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This is an archived USAID document retained on this web site as a matter of public record.

Remarks by Andrew S. Natsios, Administrator
U.S. Agency for International Development

The Role of Reconstruction in the Implementation of the Comprehensive Peace Agreement in Sudan


Center for Strategic and International Studies
1800 K Street
Washington, DC
April 6, 2005


This is a welcome opportunity to discuss what I believe is the most important and transformational moment for the Sudanese people in the last 20 years. We are standing on the cusp of a new era for Sudan, and I would like nothing more than to tell you that the future of the Sudanese people looks very promising. I do believe the Comprehensive Peace Agreement (CPA) signed on January 9, 2005 can change the future of Sudan. It has the potential to bring democracy, economic growth, and the empowerment and representation of groups that have been marginalized in Sudan since independence. But the reality is more complicated. To have an agreement is one thing; to implement it, another. Implementation must be in both the letter and the spirit of the agreement. There will be many hurdles to face, and the international community must remain engaged at this crucial time.

These concerns are evident when we consider the ongoing crisis in Darfur. While we celebrate a North-South peace agreement, we also bear witness to the tragedy that continues to this day. Darfur remains one of the worst humanitarian crises in the world. Since February of 2003, as many as 300,000 people have died, and over 2 million have been displaced from their homes.

The signing of the peace agreement does not diminish the need to address the crisis in Darfur. At the same time, we must stay fully engaged in the implementation process to establish stronger governance and reintegration in southern Sudan, a process that may also provide a framework to resolve the Darfur crisis. It is a delicate balance, and there are many factors that may affect progress.

Today, I would like to focus on a few key challenges for southern Sudan that I think are particularly pressing in this early phase of peace implementation, as well as offer some thoughts on why peace just might succeed this time.

The security situation

As in most fragile states, security is a critical component of the situation in Sudan. Continued conflict in Darfur, and violence in the South must end immediately if reconstruction is to proceed. Violence and insecurity in Darfur deteriorates for humanitarian agencies with each passing day. In southern Sudan, GOS-aligned militias have been vying over dominance of territory in Akobo. Future or potential outbreak of hostilities in other parts of the country, such as Kordofan or eastern Sudan, could also seriously jeopardize implementation of the peace agreement. It is likely that a renewal or outbreak of hostilities in one area would quickly spread, and the peace agreement could collapse. The transition zones - Southern Blue Nile, the Nuba Mountains, and Abyei - are flashpoints where a tenuous peace holds at the moment but which will require a rapid demonstration of the benefits of peace.

In all of these areas of current or potential conflict, USAID is targeting vulnerable spots with the delivery of humanitarian assistance and alternative sources of livelihoods. For instance, within three days after the recent attack on Akobo in Eastern Upper Nile, which displaced both the town's inhabitants and returnees from Ethiopia, a USAID partner was able to deliver humanitarian assistance and 1.5 metric tons of food to the area.

In order for the peace to be implemented and sustained, disarmament, demobilization and reintegration of combatants on all sides- SPLA, GOS, and militias - will have to occur. USAID will be helping demobilize scores of young men and women, some of whom have been active fighters their whole lives. And we are putting in place programs that will help them make the transition to being productive members of southern Sudanese society. In Upper Nile and Eastern Equatoria, for instance, these young men and women are key beneficiaries of fishing and farming equipment, so that they turn their focus to economic opportunity rather than relying on violence and coercion to obtain resources.

In order for security to return to southern Sudan, however, much more needs to be accomplished. All those who have supported these hostilities must stop re-supplying the parties and should be held accountable for what they have done. The militias who have yet to lay down their guns must be brought into the fold, and convinced that the success of the peace agreement is the only way for them to realize economic opportunity. The international community must assist the SPLA and the SPDF to demobilize all those soldiers who will not productively integrate in the armed forces. In this regard, priority should be given to demilitarizing Juba so that the new Government of Southern Sudan (GOSS) can effectively stand up there as soon as possible.

The SPLA must be able to professionalize its remaining army and the Joint Integrated Unit (JIU) must be stood up as soon as possible. A professional civilian police force must be established to bring law and order to daily life. Finally, the international bodies that have been created to monitor security issues during the peace process must transition to a U.N. peacekeeping force.

