During the 1980's, Kuwait aided the Iraqi government in their war with Iran. However, in July of 1990, Iraq accused Kuwait of overproduction of oil which was lowering prices and siphoning oil from the Rumayla oil field that stretches through both countries. On August 2, Iraqi troops invaded Kuwait and set in motion Operation Desert Shield/Storm.
Kuwait has been raped by the occupying forces of Saddam Hussein. Horror stories abound about looting and pillaging at the hands of the Iraqi Army and as they left the country in hasty retreat, they made sure to leave nothing of value to the advancing allied armies. The capital of Kuwait city was lit on fire with many of the buildings and factories totally gutted. Vehicles were burned, aircraft destroyed and thousands of Kuwaitis killed or taken hostage. In addition, of the 900 oil wells in Kuwait, some 600 were left on fire when the Iraqis retreated and others are booby-trapped with explosives. The rebuilding of Kuwait could take years and will cost billions of dollars. But the Kuwaitis seem prepared to make the effort. With over $100 billion in overseas assets, and several billion more in oil revenues in the next decade, Kuwait should be financially capable of solving the complex task of reconstruction.
Not only does the infrastructure of Kuwait need to be repaired, but the political/social system is also going to be reexamined. Unlike most Arab countries, the people of Kuwait feel intense nationalism now that they know what it is like to lose their homeland. They also understand how valuable liberty is after living several months under Iraqi occupation. New demands for freedom will certainly be made of the Kuwaiti monarchy, and the promises of democratic reforms will have to be acted upon in the near future. In the early 1980's, the parliament was disbanded due to fear of non-Kuwaiti foreigners taking over too much power. The fate of these workers, and the parliament, will have to be reconciled quickly if Kuwait is to continue to receive the good will, and economic aid from the rest of the world.

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