Impact of Oil Revenues on Economic Prosperity in South Sudan

Abstract

South Sudan among the most oil-independent country in the world, oil contribute for almost all bulk of its exports, around 60% of Gross Domestic Products (GDP), and 98% of government revenue, yet the Economy is stationary and faced with several woes such as lack of infrastructural development, widespread poverty, and growing inflation. Oil revenue meant to improve economic development, but due to the Kleptocracy system of government, the economy remained motionless. This paper argues that oil revenue has a negative impact on economic prosperity in South Sudan, that lead to poor quality institutions and governance, which cause slower economic growth. Based on this, this article recommends that the government should establish some robust legislation on revenues management such as a management of oil income, Audit, and procurement in order to ensure accountability and transparency in the oil sector. By establishing those laws, the revenue that generated from oil can be invested in the Agricultural sector as a mean of diversification that can sustain and robust economic prosperity. This can avoid the economic crisis in the nearest future due to unstable oil prices in the international market.