South Sudan Oil Flow Stopped as Conflict Continues

Discussion in 'Economics' started by Options12, May 1, 2012.

  1. Options12

    Options12 Guest

    “The oil is a curse,” mumbled Mohamed Abdurahman Kili, 56, from his hospital bed, his body covered with burns. He was inside his shop in a crowded market on the edge of town when a Sudanese warplane attacked, killing a 9-year-old child and another person, and setting his shop on fire.

    Oil was a key incentive in the 2005 peace deal that ended Sudan’s 22-year civil war, Africa’s longest. With an estimated three-quarters of their combined reserves in South Sudan, both sides agreed to split the revenues equally.

    Tensions, though, have steadily risen since South Sudan’s independence last July, fueled by ethnic strife, contested borders – and oil.

  2. Any type of hegemony will have awkward repercussions and collateral damage.