The Causes of Economic Underdevelopment of the Sudanese Economy

Abstract

This study is an attempt to identify the reasons that have contributed, and are still contributing to the prevalence of the backwardness phenomenon which has become a characteristic of the Kassala State economy in particular and that of all Eastern Sudan. The study hypothesized that factors related to ecology, natural, political, shortage of investment in human capital, shortage of investment in physical capital and some administrative and technological factors causes the underdevelopment of Kassala State economy. The study adopts a historic, descriptive and an analytical approach. It also used some statistical means to achieve the targeted goals. The study followed the descriptive approach particularly to know the sample trends regarding the backwardness reasons for Kasala State economy. To test the hypothesis of the study a medium was selected together with the Chi- Square test, and the method of factor analysis was followed to determine the relative significance of the said factors. The study found that the phenomenon of economic backwardness that has become a characteristic of Kasala State economy is a result of a number of natural, political, economic, administrative, and technological factors all combined.

The study also arrived at an important result. And that is, in spite of the importance of the economic factor for social development yet the economic factors came at the bottom of the list for determining the relative significance of the aforesaid factors; while the social factors came top of the list, followed by the natural, political, administrative and technological factors. This result shows that an insignificant ratio of the State Budget is allotted to investment in the field of social development.