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Black Gold for Blue Gold? Sudan’s Oil, Ethiopia’s Water and Regional Integration /  Harry Verhoeven. London : Chatham House, June 2011, 24 p. (Briefing paper ; AFP BP 2011/03)http://www.chathamhouse.org.uk/files/19482_0611bp_verhoeven.pdfPresentation (copyright ©  Chatham House) :Sudan and Ethiopia (and an independent South Sudan) face similar  challenges in poverty reduction, climate change, population growth and  food security. They will find it hard to address these because of mutual  mistrust and lack of regional integration around oil, water and  hydropower. This could even lead to conflicts.All three must choose between having a hostile attitude towards each  other over the Nile Basin waters and Sudanese oil, and sharing their  resource wealth to build better economic relations that lock in  political stability and address the ecological pressures confronting  their populations.Regional cooperation and integration can be built on a revision of  the 1959 Nile Treaty and the synergies between Sudan's oil for  Ethiopia's water. North and South Sudan have regional comparative  advantages in agriculture and can continue to supply Ethiopia with oil,  while Ethiopia should be encouraged to make full use of its considerable  potential in hydropower on the Blue Nile to export electricity to its  neighbours.Fundamental obstacles to regional integration include antagonism  between the region's leading political movements; North and South  Sudan's greater focus on building a new relationship with each other  than on broader regional cooperation; North Sudan's insistence on  pushing ahead with its own dam programme; and internal factors in  Ethiopia constraining its emergence as a regional leader.