The contested policy of changing the South Sudan pound is not going to fix the economy

By Deng Duot Bior-bar, Washington-Seattle, USA

Thursday, October 15, 2020 (PW) — The way forward for the South Sudan government to achieve her 2020-21 budget are slime. The only options to fix the Sudan Sudan struggling economic, conducting annual budget, fighting corruption, discouraging money from kept in people’s houses.  And, for south Sudan to meet her financial obligation and energy independence due to the drops of the Global Oil, market and a result of COVID-19 is not to print or change South Sudan Pound; however, to fix the financial institutions that deal with money.  
 
Currently, South Sudan facing Social-economic and environmental impacts brought about by the Oil Companies looking for ways to maximums profits from natural resources found within indigenous communities’ land.  Extractives Industries activities such as oil exploration and exploitation on indigenous land are often backed up by the government to have access to the natural resources within the country.  On the other hand, these companies looking for natural resources tend to have some positives and negative impacts on the livelihoods of the local communities. 

Although,  South Sudan government works together with oil Companies to achieve the energy demands, output, to improve its economic growth, and build to infrastructure such as road. Also, gains revenues collection from oil these are not without any difficulties, especially from the local communities near the fields. Such Ruweng, Tharjarth and Palouch. So, do none oil revenues. 

Nevertheless, for the South Sudan government to achieve her financial obligations and economic growth, the government has to do different things than not just to charge the South Sudanese pound. South Sudanese’s government has worked hard to meet her financial obligations. The economic growth in South Sudan does not only need the increases oil productivity but opening up other sectors such as the mining sector, Agricultural and tourism. Completing the karuma dam energy contracts or fulla dam for energy consumption in South Sudan. The government also needs to invest in agriculture and encouraging investment opportunities such as in mining.  

Before doing that, the government need to work on the process of acquiring land from the local community has not to meet the international legal, National and domestic legal standard of acquisition compensation. Process of developing land within the Constitution of South Sudan for investments such as for EI activities from the indigenous community are limited. Several researchers such as David Deng have argues that the International legal process of acquiring land from Indigenous, the process of developing the social license to operate and social-economic impacts assessment of extractives industries activities on indigenous community land is paramount.

Although such a function exists in other countries such as Canada, Ghana, Australia and Mongolia,  they are none existence in South Sudan because South Sudan is more concern of financial incentive than the local communities needs.  Article 169. (1) The people of South Sudan own all land in South Sudan, and the government shall regulate its usage under the provisions of this constitution and the law. Also, Article: 169 (2) says, (2) Notwithstanding sub-Article (1) above, and the provisions of Article 28 of this constitution, the government at all levels, may expropriate land in the public interest as shall be prescribed by law. Such wording in the Constitution of South Sudan make oil more valuable then the part of the local communities usages such Agriculture livelihood included. 

 According to the World Bank report of 2018-2019, South Sudan GDP is 3.5 billion dollars. Oil is South Sudan main export that general revenue; According to world Bank about 97% of the South Sudan GDP from comes oil. However; Exploration exploitation of oil in South Sudan is not without any questions, in regards to land, social, economic and environmental policies standpoint. Also, as a matter of facts, social-economic and ecological factors inter-related not only to the indigenous people of South Sudan but also for sustainability.

If South Sudan population relied on Agro-pastoralist, and the other hand, being pro- EI activities then doing Agricultural right now due to lack of investment by the in Agriculture. Likewise,  the government of South Sudan seem to have limited policy concerning acquisition for investment purpose, environmental policies and protection of the indigenous community, which makes harder for local communities practising Agriculture to fight the oil communities.  Article 170. (1) This constitution and the law shall govern the regulation of land tenure, usage and exercise of rights thereon. (2) Without prejudice to sub-Article (3) below, the land tenure system in South Sudan.

 With that,  the processes of acquiring a social license to operation or provision of Corporates Social Responsibility by EI in limbo. Such actions also disempowered None profits organisations that are advocating for the local communities living in the oil-producing area. Mainly those who are practising agriculture and pastoralism are experiencing the impacts of EI activities on the powerless. Besides, the South Sudan government lacks or have limited policies that protect local communities from EI activities in case of any event of Environmental pollution. The primary focus is only on nation-building, deepening peace-building, preventing conflict, improving security and bringing about a process of rapid economic development to reduce poverty anything like protection of indigenous communities from pollution.

Nevertheless,  the advocacy put forwards by NGOs on behaving of the indigenous are not essential or paid attention. With that, we will also investigate the social and economic impacts of EI on the local community living in the surrounding area.  South Sudan is an emerging country, despite its abundant natural resources, mainly due to protracted conflict. Fifty-one per cent of South Sudanese are low (55% in rural areas and 24%in urban regions). Eighty per cent of low households depend on agriculture for their livelihood. 

Education and health indicators are among the lowest in the world, reflecting the impact of protracted conflict and limited provision of Corporate Social Responsibilities brought about by the Extractives Industries since 1970 when the oil exploration began. For those reasons, this dissertation also looks into Corporates Social Responsible activities carried by EI in those oil-producing areas in South Sudan.    

 Nonetheless, South Sudanese populations engaged in agricultural activities and other pastoral activities, but the oil sector dominates its economy. Unemployment and underemployment are relatively high with little or without formal employment sector. About 98% of public revenue and almost all foreign exchange earnings, comes from oil making South Sudanese economy extremely vulnerable oil production levels. With that, any mistake made by Extractives industries is not a big deal.  Therefore, fixing the economy in South Sudan will be to print money, neither changing the currency.  

 Furthermore, just before the independence of South Sudan from Sudan, Oil producing areas was utterly under the Khartoum’s government control, leaving. South Sudanese without any experiences and capacity to take on the critical role of involving local communities in the consultation process of free prior informed concern, (According to  ILO 169: article 7.) which is believed to be an essential prevision in the oil sector, from exploration and licensing agreements, to monitoring production,  to act in accordance within the safety and environmental standards, and marketing as required under United Nations previsions of a profitable business.

 These have made the local communities be experiencing severe social-economic, and ecological impacts of EI on Local community on land acquisition looks into South Sudan land and policy and comparing international land policies used in other parts of the world.  Now, Local communities cannot farm their land is polluted, displaced from home,  rebels and militia control everywhere, forcing the local communities to give up their farming. The solution to these does not need changing the mighty South Sudan Pound but bringing peace and allowing people to work hard to improve the economy. 

Again, in regards to pollution, South Sudan is a member of the International Energy Agency, and it must protect its citizens from Environmental pollution before it is too late. Social-Economic and environment policies are inter-wind.  South Sudan government needs to treat this dilemma should be treated the same as energy trilemma theory and economic concern.

 If South Sudan wants to achieve its energy and economic-financial independence, then there is a need to pay attention to their economist.  Appointing and firing economist is not the solution either. Most of these economists are neither economist for the seventies, or they don’t know how to build the economy.  Also, none of these economists frequently selected are aware of today’s world financial system.

The current market based on fluidity, movability and ability to exchange their local currencies,  when trading with their neighbourhood. These nothing to changing their currencies. Therefore, the current policy of changing the South Sudan pound is not going to fix the economy because any research is not supporting this process. Although it will encourage people to take their money to the bank, the impacts will be improving the South Sudan long term economy.

The author is a concerned South Sudanese citizen who is reachable via his email address: dduotdit@gmail.com

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