IDPs and refugees in southern Sudan

The second challenge is to address the problem of population displacement. There are more than four million IDPs in Sudan - the largest IDP population of any country in the world, and over 200,000 Sudanese refugees in other countries. Many IDPs have been displaced for more than a decade, and many children of IDPs have never seen their tribal homelands. Security for these returnee groups will be difficult to ensure, and the potential for conflict to erupt among various groups of IDPs and refugees is high. Even in more settled areas, the impact of a huge influx of IDPs on infrastructure and services in these areas could be overwhelming and lead to conflict over access to basic resources and services. This is complicated by the fact that there is a law and order vacuum throughout much of Sudan, as in many areas there is no credible police force. Decades of conflict have left an excess of guns that are easily obtained, and this has resulted in high levels of violence.

USAID is working to strengthen the capacity of communities to absorb returnees, primarily through expansion of basic services - primary health care, water and sanitation, education, food production, and community infrastructure. These humanitarian resources will be targeted toward areas where IDPs will be returning and points along the way. USAID programs are also making primary IDP routes more available by funding work on major roadways. Finally, USAID is supporting local government in these areas so that they can effectively deliver assistance to those who are most in need of it.

USAID is piloting a project on land tenure in the Nuba Mountains where land has been a trigger for conflict. In addition to land tenure issues, USAID is working to strengthen food production and access to key animal health services for livestock including activities that support and strengthen local market systems, build on local capacity, and train communities, such as local seed fairs or seed voucher programs, the provision of basic inputs and other resources to restart livelihood activities in conflict-affected areas. We are also supporting animal health activities including the training of community animal health workers, and disease control mechanisms.

Managing expectations

A third important challenge facing the GOSS is managing expectations of people coming out of years of civil war. Following the signing of the peace agreement between the North and South, expectations are so high in this immediate post-conflict period that they will be hard to meet, particularly in the South. Southern Sudanese were very clear in expressing their view on this in a USAID-funded focus group study carried out several months ago.

Not only do the people of southern Sudan have great expectations, the SPLM/A may also have some unrealistic expectations of donors as it transitions to the GOSS. Such perceptions may also indirectly affect the motivation of parties to the conflict in Darfur. For instance, some Janjiweit leaders wanted to know how the donor nations would respond to development problems in Darfur should a comprehensive peace agreement be reached.

Donors must help manage these expectations yet provide resources and assistance so that an appropriate peace dividend is delivered. On April 11-12, donors will come together in Oslo to pledge their assistance to the reconstruction of southern Sudan. Many of them are hesitant because Darfur remains in crisis. Consolidating peace in the South and demonstrating the benefits of negotiated solutions to other parts of Sudan, such as Darfur and the East, by supporting the implementation of the peace process, including the provision of reconstruction assistance, is imperative to bring long-lasting stability to all of Sudan.

Managing Resources

This leads to the fourth challenge, managing resources. The newly formed GOSS will be handling huge increases in financial resources from oil revenues, aid flows, and new commercial activity. The risk of grand corruption is high. Extractive wealth in Africa in countries with weak institutions has frequently been misused. It is therefore vitally important that strong systems for accountability and transparency be quickly established.

Through the Joint Assessment Mission, a collaborative process between UNDP and the World Bank, USAID has been working with the SPLM to develop a structure in the Ministry of Finance based on experiences from other post-conflict situations with severe capacity limitations and nascent governmental structures. The proposal calls for the establishment of a project implementation agency run by a western organization, such as a respected international accounting firm, that would manage the procurement and implementation of all government programs according to international standards.

In addition, USAID, the World Bank, and others are working to help the Government of Southern Sudan develop financial management systems. USAID specifically is helping the Ministry of Finance to develop systems to bring about unified budgetary processes, revenue collection and expenditure control - including the introduction of a financial management information system (FMIS) to track where resources are being spent. Other ways we are working to strengthen the capacity of the GOSS include the development of codes of conduct, a policy on the declaration of assets by government officials, strengthening the Attorney General's office, and formation of an anti-corruption commission.

