Sudan is the largest country in Africa, bordering nine countries and with a population of 37 million. Assistance and needs vary greatly across Sudan's diverse geography; from the humanitarian relief provided to the millions displaced in Darfur and the refugee communities in Eastern Sudan, to the recovery and development activities in Southern Sudan and the Three Protocol States. Sudan faces complex development challenges: enduring one of the longest running armed conflicts in the region, experiencing large inequality across its regions, and an economy that is heavily dependent on one resource: oil.
Ranked 150th out of 182 countries by the Human Development Report, Sudan has some of the lowest development indicators in the world, and poverty remains widespread. Estimated poverty rates are up to 90% in Southern Sudan and the Three Protocol States; in some regions clean water is available to only 1 in 4 and only 1 in 5 children complete primary school. Development inequality between the different regions is stark, social development is uneven, and Millenium Development Goals indicators are low. For example, school enrolment rates in Northern Sudan have reached 64.3% whereas in Southern Sudan the rate is 30%.
Economic growth over the last few years has however been strong. Since the signing of the Comprehensive Peace Agreement in 2005, Sudan's economy, with an average of 9% GDP growth, has become one of the fastest growing in Africa due to the expansion of its petroleum base. While agriculture represents the largest share of GDP, at roughly a third, foreign investment and rising domestic demand have spurred growth in the construction and service sectors. Growth is, however, uneven across the sectors (see Comparative Statistics Sudan chart, p. 4), and Sudan lacks the political and economic institutions that can sustain and support rapid, pro-poor growth. Consequently, the fiscal position in the post-CPA period has deteriorated and domestic debt has increased.
Figure 2: UNOCHA, Comparative Statistics Sudan, 2009
Sudan's Development Road Map
Joint Assessment Mission
As negotiations on the CPA were being finalised, the Government of Sudan, SPLM, World Bank, UN, IGAD and the IGAD partners` forum called for a donor conference to pledge funds for reconstruction. In preparation for this conference, and working together with the Government of Sudan and the SPLM, the World Bank and UN co-led a Joint Assessment Mission (JAM) of Sudan's recovery, reconstruction and development needs in 2004 and 2005. The year-long assessment exercise estimated total reconstruction and development needs for the period 2005 - 2007 of $4.3 billion in the North and $3.6 billion in Southern Sudan, with an additional $700 million for the three Areas.
Some have criticised the JAM process for an over-dependence on state-led development, a lack of focus on income guarantee and restitution schemes and the lack of a justice component. During the lessons learnt review jointly conducted by the UN and World Bank, the difficulties of coordination between Nairobi and Sudan and the lack of emphasis on early recovery planning and capacity building in Southern Sudan were highlighted.
Multi Donor Trust Funds
The CPA specified that two Multi-Donor Trust Funds (MDTFs) be established to facilitate the coordination of external donor financing of Sudan's reconstruction and development needs in the South and North, respectively. The MDTF's are administered by the World Bank and primarily executed by the Governments of National Unity and Southern Sudan. The UN agencies are implementing partners of MDTF projects. All programmes submitted for MDTF financing are part of either the Government of National unity or the Government of Southern Sudan's development plan and are consistent with the priorities outlined in the JAM. At the start of implementation, MDTF supported projects in Southern Sudan experienced major difficulties in reconciling the need for rapid delivery of results with the low absorption capacity on the ground, and the need to ensure adequate fiduciary controls and government ownership.
Figure 5: Funding, project commitments and disbursement status.
As of January 2009, donors have contributed a total of $768 million to both the National and Southern Sudan MDTF. The National MDTF supports Government capacity building, reform of the judiciary, health, education, water and sanitation, infrastructure and development, livestock, introduction of the new currency and the census. Net donor contribution to the National MDTF is $266,929 million and disbursement is $101,420. The Southern Sudan MDTF focuses on public works, transport and infrastructure, fiduciary system support, education, health and water provision, capacity building and private sector development. Donor contributions to the Southern Sudan MDTF are $500,771 and disbursement $167,873.
The Sudan Consortium provides a forum to annually review progress in implementing the social and economic aspects of Sudan's 2005 Comprehensive Peace Agreement (CPA). The Consortium is jointly chaired by the Sudan Government of National Unity (GoNU) and the Government of Southern Sudan (GoSS), and organized by the UN and the World Bank. The structure grew out of the Comprehensive Peace Agreement. The first Consortium conference took place in Paris, March 2006, where participants reaffirmed an overall pledge of $4.5 billion for three years to support Sudan's recovery under the peace accord.
Subsequently, Sudan Consortium meetings were held in Khartoum, in May 2007, and in Oslo, in May 2008. A total of 45 international delegations representing donor countries, international organizations and civil society participated at the meeting. At the meeting, donors pledged USD 4.8 billion in total support to humanitarian, recovery and development efforts in the whole of Sudan, for the period 2008-2011. Part of the funds for development efforts will be channeled through two complementary mechanisms: the Multi Donor Trust Funds administrated by the World Bank which will receive an estimated US$650 million; and the newly created Sudan Recovery Fund for Southern Sudan, administered by the UN.
Current financing of the Joint Assessment Mission: The JAM estimated total costs of $7.9 billion for the first phase of CPA implementation (2005-2007) with an additional $0.7 billion for the three Areas. The JAM prioritised assistance to war-affected areas and the development of basic service provision rather than large scale infrastructure. In Southern Sudan, the largest components focused on new infrastructure, expansion of basic services, and institutional reform and capacity building.
Figure 6: Adherence to Financial Obligations for the JAM Projects: Donors.