CHAPTER TWO

THE ECONOMIC, SOCIAL AND CULTURAL ISSUES

ARTICLE 19

GENERAL PRINCIPLES FOR RESOLVING ECONOMIC, SOCIAL AND CULTURAL ISSUES

The Parties agree on the following fundamental principles: -

44. The wealth of Sudan shall be defined to include natural and human resources, historical and cultural heritage, and financial assets, including credit and public borrowing and international assistance and grants. It encompasses all the means, institutions, policies, and opportunities that contribute to the generation and distribution of wealth.

45. The overarching aims of economic development in Sudan shall be poverty eradication, guaranteeing equitable distribution of wealth, ensuring quality of life, dignity and good living conditions of all citizens.

46. The State shall develop and manage the national economy with the aim of ensuring economic development, realization of self-reliance, encouraging free market, and prohibition of market monopoly. It shall foster citizen participation in economic and social policy formulation and execution.

47. The State shall develop policies and strategies to ensure social justice among all the people of Sudan.

48. The languages, cultures and beliefs of the people of Sudan are the sources of moral strength and inspiration, and thus, shall be respected, promoted and protected, including, through education and media.

49. The State shall protect and promote Sudan’s cultural and historical heritage from destruction, desecration, unlawful removal or illegal export.

50. The people of Sudan, including the people of Eastern Sudan, shall have the right to a clean and diverse environment. The State shall not pursue any policy or take or permit any action, which may adversely affect the existence of any species of animal or vegetative life, their natural or adopted habitat. Best known practices in efficient utilization of natural resources and environmental management shall be adopted.

51. Education is a right for every citizen. The State shall ensure free and compulsory education at the primary level and work to eradicate illiteracy.

52. The State shall promote public health and guarantee equal access and free primary health care to all citizens.

53. Every citizen shall have the right to acquire or own property as regulated by law. No private property may be expropriated except by law for the public interest and is entitled for prompt and fair compensation.

54. Recognizing the cumulative effect of underdevelopment and prolonged deprivation in Eastern Sudan, the state shall undertake effective and prompt measures of affirmative action and pursue policies of sustained economic and social development.

55. A special fund for reconstruction and development of Eastern Sudan shall be established under this Agreement.

FISCAL FEDERALISM AND INTERGOVERNMENTAL RELATIONS

ARTICLE 20

56. Resources and the common wealth of Sudan shall be equitably shared to enable all levels of government to discharge their constitutional and legal obligations and duties to the people of Sudan.

57. The sharing and the allocation of the wealth of Sudan shall be based on the premise that all parts of Sudan are entitled to development and that war- affected areas should be beneficiaries of affirmative action.

58. The expenditure function should be assigned to that level of government whose jurisdiction most closely reflects the geographical area served by that function.

59. The respective types of income, revenue taxes and other sources of wealth to which the various levels of government are entitled shall be carried as setout in the Interim National Constitution (INC).

60. No level of government shall withhold an allocation or financial transfer due to any other level of government.

61. All the revenues and expenditures of the government shall be on-budget operations and made public.

62. All revenues collected nationally for or by the National Government shall be pooled in the National Revenue Fund.

63. The Fiscal and Financial Allocation and Monitoring Commission (FFAMC) shall ensure appropriate utilization and sharing of financial resources both vertically and horizontally; as well as transparency and fairness in the allocation of funds to all states.

DEVELOPMENT OF LAND AND NATURAL RESOURCES

ARTICLE 21

Land Usage and Ownership

64. The regulation of land tenure, usage, and exercise of rights in land is to be a concurrent competence at the appropriate level of government.

65. Rights in lands owned by the Government of Sudan shall be exercised through the appropriate or designated level of government.

66. All levels of government shall institute a process to progressively develop and amend the relevant laws to incorporate customary laws and practices, local heritage and international trends and practices.

67. Land management structures and institutions shall be developed and legally supported to promote sustainable development and protect the environment.

68. The GoS shall ensure that all citizens affected by the development of land and/or national resources are consulted. Persons whose property or livelihood is adversely affected by development of land and/or national resources have a right to adequate compensation.

69. All persons arbitrarily or unlawfully deprived of their rights to land shall have those rights restored to them.

Coastal Area and Marine Resources

70. All levels of government shall ensure the sustainable and integrated development of the nation’s historically and economically significant coastal area and its rich fish and marine resources.

71. All levels of government shall ensure that the people of Eastern Sudan are provided opportunities in, and benefit from, the development of the nation’s coastal area; and its fish and marine resources.

72. Port Sudan, the nation’s main seaport, is a national port that is administered nationally.

73. The administration of Sea Ports Corporation shall discharge its responsibilities to contribute to the development of Eastern Sudan and the improvement of the livelihood of the people.

ECONOMIC, SOCIAL AND CULTURAL POLICIES FOR RECONSTRUCTION AND DEVELOPMENT OF EASTERN SUDAN

ARTICLE 22

STRATEGIC OBJECTIVES

74. Sustained economic, social and cultural development is key to the undoing of the longstanding marginalization of Eastern Sudan.

75. The following shall be the fundamental objectives of development in Eastern Sudan: -

(a) Rehabilitation of war-affected areas;

(b) Rehabilitation of social services including health, education and water;

(c) Rehabilitation and development of infrastructure;

(d) Human and institutional capacity building;

(e) Eradication of poverty;

(f) Rehabilitation and development of agriculture, industry, tourism, fisheries and other priority sectors;

(g) Encouraging investment and job creation;

(h) Protecting and enhancing the fragile environment;

(i) Protecting and promoting historical and cultural heritages;

(j) Ensuring the return and the rehabilitation of refugees and internally displaced people;

(k) Ensuring that all the development programs address the specific needs of women;

76. The Parties commit themselves to implement the Eastern Sudan Reconstruction and Development Plan as detailed in Annex B below.

EASTERN SUDAN RECONSTRUCTION AND DEVELOPMENT FUND

ARTICLE 23

77. The Parties agree, immediately following the signing of this Agreement, to establish the Eastern Sudan Reconstruction and Development Fund.

78. The Eastern Sudan Reconstruction and Development Fund shall be formally established by a Presidential Decree.

79. The Eastern Sudan Reconstruction and Development Fund shall serve as a principal organ in the planning, monitoring and follow up of the reconstruction and development program. The program does not incorporate national development projects that are undertaken by the national government in Eastern Sudan.

80. The Parties agree that, in addition to the share of the Eastern Sudan in the FFAMC transfers, the national government shall allocate an amount equivalent to USD 100 million as seed money for ESRDF in 2007; and an amount of not less than USD 125 million per annum for the years 2008, 2009, 2010, and 2011.

81. The Fund shall be administrated in a professional, accountable and transparent method to ensure the implementation of the programs.

82. The governance structure of the ESRDF shall be as follows:-

(a) The ESRDF shall have a Board chaired by the Minister of Finance and National Economy and shall include: