinars, compared to 86.1 billion in 2001. Revenues from local refineries was SD 110.5 billion, shared between the refineries of Khartoum (85%), El Obeid (14%) and Port Sudan (1%). In 2002 oil contributed 42.5% of national revenue compared to 40% in 2001. (Table 2.21)

Table 2.21: Performance of the Oil sector 2001-2002 Year 2001 2002 Target 153.2 174.0 Actual evenue 149.7 200.6 Performance % 98% 115.3% Contribution to total revenues 40% 42.5%

2.4.3.2 Revenues and Public Expenditures (2002): National revenue was SD 254.6 billion, achieving 111.6% of target in 2002, with a growth rate of 46.9% of the previous year and contributed 52% of total revenues. Public expenditure includes current and development expenditures and amounted to SD 517.9 billion in 2002, with a performance rate of 86.6% of allocations compared to 2.4% for 2001. The general expenditures grew by 21.5% over 2001, and the actual expenditures in 2002 about 15.2% from GDP compared to 12.6% for 2001 (Table 2.22).

Table 2.22: Public expenditure (Actual) 2002 Alloc-

ation Actual Expen.

Actual as % of Allocation

Actual as % of Total Expen.

Chapter 1 Salaries & wages 170.9 164.9 96.5 31.8 Chapter 2 Admin. Costs & social support 231.3 179.3 77.5 34.6 Chapter 3 States’ support 36,7 32,9 89,6 6,4 Chapter 4 Development Budget & investment 159,1 140,8 88,5 27,2 Total expenditure 598 517,8 86,6 100

In line with the general policy of self-reliance, 96% of public expenditure was financed from local resources, 2.5% deficit finance and 1.6 foreign loans and grants. (Table 2.23)

Table 2.23: Sources of Public Expenditure Budget

Sources 2001 2002 Local revenues 96.3% 95.9 Loans & Grants 1.3% 1.6 Deficit finance 2.4% 2.5% Total 100% 100%

2.4.4 Major Obstacles to Growth: 2.4.4.1 Foreign Debt: Historically, the Sudan was considered one of the states, which managed to achieve a high degree of cooperation with international, regional and bilateral financing institutions. Substantial

51

sums of loans and grants were obtained during the 1970s and 1980s and sizable amounts of commodity aid were secured. The local counterpart funds of commodity aid formed an important source of finance for the current budget and the development expenditure for many vital development projects. Yet, the problems of mismanagement, lack of political and policy stability and often the misuse of funds, coupled with the adverse environmental conditions during the 1980s have, on the other hand, pre-emptied all the efforts aiming at realizing economic growth and development and, on the other, caused the accumulation of debt as a result of debt repayment and servicing failures, which in turn led to the diminishing in the inflow of foreign credit and loans. The economic reform programme that started in the early 1990s (liberalization & privatization) succeeded in realizing significant and systematic increases in the GDP leading, towards the end of 1990s, to the stabilization of the currency prices and inflation control and creating an environment conducive to attract FDI. The success of that program was reorganized by the international financial institutions including the World bank and that was positively reflected in the Sudan regaining its membership with the Bank and being eligible to benefit from the Right Accumulation Programme (RAP). Sudan implemented its economic reform programme within an unconducive international environment under a trade embargo and an economic blockade and an almost total halting of credit and grants. Thus, Sudan was probably the only LDC country that strictly implemented SAPs without any external assistance. The contraction of the aid flows during the 1990s to unprecedented levels from some of the traditional sources has prevented or deterred the completion of some major development projects. The government had to proceed with the implementation of some of those projects, depending on its own limited resources, and turned to solicit semi-commercial loans to maintain the momentum of progress in its economic reform programmes. This move has contributed to the increasing volume of foreign debt. Sudan current debt stock stands at US$ 20.145 billions, composed as follows: International financial institutions (21%), bilateral donors (63%), commercial banks (13%) and foreign suppliers (3%). The status of repayment is shown in table 2.24.

Table 2.24: Sudan Foreign Debt by Source and repayment status Lenders Total

Debt Repayments Due

Debt as % of Repayment

International & regional Institutions 4,302 2,395 13% Bilateral donors* 13,082 12,529 69% Commercial Banks 2,614 2,614 14% Foreign suppliers 700 700 4% Total 20,698 18,238 100%

*Note: Paris Club Countries 48%, Non- Paris Club Countries 52% Accumulated debt arrears represent about 88.1% of the total foreign debt. Total foreign debt amounts to 174% of the GDP (1990-2000) and about 2021% of the Sudan export value during the same period1. The country is regarded as one of the heavily indebted among LDCs. Debt service obligations have, since a long time, surpassed what is known as ‘the critical limit’. The debt was compounded by recapitalization of arrears on the contractual interest and penalties on delayed payments which increased the stock by about 48%. The failure to honour debt servicing obligations towards some international and regional organizations led to the seizure of new loans

1 According to the World Bank,the current total debt size represent 122.5% of GDP and 781.5% of export value, while current debt service paid constitute 3.3% of total export value. (World Bank, 2002)

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on the part of these foreign financiers. All this indicate that foreign debt represent a major obstacle to any economic growth or development effort and urgently needs to be addressed. Yet despite the adverse circumstances of the 1990s, the country managed to honour some critical debt servicing obligations to the extent that it became a negative recipient of foreign aid. The international community had eventually conceded to then dangers of debt overhang, its adverse impact on poverty, growth, investment human capital, economic and social infrastructure and macro-economic environment. The absence of ODA and shortage of FDI for investment in the productive sector, also contributed to the outflow of capital and savings (in the form of imports) at a far greater rate than the inflow generated from exports. Since 2000 the economy started to register a positive balance mainly as a result of oil export (Fig. 3). The net result was the continued negative balance of GDP account although the year 2001 witnessed a reduction in that deficit by about 43% of its level in the previous year (Fig. 4). Sudan did not benefit from the HIPC initiative for the conditionalities attached to it, as well as the political position of some industrial countries towards Sudan. That position also, among other things, denied Sudan the benefits of the Lome' STABEX programme and the EIJ development aid, a loss of 367.9 Million Euro in frozen aid. During the last few years Sudan exerted great efforts to improve its relation with the IMF and in a more recent positive development Fund provided some technical assistance to Sudan in the field of tax reform and GFS to improve the accounting and monitoring system in government finance. Amore important step was the Fund's rescheduling program for Sudan IMF and other debts, starting 2002 to 2006 as a part of the process of joining the HIPC initiatives. A prerequisite for that is the continued commitment on the part of Sudan to honor the scheduled repayments of its debt to the Fund and the continued commitment to the agreed economic and financial policies to preserve the good track record. Secondly to join Rights Accumulation Program (RAP), extensive political and diplomatic efforts with USA and EU countries, need to be exerted to enable Sudan to receive, through bridge financing, resources, which could amount to US$ 1.6 billion and through which arrears are converted into current debt. The entry of Sudan into the RAP programme is essential for:

a. Improving Sudan relations with the IMF b. Securing flow of Aid and soft loans for rreconstruction and rehabilitation, particularly with the envisaged close end of the civil war c. Qualifying Sudan to rejoin the Paris Club to convert accumulated debt into current and to benefit from the entitlement emanating from the Lome Convention agreements. d. Joining the HIPC initiative with the prospects of cancellation of up to 80% of debts, and e. Opening the way to take advantage of the several UN agencies' initiatives such as the AIDS and Malaria prevention programmes.

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0200400600800

100012001400160018002000

1995 1996 1997 1998 1999 2000 2001

Fig. 3: Sudan Export and Import Levels (US$ million)

Export Import

Source: World Bank, Sudan at a Glance, 2000

-25

-20

-15

-10

-5

0

%

1995 1996 1997 1998 1999 2000 2001

Fig. 4: Sudan Current Account Balance

Source: World Bank, Sudan at a Glance, 2002 2.4.4.2 Official Development Aid (ODA): Foreign aid with easy terms is an important source of financing development and of bridging both foreign and domestic resource gaps. Sudan’s experience with foreign aid started since the fifties and has been one of the main African recipient countries of financial aid made possible from bilateral, regional and multi-lateral sources during the earlier international finance booms of the seventies and mid-eighties. The annual average resources the country received amount to US$ 534 million, with official assistance constituting an important part of this assistance during this period. These resources were used in various fields of investment. The level of aid had attenuated in the 1990s with a total assistance of not more than US$ 707 million received by the Sudan over the 10-year period, including humanitarian aid. Both financial and commodity aid had virtually stopped due to sanctions with the exception of humanitarian assistance.

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2.4.4.3 Foreign Direct Investment (FDI) Flow While the 1990s witnessed a marked fall in ODA and FDI flows, the last two years showed a sizable increase in private capital flows into the country. It is also important to note that most of the FDI inflow originated from the South Liberalization of controlled economies is becoming an increasingly important driving force for attraction of foreign direct investment (FDI). Major steps have been taken within the framework of the National Comprehensive Strategy (1992 – 2002) programmes implementation with respect to encourage FDI flows. This is because FDI is supposed to facilitate the transfer of desperately needed financial, managerial, organizational, technological and marketing opportunities that could effectively contribute to widening the economic base, satisfying the local market needs, promoting exports and raising economic growth rates. The programmes have managed in the last few years to restore economic stability and to create a more conducive environment that gained the confidence of both local and foreign investors. These include the elimination of adverse factors inhibiting FDI and domestic resource mobilization through the maintenance of conducive macro-economic policies, continuation of execution of privatization programme, liberalization of markets, trade and payments regimes, revision of the legal and regulatory framework which include sharpening of institutional restructuring, updating the Investment Encouragement Act of 1996 to cope with changing international trade and investment and promotion of private investment in infrastructure and power generation. With foreign investors gaining confidence in the economy and enticed by wide scope and choices of investment opportunities their, number during the period 1990 – 1996 had leaped to appreciable levels. The following table depicts the size of foreign capital investment during the 1990s and its sectoral distribution. 2.4.5 Resource Mobilization: 2.4.5.1 Domestic Resources: The basic challenge facing the national economy in the advent of globalization and declining flow of financial aid are those issues related to mobilization of domestic resources, increased savings and provision of the necessary investment to achieve higher rates of sustained economic growth. Among the determinate factors influencing resource mobilisation and saving are economic growth and incomes, fiscal and monetary policies, terms of trade, demographic factors, macro-economic stability, greater utilisation of existing capacities and resources, increased inflows of ODA with efficient allocation and utilisation in addition to technological and physical infrastructure. Low level of savings before 1990 had been influenced by persistent economic structural imbalances, asymmetric policy orientation and the state of relaxation triggered by a plethora of foreign aid inflows during decades of the 1970s and 1980s. A substantial portion of the then aid was expended in financing the current budget, which registered an increased deficit from 2.5% of GDP in 1981/2 to 9.8% in 1989/90. Other sharp imbalances manifested themselves in consumer price index rise from 541% in 1987 to 1509% in 1989 in addition to the low level of savings of 4.2% of GDP during the period 1980-1990.

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2.4.5.2 Measures to Mobilize Resources: To remedy those structural imbalances emanating from domestic resource gaps, a package of macro-economic policies, instruments and measures have been taken within the framework of the reform programmes, including:

1. Reforming the taxation system with the aim of enlarging the tax base and changing the capacity of tax collection.

2. Repealing tax and customs exemptions. 3. Rationalizing public enterprises’ performance and reforming them to cope with the law

that regulates their work and stipulates operation on a proper economic and commercial basis and increase their contribution to the general budget revenues.

4. Revising the services delivery charges to cover the real cost incurred. 5. Reducing public expenditure and direct resources to the productive sectors and essential

services according to programmed priorities and applying strict control system s on expenditure.

6. Realizing national budgets integrity through sanctioning all expenditure outside its purview and removing all inherent distortions and ill-practices resulting from that.

