South Sudan’s first order of business: Securing its oil-based economy. Currently, 98% of the republic’s revenue comes from oil, which is plentiful within its borders.

 

The problem is that making money off its oil reserves requires South Sudan to rely on its longtime adversary, northern Sudan, which possesses the pipelines and refineries to market the black gold. The black-Christian south won its independence from the Arab-Muslim-dominated north after a bloody 21-year civil war that killed about 2 million people.

 

Up until now, north and south Sudan have agreed to split oil revenues 50-50. But that agreement technically ended on July 9 and both sides are engaged in negotiations and posturing in anticipation of a new accord. South Sudan has made noises about building a pipeline of its own to a port in Kenya, bypassing Sudan’s facilities, but no serious talks have yet surfaced.

 

Also, the two sides still must settle their border issues before there can be a lasting peace. This work includes agreeing on who controls the 4,000-square-mile Abyei region near the north-south border.

-Noel Brinkerhoff

 

US Envoy Warns That Sudan's Peace Could Unravel (by Maggie Fick, Associated Press)

Oil Transparency Critical to Future Success of South Sudan (Global Witness)

South Sudan Oil Could Bypass Sudan (Voice of America)

South Sudan—The World's Newest, Fragile, Oil-Rich Petrostate (by John Daly, OilPrice.com)

A New Nation is Born: What is South Sudan? (by Matt Bewig, AllGov)