Sudan’s economy was agricultural-led economy before the production of crude oil. Agricultural sector had a higher share of the Gross Domestic Product (GDP) almost 48% of the GDP during that period and employed approximately 80% of the labour force (BBC, 2013). However, the discovery of the crude oil and the advent of crude oil exportation in the third quarter of 1999 caused a notable change in Sudan’s economic structure. In 2008, Oil export earnings constituted 95% of the total export proceeds, leading to crude oil revenues contributing 60% of the total government revenues (International Monetary Fund, 2009). Since then, the economy became dependant on crude oil revenues to finance government budget and provided the required foreign exchange to pay imports bill. During the period 2000 – 2011, Sudan witnessed a higher growth rate of its Gross Domestic Product, driven mainly by the oil sector (World Bank, 2009). This situation has exposed the economy to the negative effects of fluctuations in oil prices in the global markets. It is worth noting that during the period under investigation Sudan was a net oil exporter, this manifested in the quantities of crude oil produced compared to the domestic consumption. That is, crude oil supply outweighed domestic demand. Furthermore, there was a lack of knowledge in understanding the impact of global crude oil price shocks on the macroeconomy. The government concerned about the amount of foreign inflows received from exporting its crude
(CITE) 2001 saw an internal struggle whereas the Sudanese government were attempting peace agreements with the (SPLA). The government even showed signs of stability in 2002 with an agreed ceasefire and the (SPLA) signing a protocol to end the civil war. This truce lasted only 11 days as the government attacked the (SPLA) again. (CITE) A refugee crisis emerged in 2004 as the government struck down an uprising in Darfur and commenced with ethnic killings. 2005 saw the government and the rebels sign a peace treaty for Southern Sudan, but the absence of Darfur in this agreement saw 1.5 million more refugees. (CITE) Even as of 2007, the worst humanitarian disaster in the world continues as China’s oil interests in the region is causing her to block the UN security council resolution process. (CITE) The government’s instability added to Sudan’s inability to diversify her economy. This in turn only exacerbated her resource curse, namely oil. The main ingredient that seemed to fuel the famine was 1978 oil discovery and the control of
Global economy is the economy of the world, and is the international shipping of items and goods. Everyone in the world impacts and effects the global economy, whether you are aware or not. We, as students, can connect and impact the global economy through the things we buy and own by purchasing more items that were made in the United States.
The price of crude oil has experienced a sharp decline since June, 2015. The stunning fall in oil prices has been one of the most important global macro-economic developments of the past 20 months. There are numerous factors that have contributed to the oil price crash and the downturn of the oil and gas industry. These factors would further be discussed in this paper .
Dominated by agriculture grown for export markets since colonial times, the economy of this West African nation is beginning to diversify (Michael Radu). According to statistics provided by the International Monetary Fund, in 2006 revenues from oil and refined products surpassed earnings from the nation’s biggest cash crop, cocoa (African Studies Center). The government in 2011, predicted that the nation’s biggest source of wealth would be petroleum resources. Currently more than 30 international mining companies are mining and exploring reserves of gold. Political stability will determine is multinational energy and mining companies can assist with bringing gold, natural gas, diamonds, nickel, oil, and other natural resources. Foreign investments have slowed down due to political instability, which contributed to the country’s initial financial success. Economic growth has come to a standstill. Although the GDP growth rate improved from about 2% in 2008 to 4% in 2009–2011, per capita income has continuously dropped since 1999, with a slight improvement in 2009–2010 (Central Intelligence
A rise in oil prices impacts Lesser Developed Countries (LDCs) negatively. Not all countries in the world are as developed as the United States, Britain, and Japan. Many countries only recently have begun modernizing. A huge factor in the rate of modernization is the price
Although endowed with rich natural resources, Sudan remains underdeveloped as the results of wars and poor management. The economy has shown very limited growth throughout the years. Sudan is one of the many countries in Africa, with frequent struggles and gains for what is it now. It has a vast and interesting history of battling for its independence and many rights. Sudan is one of the oil producing countries, with a slow increase in their economy. Some of the most liked products come from Sudan, like bananas, sesame seeds, sweet potatoes, cotton and livestock. There are several different aspects that shapes this country to what is it now and what is was back then. It’s still a developing country that needs improvement and help through
“The SUV (Sports Utility Vehicle) is one of the most popular types of vehicle to both own and drive. Last year, SUVs and minivans outsold conventional cars for the first time. However, the SUV is increasingly coming under attack for its fuel economy, emissions standards and safety record. Vehicle fuel efficiency across the US is now at its lowest level since 1980. However, former California governor Gray Davis signed legislation requiring the California Air Resources Board to develop regulations to reduce greenhouse gas emissions from passenger vehicles. This includes SUVs. California accounts for 13 percent of the nation's auto market, so manufacturers of cars, SUVs and trucks are sure to comply with the
