The Impact Armed Conflict on Economic Growth and Sustainability in South Sudan

Abstract

Purpose: The study aimed to explore the multifaceted impact of armed conflict on economic growth and sustainability in South Sudan. It sought to understand how the conflict has hindered the country's development and prosperity by examining the complex relationship between armed conflict and economic decline. Methodology: A qualitative approach was utilized, employing thematic analysis to gather and analyze data from various sources, including reports by international organizations such as the World Bank, IMF, and UN, as well as government publications and peer-reviewed journals. This method identified key themes and trends related to the economic impact of the conflict. Findings: The study revealed that the prolonged armed conflict in South Sudan has severely compromised economic stability. Key findings include the destruction of infrastructure, such as roads, bridges, schools, and hospitals, which impeded economic activities, disrupted supply chains, and increased transportation costs, with rebuilding costs exceeding USD 1 billion. The conflict resulted in significant loss of life, injuries, and displacement, reducing the available workforce and diminishing productivity, leading to an estimated annual economic loss of USD 4 billion. The displacement of over 3.8 million people disrupted local economies, agricultural production, and social structures, causing economic losses of USD 2.5 billion annually due to reduced agricultural output. The conflict also led to a decline in GDP, high unemployment rates, and unsustainable economic practices, with the economy's dependence on oil exports increasing vulnerability to price fluctuations and disruptions. Unique Contribution to Theory, Practice and Policy: The study recommends prioritizing the restoration and rebuilding of critical infrastructure to revive economic activities and supply chains. It also suggests the implementation of policies to support displaced populations, enhance agricultural productivity, and diversify the economy away from oil dependency to reduce vulnerability. The study contributes to theory by providing a deeper understanding of the relationship between conflict and economic decline, and it offers practical insights for policymakers and international organizations on the necessary interventions to foster economic recovery and sustainable development in post-conflict settings. Additionally, the findings underscore the importance of comprehensive peacebuilding strategies that address both immediate humanitarian needs and long-term economic stabilization and growth.