South Sudan is celebrating its first year of independence from Sudan, but the euphoria of last year has given way to a harsh reality: Border wars with the north, internal violence and a shutdown of oil production are serious economic and security challenges. Without the income from oil production, South Sudan has no money to improve the lives of its people - instead it is cutting services and investment in the name of austerity. According to the UN half of the people in South Sudan do not have enough to eat. Sudan is also facing a series of problems: The country lost 75 per cent of its oil revenues after its seperation with the South and Juba's decision last January to shut down its oil pipelines. As a consequence, the economy is struggling with soaring inflation and depreciation of the Sudanese pound. President Omar al-Bashir has made a series of deep cuts and the austerity measures have prompted a rise in transport costs and a doubling of fuel and food prices. This economic meltdown has sparked angry street protests and some Sudanese are now calling for Bashir to step down. So, has the split brought progress or regression for the two countries? How will the worsening situation shape interaction between Juba and Khartoum? Is there an alternative to interdependence? Can the two neighbours live without each other eventually? Inside Story, with presenter Sami Zeidan, discusses with guests: El Samani El Wasila, a member of parliament and former minister of state for the Sudanese government; Paul Moorcraft, the director of the Centre for Foreign Policy Analysis; and Atem Yaak Atem, South Sudan's deputy minister of Information.