Why all of a sudden there is Huge Crisis in the Sudan after the Lifting of US Sanctions?
In 1985, the former Sudanese President Jaafar Nimeiri became a close US ally and he was allowed to borrow $90 million dollars from the IMF in exchange for implementing IMF prescribed economic policies in the Sudan. IMF’s draconian policies such as currency devaluation and the ending of farm subsidies resulted in sky rocketing food prices and a trade deficit (when exported goods become very cheap, and imported goods become very expensive due to currency devaluation.)
The food crisis was followed by mass protests, leading to President Nimeiri’s ouster in a military coup orchestrated by the then Brigadier of the Sudanese army, and the now President Bashir.
When Bashir came to power in 1989, Sudan’s external debt stood at $13 billion dollars, which he refused to pay on grounds that the debt was accrued by the former dictator, resulting in harsh US economic and political sanctions against Bashir’s regime.
Keep in mind that the IMF is a bank, and like all banks do when there are unpaid delinquent debts, it seizes properties. In the case of the IMF what it considers property is a country. When Sudan refused to pay its debt, the IMF partitioned the country into two and seized the land that has the oil fields– which is South Sudan. Bashir’s Northern Sudan found itself saddled with the debt that grew from $13 billion in 1989 to $51 billion today in 2018 with continuously compounded interest and late payment penalty fees.
You would think that the lifting of US sanctions would solve all of Sudan’s economic woes, but that hasn’t been the case, especially when the conditions for lifting of the sanctions were to taking out more loans from the IMF and implementing IMFs draconian economic policies to help pay Sudan’s $51 billion debt. The moment Sudan followed IMF’s orders and devalued its currency and curbed food subsidies, the Sudanese people saw high food and fuel prices, which led to recent mass protests that were met with a massive military response.
Folks, we are witnessing an IMF engineered regime change in the Sudan, because the IMF cannot export oil from landlocked South Sudan without the pipelines found in Northern Sudan to carry the oil to the Red Sea coast. If they get rid of Bashir, then the IMF will have a guaranteed oil bonanza and make trillions of dollars in profit.
Bashir got played. By the way, why they do not call the IMF the American Government Bank (AGB).