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Iraq-Kuwait War

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Submitted By derplorde1
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1. SS Notes 7: Iraq-Kuwait conflict

Causes of conflict Factors: Economic problems, oil production and dispute over territoryEconomic problems: Iraq had previously fought a war with Iran, which drained its reserves. As aresult, Iraq’s economy was severely weakened. Iraq also had debts to other countries such as the USand France. For example, Iraq owed about US$80 million in debts. Iraq thus had to find ways to payoff its debts and saw Kuwait as a potential solution. Thus the economic problems of Iraq are animportant cause of conflict between Iraq and Kuwait.Oil production: Iraq’s main source of income is through the sale of oil. Oil production wasmaintained by OPEC, to prevent a decline in oil prices. However, Kuwait ignored its quota, thus theprice of oil dropped from US$18 to US$7 per barrel. This loss of revenue for Iraq meant that it wasunable to pay off its debts through the sale of oil. This prompted Iraq to look for alternative ways tosettle their debts and looked to Kuwait as a potential solution. Thus oil production is an importantcause of the Iraq-Kuwait conflict.Territorial dispute: Some borders in the region were not well defined as both Iraq and Kuwaitinherited their borders from the British. There were thus clashes between the two countries as theyboth wanted certain territories for themselves. An example is the Rumaila oilfield. The Rumailaoilfield was shared between both countries as its borders were not clearly defined. However in 1990,Iraq claimed that Kuwait had drilled from the Iraq side using slant-drilling technology. Iraqdemanded compensation from Kuwait but Kuwait refused. This led to strained relations between thetwo countries. Thus dispute over territory is an important cause of the Iraq-Kuwait conflict. Basis of Comparison: Factor>Other factors: Economic problems> other 2: Economic problems are more important than the other factors as it

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