By Luka Biong Deng

February 21, 2012 — I would like with the launching of the first issue of New Nation Newspaper to sincerely congratulate President Salva for his bold decision of closing down oil production in South Sudan. I am not surprise for such bold decision to come from President Salva as he has shown it many times during the difficult six years of the CPA. I remembered his bold decision in 2007 of suspending the participation of SPLM in National Government, proceeding in 2008 with population census despite objection of the NCP to include questions related to ethnicity and religion, vehemently adhering to holding of referendum on 9th January 2011 and avoiding eruption of war in 2011 with the invasion of Abyei by the Sudan Armed Forces. He is undoubtedly a man with bold but wise and timely decisions and that made it possible for the people of South Sudan to realize their long-awaited independence under his leadership.

However, this bold decision requires bold and practical actions both internally and internationally. The people of South Sudan applauded the decision as manifested by the demonstrations in all ten states but they need to be aware about the cost and consequences of such decision. The burden of enlightening the public and international community seems to rest on our President. I was rather stunned to seeing our President briefing the diplomatic community in Juba, a task that could have been done by our Ministry of Foreign Affairs. It would be necessary for the government to adopt and implement a national campaign programme that would involve the executive, legislature, political leaders and civil society to enlighten the public at the grass root level about the cost, consequences and sacrifices expected from the people.

Diplomatically, the Ministry of Foreign Affairs is to take the lead in enlightening the international community about this decision. Many diplomatic circles including friends of the South do not see the decision as the right decision and some are even disappointed by such decision. Whatever their reasons for concerns, it is the responsibility of the leadership of the South to avail the right information and to engage them. Despite the understandable delay in the appointment of ambassadors such delay will not be justifiable during this crisis and the government needs to avail the necessary resources and political support to our Ministry of Foreign Affairs to discharge its mandate and appoint ambassadors during this critical time.

On austerity measures, the government may need to approach such measures cautiously and not to affect the rural population that have not been benefiting from the oil boom. In fact the crisis provides a golden opportunity for the South and particularly the government to think of scenario of how to run the new nation without oil revenue. The non-oil revenue is about 120 million South Sudanese pound that hardly cover 2% of total public expenditure and possibly not covering the emoluments and benefits of the constitutional post holders. The current expenditure (salaries and operating cost) in the South constitutes more than 80% of total expenditure, the highest level in the region and it is equivalent to almost three, eight and five times of the level of spending in Kenya, Ethiopia and Uganda respectively. The salaries alone account for about 40% of total expenditure, the highest as well in the region and it is double of the average level of the low-income countries and seven times of the level in Uganda. In terms of political representation, the South has the highest members of parliament in relation to the population (42.4 members per a million) that is equivalent to almost 8 times in Kenya and 6 times in Ethiopia and 4 times in Uganda. Simply the government is too big and the austerity measures should focus on how to slim the government without affecting spending related to rural population, particularly basic sectors such as education, health, water and agriculture.

While the government is now looking for financing options to bridge the shortfall in the budget and construction of new refinery and pipeline, there will be wide range of good and well intended investors as well as international crook and felon who will look for opportunities in this crisis. I came to know that there are some many applications for construction of refinery and most of these applicants seem to be eyeing on one plant that is available for sale in Nigeria. Some of these companies portray themselves as genuinely interested in investing in the South but they are equally involved in marketing the stolen crude oil of the South that was looted by Khartoum. Besides the presence of different type of investors, it seems there is no coherent approach for the management of the crisis as there are many different MoUs being signed or under discussion by different groups and this multiplicity approach may end up with decisions that might not benefit the people of the South and may create regional conflict. The South has enormous potentials, real friends and good wishes from the international community and we must make use of such potentials to transform this crisis into opportunities that would help in building our nation on a solid ground.

Luka Biong Deng is a senior member of South Sudan’s ruling SPLM.