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The Spoilers (2)

Mohammed Saad Kamil

A failed state is a government that is not able to provide the essential responsibilities for a sovereign state e.g. military defense, imposing rule of law, justice, education, economic stability et. The joint characteristics of a failed state include continuous civilian violence, crimes, corruption, literacy, and the collapse of the main infrastructure. Even if the state is working perfectly is could fail if it lost its credibility and the confidence of the people.

Today’s Overview:

Oil with all its products is an international commodity that has its international organization (OPEC) that controls its production and prices between the producing and the consuming states. Oil is linked with a series of industrial and agricultural production for all commodities.

The international economy has turned to the free market and the open trade which is called the global economy which is under the control of the World Trade Organization (WTO), and accordingly, the economic growth is linked to the demand in the local market and the competition capability of the commodities in the international exportation market.

Most of the Economists in Sudan call for the implementation of those policies to cure the deteriorated economy and to meet the demands of the donors and the international community, They believe that direct assistance to the poor people will fill the gap after lifting the subsidies despite their recognition that there is no accurate statistics which determine the beneficiaries of such assistance.

The big disaster is comparing Sudan with some state that lifts the subsidies on fuel considering that the step contributed in economic growth for those states, but they did not consider that the average income of the individual in those states covers the negative impacts of lifting the subsidies compared to the income of a Sudanese individual which doesn’t exceed US$25!

It is high time for the government, before taking such steps, to conduct an accurate study for the situation in Sudan and to avoid implementing such policies just to follow suit other countries which have different environment and status.

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