Resource information
This report attempts to diagnose
existing constraints and prospects for growth in
people's incomes in South Kordofan. Given the breadth
and depth of difficulties facing the state, the focus is on
identifying the key areas of reform, or binding constraints,
to growth. There is a combination of extremely low social
returns, the prevalence of government and market failures,
the weak investment climate and the limited access to
finance to be the primary constraints. In turn it is
suggested that policy reforms directed to improving
governance, improving investment climate and pro-poor public
investment are priorities. One immediate priority pertains
to property rights issues which demands comprehensive land
reform and clarification of customary land tenure and land
dispute resolution mechanisms. Improving market
connectivity, water resource management and farm
productivity also emerge as keys to enhancing the investment
climate in the rural sector. In urban areas, improved
transportation networks and access to finance will increase
private and social returns to investment. Efforts are also
needed to improve the transparency, predictability and
levels of intergovernmental transfers to promote pro-poor
investment and developmental outcomes. It is suggested that
local revenue efforts can improve as and when local service
provision and governance are better established. There is
recognition that some initial improvements are already
underway, including the roads from Dilling to Kadugli and
Kadugli to Kauda, and Kadugli to Dilling and Dilling to
Dashol, and the railway. Progress is expected to be visible
in 2008.
