Columbia International Affairs Online: Working Papers

CIAO DATE: 07/2010

Improving Natural Resource Management in Sudan: A Strategy for Effective State Building and Conflict Resolution

Paul J. Sullivan, Natalie Nasrallah

June 2010

United States Institute of Peace

Abstract

Most experts view secession as the most likely outcome of the 2011 referendum 􀁴􀀁 on southern Sudan’s potential secession. While this scenario may lead to some stability in the long run, effective secession immediately after the referendum may prove difficult. 􀁴􀀁 There is significant concern about preparedness for the referendum at the national, regional, and community levels. While postponing the vote may provide some breathing room, it heightens the risk of uncertainty and instability. 􀁴􀀁 Each plausible scenario—unity, secession, or a delay to the referendum—holds great uncertainty and risk regarding the potential impacts on oil, land, and water. The effects of each scenario could drastically change if the political and economic situations on the ground become more fragile. 􀁴􀀁 Management of petroleum resources is one of the most serious challenges facing Sudan’s leaders. Petroleum is the largest foreign exchange earner and the biggest contributor to fiscal revenues for both north and south. Potential flash points include revenue transparency and equitable sharing formulas, as well as financing for exploration, production, new infrastructure development, and maintenance of existing infrastructure. 􀁴􀀁 There are insufficient data on, and attention to, use and potential of land and water. The management of both resources poses serious challenges that could derail statehood and precipitate violence. 􀁴􀀁 If oil, water, and land are not managed and developed properly and sustainably, both north and south Sudan could be facing a much more uncertain and violent future.