Due to these issues South Sudan has no official government leadership (“Civil War”). The camps are not only full of refugees, but approximately two million displaced members that were run out of their looted schools and villages (“South Sudan Home page” and “Civil War”). The displacement of large numbers of the population is a result of political and military leadership abuse added on top of the decades of civil war (“South Sudan profile- overview”). South Sudan contains about 37 miles of paved road, but the recent wars have destroyed even the little infrastructure South Sudan had further harming their economic development (“South Sudan” The World Factbook and “South Sudan Home Page”). Furthermore, the major income that South Sudan receives is from the oil industry of half million barrels per day and about 98% of Sudan’s former productivity, which they received when they became independent from Sudan, but it is highly underutilized due to the civil war with the surrounding countries (“South Sudan
Austerity as defined by Investopedia is a state of reduced spending and increased frugality in the financial sector. As defined by Merriam-Webster austerity is a situation in which there is not much money and it is spent only on things that are necessary. So what exactly do these two definitions mean and how do they correlate to what happens in an economy that is in a recession or depression? To me both definitions represent a state in which dire circumstances are faced and drastic cuts and revisions must be made to try and ensure survival. Austerity has always been looked upon as a more desperate attempt to revive an economy by dropping spending on only the most absolutely necessary items. Austerity is broken down into what’s known as austerity measures. According to Investopedia (2015) austerity measures are “attempts to significantly curtail government spending in an effort to control public-sector debt, particularly when a nation is in jeopardy of defaulting on its bonds”.
After decades of civil war between North and South Sudan a nation wide referendum was held in January 2011 granting the independence of South Sudan by a majority vote of nearly 99% in favor or partitioning the once united war plagued nation (NYT 2012). Unfortunately however, the division of these two states did not put an end to the fighting. South Sudan, one of the least developed countries in the world, gained nearly 70% of the formerly united nation's oil reserve (CNN 2012). Sudan, a far more developed country, on the other hand, was the only of the two nations with access to the necessary processing facilitates and pipelines needed to export the oil overseas. The failure of these two
The oil-rich Bolivarian Republic of Venezuela, located on the northern coast of South America, was for many decades considered among the wealthiest nations in the entire continent. While having the largest proven oil reserves in the world has often proved a tremendous boon for Venezuela, the very black gold that has been the cause of its success has also proven to repeatedly be its kryptonite. Over half of the nation’s Gross Domestic Product stems from petroleum exports – which equates to approximately 95% of total exports. It is really not too hard to imagine what drastic consequences shifts in global oil prices could have on the economy.
A main factor in one of the most recent conflicts is Crude Petroleum. Petroleum is a natural resource and contributed greatly to Sudan’s GDP. However, the source of this oil was mainly found in South Sudan. Sudan economically suffered greatly due to the loss of three quarters of its oil power. It decreased by 20.3% from nine billion dollars in 2009, to three billion 2014 . But, despite this large decrease, 64% of Sudan’s exports in 2014 consisted of Crude Petroleum. But, this money did not go into the pockets of the people. Instead, an estimated sum of nine billion dollars, went into the pockets of the man who was meant to lead their country to peace and greatness, Omar
Chad's economy has long been troubled by its landlocked position, and high energy cost (Azevedo, Graham, and Nnadozie, 1997). They are also still feeling the effects of the years of civil war they were engaged in. Chad has poor transportation, inadequate natural resources, and continue to have political turmoil that has severely stunted their economic development. They are also highly dependent on foreign assistance to help their economy. Their economy is so bad that they are constantly in need of food aid to meet the hunger needs of their people.
Gabon has a GDP per capita four times that of most sub-Saharan African countries, but because of high-income inequality. A very large portion of the population is poor. Gabon relied on timber and manganese exports until oil was discovered offshore in the early 1970’s. From 2010 to 2014, oil was approximately 80% of Gabon’s exports, 40% of its GDP, and 60% of its state budget revenues. Gabon faces fluctuating prices for its oil, timber, and manganese exports.
There has been a lot of growing interest and concern on the development of petroleum and its contribution to economic development. The objective of this study is to look into the economic impacts of petroleum on the Nigerian economy by using theoretical, empirical and non-economic components to find out the positive and the negative impacts of petroleum on the growth of the Nigerian economy. Giving possible solutions to policies and the non-economic factors. Empirical evidence samples will cover all the