Sudan’s elimination of fuel subsidies raised the
price of essentials including bread, cooking gas and bus fares. This fueled the
rage in many Sudanese as deadly riots broke out resulting in the worst unrest
in decades in Sudan’s capital, Khartoum. These subsidies have been a part of
the Arab world’s social contract; buying of social peace in lack of political
freedom and economic opportunity. Sudan’s government leaders have been
promising, since January, to increase minimum wage and public salaries. After
the riots broke out last week, the Sudan government announced one-time aid
payments to 500,000 needy families and reassured it would make good on the
promised wage increases. Many critics of the Sudan government state that the
leaders have mismanaged the economy, using up resources during an oil boom
while investing little in education, hospitals or agriculture. Most family’s
income is depleted quickly by rent, school fees and market priced foods. Many
Sudanese worry that their livelihood will not survive without subsidies;
leaving them with a life that is becoming unbearable.
Tackling
subsidies has been a major obstacle to economic recovery for many in the
region. The near doubling of fuel prices spotlights a problem spreading across
the Middle East. Over time, fuel and food subsidies have become increasingly
less affordable leaving national budgets bleak. International lenders required
scaled back spending, but the governments fear backlash, as this a delicate
situation affecting many. Protests continue to erupt as a result of empty
promises by the government and job creation lagging behind population growth. Critics
have reported that these blanket subsidies benefit the wealthy more than the
poor, divert public funds from health, education, and encourage over consumption
and corruption. It was also reported that subsidized food is often traded on
the black market or wasted altogether. Changes
are slowly being implemented across the regions. Jordan started a new system where they have
eliminated virtually all fuel and gas subsidies and switched to cash payments
to the needy. Editor Farah Halime stated that there is an increased addiction
to these subsidies, and it is difficult to tell the subsidy users that they are
going to be taken away from them. Reformers state cuts should be coupled with
targeted support for the poor and warn that without such a buffer, poverty
could increase sharply. Abdel-Rahman al-Khidri, the governor of the Khartoum
district stated, “The cuts were bitter medicine needed for treatment and
recovery.” The Sudanese people hope they will come through with their
promises and push toward economic reform.
Elaine Etzler
10/4/13
10:05am
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