Central African Republic vs. South Sudan

British explorer Samuel BAKER established the colony of Equatoria in 1870, in the name of the Ottoman Khedive of Egypt who claimed the territory. Headquartered in Gondokoro (near modern day Juba), Equatoria in theory composed most of what is now South Sudan. After being cut off from colonial administration during the Mahdist War from 1885-1898, Equatoria was made a state under the Anglo-Egyptian condominium in 1899. It was largely left to itself over the following decades, but Christian missionaries converted much of the population and facilitated the spread of English, rather than Arabic. Equatoria was ruled by British colonial administrators separately from what is now Sudan until the two colonies were combined at the 1947 Juba Conference, as part of British plans to prepare the region for independence. When Sudan gained its independence in 1956, it was with the understanding that the southerners would be able to participate fully in the political system. When the Arab Khartoum government reneged on its promises, a mutiny began that led to two prolonged periods of conflict (1955-1972 and 1983-2005) in which perhaps 2.5 million people died - mostly civilians - due to starvation and drought. Ongoing peace talks finally resulted in a Comprehensive Peace Agreement, signed in January 2005. As part of this agreement, the south was granted a six-year period of autonomy to be followed by a referendum on final status. The result of this referendum, held in January 2011, was a vote of 98% in favor of secession.

Since independence on 9 July 2011, South Sudan has struggled with good governance and nation building and has attempted to control opposition forces operating in its territory. Economic conditions have deteriorated since January 2012 when the government decided to shut down oil production following bilateral disagreements with Sudan. In December 2013, conflict between government and opposition forces killed tens of thousands and led to a dire humanitarian crisis with millions of South Sudanese displaced and food insecure. The warring parties signed a peace agreement in August 2015 that created a transitional government of national unity in April 2016. However, in July 2016, fighting broke out in Juba between the two principal signatories, plunging the country back into conflict. A "revitalized" peace agreement was signed in September 2018 ending the fighting. Under the agreement, the government and various rebel groups agreed that the sides would form a unified national army and create a transitional government by May 2019. The agreement was extended until November 2019 and then subsequently to February 2020. However, implementation has been stalled, in part by a failure to agree on the country's internal political boundaries.

The Central African Republic's (CAR) humanitarian crisis has worsened since a coup in March 2013. CAR's high mortality rate and low life expectancy are attributed to elevated rates of preventable and treatable diseases (including malaria and malnutrition), an inadequate health care system, precarious food security, and armed conflict. Some of the worst mortality rates are in western CAR's diamond mining region, which is impoverished because of government attempts to control the diamond trade and the fall in industrial diamond prices. To make matters worse, the government and international donors have reduced health funding in recent years. The CAR's weak educational system and low literacy rate have also suffered as a result of the country's ongoing conflict. Schools are closed, qualified teachers are scarce, infrastructure, funding, and supplies are lacking and subject to looting, and many students and teachers are displaced by violence.

Rampant poverty, human rights violations, unemployment, poor infrastructure, and a lack of security and stability have led to forced displacement internally and externally. Since the political crisis that resulted in CAR's March 2013 coup began in December 2012, approximately 600,000 people have fled to Chad, the Democratic Republic of the Congo (DRC), and other neighboring countries, while another estimated 600,000 are displaced internally as of October 2019. The UN has urged countries to refrain from repatriating CAR refugees amid the heightened lawlessness.

South Sudan, independent from Sudan since July 2011 after decades of civil war, is one of the world's poorest countries and ranks among the lowest in many socioeconomic categories. Problems are exacerbated by ongoing tensions with Sudan over oil revenues and land borders, fighting between government forces and rebel groups, and inter-communal violence. Most of the population lives off of farming, while smaller numbers rely on animal husbandry; more than 80% of the populace lives in rural areas. The maternal mortality rate is among the world's highest for a variety of reasons, including a shortage of health care workers, facilities, and supplies; poor roads and a lack of transport; and cultural beliefs that prevent women from seeking obstetric care. Most women marry and start having children early, giving birth at home with the assistance of traditional birth attendants, who are unable to handle complications.

Educational attainment is extremely poor due to the lack of schools, qualified teachers, and materials. Less than a third of the population is literate (the rate is even lower among women), and half live below the poverty line. Teachers and students are also struggling with the switch from Arabic to English as the language of instruction. Many adults missed out on schooling because of warfare and displacement.

Almost 2 million South Sudanese have sought refuge in neighboring countries since the current conflict began in December 2013. Another 1.96 million South Sudanese are internally displaced as of August 2017. Despite South Sudan's instability and lack of infrastructure and social services, more than 240,000 people have fled to South Sudan to escape fighting in Sudan.

Subsistence agriculture, together with forestry and mining, remains the backbone of the economy of the Central African Republic (CAR), with about 60% of the population living in outlying areas. The agricultural sector generates more than half of estimated GDP, although statistics are unreliable in the conflict-prone country. Timber and diamonds account for most export earnings, followed by cotton. Important constraints to economic development include the CAR's landlocked geography, poor transportation system, largely unskilled work force, and legacy of misdirected macroeconomic policies. Factional fighting between the government and its opponents remains a drag on economic revitalization. Distribution of income is highly unequal and grants from the international community can only partially meet humanitarian needs. CAR shares a common currency with the Central African Monetary Union. The currency is pegged to the Euro.

