The document discusses and analyzes financial policies as the most important tools for implementing macroeconomic policies in all civilized countries of the world. However, in developing countries they are generally unstable which results in financial instabilities and economic failures. The situation for some Islamic countries that started to implement financial Islamic policies is awkward with less developed research and hasty applications. The current research is concerned with describing, testing the viability and assessment of such application. Though it is only a step but more studies are conducted in similar way.

The book analyzes the relationship between the external debt and economic indicators, exchange rate and GDP in addition to population of Sudan during the period of (1980-2003). The analyzed data of External Debt were collected from External Debt Unit-Bank of Sudan.

There is always a deceptive trap where decision-makers fall into doing times of economic distress in developing countries. Elevating taxation rates levels can be the shortest way to collect the required deficits in an economy enduing failures. However, those can be short sighted solutions as the drainage of money and capitals from people means definite impact on the real economic sectors. That is logical and quick to understand conclusion. Thereby we cannot claim that such solutions are taken by blind or ignorant officials. Probably, they take it with apathy and carelessness of the broad macroeconomic impacts. That is my primary theory here, that under developing economies and especially with totalitarian regimes, there are immature and imposed, compulsory decisions taken that probably hurt or result in economic imbalances. They cannot be described as a bitter cure, though they should be shunted as an economic poison. Rationally, a government should start by austerity measures, decreasing her expenditure and get rid of stigma of high spending on useless, defenseless and obsolete armies of security and attributes Sudan is plagued with all the above-mentioned economic pests. Economic shocks rocked the country's economy for the past two decades due to civil problems and mal-administration. However, oil production has kept the economy going until the year 2011. After that the secession of the Southern pat of the country deprived Northern Sudan's economy from 75% of its public revenues. Public revenues were drastically reduced. So the authority selected the quicker way of increasing taxation levels in the country. Deprivation of the larger chunk of oil revenues also reduced the flow of foreign currencies required to pay for the imports. Meanwhile, the country's real economic sectors were degenerated and virtually in tatters after decades of negligence. The government, however, did not declare coherent macroeconomic policy. It has reverted to take day-by-day economic decisions to deal with the crisis. So it has floated the Sudanese currency and under the current situation that decreased its value by over 300%. The revenue structure became dependant on taxation which has many forms of value added tax as the principle one. Value added taxation system was introduced in 2004 with the rate of 5%. However, with economic crisis it was gradually increased to 15% in 2011. With negligence, there was subsequent degeneration of the real economic sectors. Meanwhile, the deprivation of a great part of oil after secession, VAT represented considerable portion of the state revenues though it is also a burden on the public. The present study uses a computable general equilibrium (CGE) model to investigate the impacts of implementing of VAT system on the Sudan economy. A benchmark is compared with a sequence of equilibria for measuring the effect of tax policy. Increasing the value-added tax rate from 5, 10 to 15% are used to estimate the impacts scenarios. The results show that although government revenues significantly managed to increase, however, GDP and people welfare decreased.

The current book describes and apply system dynamics models in economic analysis. Two applications are used, in macroeconomic analysis and in assessment of dams power generation potentials. In the real world, the theories face many obstacles in its analyses and interpretations. One of these problems is overlapping relationships between specific variables and difficulty of determining perfect formulation which contain all possible effect. Traditional statistics tools like regression models try to solve this problem in general case, but it's not enough to give us more information about structure of the system . There are interactions between variables, feedback information, state of the system and variables behavior through time and effect of exogenous variables. One of the most important modern method depend on stock and flow diagram, causal loop diagram and simulation programming, is Dynamics models. dynamics model help us to determine the behavior of the accumulation variables through the time (Population, Cultivable Area, Cultivated Area, Expectation of Oil Reserve, Reserve of LPG, Expectation of Natural Gas Reserve, Total Saving, Emplacement, Capital and DEBT) these make many scenarios to solve the problems now and in the future. In the second application an assessment of the potentials to produce power and reserve water for agriculture of one Sudanese dams.

The book describes the conditions of the newly born, two year old State of Southern Sudan faces multiple challenges, economic, administrative, ethnic and most of all, civil conflicts with its previous mother country, Sudan. Building a state is an arduous mission and building a nation comprised of many ethnicities is the most difficult. Moreover, we should not neglect the fact that there are no real economic productive sectors in Southern Sudan or sources of national income except for oil revenues. Additionally, Southern Sudan is food dependant of supplies from abroad and that almost 40% of its population relies on foreign aid. However, all the above-mentioned essential task are limited faced with necessary adhesive bonds which start with building services, legal and civil structures and good governance. All these are determined by available economic resources that are currently minimum with the shutdown of oil flow through oil pipes that runs in the territories of a hostile Northern Sudan. Agreements and coordination are necessary to start building the nation and reaching solutions for Borders's conflicts are part of it.

Child soldiers, street children and child labor are social problems that faces many developing countries and atrophy the process of human development. The book analyzes the phenomenon and utilizes field data for more extensive examination of parameters concerning the vulnerable and disadvantaged childhood in Sudan.

