South Sudan's Anniversary Celebrations Dimmed by Nation's Woes A South Sudanese crowd cheer during a fight at the the International Kickboxing Challenge in Juba. Photo: Conor Ashleigh The world's youngest nation South Sudan has celebrated its second anniversary of independence amid simmering tensions with its former partner Sudan and fears it may slip further into the status of a failed state unless serious challenges are overcome. Despite billions of dollars in aid and scores of non-government organisations and advisors arriving when South Sudan gained Independence on July 9 2011, The Fund for Peace last month ranked the nascent country fourth most critical on their "failed state" list. We are determined to justify why we had to suffer all those years (of) fighting and loss of life No one doubts the difficulties of creating a new country after three decades of war with its northern neighbour Sudan. This year, however, it has become apparent President Salva Kiir is losing his grip on power as numerous rumours swirl of coup plots from within the army and government some two years before elections. Dissatisfaction abounds on the streets of the capital Juba, and among the half of the population's nine million people still living below the poverty line. The country suffers some of the world's worst social, economic and health indicators with unemployment, illiteracy and a lack of infrastructure the major issues. The disaffection is amplified by corruption scandals estimated to amount to $4 billion stolen from government coffers. But Director of Investor Facilitation in the Ministry of Commerce Samuel Mut told Fairfax Media the problem was people's high expectations after independence. "South Sudan is better today," Mr Mut said. The government is doing good. Sure, there are problems. But look at what we have now after two years. More than 40 hotels in Juba, construction is booming. Road infrastructure is expanding, we are now connected by road to our neighbours," he said. Back from NSW Deputy Information Minister Atem Yaak, who lived in exile with his family in Gosford on the NSW Central Coast before returning at independence, said the South Sudanese people must spur the private sector and not just expect the government to improve their lives. "One would be deceiving themself if they said we are democratic," Mr Yaak said. We are a society of equality and justice. But the process has started. We are determined to justify why we had to suffer all those years (of) fighting and loss of life," he said. South Sudan's economic prosperity, and source of conflict with Sudan, is tied to massive oil reserves in the northern part of the country that can pump an estimated 350,000 barrels a day. Since the 2005 Comprehensive Peace Agreement that stopped the civil war with Sudan and led to independence, South Sudan has earned an estimated $12 billion from its oil. Oil feud But after prolonged fued with Sudan over pipeline transit fees, South Sudan stopped oil production in January last year and subsequently lost nearly 98 per cent of its revenues. Then in March and April 2012, the two countries fought intermittent skirmishes on the border. While hostilities have eased and oil production restarted, tensions remain high with the Khartoum regime to the north, with accusations it has been funding an insurrection in South Sudan's eastern state of Jonglei. South Sudan, on the other hand, denies supporting rebels fighting Sudan's government in South Kordofan and Blue Nile states. Another on-going issue is the future of the border state of Abyei, a disputed area claimed by both Sudan and South Sudan. Achievements Still, Bella Bird, the World Bank country director for South Sudan, said the new nation's achievements were worth noting. "In a country where 85 per cent of adult women have no schooling, It's also heartening to see the portents of generational change as the number of girls in primary schools is up 37 per cent," she said. The most important peace dividend is a child born in South Sudan now has a 48 per cent better chance of survival than during the war years. Raphael Gorgeu, the South Sudan head of aid group, Médecins Sans Frontières, said some indicators are improving, such as access to health and the creation of civil society. "South Sudan could be considered better than 30 years ago, 20 years ago, or even two years ago," Mr Gorgeu said. However, medical services remain limited and still lacking. Access to health care for the population remains a major concern for MSF, along with a chronic nutrition crisis. "There is still a long way ahead," he said.