The Economic situation in the Middle East after the Gulf War ll (1990-1999)

Abstract

The economic situation in the Middle East witnessed a transformation at several fields. After the Gulf war, a second war of a different kind began, with an economic trait, when the UN Security Council issued several resolutions condemning Iraq’s invasion of Kuwait and imposing an economic blockade on Iraq, which effect the Iraqi economy on all fields and sectors  (Agricultures, industry, oil, health, education) and its impact on Arab countries and neighboring countries such as Turkey and Iran. The agricultural sector witnessed a decline as a result of the restrictions and sanctions imposed by the Sanctions Committee, and this in turn increased desertification and soil salinity. The industrial sector didn’t survive from deterioration as a result of the sanctions, as it led to the Inflation and reduction of exports and imports and its impact on economic transactions, as well as oil, on which the Iraqi economy was heavily dependent. Iraqi oil production also declined, the trade embargo on Iraq had a major impact, causing huge costs to Iraq’s neighbors and countries other than the countries of the Middle East, which increased the calls to reduce sanctions in this sector in Iraq.