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Working Paper Series - Conflict Resolution and Wealth Sharing in Sudan: Towards an Allocation Formula



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Conflict Resolution and Wealth Sharing in Sudan: Towards an Allocation Formula


Volume : 0

No : 0

ISSN : WPS0305

Publisher : Arab Planning Institute - Kuwait

Author (s) : Ali Abdel Gader Ali 

Published Date : 1/1/2003


Contents :
The objective of this paperis to suggest a framework on the basis of which a wealth allocation formulacould be based in the context of the current (2003) conflict resolution efforts. The idea behind the framework is that of minimizing poverty in a two regioneconomy (South and North) by allocating a given total of resources between thetwo regions. With poverty summarized by the head count ratio the resultingallocation formula depends on a number of poverty magnitudes such as the headcount ratios for the two regions, the growth elasticity of poverty in eachregion and the elasticity of the per capita expenditure of the South to that ofthe North. Due to lack of information on poverty by region an indirect methodof estimating the relevant poverty magnitudes is used. A major result of the paperis that Nakuru sharing formula of overall net revenue from oil (of 48% to theSouth) could be supported by the proposed framework and the derived formulae.

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