Capacity to implement

The immensity of all of the challenges I have just spoken of will be affected by the final challenge that I will address - that is, the capacity of the GOSS to govern and implement the peace agreement. The timelines in the Comprehensive Peace Agreement are ambitious. Whether or not these timelines will be met is partly a function of SPLM capacity to meet its commitments, and partly a function of its political will to do so. Already some deadlines have been missed. We are watching closely to ensure that this is not because of a lack of political will to implement the agreement, and we are working with other donors to enhance the SPLM's capacity to follow through on its commitments in the CPA as quickly as possible. While there is much more yet to be done, we believe there are signs that the will is there on the part of the SPLM.

First is the formation of the Joint National Transition Team (JNTT). The JNTT represents the first formal joint body for the two parties (SPLM and GOS), and is a key step leading towards the formation of the Government of National Unity in July of this year. At a pre-Oslo donor meeting in Rome a few weeks ago, the JNTT represented Sudan, rather than separate SPLM/GOS delegations. This is the first national entity that is acceptable to both the North and South, and it will also facilitate the flows of aid to Sudan.

Second, the deployment of SPLM transition teams to garrison towns and Khartoum shows that there is a will to move forward in establishing a Government of National Unity (GNU). The fact that over 30% of the personnel on these teams have gone to Khartoum shows the seriousness of the SPLM in forming this new government. For the SPLM, this is also the beginning of making the transition from a rebel movement to a government.

Finally, more than one hundred government officials have also been selected for training in a variety of areas, representing all regions in southern Sudan. These SPLM-selected officials will play significant roles in the GOSS and is but one indication of the broadening of major personnel decisions.

USAID is focusing on the areas where the nascent GOSS may still need assistance. We are providing technical advisors to the Ministries of Finance, Justice and Social Services, and technical assistance to each of the three areas. We are also supporting local government through various programs. In the economic sector, recognizing that a lack of governance structures at the beginning will impede ability of the government to encourage economic growth, we are assisting the GOSS to establish customs and trade promotion agencies. We are also strengthening the capacity of the GOSS to be responsive and inclusive, assisting the development of issue-based political parties and a constitution that enshrines respect for human rights and freedom of speech, and strengthening the capacity of civil society to represent the interests of the Sudanese people to the government.

These are only some of the major challenges that Sudan will face in the months to come. We should not underestimate the magnitude of the challenge at hand. This will be a long road, and there will be setbacks. But I believe that change can happen, and I'd like to spend a few minutes talking about the positive signs that we are seeing on the ground.

First: the people of Sudan are ready for peace. They are exhausted with the war, isolation and lack of development. Though there is a long way to go, some of our early focus group studies with southern Sudanese have shown a cautious optimism and support for the current peace process, which is an encouraging sign. When the SPLM made its first historic visit this last year to Khartoum, literally tens of thousands of people met them at the airport, in an overwhelming show of support for peace.

Second: International attention is focused on Sudan. The combined efforts of the U.S., the U.K., Norway, and other partners, are bearing fruit. We have stayed the course during the negotiations and will continue to press the parties to implement the agreement. As well, the President of the United States has been specifically involved and has called the parties on numerous occasions to press them to reach a final settlement. The upcoming donors' conference is vital to securing donor commitments to show their continuing support for the implementation of the CPA.

Third: The agreement is truly a Comprehensive Peace Agreement, unlike the failed Addis Ababa Agreement of 1972. It should be remembered though that the implementation of the agreement will also not be quick and easy. And, in order to establish security in all of Sudan, it is important to show Darfur and the East that this agreement will be honored and that it will benefit all Sudanese.

Conclusions

Let me conclude by saying that for those of us who have been involved with Sudan over the years, this is a decisive time. We see the promise of a new Sudan, arising from the ability of the north and south to come to agreement on the way forward for peace and power-sharing. We know that resolving the situation in Darfur is essential to a sustainable transition in Sudan. And we know that there will be setbacks. But we also know that dramatic and lasting change can happen, as it has in Iraq and Afghanistan, when there is a commitment to change, bold and forward-looking leadership, and the political will to succeed.

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