Columbia International Affairs Online: Journals

CIAO DATE: 03/2014

Sandipani Dash, Sudan's Oil Diplomacy, 1991-2003 (New Delhi: Manak Publications Pvt. Ltd, 2012)

Central European University Political Science Journal

A publication of:
Central European University

Volume: 8, Issue: 3 (March 2014)


Dinoj K. Upadhyay , Indian Council of World Affairs

Abstract

As world is moving fast on swirling waves of globalization and, as the new economies of Asia have witnessed unprecedented economic growth, global competition for natural resources has entered into new phase of international politics. Although ‘scramble for natural resources’ has always been a defining theme of international economic structures, the rise of Asian economies and multinational companies has metamorphosed natural resources politics in the current discourse on world affairs. The African continent which has huge reserves of natural resources such as oil, gas and minerals, has acquired a renewed significance in world politics. Analysts fear that quest for natural resources can lead to potential new conflicts among nations. Today, new discoveries of coal, oil and gas across Africa generate great academic interest to predict how these resources will transform the course of global energy markets and development in those countries. In this context, Sandipani Dash, in his book Sudan’s Oil Diplomacy, 1991-2003, has attempted to analyze oil diplomacy of an erstwhile undivided Sudan in the larger context of natural resource politics in Africa. The book aims to examine the importance of Sudan’s oil reserve in the world oil regime, its oil production linkage with the Western and Asian countries, and its diversified approach to transnational oil production with Asian orientation.

Full Text

As world is moving fast on swirling waves of globalization and, as the new economies of Asia have witnessed unprecedented economic growth, global competition for natural resources has entered into new phase of international politics. Although ‘scramble for natural resources’ has always been a defining themeof international economic structures, the rise of Asian economies and multinational
companies has metamorphosed natural resources politics in the current discourse
on world affairs. The African continent which has huge reserves of natural resources
such as oil, gas and minerals, has acquired a renewed significance in world politics.
Analysts fear that quest for natural resources can lead to potential new conflicts
among nations. Today, new discoveries of coal, oil and gas across Africa generate
great academic interest to predict how these resources will transform the course of
global energy markets and development in those countries. In this context,
Sandipani Dash, in his book Sudan's Oil Diplomacy, 1991-2003, has attempted to
analyze oil diplomacy of an erstwhile undivided Sudan in the larger context of
natural resource politics in Africa. The book aims to examine the importance of
Sudan's oil reserve in the world oil regime, its oil production linkage with the
Western and Asian countries, and its diversified approach to transnational oil
production with Asian orientation.
Thematically, the book can be divided in three parts. First, it discusses the relevant
traditional and emerging theoretical paradigms and tries to locate Africa in the
extended world oil regime. In the historical context, author traces the roots of
resource politics in the 19th century colonial era and its transformation in the
subsequent post-colonial and globalization phase. The book indicates that nature of
competition may have changed in current times but the pursuit of natural resources
and commercial profit-centric approach remain the mainstay of the foreign policy
of nations. The growing role of non-state actors, including Multi National
Corporations (MNCs), have further complicated the process.
As the third largest producer of oil in Sub Saharan Africa, Sudan holds immense
importance for ever rising energy demands in the Western countries. The country,
which earns 70 per cent of its Gross Domestic Product (GDP) from the oil industry,
has become quite strategically important in international energy market and
consequently in the world affairs. Second, the book examines the transformative
impacts of the 9/11 attacks. The post-9/11 political instability in West Asia also
compels oil importing countries to look beyond traditional supply zones and to
explore areas of African continent. Oil has been used as ‘bargaining chip' in foreign
policy negotiations by the government, which is tangible in its diversified relations
with the West. As described in the book, Sudan has partnerships with several
European counties, the United States and Canada. Western interests in African oil
are tangible in their national security strategy, for instance, the US declared African
oil as a ‘strategic national interest' and growing engagement in oil rich African
countries is amply evident in its foreign policy documents (p. 97).
Third, the author has tried to examine the ‘balancing approach' in Sudan's oil
diplomacy when he analyses the country relations between West and East. Asian
quest for African equity oil has emerged in post-cold war economic world order.CEU Political Science Journal. Vol. 8, No. 3
373
Highlighting growing energy demands in Asia, particularly China and India, the
book argues that entry of China would transform the both energy market and
energy politics of Sudan. While taking note of India's engagement in Sudan, China's
aggressive approach for acquiring energy resources in the country has been amply
discussed in the book. China has been extensively involved in oil exploration,
building pipelines and developing the necessary infrastructure in Sudan. Sudan
supplies 7 per cent of China's oil demands. Consequently, China has emerged as
Sudan's largest commercial partner and trade between two has already surpasses $
3.9 billion (p. 149).
The author concludes that Sudan fundamentally changed its oil diplomacy over the
years and that the country has used oil as a bargaining chip to modernize it army,
gain financial credit and dilute the criticism of its human rights violations. He argues
that Sudan's ‘Asian Orientation' had the potential to further deepen partnerships
with rising Asian economies. The author sees,
there is consequently a new scope for transnational partnership for oil production
that is unfolding under the wider framework of Afro-Asian interdependence based on
economic complementarity in the post cold war world order (p. 252).
The book also discusses how Sudan uses its oil for peace building and development.
Despite its huge resources, it remains uncertain how Sudan will use the natural
resources for peace building, reconstruction and development. The African
experience does not inspire much hope. Nigeria, the largest producer of oil,
remains one of poorest countries in the world where 90 per cent of people live on
less than $ 2 per day. The optimum of use of natural resources requires strong and
effective governance and well articulated policy which are absent in Sudan. Capital
and advance technology are essential for extraction of natural resources, but they
will only come when the country will fulfill these prerequisites. Sudan should start
competitive bidding and re-orient its policy towards maximization of profits which
can be used for reconstruction and development of the country. It has also been
noticed that natural resource extraction does not create enough employment
opportunities and volatile resource prices cause unstable growth. Here it would be
pertinent to say foreign-owned resource extraction companies contribute little to
the generation of local employment and the growth of local economies. Sudan
should have adopted sustainable growth strategy and invested profits from oil
industries in building infrastructure and creating productive assets. A peaceful
country and law-based system of governance is compatible with good business and
serves as a base for new business, attracting foreign direct investment and winning
the confidence of investors.
Nevertheless, the book is a novel attempt to examine the natural resource politics
and foreign policy of a conflict-ravaged country in Africa. The book is informative; it
analyzes current global and regional politico-strategic dynamics in energy politics;Book Reviews
374
and it has assembled a great of information in the relevant theoretical perspectives
in a lucid form. The uniqueness of the book lies with problem-solving and solution-
oriented approach to Sudan's political and social crisis. This book is insightful and a
valuable contribution to knowledge of natural resource diplomacy and an undivided
Sudan's oil diplomacy.