7. Amending the law of financial and accounting procedures to reaffirm the custody of the Ministry of Finance over public funds.

8. Preparing the budget on a realistic and scientific basis and according to specific objectives of the macro-economic model and the accompanying policies, instruments and measures which in turn are aimed at resource mobilisation, reduction of inflation and increased economic growth.

9. The designing and implementation of a medium-term reform programme for the banking sector, covering the period 1999 - 2001. The programme incorporates the establishment of investment portfolios, promotion of the banking systems performance and regaining public confidence. Meanwhile, the Khartoum Stock Exchange commenced operation in 1994, with the number of registered companies progressively increasing as well as the value and volume of stocks and another for investment with regard to the Sudanese Telecommunications Co. Ltd. (Sudatel). It is expected that the Khartoum Stock Exchange would effectively participate in the privatization process in future and in raising the levels of private savings.

10. The initiation of Government Certificates (GMC) and the Central Bank Certificates (CMC), in 1998 improvise a success. These innovative instruments constitute additional, real resources for public expenditure. They are also used as indirect instruments for the management of banking liquidity and for attraction of savings. This experiment registered great success in 1999, through auctions organized by the Sudan Financial Services Co. and the foreign exchange clearing chamber in the Bank of Sudan.

These policies combined have contributed to the reduction of the budget deficit to a sustainable level through increasing revenues and reducing expenditures. Private savings that have been negatively affected by the problems that haunted the monetary sector, during the first half of the 1990s, such as rising inflation rates, deterioration of exchange rates and weaknesses of the banking sector, are expected to benefit from the stability achieved in both exchange rate and prices. Also the expansion in investment will contribute to the improvement of the savings environment, enhancement of private savings opportunities and redirecting resources to the productive sectors. Repealing of economic, administrative, legal distortions and the contraction of tertiary activities are necessary steps for a healthy environment. The government has taken a host of measures and innovative steps to mobilise resources and encourage savings, among the most important:

56

These measures have also attracted FDI flows and these investments have greatly helped in mobilizing productive capacities in the country, especially in the fields of oil explorations and mining. They also assisted in raising the efficiency of transportation. All these developments shall have positive stimulus impact on production and growth in the various sectors. 2.4.6 Challenges to External Sector Improvement 2.4.6.1 Foreign Trade: The exports of Sudan as a developing country are composed of a limited number of primary products, such as, cotton, livestock, seeds, leather, sorghum, etc., whereas its main imports are capital assets and goods such as, transport vehicles and manufactured goods . Table 1 shows that Sudan’s has had a trade deficit since 1990 up to 1999. By 2000 and 2001 Sudan’s trade balance recorded a surplus attributable to petroleum export, and by 2002 the net export value had reached US$ 1.05 billion. A deficit was recorded again in 2002 caused by the drop in oil production, the international prices and the severe competition from other producers and the halting of livestock export by some importer trade partners. Export revenues represent the major foreign exchange earner for Sudan and the source of financing imports and requisite material for growth.

Table 2.25: Sudan’s Trade Balance, 1990 – 2002 (US$ millions) Year Exports Imports Trade balance 1990 374 618.5 244.5 1991 305 890.3 585.3 1992 319.3 820.9 501.6 1993 417.3 944.9 527.6 1994 524 1,161.5 637.5 1995 555.7 1,184.5 628,8 1996 620.3 1,504.4 884.1 1997 594.2 1,579.7 985.5 1998 595.7 1,924.6 1,329 1999 780.1 1,414.9 634.8 2000 1,806.7 1,552.7 254 2001 1,698 1,585.5 112.5 2002 1,949.1 2,446.4 497.3

Source: Bank of Sudan 2.4.6.2 External Trade Reform Policy: Since February 1992 the state launched a reform and free market policy, as laid out in the National Economic Programmes for 1990 –1993 and 1992 – 2002. The programmes aimed at encouraging economic and commercial activities by freeing prices and removing administrative restrictions on import and export. The reform programme included the following:

• Removing and lowering taxes on exports. • Orienting finance (credit) policy to support the export sector. • Simplifying export and import procedures and abolishing licenses on exports and imports • Opening of new markets. • Development of the export sector in industrial goods. • Paying more attention to quality control • Customs reform policy and abolishing export duties on various items.

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• Reform of inter-trade relations. 2.4.6.3 Sudan Implementation of the Trade Programme (2000 –2002): 1. In pursuit of marketing activities of Sudanese exports, a law forming the Federal Trade Board was passed by all concerned legislative authorities and a the Federal Trade Board was established with 7 branches at the state level (Red Sea, Gadarif, Kassala, Kordofan and Darfur states). All offices were provided with the equipment and human/ professionals resources that would allow it to perform its tasks. The main tasks in the board’s future plan are:

a- The transformation of export trade from the traditional method and practices into more modern high-tech methods, including e-commerce and the training of businessmen in their use.

b- Initiating and introducing a programme for Sudanese goods into international trade network.

c- Initiating a website for Sudanese agricultural products such as, gum Arabic, cotton, henna and karkadi and some horticultural products and engagement in electronic marketing.

d- Aiding small and medium-size businesses and marketing their products. 2. Establishment of Trade Information Centre: A trade Information Centre has been established, equipped with the necessary electronic equipment and has been linked to the States to collect updated information on markets, goods, prices as well as problems in those states. The centre is working on supplying the Sudanese business community with information on the national and international markets, prices, export and import procedures and all information that could help them access the foreign markets. The main objectives of Sudan 2001-2010 Programme to improve export performance is to achieve a US$ 2.5 billion export revenues beginning 2004, with an annual growth rate of 20% from 2005 to 2010. This, in addition to the prerequisite of investing in infrastructure and the export sector, is based on the following assumptions:

a- Achieving peace in the country by 2004 to realize full utilization of the country’s huge minerals, agriculture and livestock resources, currently hampered by the war b- Increase oil production and exports and exploration of other mineral resources c- Increase exports of animal resources, agriculture and wildlife products. d- Increased meat and fisheries export. e- Increase of timber export. f- Increased export of manufactured goods

2.4.6.4 Export Sector Performance (1990 – 2002): Table 2 shows the annual value and growth rates of non-petroleum exports during the 1990-2002 period. Exports showed a positive rate of growth of 4.7%, 3.7%, 25.5%, 6% and 11.6% for five successive years, followed by negative rates for the following four out of the five following years to pick up again in 2002 with a 3.2% growth rate. The drop in the second half of the 1990s seems to be, in addition to the international problems mentioned above, caused by the increase in capital imports linked with oil exploration during that period.

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Table 2.26 : Value of Non-Petroleum Exports and % Growth 1990 – 2002 (US$ millions)

Year Value % Growth 1990 374 - 69.6 1991 305 - 18.5 1992 319,341 407 1993 417.3 30.7 1994 524 25.7 1995 555.7 6 1996 620.3 11.6 1997 594.2 - 4.2 1998 595,741 .26 1999 504,173 - 15 2000 455.8 - 9 2001 428.3 - 6 2002 442,153 3.2

Source: Bank of Sudan While petroleum exports showed a huge in its share, the non-petroleum exports showed a systematic decrease in its share of export, reaching 23% in 2002. The drop of in oil share in 2001 was mainly due to the decrease in petroleum products in that year. (Table 3)

Table 2.27: Value of Petroleum and Non-Petroleum Exports and their Shares 1999 – 2002 (US$ millions)

Petroleum Exports Non Petroleum Exports Year Total Value of Exports Value Share Value Share

1999 780,058 275,885 35 % 504,173 65% 2000 1,806,700 1,350,900 75% 455,800 25% 2001 1,698,000 1,269,700 75% 428,300 25% 2002 1,949,115 1,506,962 77% 442,153 23%

Source: Bank of Sudan The main traditional non-petroleum exports include sesame, which on average represented 24% of total export value during the period 2000 – 2002, livestock and meats (15%) and cotton (9.6%) during the same period. 2.4.6.5 Problems of the Export Sector: a. Internal Problems:

1. High production costs and deterioration in productivity and quality, which reduces competitiveness of these goods.

2. High cost of financing (interest). 3. Poor export services, particularly transport, storage and port handling 4. Limited resources earmarked for marketing and advertising. 5. Lack of information on external markets among businessmen and exporters, and a low

level of experience and general knowledge. 6. A lack of stability and peace as a result war and conflicts, leading to decreasing levels of

investment. b. External Problems:

1. Terms of trade: As most of Sudanese export goods primary products and raw materials, their international prices are generally low, while the prices of imported (industrial) goods are high causing trade imbalances.

2. Access to markets: Lack of information on non-tariff and tariff constraints, market procedures and distribution channels, in addition to agricultural subsidies on the part of

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importers, represent major obstacles preventing Sudanese exports from reaching external markets.

3. The rise in the cost of production and the deterioration of productivity and the competitiveness of some commodities.

4. The weakness in promotional activities and the lack of perception and knowledge of some exporters of the techniques and methods of modern marketing.

Export problems will intensify at the advent of globalization, the liberalization of trade and the severe competition in international markets. Concerted efforts need to be nurtured to resolve the problems inhibiting export performance and to enhance its competitiveness and sustained growth. c. External Shocks: The Sudanese economy is exposed to frequent external shocks as a result of its dependence on limited agricultural raw material exports for foreign exchange earnings. Exportable production is highly affected by unstable climactic conditions, fluctuations in price and continues deterioration in international terms of trade. A host of shocks manifested themselves in the 1990s with grave consequences of which:

• The declared and undeclared economic sanctions, which have had a seriously negative impact on some exports.

• Suspension of the flow of foreign loans and aid and the inability to benefit from the international and regional financial compensatory systems.

• Prolongation of the harmful effects of the 1980s drought and floods to the beginning of the 1990s.

• Intensification of the war in the South, fuelled mainly by external as well as internal factors, and the proliferation of armed conflict into the Horn of Africa and neighbouring countries.

• The international economic shocks, particularly the Asian crisis that had direct negative impact on the prices of some primary export commodities of interest to the Sudan.

• The dumping problems resulting from increased import of substitutes of locally manufactured commodities.

• The protectionist policies of the large industrial countries towards export commodities of interest to LDCs.

