IDEAS home Printed from https://ideas.repec.org/p/erg/wpaper/1044.html
   My bibliography  Save this paper

The Political Economy of Fiscal Institutions and Macroeconomic Management in Sudan

Author

Listed:
  • Kabbashi M. Suliman

    () (University of Khartoum)

Abstract

The literature on distributive politics indicates that many low-income countries are saddled with extractive institutions that not only contribute to politically biased fiscal outcomes, but tend to undermine long-run real growth. An analytical narrative based on the critical juncture and path dependence general equilibrium approach is utilized to highlight the effects of the political institutions on the fiscal policy outcomes in Sudan and indicate their mechanisms of perpetuation. The results suggest that Sudan has experience two critical junctures that featured, respectively, the path-dependence of public source of finance and budgeting based on cotton and its eventual destruction. The political patronage appears to be the major mechanism of reproduction of the ‘path dependent’ state development including the source of public revenue. But, the greater centralization of power and parsonage networks has resulted in problematic incorporation of the rural communities triggering a process of territorial fragmentation that escalated into open civil wars, contributed to the cumulative decline of the historic source of public finance and eventually led to the breakup of the state. The policy implications of these findings are outlined.

Suggested Citation

  • Kabbashi M. Suliman, 2016. "The Political Economy of Fiscal Institutions and Macroeconomic Management in Sudan," Working Papers 1044, Economic Research Forum, revised 09 Jan 2016.
  • Handle: RePEc:erg:wpaper:1044
    as

    Download full text from publisher

    File URL: http://erf.org.eg/wp-content/uploads/2016/09/1044.pdf
    Download Restriction: no

    File URL: http://bit.ly/2cqYDqV
    Download Restriction: no

    References listed on IDEAS

    as
    1. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 83-116.
    2. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    3. Lane, Philip R & Tornell, Aaron, 1996. "Power, Growth, and the Voracity Effect," Journal of Economic Growth, Springer, vol. 1(2), pages 213-241, June.
    4. Pesaran, H. Hashem & Shin, Yongcheol, 1998. "Generalized impulse response analysis in linear multivariate models," Economics Letters, Elsevier, vol. 58(1), pages 17-29, January.
    5. Talvi, Ernesto & Vegh, Carlos A., 2005. "Tax base variability and procyclical fiscal policy in developing countries," Journal of Development Economics, Elsevier, vol. 78(1), pages 156-190, October.
    6. von Hagen, Jurgen & Harden, Ian J., 1995. "Budget processes and commitment to fiscal discipline," European Economic Review, Elsevier, vol. 39(3-4), pages 771-779, April.
    7. Laura Mann, 2014. "Wasta! The long-term implications of education expansion and economic liberalisation on politics in Sudan," Review of African Political Economy, Taylor & Francis Journals, vol. 41(142), pages 561-578, October.
    8. Easterly, William & Levine, Ross, 2003. "Tropics, germs, and crops: how endowments influence economic development," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 3-39, January.
    9. Strulik, Holger, 2012. "Poverty, voracity, and growth," Journal of Development Economics, Elsevier, vol. 97(2), pages 396-403.
    10. Alberto Alesina & Roberto Perotti, 1995. "The Political Economy of Budget Deficits," IMF Staff Papers, Palgrave Macmillan, vol. 42(1), pages 1-31, March.
    11. Trehan, Bharat & Walsh, Carl E., 1988. "Common trends, the government's budget constraint, and revenue smoothing," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 425-444.
    12. El-Shibly, M. & Thirlwall, A. P., 1981. "Dual-gap analysis for the Sudan," World Development, Elsevier, vol. 9(2), pages 193-200, February.
    13. Acemoglu,Daron & Robinson,James A., 2009. "Economic Origins of Dictatorship and Democracy," Cambridge Books, Cambridge University Press, number 9780521671422, May.
    14. World Bank, 2007. "Sudan : Public Expenditure Review, Synthesis Report," World Bank Other Operational Studies 7672, The World Bank.
    15. Weingast, Barry R & Shepsle, Kenneth A & Johnsen, Christopher, 1981. "The Political Economy of Benefits and Costs: A Neoclassical Approach to Distributive Politics," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 642-664, August.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:erg:wpaper:1044. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sherine Ghoneim). General contact details of provider: http://edirc.repec.org/data/erfaceg.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.