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What is Targeted Divestment? PDF Print E-mail

The aim of the targeted divestment campaign is to induce the Sudanese government into changing its actions in Darfur through financial pressure.

It costs large sums of money to sustain the operations of the janjaweed militia, Sudanese army and airforce in Darfur.  Sudan’s government revenues come from several sources: internal taxes, development aid, revenue from external trade, especially oil.  Targeted divestment seeks to withdraw foreign involvement in those sectors which provide revenues directly to the Sudanese government and elite but do not benefit the wider population.

In Sudan these sectors, especially oil, are supported by foreign expertise and investment. These foreign firms raise money from investors and savers in this country and elsewhere. 

Cutting these foreign ties will cut the flow of revenue from your pension or savings via foreign firms to the Sudanese government and janjaweed militia.

The Sudan Divestment UK divestment model targets companies that meet the following criteria:
- Have a relationship with the government or government sponsored project;
- Impart minimal benefit to the country's people; and
- Have demonstrated no substantial corporate governance policy regarding the situation in Darfur 

Why targeted divestment?

Many overseas investments and trading patterns will benefit the people of the Sudan – supporting agriculture, small businesses and industry.  Other sectors, which employ few locals and where it is easy for elites to capture revenue streams, provide little benefit to local economies. 

The presence of oil and valuable minerals have often proved to be a ‘resource curse’ for developing countries:  distorting the economy through a high exchange rate which discourages other export sectors, cutting the cord of accountability which holds politicians accountable to taxpayers and voters though providing an easy revenue stream of petrodollars to the governing elite, and channelling entrepreneurs and politicians into a corrupt and sometimes violent scramble for oil wealth.  There have been many occasions where local communities have been uprooted to make way for mining and drilling concerns.

Targeted divestment focuses upon those industries which provide the most money for the governing elite and the least benefit for the Sudanese people.
 

 

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