All these factors combined together have contributed to present a handicap to the unfolding of the country’s economic capacity for growth and to its ability to honour its debt service obligations which has led to the accumulation of arrears, interest and contractual penalties on delayed payments. These successive and continuous shocks, which the Sudanese economy has been exposed to, are considered unprecedented. The international community is required to consider such circumstances, the plight of which triggered the implementation of strong reform programmes, as case of successful economic reforms soliciting prompt international support for its continuity and sustainability. 2.4.7 Improved Regional and International Cooperation: In pursuit of cooperation and integration in the regional and international markets, Sudan is a member in several regional and international groupings and organizations with preferential treatments. These include the Common Market of Eastern and Southern African States (COMESA), the Agreement on Development of Inter-Trade between Arab States (Arab Free Trade Zone), of African-Caribbean-Pacific States (ACP), which is associated with the European

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Union through the Lome Convention (now known as Cotonou New Partnership Agreement), the group of 77 under UNCTAD (GSTP, GSP), the desert and Coast Group and the Framework Agreement of the member States of the Islamic Conference Organization. The country also enjoys the membership of the Arab League Economic and Social Council, the Arab Monetary Fund, the Arab Bank for Economic Development in Africa, the Arab Authority for Agricultural Investment and Development, the Arab Organization for Investment Guarantees, the African Development Bank, the Preferential Trade Area Bank and the Islamic Development Bank and all the financing systems emanating from it. The membership of Sudan in these organizations and institutions provides good opportunities for promoting Sudanese exports and accessing new markets and a means for acquiring goods and technologies necessary for economic development. The practical steps taken within that respect include: 1. Sudan, in compliance with COMESSA agreement, has applied in full as from October 2000, the zero-tariff on all goods, which is expected to enhance Sudanese export. However, the poor transport and communication facilities within the COMESSA countries and the similarities in products still represent a problem. Also acquiring information on the COMESSA countries markets and informing the business community is essential to maximize the benefits from that agreement. 2. With regard to the Arab Free Zone, tariffs were reduced by 10% to be reduced to zero level by 2007. This agreement is particularly important to Sudan as the Arab world is the second largest trade partner to Sudan 3. Sudan benefits from the preferential treatment of the G77’s GSTP is still very limited 4. Sudan benefited from the quota system of Partnership with the EU agreement in exporting sugar and banana to EU countries. 5. The Framework Agreement with the member States of the Islamic Conference Organization and the Desert and the Coast Group agreements are expected to boost Sudan exports to these countries 2.4.7.1 Sudan and the WTO: Sudan is still in the process of preparation for joining the WTO, hoping to benefit from the exemptions given to the LDCs and from the technical support provided to LDCs in the process of joining the organization. 2.4.7.2 Support Needed from the International Community:

1. Capacity building and development of human resources 2. Improving the capacity and efficiency of trade institutions. 3. Rehabilitation of infrastructure, particularly the transport sector 4. Providing financial and technical support for promoting exports 5. Supporting the private sector in technology transfer and utilization 6. Increasing the capacity of ports and enhancing Sudan participation in multi-party traffic. 7. Enhancing cooperation between the public sector and the business community 8. Improving quality control measures to increase the competitiveness of exports 9. Enhancing government and private sectors capacities of analyzing trade policy options,

implementation of policies and trade negotiation skills

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10. Assistance in establishing trade information centres and systems and supply of information to access markets with preferential treatments

11. Providing training on e-commerce techniques 12. Improving the country’s capacity in the WTO negotiation 13. Supporting the promotion of export items that contribute to poverty alleviation, such as

establishing small and medium-scale enterprises in rural areas 14. Providing international support (finance and expertise) in the areas of designing

programmes to enhance export and poverty alleviation 15. Providing technical support in drawing up the following legislation:

• A Trade Regulation Act. • Encouraging competition. • Anti-Dumping and Countervailing Duties. • Rules of origin. • The Importers registration. • Commercial agents. • Goods Control Act.

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3. Programme of Action for the Decade (2001-2010): 3.1 Introduction The Programme of Action is based on improving partnership between public civil and private sectors and their regional and international partners. Partnership is seen as an every reliable approach to reduce cost, maximize benefit and efficiency. The National Quarter century strategy (2002-2027) frame is established upon this thinking of partnership. The decade programme 2001-2010 will emphasize the laying down of primes, infrastructure, build confidence and mobilize resources to ensure sustainability during the 2nd decade programme plan (2011-2020). Thus completely link to and benefit from the Millennium Global Target (MGT). However, within the existing and projected national resource base the public, private and civil sectors capacity is far below achieving these goals. 3.2 Objectives:

The restructuring of the Sudanese economy, the diversification of productive base mobilization of sustainable development potentials in the various sectors.

Widening the knowledge and technical base of economy, and a good system of incentive, including relative price structure, in addition to improvement of total quality management system of production and increase of total productivity.

The continuation of economic reform programmes with the aim of establishing a free economy dependent on market forces, which entail retrenchment of the role of the State in economic activity and implementation of the designed programme of privatization.

Sustainability of macro-economic policies which avail wider chances for both local and foreign capital to participate in economic activity and widen employment opportunities and provide for the removal of all constraints which may obstruct such capital flow.

Removal of infrastructure bottle- necks, and pursuit of policy of enhancing capacities and development of infrastructure to effectively facilitate the achievements of targeted growth rates.

Utilization of the idle capacities through the provision of production requirements and removing constraints thereon.

Pursuing arduously the task of alleviating poverty, arrest the factors behind the eminent poverty and reduce it to 50 percent by the year 2015 in the framework of the strategy designed for this purpose.

Give adequate attention to social development, through transcending its indicators. Development of human capital, and, administrative institutional and professional capacities essential for resurgence of socio-economic performance.

Empowering and encouraging women to increase their contribution in economic and social activities to bridge historical gender gap.

Maintaining environmental and ecological balance through rational utilization, protection and development of natural resources.

Preparing the economy and enabling it to cope with globalization, through gradual opening of markets for international trade and investment.

Furtherance of normalization of relations with the international and regional financing institutions and bilateral aid sources to resume their activities in the different fields of cooperation.

Allowing popular participation in the preparation of plans, programmes and decisions making through civil society organizations, trade unions, and the planning councils at the national, State and local levels.

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Reactivating the role of national resources centers and prepare a plan for scientific research based on the needs of the economy and society.

Featuring strategic relations between the State and private sector to cope with globalization.

Realizing peace and national unity and building confidence between citizens in order to utilize the potential energies and characteristics of these different racial groups and their diversified ecosystems to impart social, cultural and economic specific advantages.

Reinforcing the foundation for social peace, democracy, human rights and transparency of governance and administration.

3.3 Macroeconomic Development Perspectives The government has elaborated a medium-term macroeconomic development strategy for the economy, which aims at sustaining the recent reasonable rates of growth of the economy and creating the conditions for the rapid growth of the non-oil sector and ensuring that benefits of growth are shared by all the people of the country. The government share in oil revenues, with the expected increase in output, should provide the economy with a strong impulse in the short run, as well as allowing the removal of some of the impediments of growth. It is expected that the real growth of the economy will averages 6.5-7 percent in the coming years and that inflation go down from its estimated average of 10 percent to a contained ceiling of about 5 percent before the end of the decade. Among the specific structural measures envisaged by the government are the alleviation of some key bottlenecks in the economy such as the deteriorated irrigation infrastructure, the weak read network, and the inadequate electricity generation; the improved provision and delivery of basic social services, such as primary health care, education, and drinking water, in priority to the most needy; and further structural reforms such as improvement in trade and exchange liberalization, the development of the private sector and of an appropriate regulatory framework, the improvement and strengthening of the public sector management in particular through the civil service reform, including the strengthening of the capacity of basic public services and staff, the restructuring of the irrigated sector and schemes, and improvement of the statistical system. Also enhancing the participation of civil society organizations. The Government attaches a high priority to channeling the bulk of investment in the coming years in infrastructure and human resources, mainly health education, and water supply, sectors that had been dramatically deprived of such investment for two decades and which would benefit future generation the most. The Public Investment Programme outline for the years 2000.2002 reflects these concerns. 3.3.1 Macroeconomic Objectives of the Programme 1. Realizing an annual growth rate of GDP ranging from 7 percent to 7.5 percent and transcending it to higher sustained levels. 2. Reducing the annual rate of inflation from 10 percent to less than 5 percent by the end of the programme. 3. Increasing productivity as well as expand and diversify the production base.

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4. Increasing expert earnings as a percent of GPD and effect a marked structural change on exports and market diversification to stabilize fluctuating in trade balance toward a sustainable trade surplus. 5. Increasing the average public revenues to 32 percent of GPD and decreasing expenditure to realize surpluses in the general budget by the end of the programme period. 6. Increasing domestic saving to 20 percent of GDP by the end of the period 7. Increasing the annual average investment rate to 33 percent of GDP. The private sector is to contribute 68 percent of this increase. 8. Close follow-up of the exchange rate of the national currency to ensure its practicality, and to ensure competitiveness, growth, and sustainability. 3.4 Sectoral Objectives and Priorities: It is anticipated that the contribution of the agricultural sector to the GDP will decrease from 45 percent to 38 percent in the year 2010 whereas the contribution of the industrial sector will increase from 15 percent to more than 25 percent. The services sector contribution will remain at around 35 percent by the end of the programme period. The following sectoral objectives and priorities are investigated by the programme:

3.4.1 Agricultural sector Preparations are underway to formulate a strategy for the sustainable development of agriculture for the next 25 years, including a detailed development plan for the first ten years. The following are some of the objectives of this strategy, which have directed on bearing on food security and poverty reduction:

Realization of substantial real growth of the agricultural sector with equitable distribution of the benefits of growth;

• • • •

Availability of food in sufficient and stable quantities. It should also be healthy, nutritious, and adequate reasonable prices and good quality to meet the national food requirements and contribute to food security at the regional and international level; Realization of sustainable agricultural development within the framework of integrated systems of crops, livestock and forestry; Combating desert encroachment through reforestation; Utilization of rainfall runoff through water harvesting techniques; Implementation of poverty alleviation programmes; Creating more jobs opportunities in agriculture.

Although the invitation of the process of the preparation of the long agricultural strategy has come from up, contribution of farmers, herders, fishers, input supplies exports and manufacturers of agricultural products at the national and state levels is considered vital and impact, at each of the levels of sectoral intervention. 3.4.2 The Industrial Sector Effecting a qualitative change in the current industrial activities in view of impending

globalization process through shifting from import substitution industry to industry based on knowledge and free competition in open markets. Such orientation requires increasing capital, efficient administration, appropriate technology and total quality management

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systems to raise production efficiently, reduce cost, improve quality and maximize the value added of industrial produce.

Maximizing utilization of idle capacities through provision of production requirements and removal of production constraints.

Use of comparative advantages in the fields of agriculture and animal wealth in the process of expanding agricultural – led- industries.

Developing the petroleum and mining industries based on the availability of local primary inputs.

Reinforcing intra and inter-industrial linkages. Paying more attention to the development and dissemination of small and medium-sized

industries (SMES) and solicit financial and technical support for this purpose in addition to reforming and developing systems for SMES.

Liberalizing industry from administrative and price controls, averting discrimination between local and imported goods without allowing for dumping.

Transcending capacity building programme implementation associated with high quality information content of produce.

Building the private sector capacities with respect to human, administrative, institutional, and productive aspects and taking advantage of the opportunities offered by developed economies especially in the areas of trade and investments.

Building physical, technological and information infrastructure in addition to the basic needs of modern industry, rehabilitating the exiting industrial areas and expanding of free zones.

Paying attention to the research centers and liking them with the industrial sector. These centers are supposed to develop Sudanese quality standard products and build close relations with international and regional research centers with the aim of introducing total quality systems of international standard along with their applications in the industry.

Encouraging industries of strategic priority in terms of value added and investing in specific fields of advantages accrued to Sudan to enforcing forward and backward linkages in industry.

3.4.3 The Mining Sector

Continuation of mineral exploration and preparation of an investment map for mineral resources of proven commercial quantities for production to export and to meet local demand.

Effecting substantial increase in gold and other precious minerals for export purposes in addition to developing quarries and improving the produce required as input for other industries.

Attracting international partnership in investment in other minerals. 3.4.4 The Energy Sector

Encouraging both foreign and local companies to continue oil exploration and investment in proven oil reserves to meet the domestic demand for oil products and export the surplus.

Increasing electric power generation from hydro sources to an amount of 5084 Megawatt and from thermal generation to a tune of 1815 Megawatt by end of year 2010, concomitantly effecting a progressive expansion of electric transmission and distribution networks to cover both urban and rural population areas especially for areas of agricultural and industrial activities.

Rehabilitating and upgrading the existing power stations. Granting due priority to rural electrification.

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Encouraging the private sector to invest in power generation, transmission and distribution and to indulge in processing of electric tools and equipment.

Rationalizing electric consumption and reducing power losses at the stages of generation, transmission and distribution.

Developing alternate energy sources of solar, wind, biogas etc. and promote their use and rationalizing fossil fuel consumption to mitigate the pressure on biomass energy and preserve the environment.