The current book analyzes the effects macroeconomic variables on inflation in of Sudan. The selected data set was from 1990-2008. During that time, there were significant changes in macroeconomic policies that had strong impacts on the performance of the Sudanese economy. A strong wave of hyperinflation was recorded during the beginning years of the 1990s. That was followed by relative stabilization and less inflation rates. Similar changes in the monetary policies were observed. Part of the 1990, implemented package of policies to solve the shortage of foreign exchange problem provoked increasing the supply of domestic currency. Free market economy was adopted through liberalizing trade and boosted exerting efforts to promote exports, besides adopting encouraging policies for the benefit of increasing productivity. The results reveal that there are negative effects of some macroeconomic variables on inflation, specifically GDP. Thus, GDP had the greatest effect on inflation. Money supply also positively affected inflation, which reveals possible increases, governmental deficit financing, and printing banknotes. The coefficient of determination (R2=94.0) verifies the model results. There was also a positive but weak and insignificant correlation between deficit financing and foreign currencies exchange rates. That corroborates conclusions that whenever exchange rate is determined by the market forces with weak economic productive base the impacts fall on income. It is possible that implementing floating exchange rates weakened the economic productive sectors of the country.

Currently, Sudan is living under abnormal economic conditions, which can be described as suffocating. The banking sector has been suffering from the problem of cash outflow over the last three decades, generating the following impacts: Loss of banking sector of its role of financial intermediation, cash scarcity in the banking sector, large government borrowings from unreal source of finance, thus, more inflation. Rumors are that government lost control of the economic situation, reverted to printing money to cater for lack of liquidity. Truly, bad economic administration is a major problem, however, the methodological destruction of the real economic sectors of the country is another one.. The research attempts to specify the main determinants of cash outflow from the banking sector in Sudan (during the period 1972-2011). Hence, those revealing the major impacts of the cash outflow on the economic activity and rates of inflation. However, chaotic economic policies as: incalculable privatization of state institutions and corrupt practices, false Islamization of the banking sector with improper institutional foundations and corrupt economic and administrative governmental institutions, are not excluded as major part of the problem.

The book investigate the process of privatization of state owned companies. Privatization of state owned companies and institutions is well known within the frame of the economic theory. Many explanations and reasons were given in numerous papers and books. In cost/benefit analyses it can be justified by economic reasoning. However, when other factors as sovereignty, national institutional framework, equities, operational functioning, and justice, there can be many objections. Corruption also surface in the process of privatization as an eminent threat to the economic viability of a nation. Bad examples were shown by the privatization process in many countries, e.g., former Soviet Union. Sudan Airways was privatized seven years ago. It was bought by unknown Gulf Company named Arif for announced reasons of improving its efficiency, infusing more capital to expand her operations and buy more new planes. After three years, Sudan Airways performance horrendously deteriorated, operationally and financially. The new management sold her old landing rights in strategic international airports and it was deprived of such rights in all European countries. It became more or less like domestically secluded to fly inside the country. Even that was limited due to lack of available operational airplanes. The deterioration was ultimate and the government asked the holding company to return it back for unnamed price though rumors were that it was five times higher than what it bought it with.

Pure and brutal totalitarianism is controlling Sudan for the past 24 years. Poverty and destitute dominate within the majority people ranks and global seclusion strangles every activity. Corrupt cabal members occupy all government seats based on their loyalty and tribal backgrounds, and not on their honesty, efficiency or qualifications. Exclusion, marginalization, kleptocracy, nepotism and kakistocracy are the destructive tools of the regime to control and eventually disintegrate Sudan. That comes with inefficiency, immoralities, plunder of the country's public revenues and most of the times stupidities. The people, afraid are silently nagging of hyper inflation and inability to buy necessities. Gradual doubts of nation's disintegration are confirmed with expected spontaneous civil wars all over the country.

The document focuses on the importance of studying Bayesian approach so as to analyze the impact of foreign direct investment on macroeconomics of the Yemen Republic. In probability theory and statistics, Bayes' theorem (alternatively Bayes' law) is a theorem with two distinct interpretations. In the Bayesian interpretation, it expresses how a subjective degree of belief should rationally change to account for evidence. In the frequentist interpretation, it relates inverse representations of the probabilities concerning two events. In the Bayesian interpretation, Bayes' theorem is fundamental to Bayesian statistics, and has applications in fields including science, engineering, economics (particularly microeconomics), game theory, medicine and law. The application of Bayes' theorem to update beliefs is called Bayesian inference.

The book analyzes paradigms of development in Sudan. As well recognized, development is an economic necessity for developing countries to ameliorate their social, political, and economic situations and reach some higher standards of living. That was a prime goal since their political independence expressed in quantitative and qualitative indices. However, reaching an optimal integrated model still seems to out of their reach. The book is an applied study of Sudan as a case study. Drawing a basic model requires answering many questions on the identification of the needed development per se, conceptions, available resources, economic surplus, and the necessary diversification. Previous studies have focused on theoretical frameworks in available literature, but dominantly neglected the economic realities. Thereby, we utilize the available data of economic sectors and compare them with other social, political, and economic performance of Sudan.

