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In
Sudan, the exploitation of oil resources
has been accompanied by all-round liberalisation
of the economy. Since then the country
has been integrating into the world economy
rapidly based on oil revenues. Relatively
rapid GDP growth, however, has not resulted
in concomitant diversification of the
economy, necessary for sustainable development
and long-term growth. The author argues
that prospects for sustained growth and
diversification are likely to be short-circuited
by some physical and institutional bottlenecks
which can not be easily overcome on the
basis of financial resources generated
from export of petroleum alone.
January 11, 2008.
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