3.4.5 Basic Infrastructure To overcome the constraints attributed to the vast area of the country and the wide dispersal of population, the Government is embarking on intensive programme of rehabilitation and expansion of infrastructure network with priorities of linking the various parts of the country, integrating socio-economic fabrics and meeting the requirement of regional integration especially in the field of trade. Below is a summery of sectoral and priorities: 3.4.5.1 The Railway Subsector Encouraging private investment in the different rail operations through establishing

public limited and corporate companies and through separating the management of infrastructure from operations

Rehabilitating and modernizing the railroads, expanding the rail length to 15.000 km and the carrying capacity by twenty folds in addition to integrating the rail network with neighboring countries.

3.4.5.2 The Roads Transport

Liberalizing and/or privatizing roads and bridges infrastructure. Rehabilitating and expending national and continental permanent road length by 7000

km and tertiary/secondary roads by 2500 km. Increasing road transport haulage capacity to 20 folds.

3.4.5.3 The River Transport

Increasing the haulage capacity of river transport to twenty folds through rehabilitating the dockyards and handling equipment, and expanding the use of vellum boats for the purpose of protecting the environment.

Encouraging private investment in river transport. Increase substantially the number of river ferries and the number of barges to reduce the

cost of oil transport. 3.4.5.4 The Sea Transport Rehabilitating the sea transports of port Sudan, Oman Digna and Suakin and completion

of the second phase of Oaseif and other new smaller ports. Rehabilitating seaports infrastructure including roads, communication and storage

facilities. Increasing the sea fleet to five folds.

3.4.5.5 Aviation Subsector

Enhance the process of privatization and liberalization in this sector. Provide best concessions for the transport to remote areas, especially war torn zone.

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3.4.5.6 Communication Restructuring and privatization of postal services and doubling of tele-density from 4

lines to 8 lines per hundred persons. Expanding the telecom network to cover all parts of the country and connect it to the out

side world using digital and other advance communication technologies. Encouraging regional co-operation in telecom fields to safeguard the interest of LDCs

against low-cost services of international telecom operators. A regional telecom free zone is proposed to serve this purpose and to maximize the economic returns due to enlarged markets.

3.5 The Special Programme for the South and war torn communities 3.5.1 Broad Objectives

Linking relief and rehabilitation to development. Improve the pace of rehabilitation and access to needy people in peaceful areas. Intensification of resource mobilization for rehabilitation of basic services in all parts of

southern Sudan, Nuba Mountains and Southern Blue Nile. Opening roads by landmines clearance. Adapt a rights based approach in programme design and implementation.

3.5.1.1 Peace Building

Conducive policy atmosphere for the implementation of Machakos peace agreement and Khartoum peace agreement.

Wide range data collection for launching effective programme. Make an immediate, measurable difference in the socio-economic status of the affected

population and fill critical regional/ethnic disparities.

3.5.1.2 Post-war Rehabilitation Implement a wide range programme of resettlement for displaced (optional), refugees

and returnees and provide them with all basic needs including income generating utilities. The programme shall be gender and environment sensitive.

Demobilization of forces and provide ploughs for guns programme to integrate combatants in civil life.

Removed of Landmines. Involvement of national non governmental organizations and community based

structure to empower communities to consolidate peace and social integration.

3.5.1.3 Specific Objectives and Priorities of SPFS Achieving sustainable peace and security and make unity appealing for southerners. Receiving the returnees, refugees and displaced and accommodate them in their place of

origin for choice by the intern. Removing of land mines, opening of roads and river passages. Providing the necessary requirements for relief and effecting a quick departure from

relief to development through embarking on programmes for food self-sufficiency, encouragement of SMES and soliciting support from National Research System ( NARS), UN specialized agencies, international community and NGOs.

Implement the constitutional, legal, administrative, security, political, cultural machineries agreed upon in the peace agreements. To reinforce peace process, stability and reconstruction of the South.

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Reviving and developing agriculture, animal resources. Wildlife and forestry for the provision of better job opportunities, food security and price stability of essential food products.

Provide for water supply and sanitation, health and education services, rehabilitating vocational training centers and caring for women, children, orphans and those crippled by war.

Upgrading and training of administrative and professional cadres in areas of planning, programming, finance, administrative and management at the levels of public bodies, private and co-operative.

Rehabilitating the large agricultural and industrial schemes affected by the war. Linking the large population centers in the South with roads, communication and

electricity national networks. Paying more attention to inputs in the north the provision of life essentials and

productive work opportunities. It is worth mentioning that relief, resettlement and reconstruction of the south require

enormous resources that are beyond the capability of the country. Therefore, the international community, and NGOs are called upon to combine efforts with the government in releasing the objectives and priorities of the programme following a peaceful settlement to the war.

Environmental conservation in war torn zones.

3.6 Priority Actions

3.6.1 Issues of Governance Asserting the basic human rights enshrined in divine laws and international covenants, ensuring the supremacy of society and its legitimate right to developing, own democracy and peaceful exchange of power among various partisan movements within the framework of the Federal System. Enforcing peace opportunities, restoring security and rule of law, building confidence among people and ensuring fare distribution of wealth. 3.6.1.1 Public Administration Good governance must be supported by transparent, accountable and efficient institutions and practices

3.6.1.2. Decentralization

The peace agreements have already decided on decentralization as a vehicle for peace main streaming

Decentralization will help to promote broad-based popular participation in development

3.6.1.3. Staff Capacity For an efficient and cost effective action plan the staff at federal state and local levels need to be incapacitate with good governance, anti corruption transparency and team spirit training packages. Among other things the capacity of staff

promote to people –centred policies initiation coordination, monitoring and evaluation proper, pro-women and environment development Planning and project, formulation and monitoring capacity of local ,state and federal

staff Conflict resolution and peace building skills MDG and other linkage to national planning skills Monitoring, evaluation and risk analysis package.

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3.6.2. Issues of human Development Reproduction in human poverty through a partnership for sustainable human develop by attainment of MDGs in Sudan.

Providing mandatory basic education for all by year 2015, wiping out illiteracy and availing pre-school education for all.

Disseminating vocational education and training in all states starting with those suffering from the consequences of war and, replicating successful experiences in disbursing skills, alternating and mobile training, in addition to linking training in workshops with official training.

Enrolling not less than 67 percent of students at the level of secondary education and about 55 percent in higher education

Endeavouring to couch a 60 percent contribution of technical and technological education at the end of the programmeme period.

Improving the quality of education with provision of modern means and facilities including laboratories, training of teachers and trainers and linking such education with the changing labour market requirements.

Improving the balance between the various stages of school education by the year 2005. Achieving a high level of women participation in economic activities. Attenuating the level of explicit unemployment to 5% by the end of year 2010 through

accentuating on unemployed youth, women, higher education graduates and the new comers to the labour market.

Reducing the level of work redundancies to half and reviewing the distortions in wages and incentives systems.

Increasing per capita consumption of electricity to 20 folds from an average of 47 to 940 watt/hour a year per person.

Increasing the number of telephone machines from 4 to 8 per 100 persons at the year 2010.

Eradicating thirst at the year 2010 by providing the rural population with 40 1/p/d and urban population with 150 1/pp/d of potable water supplies.

3.6.3. Environment Completing and implementing the National Environment Action Plan (NEAP) and the

National Map for Natural Resources (NMNR) aimed at preserving biodiversity and natural resources, from malpractices and pollution through strictly enacting laws and regulations to achieve these aims.

Redesigning the educational system to accommodate environment related science and technology, applying environmental consideration in development projects especially of agriculture and integrating forestry in agriculture in addition to establishing tree belts.

Supporting the institutions working in the fields of natural resource endowments to protect, preserve and develop these resources and sensitizing the public at large to the importance of being attentive to a healthy environment.

Combating desertification and applying early warning systems against drought, controlling the applications of pesticides, insecticides and other chemicals in agriculture and minimizing water born and water related diseases.

Providing the organs working in different natural resources fields with necessary facilities to enable them to discharge with the responsibility of protecting and maintaining these resources.

Integrate population dynamics into all programmes.

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3.6.4. Food Security

The twenty-five years Comprehensive National Strategy (2002-2027) main objective is to give agriculture its leading role in the economy. The agricultural development programmes to be pursued under strategy have to stick to the following directives:- 1- To achieve food security based on horizontal and vertical expansion opportunities. 2- To boost agricultural productivity and increase its contribution in the GDP. 3- To increase the productivity of basic food commodities. 4- To increase the contributions of the agriculture of export earnings. 5- To expand the agro-industrial base to absorb the surpluses of agricultural production. 6- To optimize the use of available natural resources under balanced environmental regime. 7- To achieve balanced agricultural development in the different regions of the country and

making use of comparative advantage in the different ecological zones. Sustainability of food security is enhanced through different policies. These are investment policy, finance and credit policy, foreign trade policy, utilization of domestic resources, provision of inputs development of local market through marketing and pricing policy. Deficit in cereals usually covered by imports of wheat and wheat flour, exports of sorghum is banned during shortage years. Oil seed crops production in Sudan is providing more than the required quantities with surplus for export. Food security is also supported with alleviation projects to increase income of poor people to provide them with excess for food availability. These projects include zakat distribution projects, productive families projects under Ministry of Social Planning and Ministry of Health. Food Security and Early Warning: under this concern there is a coordinating programme with the national and international NGOs. The programme initiated a joint task force to put an plan for issues that dealing with food security and early warning. There are developed formats for designing indictors and plans for mapping. The Agriculture Policy of Buffer Stocks: the agricultural policy to hold buffer stocks of the basic food staple (sorghum) has been recently directing the concerned federal and state agencies to manage a buffer stock of 600.000 M Tons. The quantity should be replenished every three years. It is estimated that the available storage capacity (silos and ware houses) owned by the Agricultural Bank is around 476795 m. tons. The traditional pits, which have to be constructed at the surplus production areas either by the producers the Bank or traders could allowable 500.000 M Tons. The seasonal variability in production and productivity of sorghum and millet and the production policy for irrigated wheat programme, is essential to stick to the policy of holding buffer stocks sorghum. Guaranteed minimum prices could be encourage in years of serious drop in prices. Another supporting policy is the adoption of a national programme, to increase the production of food crops. Such policy is to encompass the dissemination of the full technical packages and proven technologies for adoption in the different farming systems. The mechanism suggested for monitoring the programme of buffer stocks and related policies are given to Strategic Reserve Authority at the federal, state and local levels, to perform the role of managing the buffer stock with funds to be raised by the Ministry of Finance.

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The assessment of food security in various localities to the unit of food security with technical support from the Agriculture Statistics Department. 3.6.5. Poverty Alleviation

Poverty and social services: Sudan’s per capita income is US$ 290. Poverty is increasing, though no reliable estimates of its depth and intensity are available. Recent growth of agriculture has not ensured nation-wide food security, because of disparities in income, regional differences in the pattern and disruption caused by the civil war.

Social indicators for the 16 northern states are lagging behind countries at the same level of per capita income. In the North, the adult illiteracy rate is 47 percent (59 percent for women). Life expectancy at birth is 53 years; infant mortality is 71 of 1000 births. Basic social services, namely education, health, water and sanitation, have been seriously eroded as a result of the combined impact of civil conflict and natural disasters. Only some of 30 percent of rural residents and 40 percent urban dwellers have access to safe drinking water. Primary school enrollments have declined to about 56 percent. Access to health services is also limited. Although there are no reliable quantitative information on living conditions in the south, poverty is reported to encompass virtually the entire population in the South. Aside from some fairly limited border trading with Kenya and Uganda, the cash economy has broken down completely. Employment (either formal informal) is virtually non-existent. Access to social services is minimal. The bulk of the population in the South is dependent on food aid from NGOs, UN agencies and bilateral doctors.

Providing the necessary conditions for accelerating the economic growth and social development and ensuring a reasonal share of earnings to the poor from such growth.

Adopting investment policies that secure a sustainable and wide work opportunities.

Expanding and developing opportunities of productive work that suits the needs of the poor.

