(VOVworld) – South Sudan, the youngest country in East Africa, recently marked its 1^st anniversary of independence on Monday, July 9^th. The country is facing huge political and economic difficulties. VOV’s Anh Huyen reports:

On July 9, 2011, South Sudan declared its independence, separating from the Republic of Sudan and ending a civil war that lasted for nearly half a century. When Sudan gained its independence from Egypt in 1956, the north Sudan authorities inherited all politically advantageous land and all political and economic benefits. Conflict arouse when representatives of south Sudan claimed they had been removed from the political process. They demanded political parity with the north and established the Sudan National Liberation Movement. After decades mired in a civil war, the Sudan National Liberation Movement gained control of Sudan’s southern territories and declared an independent state on July 9^th, 2011 with Juba its capital.

South Sudan now faces imminent famine, according to FAO. (Photo: internet)

One year after independence, territorial and economic conflict persists between Sudan and South Sudan, keeping their populations constanly on the brink of war. One of the sharpest conflicts has been over oil. Sudan produces 6.7 billion of barrels of oil annually (ranking third in Africa). Although the south has more large oil fields, the north controls the only pipeline transporting oil to other countries through the Red Sea. Under the Peace Accord that ended the civil war in 2005, oil benefits are divided 50-50. But South Sudan wants to replace this equal division with a transport fee arrangement. Since the Accord was signed in 2005, the sides have been unable to reach any permanent agreement despite repeated negotiations.

Before independence, South Sudan collected 70% of the oil revenues. Now Sudan wants South Sudan to pay 36 USD for each barrel Sudan transports. South Sudan is ready to pay only 1 USD per barrel. South Sudan recently closed its refineries after accusing Sudan of stealing oil worth more than 800 million USD. Sudan says it confiscated some crude oil in compensation for unpaid fees that South Sudan owed. This squabbling has damaged both economies, but especially South Sudan’s. Losses of oil revenues and spreading corruption have exhausted South Sudan’s economy. The inflation rate has topped 19% and food prices have risen 120%. Half of South Sudan’s population lives below the poverty line and the illiteracy rate in the rual areas approaches 90%, while agricultural production has been brought to a standstill. Formerly considered an agricultural center of East Africa with good growth potential, South Sudan now faces imminent famine according to the UN Food and Agriculture Organization (FAO).

Neither side is willing to relinguish the border province of Abyei in the oil –rich valley Muglad Basin. Border clashes and bombardments have thwarted all peace efforts. International peace efforts have been in vain. Continuous clashes dim hopes for peace or any solution to the disputes. Conflicts has pushed South Sudan into a serious humanitarian crisis. Thousands of people are living in poverty and thousands more have been forced from their homes by the fighting. The upper Nile River is now crowded with people from the two countries’ border areas. The UN Relief Agency estimates that there are at least 150,000 refugees from Sudan currently living in South Sudan.

South Sudan has fallen into a food and water crisis, not because of a lack of natural resources, but because of a political failure. The public waits with little hope for the results of dialogues between Juba and Khartoum scheduled for early next month.