What happens when a Petrostate’s Lifeline Disappears?
South Sudan could have gotten off to a good start. Thanks to its abundant oil resources, the world’s youngest country became a middle-income country after gaining independence from Sudan in 2011. The new country also had minerals, livestock, and timber to export. Since it ranks near the bottom of most global health and education development indices, it receives more aid per capita than almost anywhere else on Earth. However, 13 years later, things in South Sudan have not gone as planned. The state has been failing to pay civil servants and contractors long before oil supplies stopped. Meanwhile, members of South Sudan’s political elite have amassed vast wealth since independence. Even if pipelines reopen tomorrow, the oil industry’s troubles are unlikely to go away. Production peaked at more than 350,000 barrels per day in 2011 and has been declining steadily since then.