Expanding the existing integrated rural development projects and programmes. Reducing morbidity and incidents of endemic diseases. Increasing nutritional status. . Provision of potable water and sanitation. Increasing financial appropriations for education and health services in the

general budget and securing basic education with improved quality and reducing school drop outs and qualify them.

Provision of suitable low-cost and environmentally sound housing. The relation of these aims depends largely on ending the war and achievement of

peace in the south besides normalizing the relations with the nieghbouring countries.

A high level council chaired by the President of the Republic has been established to supervise the implementation of the strategy. The members of the council are the concerned ministries, the Wallis, and representatives of trade unions, business associations, farmers, shepherds, peace and development corporations and charitable organizations addition to some experts having contribution in this realm. A steering committee chaired by the state minister in the Ministry of the finance has been formed to follow the implementation of the strategy. An administrative unit has also been established in the Ministry of Finance to co-ordinate efforts.

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The strategy has been presented in a forum comprising stakeholders and with representatives from donating countries, the Government, civil society, worker, business organizations, women, youth and the poor. Follow up meetings are planned to discuss the strategy and find the best means of implementation.

3.6.6. Capacity Building

Sudan is facing serious problems in the field of both human and administrative capacity building in-spite of the large expansion that has taken place at different levels of education in previous years.

The constraints to capacity building are ascribed to the following factors: The stoppage of external assistance, used to finance wide-scale training programmes

both inside and outside the country, had led to reduced investment in human capital. The migration of a huge number of highly experienced and qualified persons various

reasons. The change in economic system following enactment of liberalization policy

necessitated reviewing the tasks and responsibilities of the government in managing the economy through intellectual and innovative policies and the skills and mechanisms required for this purpose.

The deterioration of living conditions for a large segment of the population including the skills, whose real wages and salaries depreciated sharply.

A permanent national committee for capacity building has been established with the functions and responsibilities of proposing appropriate policies, priorities, programmes and plans on capacity building at both human and administrative levels.

Maintaining a sustained economic growth is a sin qua non for a successful implementation of the capacity-building strategy. However, integrating the capacity building process, with economic growth, depends on three interacted and interrelated factors:

1. Invoking a self-reliance strategy to mobilize indigenous capacities capable of ensuring effective participation of the private sector and the civil society within joint mechanisms in the preparation, implementation and follow-up of plans, programmes policies and priorities at both national and local levels.

2. Raising the level of social development particularly with respect to preparing the necessary skills and up-grading of workforce through education, training and incentive policies and through sharpening institutional structures at both public technologies and human talents necessary to address socio-economic challenges in the new millennium.

3. Maintaining economic growth and providing the necessary resources for a conducive environment capable of fostering sustainable human capacity building is highly dependent upon following preconditions:

a- Pursuance of a comprehensive development incorporating agriculture, rural development and small and rural industries.

b- Assimilation of the regional dimensions in the sphere of capacity building.

c- Focusing on shifters of supply such as physical infrastructure, technology, human capital, administrative and institutional structures to enable the economy to respond positively to capacity building requirement.

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d- Fostering the development of human and administrative capacities through education, training and upgrading of skills at all levels.

e- Caring for the development of women capabilities. f- Raising the level of social development and curbing unemployment. g- Review the causes of brain-drain, through improving the working

environment and the conditions of services. h- Reversing capital flight and preparing the conditions for repatriating the

flown capital. i- Caring for scientific research and researchers, via the maintenance of

sound policies, motivated staff, suitable research facilities and sufficient funding and with sustained interaction of all elements involved in addressing the society’s need.

Appreciable developments had been realized in the field of capacity building but those developments were not enough to transcend the quality of human, administrative and institutional capacities to satisfactory levels. Therefore, there is a need to formulate a national long-term comprehensive strategy, for capacity building and solicit the require financial resources to realized its objectives and priorities. 3.6.7. Access to Markets The persistent structural weaknesses characterizing the export sector are expected to intensify with the on-going rapid transformation to liberalization and the opening-up of domestic markets to international trade. This made very clear by the function in the trade balance between being positive in one year and defected in the other one. Such problems calls for strenuous but prompt action-oriented strategy to enhance the competitive position of exports through the realization of conducive environment for exports to thrive. Diversification of production, efficiency of marketing, distribution and transport with processing of produce supported by appropriate technological environment and sound macro-economic indicators are essential requirements for the production of saleable products of international standards:

The accelerating developments that are taking place in information technology and telecom arena have a marked influence on the level and magnitude of competition at market place. They enlarged the international money markets leaving development strategies and targeting higher growth rates and soliciting FDI for this purpose. To protect such economies from external shocks and to avert cyclical financial crisis such as the inflicted south East Asia in mid 1997 with consequences of plummeted prices of commodities of main interest to developing countries it is pertinent to proper a strategy for the development and promotion of trade based on the following principles and guidelines:

Strengthening the financial and monetary sectors to promote exports and to protect the economy from eminent external financial shocks.

Developing inter-trade links with neighbouring countries, enhancing economic and financial mechanisms of regional co-operation and take advantage of investment and trade opportunities available in enlarged regional groupings.

Expanding and enhancing physical, technological, administrative and institutional environments required for sustainable growth of exports.

Diversifying exports markets, developing and promoting domestic markets, transport, distribution, storage networks in addition to encouraging international investments that help transfer advanced technology in the fields of management, marketing and production with international specifications. Such actions are also necessary to enlarge

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the economic base, integrate the economy with the outside world and maintain a sustainable high economic growth rates.

The implementation of this strategy requires constructive international co-operation with the major industrial countries especially those having historical relation with the developing countries. They should bear the major responsibility in helping the developing countries to improve the competitive position of their exports. Industrial countries are therefore required to remove non-customs barriers to LDCs exports, assist in financing of the basic infrastructure required for developing and promoting exports and enhance their competitiveness in the international markets. 3.6.8. Actions by Development Partners

Past debt relief initiatives have been inconclusive and not comprehensive enough to resolve the debt crisis looming over LDCs. There have recently been criticisms on the delay of implementation of the most recent initiative of the Heavily Indebted Poor Countries (HIPCs) and the conditions imposed on eligibility criteria prior to decision stage. The debt problem is now more pressing ensuing the challenges imposed by globalization, liberalization of the economies of developing states and the widening technological gap between the North and the South in addition to poverty looming over LDCs. International social tension has risen as a result of these developments. Several governments, international and regional organizations and activists have appealed to the international community to expedite the implementation of this initiative. They also appealed for more flexibility, transparency, justice and objectivity in resolving the debt stalemate through the following:

Lowering of eligibility criteria from the current basis of net present value, debt-to exports ratio debt service-to-export ratio not to exceed 200 percent and 20 percent respectively. Such reviewed criteria should also be applied in cases of countries suffering from internal conflicts, and could not bear the burden of financing rehabilitation and reconstruction of inflicted areas following peaceful settlement.

Reducing the time frame of implementation from the current 6 years to 3 years, following a sustained policy track record. Therefore, the debts of the LDCs would be cancelled.

Increasing the amounts specified for debt relief from contributions of the rich state to bridge the gab resulting from insufficiency of the present DRF/PRGF facility.

Relating the implementation of the initiative, with the efforts countries make in reducing poverty including those having favorable policies addressing the phenomenon of poverty.

Speed-up the implementation of HIPCs for those eligible countries having extremely high indebtedness, without recourses to discriminatory treatment that may frustrate socio-economic reforms, growth and poverty reduction and slow down the process of integration with the world economy.

The continuo agreement, signed on 23 June 2000, is not yet implemented and need to be expedited.

The peace-planning package coordinated by UNDP, already reached the point of fruition and avails the signature of peace agreements. All these efforts and commitments need to be coordinated by GOS, UN agencies, donors and CSOs.

3.6.9 Technology and Scientific Research

The world economic system at the verge of the third millennium, is fundamentally different from what humanity new in the past. It is characterized by an accelerating high degree of

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interdependence between countries and nations ranging from trade, capital, information, telecommunication high tech and scientific fields. Economic structure have been drastically changed from material-based-labor intensive production to high value added information content of produce. Such developments are mainly orchestrated by multi-national companies possessing high tech means of production, marketing, distribution and transport networks. The severity of competition world-wide forced advanced economies, to depend on information technological sciences to develop country, firm and product specific advantages. Naturally in a globalized economy, the national governments, influence on economic variable of international origin will be tenuous. The challenge is now how to bridge the technological gap separating LDCs from the rest of the world. To avoid the risk of marginalization and to adapt to the new international environment, LDCs should consciously deal with and browse through the advantages offered by this environment, and spillovers in such a way to preserve their economic, social, national integrity and inherent rights. To make globalization work in favour of the challenge to link to the information revolution, include the development and promotion of the technological, scientific, research, educational and knowledge infrastructure within a framework of a comprehensive and integrated strategic vision capable of advancing these elements and their driving force towards development and growth. A strategic vision that links the present with the future merges the national heritages and the virtuous social values and knowledge with modern technology. Such a vision, also helps mobilizing human capacities to achieve a decent living, and transcends spiritual, moral and knowledge values. It is indeed, this vision, which fosters the development of human capital through caring for talents and innovative initiatives, and the development of administrative, institutional and legal framework. It will further leads to increased productivity and production, improves the quality and competitive advantages of the national economy. Below are areas of priorities for education and scientific research action programmes: 3.6.9.1 In the field of general and technical education

Preparation of action programmes for the training and qualifying of teachers at the basic and secondary education stages to enable them to obtain the necessary skills.

Introduction of technology and computer sciences in the curricula of secondary school. Adjusting technical education to a tune of 60 percent of general education. Rehabilitation and modernization of the vocational education to absorb and qualify all

school drop-outs. Rehabilitation and expansion of basic and secondary schools with provision of new

libraries, laboratories and other education requirements and materials including the computers, modern information media and information management systems. These are necessary element for raising the level of quality of general education.

3.6.9.2 In the field of higher education

Enhancement and expansion of the use of computers and modern information systems, the provision of equipment and modern means review of curricula and teaching methods in all university faculties to cope with contemporary developments.

Conducing intensive training courses for teachers in information technology and information systems.

Establishment of a center of software programmeming related to education and training aimed, at improving the level of attainment in higher education, qualifying teachers and increasing their teaching and research capacities.

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Multiplying post-graduate education opportunities, continuing staff training, increasing lecturers exchange programmes with external universities and research centers and that all contributing to bridge the gap caused by migration of lecturers and professionals aboard.

Supporting private software companies and special software programmeming activities, through the provision of training materials for basic sciences, training of teachers, and directing and encouraging them to develop software programmes.

Preparing action programmes for rehabilitation and enhancement of national research centers and universities and co-ordinate efforts, expended especially in the field of software systems and computer application by various institutions. Some of these institutions have to be charged with the responsibility of observing standardization and quality control of software products.

Supporting the Documentation Center at the National Research Center and linking it to university research centers, main libraries, information centers and to international information networks.

3.6.9.3 In the field of communications

Statistical studies conducted by some researchers exposed a strong correlation between the levels of economic and social development, and the degree of telecommunication penetration. Marginal utility, investment returns and social opportunity cost will rise in developing countries with increased intensity of telecom penetration. This also means that the role which could be performed by the telephone, as an instrument of development, is much bigger than that of the other one way means of communications such as, the radio and television a fact ignored by planners in the past.

Teledensity in Sudan was the lowest among developing Arab and African States, according to 1993 figures. In that year, the Government decided to privatize this sector. A number of investors encouraged by the concessions offered by the Government had injected about 30 percent of the capital invested in the newly born company (SUDATEL). Among the concession granted was monopoly by the company international traffic a period of 5 years renewable to two more periods of the same length subject to performance review at the end of each period. The National Communication Council (NCC) was established as an independent body entrusted with supervision, organizations and co-ordination of efforts for development and policies related to international and regional agreements. The NCC issues licenses, proposes tariffs and co-ordinates policies between the civil and security telecom users.

