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Iraq Invasion Of Kuwait Essay

 

3 an Oil glut occurred which meant that the world market was overflowing with oil which lead to very low oil prices, one of the worst things that could happen to an oil-state like Iraq. Because of the war

and the oil glut Iraq’s economy was severely damaged. A few examples of what the war did to Iraq’s

economy are, the exha

ustion of Iraq’s foreign exchange reserves which lead to

it being very hard for Iraq to trade with the rest of the world, and the massive debt which Iraq was left with, a debt of over

$40 billion. Consequently during the 80’s the rise of Iraq’s GDP made a

significant drop to what it was the decade before, with a rise of only 2% (Wikipedia, 2013). The economy of Iraq had obviously been very damaged by the war. Iraq should have made the export of oil its main focus to get the economy going again, however this did not happen. During August of 1990 Iraq invaded Kuwait as they accused Kuwait of making the world market overflow with oil and stealing oil from oil fields in Iraq. Within a short amount of time Saddam Hussein (the leader of Iraq) had set up a new government in Kuwait and made Kuwait his own. As a consequence Iraq faced strong opposition by the whole UN which consequently voted to stop Iraq, most of the allies went to war in Kuwait. As a response to the invasion oil prices saw a very large increase happen and the stock markets fell (BBC, 1990). The invasion of Kuwait also saw the UN lay economical restrictions on Iraq. This and the cost of war

destroyed Iraq’s economy once again. As a consequence in the 90’s Iraq’s GDP dropped by 47%.

(Wikipedia, 2013) It was now more important than ever for Iraq to get their economy going again, however the economical sanctions laid on Iraq by the UN among other circumstances stopped Iraq from gaining as high a growth in GDP as before the wars with Iran and Kuwait. In the following part will explain the sanctions which were laid upon the Iraqi government.

The UN sanctions

The UN sanctions which were originally

created to stop Iraq’s invasion of Kuwait weren’t

completely lifted until 2010 (BBC, 2010), therefore it is key to properly explain these to understand, not just how

Iraq’s economy was after the Kuwait invasion

, but mainly to understand how they

affected Iraq’s

economy during the US invasion. So what did they consist of? On the 6

th

 of August 1990 the UN came to decisions to place trade restrictions on Iraq. These sanctions banned all UN countries from trading with Iraq, unless the trade was meant for humanitarian purposes, this lead to the oil export of Iraq being strongly limited. As a consequence of the sanctions Iraq had to shut down one of its two main pipelines. At the time it was estimated that normally Iraq would sell an average of 2.8 million barrels per day however because of the sanctions their export was lowered to selling an estimate of 1 to 1.5 million barrels per day to countries, who

luckily enough for Iraq, weren’t part of the UN and therefore didn’t have to take part in the embargo

(Washington Times, 1990). The trading embargo had a massive impact on the Iraqi economy,

Saddam Hussein Invasion Of Kuwait Essay

Saddam Hussein invaded Kuwait in 1900. Kuwait had been an ally during the Iran– Iraq war to Iraq. Kuwait became a main port when. Saddam Hussein main disagreements about Kuwait were from the eight-year Iran-Iraq war. He had argued that he had fought the war against Iran in order to protect the Arab world from Islamic fundamentalists who had taken over Iran. Some can say he was justified yet, most would say he was not justified.
The reason why people would think he wasn’t justified was that he had thought he owned Kuwait. “Iraq had claimed that it had a right to Kuwait. “The ottoman empire was defeated during world war 1 and the British made their “own lines in the sand”, dividing up the land according to their own strategic needs and in the process recklessly dividing up ancient communities and boundaries that had been recognized for decades.” (World Book, vol. 10, p.354). “Iraqi dictator Saddam Hussein uses border disputes and rows over oil production rates as an excuse to send troops across the border of neighboring Kuwait. The United Nations Security Council condemns the invasion of the sovereign country, but Hussein refuses to back down (Klaus Dahmann, The First Iraq War (1990-1991)).” “Saddam Hussein claimed the Iraqi invasion was in support of a planned uprising against the Emir, but murders and abuses of Kuwaitis who resisted the occupation were common.(BBC, Kuwait Invasion 2 August 1990).” Another reason is that Saddam had actually did a surprised attack proved by Kennedy Hickman,
The main reason Saddam Hussein felt justified in invading Kuwait was because Kuwait’s effects on oil prices were impacting the economy of his country. This was unacceptable to Hussein and his people. From Laurie Collier we learn that “They pumped more oil than allowed under OPEC agreements in a deliberate attempt to lower world oil prices and harm Iraq’s economy. He considered these actions by his fellow Arab states to be “economic war against Iraq (Laurie Collier Hillstrom and Julie Carnagie, Hussein, Saddam).” Also “Iraq and Kuwait were involved in a longstanding dispute over the border between the two countries and the ownership of offshore island in the Persian gulf. Hussein claimed that Kuwait was trying to expand into Iraqi territory and was stealing oil from underground oil fields on the Iraq side of the border (British journalists, Hussein, Saddam).” This shows that Saddam wasn’t justified into invading Kuwait. In addition, we learn from the website ____ “During the Iran-Iraq War of the...

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