SUDAN INSIGHT ALERT: Sudan Tribune - Why has economic liberalization failed in Sudan?

30/11/19: Sudan Tribune - Why has economic liberalization failed in Sudan?, by Alhadi A. Khalifa

 Alhadi A. Khalifa attributes Omar al-Bashir’s downfall and the “ravaged” economy which caused it, to the policy of economic liberalisation he introduced in 1992, which created conditions conducive for corruption.

 Khalifa argues that the privatisation of profit-making companies, and high production costs on business that were not politically connected, resulted in the lay-off of hundreds of thousands of workers, “who joined the army of the jobless and discontented.”

 Khalifa argues that power elites within al-Bashir’s National Congress Party “hijacked” the liberalisation policy to privatise “strategic national entities,” many of which were sold far below market value, “most times in return for commissions.”

 Khalifa also blames the NCP public sector companies for “bleeding” the economy, using their leverage to gain tax exemptions, which led the regime to compensate for lost income by imposing higher taxes on non-politically connected businesses.