Globalization is purported to have a negative effect on the development of telecom infrastructure in the Sudan with continuous decrease of the cost of telecom services offered by international operators and other competitors. They may attract customers and therefore decrease the source of foreign exchange revenues. Considerable share of the telecom services in the Arab countries markets is being gradually taken over by subsidiaries of giant operators already established in some of these countries. Therefore, consolidation and/or joint telecom projects together with preferential tariffs arrangements will allow telecom operations in a region at setting to gain or maintain some share in the international market.

3.6.9.4 In the field of agriculture Agriculture Technology Infrastructure The rapid transformation towards globalization, information technology and

technological sciences have already shown marked influence on agricultural development and the capacity to market agricultural products. Knowledge and information have become important resources. For those who have access to

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information and ability to understand and manage it will have a comparative advantage in choosing appropriate technologies that reduce cost and improve quality of products giving them an edge in the global market.

The basic empowering elements required to enable agriculture to develop, raise productivity and competitiveness include the rational use of information, up-graded quality of agricultural education and training and effective agricultural research, and transfer and adoption of improved technologies. The mobilization of these elements aimed at effective utilization of human mind, skills and information technology in addition to the physical environment for the growth of agriculture. Below is the programme framework for raising the technological and research capacity of agriculture:

1. The Agriculture statistics Agricultural statistics and information have not enjoyed the care they deserve. This is

due to the wide area of the country, the weakness of the infrastructures, the wide spread of different norms of production. The capacity for collection, sorting, storing, processing and management of these information are now receiving greater attention to provide the necessary tools through which acreage, yield, inputs, labour, production, prices, market information and other data are made available for researchers, planners, investors and decision-maker.

The Ministry of Agriculture and Natural Resources and the Ministry of Animal Resources, capacities to complement with the task of information incumbent upon them is limited. This task requires foreign technical support, especially in the field of building information systems and information networking necessary for decision-making, monitoring, follow-up, analysis, forecasting and programming.

2. Agricultural Education, Training and Extension Strategies for global agriculture invariable include the central role of education. The capacity of a country to improve and sustain its agriculture growth and be able to compete in a global market is progressively dependent on the quality and level of technical skills of its human capital. As production systems become more important sources. Restructured and properly oriented research, public service and agricultural higher education institutions can provide the technical information and the skills required for improved sustainable agricultural production. The standard of education and training need grapple with new levels terms of quality and outreach. This will however, require restructuring the existing curricula and adding new thrusts to meet the current and emerging local, regional and global needs, adequate sustained funding, motivated academic staff and the tools and physical infrastructure required for effective teaching and research. 3. Agricultural Research and Technology Transfer The durable solution for sustained agricultural performance lies largely in the transformation of agriculture through strong and effective national agricultural research systems capable of generating productivity and harnessing appropriate technologies. Rational use of these technologies increases land, water and labour output and hence reduce costs of production. The potential for increasing productivity in Sudanese agriculture is great. Crop and livestock yields are much lower than the results obtained from the research trails. The agriculture research agenda must respond to the problems facing production and post-harvest handling of food and export crops and the resource combined and sustained interaction of all the elements involved in the agricultural research, planning, technology generation, adaptation, validation and transfer. With sustained political will and commitment linked with sound policies, qualified and motivated research staff, adequate research facilities and sustained adequate funding the

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required investments in research will be a reality. The research agenda need to be clearly defined and articulated. Market reforms, new trade patterns greater concern for resource management, more active private sector and new technologies are placing new demands on research priorities.

3.7 The Proposed Investment Programme:

The overall investments required to implement the programme amounted to US$ 86.5 billion distributed among public and private sectors, at the ratios of 22 percent and 78 percent, respectively with the ratio of annual average investments, of 33 percent to GDP. This ratio through ambitious could possible be captured and maintained to the following attributes:

1. Macro-economic stability and sustained economic growth attained during the 1990s are strongly believed to influence savings and investments in subsequent years.

2. Investment encouragement laws, new legal and regulatory framework undertaken are expected to enhance and safeguard the investment climate for both local and foreign private investors.

3. Rigorous financial reforms exhibited in improved Government position in financing it’s own expenditure will promote savings and avail increased financial resources from the banking sector to meet the private sector demands.

4. The programme attaches higher priority to addressing infrastructure bottlenecks and increased service delivery.

5. Potential investment opportunities in the mining and petroleum sector together with the attestation of the IMF a good record of Sudan’s economic performance and the regaining of membership of the Fund assured the Government of improved conditions for foreign finance and FDI flows. This will also help to create enabling conditions for the economy to respond to the changing international environment.

6. The successes achieved in privatization of public enterprises, demonstrated in increased productive capacities, are expected to influence the process modernization and expansion of these enterprises.

7. With Government support and increased foreign relations the financial, managerial and technical capacities of the local private sector are expected to appreciate.

8. Improved mechanisms and modalities of co-operation between the Government and the private sector are new thrust that enable joint follow-up of execution and monitoring of the programme and removing obstacles in the course of implementation.

9. The programme implementation is expected to be influence greatly by reform of managerial, institutional, organizational and legal structures in addition to human capacity building, and reactivation of the role of the management of the economy. Moreover, the promotion of information systems, technological environment, applied research are all factors contributing to the betterment of economic performance and the enlargement of productive base of public, private and popular sectors.

3.7.1. Investment by Sudan The overall public sector investment required is expected to reach about US$ 19 billion during the programme period. The fact that the government had succeeded in mobilizing resources during the past ten years and that petroleum provides additional financial resources yet, the financing of public investments would present a major concern, for the following reasons:

1. The continuation of the war in the South and its spill-overs, and the stoppage of foreign assistance, had greatly weakened the government ability to invest in basic infrastructural projects. Rehabilitation of some projects was therefore postponed and work had stopped in some new important infrastructural projects no doubt that

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investment in this vital sector, regarded as a vehicle of growth, require huge financial resources which cannot be secured from domestic sources during the programme period.

2. The social services sector was also impaired by slow down of foreign aid with appalling consequences on human development indicators. Obviously the implementation of new postponed projects in this vital sector, would lay a heavy burden on the Government to bay without foreign assistance.

3. The implementation of the aforementioned poverty strategy, which covers the various sectors and stake holders, requires huge financial resources which the government cannot provide from its own resources.

3.7.2. Investment Requested from Development Partners The financing of implementation of a multifarious post-war programme of relief, revival, rehabilitation of the southern Sudan is beyond no doubt formidable for the Government from domestic sources. The country is facing real difficulties in fulfilling the external debt obligations. The external debt will continue to pose a major impediment to investments, even in case of implementation of the HIPCs initiative. Therefore, the support of the international community and other financing institutions is solicited not only for the realization of the programme, but also for maintaining the reform policies pursued during the past decade. The financing of investments of US$ 87 billions accrued to the programme, is expected to share between domestic own resources 46 Billion (53.8%) and foreign resources 41 billion (46.2%). The following table details the programme annual investments, shared to the various sectors:

Table 3.1: The Projected Investment During the Programme Period Years (2001-2010)

In Million US$ Year Agriculture Industry Services and Basic

Infrastructures Post War prog.

Total Investment

2001 127 139 919 - 1185 2002 156 241 1030 - 1427 2003 203 204 1537 - 1944 2004 258 613 1017 - 1888 2005 291 364 2314 - 2962 2006 592 852 1747 - 3191 2007 466 946 2825 - 4137 2008 820 1770 1245 - 3835 2009 1004 1491 2293 - 4788 2010 917 1200 4071 - 6188 Total 4834 7820 18998 55348 87000 Annual Av. 483 782 1900 5535 8700

3.8. Implementation. Monitoring and Evaluation The implementation of the programme requires a holistic clear vision that takes into takes into consideration the dimensions and development patterns taking place at country, regional and international levels when determining the shape and content of the relations between the concerned pulpit and private institutions, and the civil society from one side and the UN specialized agencies operating in Sudan, from another side. The programme is supposed to draw lessons from the experience of the implementation of the previous programme. However, effective co-operation mechanisms between partners would enable the determination of phased

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targets with measuring performance indicators and ease the implementation and monitoring of the programme. Establishment of a national body for monitoring and evaluation with the functions and responsibilities of determining the performance criteria and indicators, the means and levels of supervision and the follow-up mechanisms and directives. This body shall have subordinate units at level of States, localities and economic and social operators. These units would assist monitoring, reporting and execution of corrective measures resulting from irregularities in the course of implementation of the annual work plan. Establishment of Permanents Steering Committee (PSC), with representatives from the government, the UN specialized agencies, the voluntary organizations and other participants chaired by the State Ministry of Finance. Focal points will be identified at the level of ministries, federal agencies and the States. The PSC would supervise the preparation of the annual work programmes, issue directives and working methods, and approve the performance indicators. The PSC would also conduct periodical reviews on the performance of partnership, checks the level of co-ordination between the government and the donor agencies especially with regard to the implementation of the programme priorities in food security, combat of poverty, the building of human and managerial capacities and social development. Holding periodic joint meetings the government and the concerned U.N agencies, for the evaluation of the implementation of the programme. The government of Sudan shall endeavor to obtain technical assistance and expertise input from the U.N, for the establishment of the monitoring and evaluation mechanisms specified above.

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4. Possible Civil Society Contribution to Sudan Programme of Action: 4.1 Introduction: Civil society structures in Sudan could be broadly divided into two categories: (a) traditional social structures and (b) modern civil society institutions. However, despite the clear difference in organization, approach and methods the two systems tend to overlap and in interact in many areas. Civil society organizations and activities in their traditional forms are long-rooted in Sudanese history in the form of collective (cooperative work), resource-use organization groups, and conflict resolution groups. In its modern sense, CSOs appeared during the colonial period working mainly on education and community/ social services. The trend continued in the post independence period but generally, most organizations were small in number, scale of operation and very much isolated. 4.2 Civil Society Structures in Sudan: 4.2.1 Traditional Social Structures These are structures that were formed in most cases to enhance the management of the specific social group, i.e. the organization is primarily serving its own members. Also the leadership in most cases comes through a process of selection as opposed to election in the modern organization. Most important of the traditional CSOs are the tribal-based structures and the religious organizations. a. Tribal-based Organizations: There are some 597 tribal groups officially recognized in Sudan. They include pure Arab-origin tribes, African tribes and a group that represent a mixture of the two. The main function of these organizations is to organize resource use, provide group solidarity and enhance individual and group coping mechanisms at times of crisis, in addition to settling conflicts and the protection of the tribal domain. These organizations are mostly dominant in rural, particularly pastoral areas, where centralized administrative systems are either absent or do not function. These structures have historically been linked to what is known as Native administration formed by the British colonial powers that remained intact despite the changes in governments after independence, the native administration has formed alliances with some of the religious sects and political parties and as such has negatively and positively been influenced by the situation of these parties and played a crucial roles in the supporting the ruling elite. More recently some modern forms started to emerge in urban centres in the form of tribal associations formed by the educated groups of the tribe, which though urban-based its activities are primarily oriented to serve the tribe and the home area economically, socially and politically. b. Religious Organizations: This is particularly manifested among the Muslims Sufi groups in the northern part of Sudan. These are also targeted to serve their members, but acquired importance from their strong influence over and alliances with the political parties at the centre and the native administration in rural areas. Religious sects and church missionaries have both impacted positively on social development though undertaking providing health and education services as will as contributing to the maintenance of peace within the community Besides, within the rural setting other civil society activities are performed by bodies that are not necessarily organized or have permanent structures such as rural merchants networks that, in addition to trading links, including cross boarder trade, have contributed to create social

