Explain how the issue of Oil production contributed towards Iraq's decision to invade Kuwait . (5m)
Iraq wanted to pay off its debts by earning more revenue from the sale of its oil . However oil prices were falling due to overproduction by member countries of the Organisation of the Petroleum Exporting Countries (OPEC). Kuwait and the United Arab Emirates (UAE) ignored the quota set and went well over the limit . This caused the price of oil to fall from US$18 to US$7 . Each time oil prices fell by US$1 per barrel , Iraq lost US$1billion from the sale from oil.With such low oil prices , Iraq could not hope to pay off its debts and thus held Kuwait partly responsible for their plight . As 90% of Iraq's income came from the sale of their oil , Kuwait's and the UAE's actions was a direct threat to Iraq's economy . Therefore , Iraq became more desperate as they primary source of income was reduced . Hence , the issue of oil production contributed towards Iraq's decision to invade Kuwait as they blamed Kuwait for this turn of events .
Explain the 2 other factors that led to Iraq's decision to invade Kuwait . Which factor contributed more to Iraq's decision? Explain your answer .(12m)
Economic problems in Iraq contributed towards its decision to invade Kuwait . Before the start of Iran-Iraq war of 1980 to 1988 , Iraq was a relatively prosperous country with about US$35Billion in reserves . After the war , Iraq suffered a heavy loss of lives and owed US$80 billion to its neighbours and other countries like US and France which supplied them with food and war equipment . The reconstruction of the war torn country required about US$230 billion . Hence , Iraq tried to find ways to pay off their massive debt and rebuild their country at the same time . Invading Kuwait would mean control of their oil reserves , this will also give Iraq control of over 20% of the world's oil reserves and immediate access to the Persian Gulf . This would have given Iraq an almost immediate surge in income and help to allay alot of its economic problems . Therefore , Iraq invaded Kuwait as it faces economic problems and wanted an immediate way of gaining funds .
Dispute over territory contributed towards Iraq's decision to invade Kuwait . The ill- defined borders between Iraq and Kuwait resulted in both sides sharing a profitable oil field , the Rumaila oilfield . In 1990 , Iraq accused Kuwait of stealing oil from their side by using slant drilling technology . However , Kuwait insisted that they had only drilled oil from their side of the field . Then , Iraq demanded Kuwait to stop drilling from the oilfield completely and to pay US$2.4 billion as compensation . Kuwait refused to give into Iraq's demands , hence Iraq felt that Kuwait was a direct economy threat to Iraq as it is robbing its wealth .
Another issue was Kuwait's ownership of Bubiyan and Warbah Islands , although Iraq is much larger than Kuwait , Iraq is almost landlocked . The two islands could block Iraq's access to the Persian Gulf and affect Iraq's oil transportation.After failed attempts to claim ownership of these islands in 1960s and 1970s , Iraq wanted to lease the islands from Kuwait . However Kuwait feared that by giving in to Iraq's demands , this would lead to more territorial demands from Iraq . Therefore by invading Kuwait , Iraq would gain control of the islands and ensured guaranteed access to the Persian Gulf . In conclusion , dispute over territory contributed towards Iraq's decision to invade Kuwait as Iraq's control of the Bubiyan and Warbah island would give it a stragegic advantage through a greater supply of oil and guaranteed shipping access to transport it for sale .
The economic problems in Iraq contributed more to the decision to invade Kuwait because Iraq was already facing mounting finacial problems that were exacerbated by dispute over territory . By invading Kuwait , Iraq could then resolve its territorial disputes and address its larger economic concerns . Hence , if it were not for Iraq's economic problems , the invasion of Kuwait would have been far less likely to have taken place .