Is Sudan a market-led country or interventionist?
Based on everything provided and discussed in the previous sections, it is safe to say that Sudan is a country that tends to utilize market oriented policies rather than interventionist policies. This claim is supported for the following reasons: favors export-led growth (especially oil), growth through Foreign Direct Investment, involvement of non-government organizations, and the involvement of the World Bank. Sudan’s economy is generally market-led but parts of the country like Darfur are economic disasters. If the country would be allowed to embrace privatization more, they may benefit from being able to take more advantage of their natural resources and oil within the international market (Blink). However, al-Bashir’s presidency makes it difficult for this to become a reality.
The IMF is an organization that promotes international monetary cooperation, exchange rate stability and orderly exchange arrangements encourage economic growth and higher employment rates and to give financial assistance to countries that need it for getting out of debt. The IMF and Sudan have not always been on the best of terms with each other. In the 1990s, the IMF considered expelling Sudan from the Fund for being non-cooperative due to nonpayment of arrears to the Fund. Sudan was in large foreign debt at this point. Sudan managed to avoid expulsion by promising to liberalize exchange rates and reduce subsidies. To this day they have fulfilled these promises partially (Global Integrity). Relations with the IMF remain important today considering the many conflicts of the country. Thanks to the high exports of crude oil, Sudan has a current account surplus but still has loans to pay back.
The World Bank consists of different countries working together to collect funds which they use to finance development and reconstruction of economic infrastructures around the world. Being that Sudan has been severely damaged by war and requires major infrastructural rehabilitation and development, the World Bank has been taking measures to implement agricultural reforms, improved social services and food distribution in the country. The Bank focuses on stabilizing peace and building a stable government in the country. The lack of debt payments mentioned in the previous IMF section also made getting financial aid to the country difficult. However, the Bank made a generous $10million contribution to the country to fulfill their purposes.
Many NGOs have formed to aid the suffering people of Darfur including the organization MERLIN. Sudan’s problem is not that there are not enough NGO’s looking to help them – there are, in fact, many groups looking to help – the problem is the way these organizations are treated (Watson). NGOs look to bring relief to the civilian population that suffers from war and to expose the human rights that are being violated in the country.