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cohesion, mitigate and resolve social conflicts and considerably influence social and political life as well as their contribution to basic service delivery education, health and other social service. Other social activities include reciprocated collective work (nafirs and fazaa), takaful (social support) and waqf, which is an investment made by the rich for the benefit of the needy (Endowment). All these are based on the religious belief and/or the social traditions. 4.2.2 Modern Civil Society Institutions (NGOS and CBOs): Most of these are largely urban based and dominated by the educated groups. They include Trade Unions and students associations and other interest groups (women, youths, artists, musicians, sport clubs ..etc..), the media but the most important and active are the nongovernmental organizations (NGOs). These can also be divided into two groups: (a) support intermediary NGOs and (b) Community-based organizations (CBOs). While the CBOs are mostly concerned with local problems, are limited in their social and geographical outreach, and are mainly dealing with their members problems, support NGOs are extending their services in various fields and wider geographical area. The environmental crisis of the 1980s marked a point of departure from the old traditional structure and methods of operation, with a considerable increase in the number, expansion in functions and specializations of NGOs. Several factors contributed to that change: a. the necessity to address the needs of the victims of the adverse environmental conditions as the crisis were far beyond the capacity of the official institutions. b. the rise in general awareness resulting from education and international contacts. c. the influx into the country of a numerous number of INGOs and their formation of partnerships and/or fostering of national organizations, the thing that consolidated the knowledge and experience of national CSOs, and enhanced international contacts. d. the availability of resources from the international community, mainly through the INGOs Another qualitative turn took place in the early 1990s based on the accumulated experience, the stronger international links established, the global information and communication revolution and the new problems that emerged, emanating from the civil war and the economic reforms (SAPs & liberalization) that were respectively coupled with large scale displacement of population and wide spread poverty. One of the new tasks undertaken by the CSOs was to fill the gap in the service sector left by the State as it introduced the cost recovery system in service delivery. The other major areas of activity were that of peace building, human rights and civil liberties resulting from the absence of trade unions and political parties. One of the most important changes in recent years was the formation of networks such as the ones on peace, human rights, environment, gender issues etc.., which enhances the CSOs technical capacity and strengthen their position. The official body and focal point for NGOs' (national and foreign) registration and following–up is the Humanitarian Aid Commission (HAC). The NGO sector (both national and international) has been and continued to make significant contributions in the various field of social and economic development scoter. NGOs have played a significant role in providing humanitarian assistance to the drought victims in the 1980s and in the 1990s their work was largely focussed on filling the service gap that resulted from the adoption of the SAPs and provided the safety net for IDPs and the urban poor population. In fact basic services for the population both in the displaced camps and in the war-torn area, is almost exclusively delivered by NGOs. Recently national NGOs got more involved in the issues of governance, human rights and in influencing the official decision, particularly in the areas of environment and economic planning

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as it is the case with the PRSP and Cotonou processes. Through such processes CSOs are developing their partnership with the state sector, which represent a significant positive development, replacing the uneasy relationship that existed in the early 1990s. The government is encouraging the development of that partnership through engaging civil society in governance and development issues. At present the issue of conflict resolution and peace building are on the top of CSOs’ agenda. With a view to the eminent peace agreement between the government and the SPLA, the concern about the tasks of reconstruction, rehabilitation and social integration as the main challenges of the post-conflict Sudan, has led to the emergence of a large number of CSOs that are primarily targeting the conflict affected areas and populations. As shown in table 4.1 about 70% of the registered organizations have appeared within the last three years. Table 4.1 below shows the substantial increase in the number of NGOs that occurred during the last three years, exceeding 500 by the year 2003 (Table 4.1). Table 4.2 shows the sectors where NGOs are most active and Table 4.4 indicates the value of NGOs' contribution during the year 2002, that in addition to the contribution by members in kind in the form of time, mental and physical efforts.

Table 4.1: The Growth of NGOs Over time Period No % Prior to 1990 27 6 1990-1999 114 25.3 2000-2002 309 68.7 Total 450 100.0

Table 4.2: Distribution of the National NGOs by Sector Sector No. of NGOs % Health 134 21 Education 75 11.7 Environment 18 2.8 Economic 2 0.3 Mother and Child Care 78 12.2 Agricultural activities 18 2.9 Peace Building 24 3.8 Relief & Food 54 8.4 Social activities 184 28.8 Human Rights 16 2.5 Training & Capacity Building 14 2.1 Water 16 2.5 Mines-Related activities 7 1.1 Total 640 100

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Table 4.3: Geographical Distribution of NGOs in Sudan

Region The State NO No/Region %/Region Khartoum Khartoum 346 346 59.7

Northern 11 Northern River Nile 13

24

4.1

Red Sea 11 Kassala 12

Eastern

Gedaref 17

40

6.9 Gezira 8 Sennar 8 Blue Nile 10

Central

White Nile 10

36

6.2 Northern Kordofan 13 Western Kordofan 17 Southern Kordofan 29 Northern Darfur 9 S southern Darfur 9

Western

Northern Dar fur 7

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14.5 Upper Nile 8 Gonglei 7 Unity 2 Western Equatoria 1 Eastern Equation 6 Bahr Eljebel 10 Buhaiyrat 1 Warap 1 Western Bahr El Ghazal 8

Southern

Northern Bahr El Ghazal 6

50

8.6

Total 580 580 100

Table 4.4: Expenditure by NGOs Sector in 2002 Activity Cost in US$ % Relief and food items 4,100,000 22.1 Education 2,250,000 12.1 Mother and Child Care 1,600,000 8.6 Water Sector 1,950,000 10.5 Social 2,000,000 10.8 Human Rights 500,000 2.7 Peace 650,000 3.5 Training 300,000 1.6 Agriculture and Forestry 750,000 4.1 Environnent 150,000 0.8 Mine Action 4,250,000 23 Total 18,500,000 100.0

4.3 Civil Society Input to Sudan (LDCs) Action Programme: As indicated in Table 4.2 there are numerous areas in which CSOs are already engaged and hence can contribute to the realization of the objectives of the national action programme. 4.3.1 Resource Mobilization Through their involvement in service delivery, they provide a relief to State development funding. CSOs are also attracting foreign resources independent of the State that is mainly directed to human development.

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4.3.2 Conflict Aversion: In the agro-pastrolist sector which is exclusively non–formal and mainly operate in the current conflict zone areas CSOs organizations can play a major role in awareness raising and improvement of resource management systems 4.3.3 Social Development: Table 4.2 and 4.4 show that over 80% of registered CSOs and over two thirds of their resources are directed to human development, particularly the basic needs. This remains the area where most of these organizations have the competence and experience and hence have a lot to offer. 4.3.4 Good Governance: Central to peaceful socio-economic development and social cohesion and peaceful coexistence are the principles of respect of human rights, transparency, accountability, participation and inclusion and credibility. Civil society organizations and institutions could act as a watch dog and a guardian to these principles and as part of the tools for the promotion of these principles. CSOs, especially human rights groups, had already played an important role over the years and should expand that role to promote the principles of good convergence. This again require the creation of a conducive policy environment, which in turn require building the capacity and influence of particularly, parliamentarians, trade unions and the media to play their expected roles. 4.3.5 Environmental Rehabilitation and Conservation: Since the early 1980s, Sudan has been impacted on by drastic climatic and ecological changes as well as the civil war, both resulting in extensive environmental and resource degradation. The deterioration of resources and the squeezing of land users (mainly pastoralists, agro-pastoralists and farmers), caused by the expansion of the war zones and adverse natural conditions (drought and desertification) have also resulted in localized tribal frictions and conflicts further undermining social stability and increasing degradation. Environmental rehabilitation and regeneration is critical not only for the recovery and development of human communities, but also to diffuse resource-based conflicts in the future. This makes environmental rehabilitation central to any peace building and/ or consolidation effort. Civil society organizations have historically taken the lead in environmental issues and are therefore qualified to play an important role in that area including: resource mapping, environmental education and awareness raising, environmental health activities, rehabilitation of degraded areas e.g. reforestation etc.. 4.3.6 Technology and Scientific research. Applied scientific research and up-to-date information are crucial for social and economic development. Many organizations have already undertaken baseline surveys and several of them are already active in intermediate technology transfer. Such efforts if coordinated with research institutions and supported by the public and private sector could, on the one hand, enhance development programmes and, on the other, move a step towards the much needed technology transfer. 4.3.7 Contributing to Regional and International Cooperation: At the international level, CSOs, in collaboration with international CSOs can lobby for the debt relief, the implementation of rich countries commitments to the MDGs, sustainable development agenda and other international declarations relating to economic and human development in the LDCs. Through their regional and international networks CSOs could also contribute to the

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regional cooperation, particularly in the fields such as environment, AIDS prevention and peace building 4.4 Obstacles for Civil Society Organizations: 1. As the distribution table shows, most of the modern organizations are concentrated in the national capital, which reflect a concern about impacts and results of problems, rather than addressing the causes in the rural areas. That situation is partly dictated by logistical inabilities and financial constraints, but also that the membership of these organizations is still of the more enlightened and the educated and most of them did not succeed in attracting the masses. 2. Most of the CSOs are dependent on foreign funding and year marked budgets that does not allow for the flexibility needed in a volatile social set like the one they operate in. Also the year by year funding and the lack of long or medium term funding commitments does not allow for long term planning which is essential for socio-economic development 3. Given the immensity of the problems national organizations are to address and the relatively short and localized experience of many of these organizations, the capacity of these organizations needs to be built to enable them meet the challenges of the future 4. Because of the limited resources, very little if any, of CSO resources are allocated for research and development, which is a prerequisite for effective interventions, appropriate functioning and the promotion of their capacity to cope with the growing challenges. The tasks ahead of CSOs, to be performed in a satisfactory manner require:

a. State support and its creation of a conducive environment for CSOs to deliver and to build effective partnerships

b. As the resources needed for the near future are far beyond the ability of national NGOs to raise, financial support from both the public and private sector is essential

c. The financial support from the international community as well as capacity building of these organizations is also critical to capacitate them play their expected roles

d. Networking at the national level is important to maximize the use of resources, avoid duplication and conflicts and exchange information and experience. International partnerships and networking are also important for national NGOs to learn and enhance their effectiveness.

