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Sudan - Pricing policies and structural balances (Vol. 3) : Agriculture in Sudan (Inglês)

The economy of Sudan suffers from major structural imbalances, among them the imbalance between consumption and savings. This fundamental imbalance is closely tied to many others including, for example, those between imports and exports, between investment and domestic savings, between installed physical capacity and management capacity, between exernal debt service obligations and debt service capacity, and between public expenditure and public revenues. After a brief review of recent economic developments, this report examines the relationship between pricing and other resource allocation policies and the development and resolution of these structural imbalances. The report concludes with an analysis of Sudan's medium-term economic prospects. This analysis indicates that, even with pricing and complementary policies that would lead to strong export growth, tight controls on imports, restrained consumption -- developments needed to restore basic economic balances -- the external debt burden is so extraordinarily large that about half the scheduled debt service each year will need to be rescheduled or forgiven if Sudan is to avoid an economic contraction. To carry out this program of economic recovery, major efforts will be required both by Sudan and by the donor community.

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