the oil shutdown which began at the beginning (it's not advisable to use two words with the same root word together so you can say "which began in early 2012") of 2012;

the civil conflict which erupted in December 2013;

declining international crude oil prices which went down by almost 62% (from USD 104 per barrel in 2013 to USD 40 in 2016);

drastic decline in the daily oil production as a result of partial closure of Upper Nile oil fields and;

total shutdown of Unity State oil fields as a result of the war.



All these factors have a significant negative impact on the South Sudan's economy. On the other hand, South Sudan has abundant and mostly untapped natural resources. It has great agricultural potential given that the country is very fertile and blessed with land, water and mineral resource which are substantial in relation to the relatively small population of 10 million plus. Effective management and development of these resources will therefore offer the prospect of sustained strong economic growth.



Hence, the key research questions for this study are: Why some countries experience sustained levels of steady economic growth much faster while others stagnate? What can to improve the role of economic and political institutions in economic performance?



There is extensive evidence that institutions matter a great deal in determining the level of economic development of a country. They strongly affect the economic performance of countries and act in society at all levels by determining the frameworks in which economic exchange occurs.



Many Economists have shown that differences in institutions, as deep determinants of economic growth, account for much of the differences in income and productivity per head observed between countries (Acemoglu et al., 2005). Institutions shape the policy and governance setting in a given country, which in turn characterize the rule of law, risk of expropriation, political stability and ease of doing business.



This study ends by suggesting the most importing mechanisms to strengthen the political and economic institutions that will create public trust in the government and its institutions and lead to sustainable development and prosperity. With that in mind, the institutions should support the public and private sector, capability, social infrastructure, good governance, rules of laws in order to achieve sustainable economic growth and financial stability.



In this context, the main objectives of this study is to analyze the economic and political structure in South Sudan to ensure its role in achieving sustainable Economic Development and to analyze the effectivenes...]]>