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Annex 1. Structure of the economy

% of GDP 1981 1991 2000 2001 Agriculture 36.4 41.4 41.4 39.1 Industry 14.3 11.4 18.0 18.3 Manufacturing 7.4 5.5 9.9 10.1 Services 4.3 47.2 40.6 42.6 Private consumption 81.8 73.5 74.1 - General government consumption 12.9 10.1 5.9 - Imports of goods and services 23.7 9.7 13.7 19.5

Source: World Bank 2003

Annex 2. Average Annual Growth Rates (1981-2001) Average Annual Growth 1981-1991 1991-2001 2000 2001 Agriculture -1.4 9.7 5.4 8.4 Industry 2.2 8.3 5.6 9.8 Manufacturing 3.2 9.5 5.2 8.6 Services 1.8 6.9 6.7 4.3 Private Consumption -0.9 - -1.1 - General government consumption 0.7 - 29.0 - Gross domestic investment -2.2 10.0 14.9 6.9 Imports of goods and services -7.7 9.6 4.7 37.5

Source: World Bank 2003

Annex 3. Sudan Debt owed to International financial Institutions US$ millions 1981 1991 2000 2001 Total debt outstanding and disbursed

6.194 15.227 15.741 15.348

IBRD 48 15 1 0 IDA 254 1.105 1.167 1,138 Total debt service 303 22 61 56 IBED 7 6 3 2 IDA 7 14 5 5

Source: World Bank 2003

Annex 4. Composition of net resource flows Source 1981 1991 2000 2001 Official grants 253 549 - Official creditors 393 116 -4 -2 Private creditors 180 0 0 0 Foreign direct investment 0 0 392 - Portfolio equity 0 0 0 0

Source: World Bank 2003

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Annex 5. Sudan: Estimated evolution of GDP at Current Prices by Expenditure 2002 - 2010 in BSD Item/Year 2002 2003 2004 2005 2006 2007 2008 2009 2010

Real GDP Growth Rate 5.0% 5.8% 6.0% 6.2% 6.3% 6.4% 6.0% 5.5% 5.0% Real GDP Growth Rate Bill SD 81/82 price 1553 1643 1742 1850 1966 2092 2217 2339 2456 General price Inflation 8.3% 7.0% 6.0% 5.5% 5.0% 5.0% 4.0% 4.0% 4.0% GDP Deflator (Gen. Price) 247 264 280 296 310 326 339 352 367 Exchange Rate 264 266 270 274 277 278 280 280 280 GDP current prices calculated 3836 4342 4879 5466 6101 6818 7514 8245 9003 Per Capita GDP million US$ 2693 3115 3557 4042 4569 5168 5750 6116 7000 Private Expenditure 377 495 520 600 710 824 900 990 1089 Private Consumption 2316 2620 3037 3442 3859 4344 4850 5126 5911 Total Investment 614 695 781 875 976 1091 1202 1566 1441 Government Investment 141 177 230 290 336 380 420 483 555 Private Investment 473 518 551 585 640 711 782 1083 885 Current Account 529 533 541 549 556 558 562 563 563 National Savings 1142 1228 1322 1424 1532 1649 1765 2129 2003 Gross Domestic Savings 1142 1228 1322 1424 1532 1649 1765 2129 2003 Private Savings 1187 1313 1484 1631 1779 1924 2073 2502 2451 Public Savings -44 -86 -163 -208 -247 -275 -309 -373 -488 ICOR 3.2 2.8 2.7 2.6 2.5 2.5 2.7 3.5 3.2

Source: Ministry of Finance & National Economy

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Annex 6: Sudan: Estimated Evolution of GDP at Current Prices by Expenditure 2001 - 2010, in Percent of GDP Item/Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Total Consumption 65.7% 70.2% 71.7% 72.9% 73.9% 74.9% 75.8% 76.5% 74.2% 77.7% Government Consumption 10.1% 9.8% 11.4% 10.7% 11.0% 11.6% 12.1% 12.0% 12.0% 12.1% Private Consumption 55.6% 60.4% 60.3% 62.3% 63.0% 63.3% 63.7% 64.5% 62.2% 65.7% Total Investment 19.0% 16.0% 16.0% 16.0% 16.0% 16.0% 16.0% 16.0% 19.0% 16.0% Government Investment 2.3% 3.7% 4.1% 4.7% 5.3% 5.5% 5.6% 5.6% 5.9% 6.2% Private Investment 16.7% 12.3% 11.9% 11.3% 10.7% 10.5% 10.4% 10.4% 13.1% 9.8% National Savings 34.3% 29.8% 28.3% 27.1% 26.1% 25.1% 24.2% 23.5% 0.0% 0.0% Gross Domestic Savings 34.3% 29.8% 28.3% 27.1% 26.1% 25.1% 24.2% 23.5% 25.8% 22.3% Private Savings 35.9% 30.9% 30.2% 30.4% 29.8% 29.2% 28.2% 27.6% 30.3% 27.2% Public Savings -1.6% -1.2% -2.0% -3.3% -3.8% -4.0% -4.0% -4.1% -4.5% -5.0% Current Account S.D. 15.3% 13.8% 12.3% 11.1% 10.1% 9.1% 8.2% 7.5% 6.8% 6.3%

Source: Ministry of Finance & National Economy

Annex 7: Sudan: Estimated evolution of Central Government Operations 2001 - 2010 % of GDP Item/Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Revenue 11% 12% 14% 12% 12% 13% 14% 13% 13% 13% Total Expenditure 12% 14% 15% 15% 16% 17% 18% 18% 18% 18% Current Expenditure 10% 10% 11% 11% 11% 12% 12% 12% 12% 12% Development Expend. 2% 4% 4% 5% 5% 6% 6% 6% 6% 6% Current Surplus/Deficit 1% 3% 2% 1% 2% 1% 2% 1% 1% 1% Overall Deficit -2% -1% -2% -3% -4% -4% -4% -4% -5% -5% Foreign Finance 115% 0% 1% 3% 3% 4% 4% 4% 4% 5% Borrowing from Banking Sys. 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Other Sources of Finance 1% 1% 1% 0% 0% 0% 0% 0% 0% 0% Total Finance 2% 1% 2% 3% 4% 4% 4% 4% 5% 5%

Source: Ministry of Finance & National Economy

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Annex 8. Sudan: Estimated Evolution of Central Government Operations 2001 -2010, in BSD

Item/Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Total Revenue 364 474 587 588 683 799 929 1011 1100 1197 Petroleum 0 201 249 259 341 433 542 596 656 721 Non-petroleum 0 273 338 329 342 366 387 415 444 475 Total Expenditure 418 518 672 750 890 1046 1204 1320 1473 1644 Current Expenditure 340 377 495 520 600 710 824 900 990 1089 Development Expend. 78 141 177 230 290 336 380 420 483 555 Social Expenditure 16 28 35 46 58 67 76 84 97 111 Others 62 113 142 184 232 269 304 336 386 444 Current Surplus/Deficit 24 97 92 68 83 89 105 111 110 108 Overall Deficit -54 -44 -86 -163 -208 -247 -275 -309 -373 -448 Foreign Finance 8 15 43 139 183 221 246 279 341 415 Borrowing from Banking Sys. 10 0 0 0 0 0 0 013 19 Other Sources of Finance 29 23 24 24 25 26 29 30 32 33 Total Finance 54 44 86 163 208 247 275 309 373 448

Source: Ministry of Finance & National Economy

Annex 9: Sudan: Percentage Distribution of GDP at Current Prices by Expenditure 1990 – 2000

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000Government Consumption 7% 5% 10% 6% 5% 5% 7% 5% 8% 6% 5%Private Consumption 85% 85% 76% 82% 83% 84% 82% 86% 84% 83% 82%Gross Investment 9% 13% 17% 20% 23% 16% 22% 18% 17% 17% 17%Exports 4% 1% 4% 4% 5% 5% 8% 10% 11% 7% 10%Imports 5% 5% 7% 13% 16% 9% 19% 19% 21% 13% 14%GDP 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Source: Central Bureau of Statistics

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Annex 10: Sudan: Annual Percentage Change of GDP at Current Prices by Expenditure 1999 - 2000

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000Government Consumption 43% 22% 363% 27% 84% 149% 201% 18% 118% -12% -20%Private Consumption 36% 76% 94% 145% 99% 199% 82% 70% 41% 20% 2%Gross Investment -7% 152% 182% 157% 127% 109% 152% 33% 36% 21% 3%Exports 36% -45% 521% 167% 113% 182% 226% 107% 58% -27% 58%Imports -1% 64% 200% 298% 149% 78% 278% 62% 55% -24% 10%GDP 33% 75% 119% 125% 98% 194% 87% 62% 43% 21% 3%

Source: Central Bureau of Statistics

Annex 11: Sudan: Percentage Distribution of GDP at Current Prices by Sector 1990 – 2000 in MSD Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Agriculture 35% 41% 40% 38% 41% 41% 37% 40% 39% 37% 37%Industry 12% 10% 11% 10% 11% 10% 15% 10% 16% 17% 18%Service & ELW 53% 48% 49% 52% 48% 49% 48% 50% 45% 46% 45%GDP 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Source: Central Bureau of Statistics

Annex 12: Sudan: GDP Growth Rate at Current Prices by Sector 1999 – 2000 Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Agriculture 17% 104% 112% 115% 113% 189% 71% 77% 38% 16% 4% Industry 57% 56% 128% 111% 119% 162% 173% 8% 137% 26% 9%Service & ELW 42% 60% 123% 136% 83% 205% 82% 67% 30% 23% 1%GDP 33% 75% 119% 125% 98% 194% 87% 62% 43% 21% 3%

Source: Central Bureau of Statistics

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Annex 13: Sudan: GDP Growth by Sector Constant 1982 Prices: Share and Growth Rates

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000GDP 7904.5 8488.2 9057.2 9399 9566.2 10417.6 10834.3 11560.2 12437.8 13086.6 14009Growth Rate -2% 7% 7% 4% 2% 9% 4% 7% 8% 5% 7%Agriculture 2323.4 2292.2 2853.9 2900.9 2763.4 3102.4 3226.5 3442.6 3727.9 3881 4291.7Agriculture/GDP% 29% 27% 32% 31% 29% 30% 30% 30% 30% 30% 31%Growth Rate -20 -1% 25% 2% -5% 12% 4% 7% 8% 4% 11%Industry 1182 1395.8 1381 1493 1424.1 1652.2 1718.3 1833.5 2051.8 2195.1 2343.7%Industry /GDP% 15% 16% 15% 16% 15% 16% 16% 16% 16% 17% 17%Growth Rate 1% 18% -1% 8% -5% 16% 4% 7% 12% 7% 7%Services 4399.1 4800.2 4822.3 5005.1 5348.7 5663 5889.5 6284.1 6658.1 7010.5 7373.65%Services/GDP% 56% 57% 53% 53% 56% 54% 54% 54% 54% 54% 53%Growth Rate 10% 9% 0.5% 4% 7% 6% 4% 7% 6% 5% 5%Source: Central Bureau of Statistics

Annex 14: Sudan: Evolution of Balance of Payments, 1990 2000 in MUS$ Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Current Account 12.4 -488.2 -365.9 -456.7 -546.7 -576.2 -873 -827.3 -957.4 -431.4 -517.51Trade Balance -244.4 -585.3 -501.6 -527.6 -559.9 -629.1 -884.2 -827.7 -1136.5 -476.1 440.29Exports 374 305 319.3 417.3 535.6 555.7 620.3 594.2 595.7 780.1 1806.7Petroleum 0 0 0 0 0 0 0 0 0 275.9 1350.76Cotton 178.5 130 65.3 57.1 93.9 123 128.2 105.6 95.5 44.9 47.22Others 195.5 175 254 360.2 441.7 432.7 492.1 488.6 500.2 459.3 408.72Imports -618.4 -890.3 -820.9 -994.9 -1095.5 -1184.8 -1504.5 -1421.9 -1732.2 -1256.2 -1366.4Government Purchases -490.5 -473.4 -482.6 -304.3 -464.2 -448.4 -624.7 -507.3 -745.9 -233.5 155.6Private Purchases -127.9 -416.1 -338.6 -640.6 -631.3 -736.4 -879.8 -914.6 -986.3 -1022.7 1210.8Services Account 256.8 97.1 135.7 70.9 13.2 52.9 11.2 0.4 179.1 44.7 -957.8Receipts 456.7 201.4 388.6 155 199.3 479.7 292.9 488 761.4 836.7 722.4Payments -199.9 -104.3 -252.9 -84.1 -186.1 -426.8 -281.7 -487.6 -582.3 -792 -1680.2Capital Account 169 735.6 334.6 186.6 209.9 340.5 90.2 182.7 379.1 413.3 76.65Drawings 340.3 524.6 312.1 208.4 32.6 67.8 22 18.6 13 45.8 16.5Repayments -73.2 -25.2 -23.3 0 -23.8 -57.9 -43.5 -63.7 -67.2 -68.7 -135.85Other Items of Capital acc -98.1 236.2 45.8 -21.8 201.1 330.6 110.9 127.2 433.3 436.2 196Errors & Omissions -257.5 -348.7 -26.8 232.4 354.6 228.5 719 608.4 603.4 129.8 280Overall Balance -76.1 -101.3 -58.1 -37.7 17.8 -7.2 -63.8 -36.2 25.1 111.7 136Monetary Move. 76.1 101.3 58.1 37.7 -17.8 7.2 63.8 36.2 -25.1 -111.7 -136Source: Bank of Sudan