Oil or Nothing: Dealing with South Sudan’s Bleeding Finances

An interesting article about South Sudan and its oil wealth and where it is ending up.


“After independence, oil emerged again as a cause of trouble. Facing deadlocked negotiations over how much to pay Sudan for the use of a pipeline transporting crude from Southern oil fields to export via Port Sudan on the Red Sea, Juba shut down its oil production in 2012 to force Khartoum’s hand. South Sudan’s army then captured the Heglig oil fields just across the border inside Sudan, triggering a short-lived border war before pulling back amid global outcry. Having cut off its only source of revenue, the government secured over $1 billion in oil-backed loans to tide itself over until exports resumed, a mechanism it would later deploy to fund itself during South Sudan’s civil war, in effect mortgaging the state’s future.”

Development through ‘donors’ is colonialism in disguise!

1 Like