Popular in Course
verified elite notetaker
Popular in Department
This 8 page Study Guide was uploaded by tophomework Notetaker on Saturday November 14, 2015. The Study Guide belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 18 views.
Reviews for PAD540 Week9Assignment3
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 11/14/15
Running head: THE ECONOMY, GLOBAL FINANCE, AND 1 The Economy, Global Finance, and Inequality Joseph Brown Assignment 3 Dr. Timothy Smith PAD540 March 6, 2014 THE ECONOMY, GLOBAL FINANCE, AND 2 Part III: The Economy, Global Finance, and Inequality of Darfur This analysis will evaluate the extent to which international political economy has impacted Darfur; then, next would be a brief assessment in which the war in Darfur has impacted global finance. Then later on a discussion on the role that global inequality and poverty have played in Darfur will follows. Lastly, this paper will recommends primary strategies that are believe will aid the main participants in Darfur to develop policies geared towards preventing a repeat occurrence of the war in the future. The Economy International political economy is the twoway relationship between international politics and international economics. The links between politics and economics run in both directions. Events in the international economy often have political consequences. The study of international political economy encompasses a variety of economic and political questions concerning the movement of goods, money, people, and ideas across borders. States are only partly able to control economic processes that occur entirely within their borders; they are even less able to influence the activities that cross borders. “Trade creates the potential for conflict, but because it is so lucrative, there are also powerful incentives to work out differences through compromise and negotiation” (D’Anieri, 2014). Moreover, Sudan is underdeveloped; a disheartening situation that makes its constituent poor regions to depend heavily on Khartoum for development projects. In this case, Darfur presents a ‘special scenario’ its level of underdevelopment surpasses those of others and has highly impoverished ‘almost all’ social categories in the region. The region's name means "Home of the Fur"(Kjeilen, 2014). What is so strange about this is although the name region has THE ECONOMY, GLOBAL FINANCE, AND 3 a historic tie with the people of the Flu tribe; today they represent the minority in the region. Darfur’s economy is dominated by subsistence agriculture (i.e. traditional farming and traditional livestock raising), which left alone is insufficient for better standard of living of Darfurians, not to talk of developing the region. The ‘relative’ underdevelopment in this region compared with other regions makes Khartoum the main developer of Darfur with far reaching sociopolitical implications for both the region and the wider Sudanese state. This is because “real or imagined uneven regional development by the Government in Khartoum is chiefly responsible for the emergence of regional political movements, who demanded an equitable share of the national wealth and power” (Badmus, 2011). For example, Darfur’s domestic livestock trade was immediately and badly affected by the conflict. “Many livestock traders went out of business and/or were bankrupted in these early years” (Dorothy & Gerald, 2012). Early on, in 2003–2004, when large numbers of rural households were displaced, looting of livestock was widespread. Prices plummeted as distress sales of livestock soared, and many of the looted animals were sold quickly and locally, usually for meat consumption. Global Finance The Sudanese government uses fiscal policy gearing more to distribute and redistribute resources because the allocation and redistribution resulting from private sector activities are not satisfactory in most cases, especially in the Less Developed Countries (LDCs). In LDCs, the private sector often has not been given the chance to develop into a fullygrown vibrant and dynamic productive sector ‘as in the case of Darfur’ due to a combination of historical, social, political and economic factors. Likewise, in these countries the market system has not developed THE ECONOMY, GLOBAL FINANCE, AND 4 naturally and has continued to be characterized by severe distortions and inadequacies. An important cornerstone of the postcolonial period was the use of import substitution programs. Import substitution was an attempt by LDCs to industrialize by producing goods which had been traditionally imported. And lastly, but not the lease the failure of import substitution, many LDCs then switched to outward oriented strategies, beginning with many of the Asian economies. As a result, “the government becomes an essential and influential player in the economy in matters concerning the use, allocation and distribution of resources among different groups and sectors” (Ahmed, 2004). The period 19812001 witnessed a number of changes in fiscal policy objectives that have directly affected the behavior of taxrevenues in the Sudan. Some taxes have been abolished and many others are added to generate revenues. The Darfur region is amongst one of the most important regions in the Republic of Sudan. Its natural resource wealth; fertile soil, geographic