A/HRC/40/69 which contributes to absenteeism and a shortage of qualified teachers. While the education budget for 2018/19 has significantly, it remains far below defence and security spending. 53. Despite the fact that the signing of the Revitalized Agreement augurs peace, children and youth in South Sudan face significant challenges, which will be overcome only through commitment and investment on the part of the Government, the international community and all South Sudanese people. Failing this, the conflict may leave the damaging legacy of a lost generation. IX. Redrawing of administrative boundaries 54. In view of the Revitalized Agreement, the Commission considered it appropriate to address issues that have fomented conflict and the resulting human rights violations, which have the potential to derail progress towards peace. This includes the impact of the redrawing of administrative boundaries and the political economy of South Sudan. 55. One of the most fraught and fundamental issues facing South Sudan is how its government and administrative structures are defined and seen to serve all its communities and citizens equally. In the past three years, the questions of the number and boundaries of the states and when and in what form federalism or devolution should be introduced have been prominent and divisive. The creation, by decree, of the 28 states in 2015 then 32 states in 2017 was highly controversial, generating new conflict dynamics and triggering serious human rights violations. This issue has exacerbated historical divisions between ethnic and political factions, particularly as the decision-making process has been challenged for lack of legality, legitimacy and transparency. 56. The Commission has taken account of how the decree creating 28 states triggered conflict in former Upper Nile state, when Malakal, with a significant Shilluk population, was merged into the new Dinka-controlled Eastern Nile state. In Bahr el-Ghazal, the creation of Lol state – which joined Raja county, sparsely inhabited by Fertit, to Aweil North and Aweil West counties, densely populated by Dinka – also tilted the balance of power in the Raja area towards the Dinka. In both these cases, civil servants belonging to minority ethnic groups were summarily dismissed from their positions, and new conflicts were triggered by the redrawing of administrative boundaries, which was perceived to privilege the Dinka population. 57. As South Sudan seeks to implement the new peace agreement, this will remain one of the most delicate, controversial and potentially destabilizing issues. During the negotiations, the parties failed to reach an agreement on the number of states and their boundaries, and instead created the Independent Boundaries Commission and the Technical Boundaries Committee to resolve the matter, failing which it will be put to a referendum. Fundamentally, however, these governance questions require inclusive and representative solutions; otherwise, South Sudan will reap the consequences of fomenting marginalization and deep grievances. X. Political economy of the conflict 58. The economy of South Sudan continues to be almost completely reliant on oil, with the result that control of this resource has had enormous repercussions on the sociopolitical and security situation and has been a central dynamic of the conflict. 59. The Petroleum Revenue Management Act (2013) provides that oil-producing states and the communities within them are to receive 2 and 3 per cent, respectively, of the oil revenue, thereby creating significant incentives to ensure state boundaries are drawn to include oilfields. This is widely perceived as a motivation for the redrawing of state boundaries to ensure that more oilfields fall within Dinka-controlled states. 60. In 2018, the desire for the Government to take control of the oil industry manifested in the SPLA offensive to drive the Sudan People’s Liberation Army in Opposition (SPLAIO) loyal to Riek Machar out of its strongholds in southern Unity state, starting in April. The aim of this offensive was to gain control of the road running south from Bentiu to 8