The Social, Economic, and Political Situation of Kuwait post Gulf War 1990-1991 - Essay Example

Even before the Gulf War, Kuwait was facing some political conflicts with Iraq regarding territory occupation, oil, and debts. However, the political system and foreign relations of Kuwait altered after Iraq’s invasion, along with a constant fear of another attack from Iraq. The Gulf War also had a significant impact on Kuwait’s social conditions, especially on the role of women and Shiites, attitudes regarding Palestinians, and social welfare of the people. Although Kuwait gained victory from Iraq within days of the invasion, the social, political, and economic situation of Kuwait post war was a far cry from the situation that existed before the war (Ashkanani, Hadi Ridha.

, Shears, Jane. 21; Czinkota, Michael R., Ronkainen, Ilkka A. 618; Crystal, Jill. 176; Isiorho, Soloman A., Gritzner, Charles F. 85, 94, 95; Fasihuddin; Omar, Abdullah; Shenon, Philip; Finlan, Alastair 83, 84; Cordesman, Anthony H 14, 15; Al-Mughni, Haya; Federal Research Division 83; Cushman Jr, John H.). Before the Gulf War, in the eighteenth and nineteenth centuries, the economy of Kuwait was mainly based on trade. It gained a lot of maritime advantage through trade with Asia, Africa, and Europe because of its strategically located natural port.

The dependence of Kuwait’s economy then shifted to pearl diving in the nineteenth and early twentieth century. The reason for this was also the gulf, which provided natural pearl banks for harvesting by merchants and sailors. Closely linked to pearl diving was the emergence of the shipbuilding industry, as well as fishing. Trade and maritime occupations remained important monetary sources for Kuwait’s merchant class and foreign orientation till 1990. However, this economy was not enough to provide for most of Kuwait’s population, especially those outside the merchant families and ruling families.

Pearl diving slowly began to decline, and came to a sudden halt in the 1920’s due to the Great Depression and Japan’s manufacture of an alternative for natural pearls (Federal Research Division 84, 85). Nevertheless, Kuwait’s economy got a chance to thrive when petroleum was discovered in its region in 1938. Its drilling was disrupted as a result of the World War, but then resumed in 1945. Kuwait further got an opportunity to prosper when oil was explored, produced, and exported in the 1950’s.

A lot of revenue was gained due to the high demand of oil by foreign countries, and this revenue was used to improve Kuwait’s economy. Industries, social and physical infrastructure was built, along with much spending on the social and economic welfare of Kuwait’s people. This period between 1960 and 1980 was known as the ‘construction boom’, and became a magnet for large number of workers, especially from Iran, South Asia, and Arab countries. The strategic location of Kuwait’s gulf, and its enhanced communication and port facilities, contributed to an expansion of re-exports, trade, and many other commercial activities (Federal Research Division 85; Fasihuddin).

However, the invasion and take over by Iraq led to various adverse economic consequences for Kuwait and disrupted its continuous economic development. The first thing Kuwait’s economy had to face was the hefty costs incurred as a result of the war. When Kuwait’s rulers had gone in exile, they had drawn down from Kuwait’