location, and climate makes it of utmost importance for the prosperity of the Sudanese economy. “The region occupies around half a million acres, roughly 20% of Sudan, and holds abundant mineral and livestock resources” (Ahmed, 2004). Both agriculture and livestock are the two main pillars of the region’s economic foundation. According to the Sudan Tribune, everyone reading the article can determine that animal livestock contributed to 50% of Sudan’s balance of payments between 1976 and 1984, 20% of National Domestic Product, and 25% of the country’s total animal livestock. Economic research confirms Darfur’s capability of sustaining a population of 300 million, while providing adequate food supply. However, research suggests that this could only be valid if Darfur‘s political climate becomes stable; only then the region could prosper (africaecon.org). THE ECONOMY, GLOBAL FINANCE, AND 5 Moreover, Sudan only began exporting crude oil in 1999, but this year it is expected to earn between $4 billion and $5 billion in oil revenue, said Abdul Rahim Hamdi, a former finance minister who still advises the government on economic matters. The economy grew by 12 percent in 2006, the International Monetary Fund says up from 8 percent the year before and over $2.3 billion in direct foreign investment poured in last year, a nearly 50 percent rise from 2004 (washingtonpost.com). Inequality Behind the tragic events in Darfur lies a complex history of deeply entrenched social inequalities, an environmental crisis and competition over natural resources, poverty, conflicting notion of identity, the militarization of rural societies, and, above all, a chronic problem of bad governance that has plagued the Sudan since its independence from British colonial rule in 1956. These conflicts can be attributed to the deeply rooted regional, political, and economic inequalities that have persisted throughout Sudan's colonial and postcolonial history. “These inequalities are exemplified by the political, economic, and cultural hegemony of a small group of Arabicspeaking Sudanese elites who have held power and systematically marginalized the nonArab and nonMuslim groups in the country's peripheries” (Badmus, 2011). Specifically, these inequalities coupled with poverty have negatively impacted Darfur in the facet of the regions life. The remote Sudanese region of Darfur has been the scene of a bloody conflict that has led to the death of thousands of people and the displacement of more than two million. The United Nations has described it as "the world's worst humanitarian crisis and the United States government called it genocide. The violence, inequalities, and destruction are often compared to the 1994 genocide in Rwanda” (Sikaniga, 2011). THE ECONOMY, GLOBAL FINANCE, AND 6 Conclusion In order for Darfur to return to normalcy, strategies must be implemented and enforced by the main participants. These actors must develop policies geared towards preventing a repeat occurrence of the war in Darfur in the future. For starters, corrupt and unethical government officials must be removed and replaced with officials who seek to collectively improve the conditions in Darfur. Next, policies must be formulated. These polices will strengthen economic development while increasing domestic trade. Additionally, militants caught bestowing destruction upon citizens of Darfur will be apprehended receiving harsher penal sentences. Finally, the main participants must enforce peace in the region. By doing so, this will instill hope in the citizens while also providing attainment for life, liberty, and the pursuit of happiness. In sum, if these strategies are implemented, the war in Darfur will less likely occur in the future. THE ECONOMY, GLOBAL FINANCE, AND 7 References Africaecon.org. (2014). Sudan: Darfur’s Econmy. Retrieved on March 6, 2014, from: http://www.africaecon.org/index.php/webinars/watch_africa_webinars/24 Ahmed, M. (2004). An analysis of fiscal policies in the Sudan: A propoor perspective. Retrieved on march 6, 2014, from, http://www.gwu.edu. Badmus, I. (2011). Contesting exclusion: Uneven development and the genesis of the Sudan's Darfur war. Journal of Alternative Perspectives In The Social Sciences, 3(3), 880912. D’Anieri, P. (2014). International politics: Power and purpose in global affairs, 3rd Edition. Boston, MA. Wadsworth. Dorothy, R. & Gerald, J. (2012). On The Hoof: Livestock Trade in Darfur. Retrieved on March 5, 2014, from: http://UNEP.org/Sudan/ Kjeilen, T. (2014). Darfur. Retrieved on March 4, 2014, from: http://looklex.com/e.o/darfur.htm Sikainga, A. (2009). The world's worst humanitarian crisis: Understanding the Darfur conflict. Retrieved on March 3, 2014, from: http://origins.osu.edu. On the hoof top. (2012). The livestock trade in Darfur. Retrieved March 5, 2014, from: http://www.un.org. Sudan. (2013). Darfur’s economy. Retrieved on March 4, 2014, From: THE ECONOMY, GLOBAL FINANCE, AND 8 http://www.africaecon.org. Sudan. (2006). Economy booms as Darfur’s crumbles. Retrieved on March 3, 2014, from: http://www.washingtonpost.com. Sudan Tribune. (2012). Ministry of Ariculture, Forestry, Cooperatives and Rural Development: South Sudan. Retrieved on March 6, 2014, from: http://www.sudantribune.com/spip.php?mot1899
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'