Kuwait Term Papers

In the immediate aftermath of the Gulf War, domestic problems within the country of Kuwait became overwhelmingly exacerbated.  The redistribution of power coupled with intense economic pressure and crisis forced Kuwait and many other countries in the area to seek rapprochement with new hegemonic forces.  In Kuwait, a country that had relied heavily on a course of controlled political liberalization, domestic conflict and instability began to proliferate. 

In addition to the exacerbated internal strife that resulted from the Gulf War, it also seems that postwar Kuwait, is faced with the impending threat of Iraq’s hostility.  As noted by Cordesman, although the United States and the UN Coalition were able to quickly liberate Kuwait from Iraq presence, Iraq’s defeat has left a legacy of Iraqi irredentism, which has since been compounded by the impact of the UN cease-fire terms and the creation of a new border between Kuwait and Iraq.

In addition to the numerous political and security problems that proliferated after the Gulf War, Kuwait’s economy also received a devastating blow.  In comparing Kuwait’s GDP and exports before the war and after it becomes quite clear that Iraq’s invasion of Kuwait promulgated a marked change.  To cope with the exorbitant costs of the war, expenditures for central government and military were in excess of $66 billion and cut Kuwait’s reserve “Fund for Future Generations” from nearly $100 billion to around $35 billion.

In spite of Kuwait’s oil wealth, the Kuwaiti government consistently spent far more than it receives via revenues.  In fact in the 20 years before the Gulf War, Kuwait’s revenues exceed its deficit only once.  While these deficits were relatively unimportant before the war, during the war and shortly thereafter, the Kuwaiti government had to make massive expenditures to liberate Kuwait and cope with wartime damage.  In the three years following the invasion of Kuwait the deficit averaged $48 billion dollars.  Additionally, Kuwait’s average deficit exceeded $1 billion every year since 1992.

 

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