Correlation Between Sudan G.D.P Growth Rates And Its Human Welbeing Indicators

Abstract

This research handles the Correlation, between Sudan GDP Growth Rates, and its human development which is emerging, as the top topic in the up to date writings of the national and international economists. It links the G.D.P Growth Rates, to the Human development Indicators. - The main objective of this study, is to show the correlation between Sudan GDP growth rates, and its human development indicators. - The study covered the period (1990-2005), which had been divided, into two sub-periods. The first period is between (1990-1996), during which the Sudan Government, adopted the expansionary macro-economic policies, and the easy fiscal and monetary policies, coupled with flexible foreign exchange rates policies. The inflation rates rose rapidly. They reached three digits. The second period started from (1997 up to now). It witnessed the adoption of the tight macro-policies, hard fiscal and severe monetary polices, coupled with stable exchange rates polices. - The methodology adopted is the descriptive approach, for the collected financial and economic data. The GDP growth rates; and the human development indicators, have been analyzed, through the comparative approach. The tables, reflected the data and were supported by the descriptive analysis, for the percentage changes… etc. They showed the performance trends for the two variables: G.D.P growth rates, and the human development indicators, in addition to the linkages between them. - The Data, were obtained from the secondary sources, (national and international), text books, reports, surveys, papers of the workshops, seminars and Conference. As concern data of Sudan GDP performance, the basic reference is The Central Bureau of Statistics, and the Ministry of Finance and National Economy, while for the information of Sudan IV Human development indicators, data and information had been taken from references; such as the national censuses, SMS and MCIS. -The most important findings, are that the Economic growth used to be a measure of human development; this seems to be deficient, as a measurement because the high GDP growth rates, do not guarantee an improvement in the human development indicators. Also, low GDP growth rates, may vastly improve the human development indicators. There are no automatic linkages, between the performance of a country's GDP growth rates, and its human development indicators. The Sudan's HDI reflected noticeable improvement, during the years 2000- 2005 as a result of the exploration of petroleum. That shifted Sudan HDI scaling, from the category of low HDI countries, to the category of medium HDI countries. This had not been reflected, as an equivalent improvement in Sudan human development indicators. The performance of Sudan human development indicators, (Education, Health and Employment), are very low, compared to its GDP growth rates performance. Such human development performance, will not enable the country to be on the path of achieving the targeted MDGs, by the end of year 2015. - The most important recommendations are: to create linkages between the economic performance - the GDP growth rates and human development indicators. This should confirm the Positive correlation between the GDP growth rates, and its human development indicators. Adoption of pro-poor macro-economic policies, is of high concern, to shift the financial and economic resources, in the poor areas; to human development sectors; i.e. (Education, Health and the Employment sectors).