Since 2009, the IMF has worked closely with the government to institute reforms that have resulted in some improvement in budget transparency, but other problems remain. The government's additional spending in the run-up to the 2011 election worsened CAR's fiscal situation. In 2012, the World Bank approved $125 million in funding for transport infrastructure and regional trade, focused on the route between CAR's capital and the port of Douala in Cameroon. In July 2016, the IMF approved a three-year extended credit facility valued at $116 million; in mid-2017, the IMF completed a review of CAR's fiscal performance and broadly approved of the government's management, although issues with revenue collection, weak government capacity, and transparency remain. The World Bank in late 2016 approved a $20 million grant to restore basic fiscal management, improve transparency, and assist with economic recovery.

Participation in the Kimberley Process, a commitment to remove conflict diamonds from the global supply chain, led to a partially lifted the ban on diamond exports from CAR in 2015, but persistent insecurity is likely to constrain real GDP growth.

Industry and infrastructure in landlocked South Sudan are severely underdeveloped and poverty is widespread, following several decades of civil war with Sudan. Continued fighting within the new nation is disrupting what remains of the economy. The vast majority of the population is dependent on subsistence agriculture and humanitarian assistance. Property rights are insecure and price signals are weak, because markets are not well-organized.

South Sudan has little infrastructure - about 10,000 kilometers of roads, but just 2% of them paved. Electricity is produced mostly by costly diesel generators, and indoor plumbing and potable water are scarce, so less than 2% of the population has access to electricity. About 90% of consumed goods, capital, and services are imported from neighboring countries - mainly Uganda, Kenya and Sudan. Chinese investment plays a growing role in the infrastructure and energy sectors.

Nevertheless, South Sudan does have abundant natural resources. South Sudan holds one of the richest agricultural areas in Africa, with fertile soils and abundant water supplies. Currently the region supports 10-20 million head of cattle. At independence in 2011, South Sudan produced nearly three-fourths of former Sudan's total oil output of nearly a half million barrels per day. The Government of South Sudan relies on oil for the vast majority of its budget revenues, although oil production has fallen sharply since independence. South Sudan is one of the most oil-dependent countries in the world, with 98% of the government's annual operating budget and 80% of its gross domestic product (GDP) derived from oil. Oil is exported through a pipeline that runs to refineries and shipping facilities at Port Sudan on the Red Sea. The economy of South Sudan will remain linked to Sudan for some time, given the existing oil infrastructure. The outbreak of conflict in December 2013, combined with falling crude oil production and prices, meant that GDP fell significantly between 2014 and 2017. Since the second half of 2017 oil production has risen, and is currently about 130,000 barrels per day.

Poverty and food insecurity has risen due to displacement of people caused by the conflict. With famine spreading, 66% of the population in South Sudan is living on less than about $2 a day, up from 50.6% in 2009, according to the World Bank. About 80% of the population lives in rural areas, with agriculture, forestry and fishing providing the livelihood for a majority of the households. Much of rural sector activity is focused on low-input, low-output subsistence agriculture.

South Sudan is burdened by considerable debt because of increased military spending and high levels of government corruption. Economic mismanagement is prevalent. Civil servants, including police and the military, are not paid on time, creating incentives to engage in looting and banditry. South Sudan has received more than $11 billion in foreign aid since 2005, largely from the US, the UK, and the EU. Inflation peaked at over 800% per year in October 2016 but dropped to 118% in 2017. The government has funded its expenditures by borrowing from the central bank and foreign sources, using forward sales of oil as collateral. The central bank's decision to adopt a managed floating exchange rate regime in December 2015 triggered a 97% depreciation of the currency and spawned a growing black market.

Long-term challenges include rooting out public sector corruption, improving agricultural productivity, alleviating poverty and unemployment, improving fiscal transparency - particularly in regard to oil revenues, taming inflation, improving government revenues, and creating a rules-based business environment.

landlocked and war-torn with little infrastructure and electricity, Sudan has one of the least developed telecom and Internet systems in the world and one of the lowest mobile penetration rates in Africa; instability, widespread poverty, and low literacy rate all contribute to a struggling telecom sector; due to revenue losses, the few carriers in the market have reduced the areas in which they offer service; the government recognizes positive effects of ICT on development and is providing a range of investment incentives; international community provided billions in aid to help the young country; Chinese investment plays a growing role in the infrastructure build-out and energy sectors; by 2020, one operator had initiated e-money service; international fiber cable link from Juba to Mombasa will drive down costs of Internet; government utilizes unchecked power to conduct surveillance and monitor communications; importer of broadcasting equipment from China (2021)

a single TV channel and a radio station are controlled by the government; several community and commercial FM stations are operational, mostly sponsored by outside aid donors; some foreign radio broadcasts are available

periodic skirmishes persist over water and grazing rights among related pastoral populations along the border with southern Sudan

South Sudan-Sudan boundary represents 1 January 1956 alignment, final alignment pending negotiations and demarcation; final sovereignty status of Abyei Area pending negotiations between South Sudan and Sudan; periodic violent skirmishes with South Sudanese residents over water and grazing rights persist among related pastoral populations along the border with the Central African Republic; the boundary that separates Kenya and South Sudan's sovereignty is unclear in the "Ilemi Triangle," which Kenya has administered since colonial times

Tier 3 - South Sudan does not fully meet the minimum standards for the elimination of trafficking and is not making significant efforts to do so: the government's efforts include forming and staffing an anti-trafficking inter-ministerial task force, releasing 286 child soldiers, and identifying 19 potential trafficking victims; however, the recruitment of child soldiers by security and law enforcement continues and neither was held criminally responsible; authorities did not investigate or prosecute forced labor or sex trafficking crimes and made no effort to identify and protect trafficking victims; authorities continued to arrest and imprison child sex trafficking victims without screening for indicators of trafficking (2020)