Is South Sudan a Failed State Waiting to Happen

There was widespread relief that the Referendum last month went off peacefully. The fact that the Khartoum regime did not resist the last pledge of the 2005 Comprehensive Peace Agreement (CPA), ending five decades of civil war between north and south, was an indication the world could be welcoming its newest country by the summer. On 7th February 2011, the Southern Sudan Referendum Commission announced that 98.83% of the voters had backed independence and publically accepted the outcome.
The country faces three major issues that threaten the future of what could be the newest state in the world; and there is every danger of a failed state outcome unless the international and African communities act decisively and in unison to alleviate them.
The first issue is the oil fields. In the event of secession, and assuming North Sudan upholds The Hague’s arbitration ruling over the disputed border in the Abayei area, then some 80% of the oil fields will be in the south, with the only outlet for export being Port of Sudan in the north. Oil is the resource that threatens the stability of the north and the south once the people of the south secede.
Secondly is the internal division between the disparate tribes in the black Christian south, an aspect of its heritage that remains a marked distinction to the predominantly Muslim north. South Sudan looks to neighbouring East African countries, long standing allies such as Kenya and Uganda, whereas the Khartoum-led north looks to the Middle East nations for trade and political support. These southern divisions were manifested by in-fighting within the leadership of the Southern People’s Liberation Army (SPLA) during the civil war that nearly brought defeat from within. Today the tensions and triggers for disunity remain.
The last issue concerns the international community. Since peace in 2005 the south has been dependent on aid agencies. There is no stimulus to establishing a regulatory regime or the mechanisms for a domestic capital market. Until the domestic private sector is incentivised, and the precedents and incentives for essential foreign direct investment are forthcoming then the country will be at the mercy of aid agencies, along with the inherent corruption, that in the long term will do nothing to fuel the engine of a new state that needs to stand on its own feet.
Posted date 14-02-2011
Articles
- Libya
- From Switzerland to Singapore
- Page Group Opens New Middle East Office
- Alan Jenkins Welcomed as Head of Advisory Board
- UK Bribery Act
- The UK Bribery Act The Steps We Should Take
- Kabul City
- Evacuation and Crisis Planning
- Bribery Act Guidance Notes
- Haiti One Year On
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Libya
The spectre of Libya as an attractive market opportunity for foreign investment in the aftermath of regime change does raise difficulties for verifying the sort of information and procedures necessary to protect investors from FCPA and Bribery Act infringements; indeed, to protect them from losing money and reputation.From Switzerland to Singapore
There is an eastward shift underfoot in the world of private banking. As pressure builds in Europe against bank secrecy and tax evasion, parts of Asia are cropping up as the new favoured private banking centres. A report published by PwC in June 2011 estimates that Singapore is set to take the slot as the world’s top wealth manager by 2013Page Group Opens New Middle East Office
Page Group is pleased to announce the opening of our new Middle East office providing due diligence, background checks, asset tracing and investigations along with security advisory and reviews.Alan Jenkins Welcomed as Head of Advisory Board
Alan joined Page Group as head of the advisory board in the autumn of 2011. He has had a long and distinguished legal career, retiring as Chairman of Eversheds LLP in April 2010.UK Bribery Act
The UK's Bribery Act comes into force today.The UK Bribery Act The Steps We Should Take
This month Page Group’s legal advisor takes a practical look at the Bribery Act and what steps businesses can take to prepare themselves. The new legislation will come into force on 1 July 2011. Sensible companies will be reviewing the steps they can take to minimise adverse effects on their business or even, in an extreme case, the risk of a prosecution under the Act. After some delay, government guidance has been provided as to the ‘adequate procedures’ expected to be in place to reduce the risk of their business being adversely affected by bribery.Kabul City
In this and forthcoming newsletters, Page Group will feature on-the-ground accounts by personnel deployed by our company in different regions. This month, our country manager in Afghanistan has provided an insight into what conditions are like in Kabul, filling a gap in many people’s understanding of what actually takes place in the city which is so often the subject of daily headlines.Evacuation and Crisis Planning
Companies, non-governmental organisations and individuals may be surprised to learn how quickly they can become caught up in a crisis caused by hurricanes, floods, tsunamis, volcanoes, hazardous material or nuclear accidents, terrorist activity, kidnappings, civil war, ethnic violence, political turmoil, coups d'état, or uprisingsBribery Act Guidance Notes
The Ministry of Justice has finally released the Guidance Notes linked to the Bribery Act. The full details can be found at the following url: http://www.justice.gov.uk/guidance/bribery.htm. Companies will now have until 1st July 2011 to ensure compliance with the Act.Haiti One Year On
A year on from the earthquake and Haiti remains in a state of almost perpetual flux. Many hoped the New Year would have heralded a new beginning and a new political situation that would promote investment and be the catalyst for infrastructure rebuilding; sadly little has changed for the thousands of displaced homeless that still inhabit the public spaces. These shanties, made of makeshift shelters and tents, are threatening to grow into townships commanding their own blend of justice and hierarchy.