This is the second volume, first part (2-1) of the Book titled the Sword and the Scepter. It describes the happenings in Sudan during the critical period of 2008-2011. The process of the national disintegration started with power grab by the National Islamic Front, the continuation of the civil war between the North and the South, the Comprehensive Peace Agreement and the misjudgements carried by the Islamic regime. However, the Darfur conflict has triggered a process of indictment of people in the government as accused of committing crimes against humanity. For the first time in the history of the international law, a president in his seat was indicted by the International Criminal Court. That added to the Sudanese crisis. The situation became more complicated by the secession of the country's Southern part and the precarious situation between Sudan's two nations. The analysis carried here handles more variables and reach some conclusions that shall be continued in the following parts.

The current book introduce an analysis on trade impediments and structural deformities that shape current world commodities. The case study is that of Arabic countries which represent considerable percentage of world's total area, resources and geopolitical conception. However, they still represent small part of world trade and share in global trade.

The current global economic crisis has affected many countries. However, if there are structural deformations in their monetary and banking systems, the tolls are greater. Sudan banking system suffers those deformations. Most developing countries suffer from low levels of income in addition to the low savings that are result from the lack of sophisticated savings channels. Hence, investments depend on the individuals' abilities on savings where they are major motivating vehicle for economic activity due to its direct correlation with capital accumulation process that increases the productive capacity for the national economy and help to create job opportunities and achieving economic development. Subsequently, the importance of the investment comes from the effective role that can be practiced on the national product. Currently, Sudan endures severe economic crisis which the degeneration of its economic sectors, subsequent deteriorating productivity and diminishing revenues specially after the secession of the Southern region and loss of more than 75% of oil resources. The needs for investments escalate to revive its ability to survive, without that can be mission impossible. There is need to explain the impact of influencing factors on the investment function in the Sudan. Channeling money needs banking systems to facilitate that job. Sudan as an example of LDCs the banking sector has been suffering from the problem of cash outflow over the last three decades, generating the following impacts: Loss of banking sector of its role of financial intermediation, cash scarcity in the banking sector, large government borrowings from unreal source of finance, thus, more inflation. The book specify the main determinants of cash outflow from the banking sector in Sudan. Hence, those revealing the major impacts of the cash outflow on the economic activity and rates of inflation. The research hypotheses were: the Banks economic behavior of attainment reserves and expanding loans is main cause of cash outflow, the government financial activity to cover its budget deficits, and the effective demand for money liquidity by the public are the main factors transmitting the impacts of cash outflow to the major macroeconomic variables e.g., Money stock, aggregate demand and supply, cost of resource adjustment, and the rate of inflation. Monetization of bank loans via allowing the growth in the effective demand for liquidity by the public directly leads to aggravation of inflation given the downward trend of money velocity, Monetization of bank loans via financing the current deficits of the government, causes inflationary pressures due to aggregate demand expansion, the real side of the economy will not be affected.

This is the second part of an analysis of the current regime in Sudan. The principal target of this document is to document the era of the ruling current national salvation regime in the heart of Afraca. Change in Sudan will eventually occur by means of violence, democracy, or disintegration. However, what shall be the aftermath of such expected transformation, will there be a Sudan, or shall it be changed into other forms. Thus, the document is meant to be a reference for the young Sudanese generations to remember the era and how the domination of the dogma have impacted and transmuted it into quagmire of fanaticism, destroyed the economy and enrooted corruption.

This is the second part of an analysis and description of the Sudan as a country has gone into a process of disintegration. The country has been under totalitarian regime for the past 25 years. The regime is decaying but still is in control of power. With all the symptoms of a failed state, it is continuing to impoverish its people with failures in all aspects of policies and managemed.

The book is in Arabic language meant to be used for students of economic sciences. Although I have been teaching the subject of International Economics and Trade for the past 10 years, I did not attempt to publish a book on it because my student chooses to study and read only in Arabic. I tried to convince them to receive their lectures and study in English language but found unconquerable resistance which compelled me to revert to Arabic lectures and presentations. Thus, I am subjected to write this book in Arabic to convey whatever thoughts and theories to my students and other interested readers. Another aim is to look into why most underdeveloped countries do not understand the basics on international trade They wait and expect only to receive goods from the world with little contributions to the global society. They do not produce enough commodities in many cases even to satisfy their domestic consumption. In oil producing countries they export the crude and kill their productive sectors. In non-oil producing developing countries, they destroy their economies by bad administration and corruption and end up by begging for aid from the international society. They become a burden to the world though they have the potential to contribute to food security and human advancement.

Water pollution is a chronic crisis in Sudan that is rarely researched. However, it is combined with scarcity, disputes and uncertainty. In The current document we introduce its concepts with emphasis on the growing problems of pollution combined with scarcity. A Case study of the growing problem of pollution is introduced and analyzed using economic parameters.