Tuesday, October 24, 2006

War in Sudan? Not Where the Oil Wealth Flows

War in Sudan? Not Where the Oil Wealth Flows

Despite the image of Sudan as a land of cracked earth and starving people, the economy is booming, with little help from the West. Oil has turned it into one of the fastest growing economies in Africa — if not the world — emboldening the nation’s already belligerent government and giving it the wherewithal to resist Western demands to end the conflict in Darfur.

American sanctions have kept many companies from Europe and the United States out of Sudan, but firms from China, Malaysia, India, Kuwait and the United Arab Emirates are racing in. Direct foreign investment has shot up to $2.3 billion this year, from $128 million in 2000, all while the American government has tried to tighten the screws.
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But the country’s G.D.P. grew 8 percent in 2005, according to the International Monetary Fund, and is predicted to increase by 12 percent this year. Cotton and other agricultural products have traditionally been the engines of the economy here, but the new growth comes largely because Sudan has substantially increased its crude oil production to 512,000 barrels a day — a drop compared with Saudi Arabia’s or Iran’s, but enough to bring billions of dollars to a country that until recently was one of the poorest on earth.
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The traditional meal of ful, a bean stew eaten for breakfast and lunch, is giving way to kebabs, yogurt, hamburgers and hot dogs.

“We even have Pringles,” said Mohammed Abdelwahab Salih, a 26-year-old entrepreneur who recently started a business in Khartoum designing Web sites.

Mr. Salih remembers the days, not so long ago, when he used to have to wait in line for hours for a single loaf of bread.

“And it wasn’t even good bread,” he said. “When we got home, we had to pick out the flies.”

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“The Americans are not a threat, but if the international community lines up against us, ahh, that is a different issue,” said Osama Daoud Abdellatif, chairman of the DAL Group, a conglomerate that owns the Coke factory, the Ozone CafĂ© and a number of other businesses. “Everything has been going so well, but Darfur could spoil the party.”

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