As austerity measures have been placed on various nations throughout the world since 2008, those economies remain mired in financial turmoil. We hear about the major countries in which austerity has damaged the chances of economies being restored, such as in Greece, in Spain, and in Ireland.
There is not one nation in the world that has experienced growth since austerity was slapped on them. Further research shows that austerity has crippled the economy of newly-formed South Sudan.
Their problems started in January when the new government made a real dumb decision; they decided not to pay Sudan oil pipeline fees. Therefore, all oil production within South Sudan came to a screeching halt.
Unfortunately, they did not have a plan in place in order to compensate for the lost income. Oil production creates a whopping 98% of the country's capital.
To make matters even worse, the South Sudanese government chose to impose austerity measures upon their own people. How are you going to tax people that are living in huts? They don't have anything.
Fast forward to now. In four months, South Sudan is in huge debt because they borrowed huge amounts of money from international banks. They are already so far behind on their debt payments that the government will no longer be able to provide health care and education for the children in their country.
Inflation went up 50% in March, which meant that prices of commodities doubled within the country. Gas prices have went up to six US dollars a liter ($22.70 a gallon).
It seems like the big banks allowed for this nation to be created so that it could bankrupt it within a year.