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Why Saddam Hussein Invaded Kuwait: Survival January 1991
Why Saddam Hussein Invaded Kuwait: Survival January 1991
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To cite this article: Efraim Karsh & Inari Rautsi (1991): Why Saddam Hussein
invaded Kuwait, Survival: Global Politics and Strategy, 33:1, 18-30
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18
around every corner make failures easier to digest and preclude the need
for the agonizing process of soul-searching. It is hardly surprising, there-
fore, that the Iraqi invasion of Kuwait in August 1990 has produced its
own crop of such theories.
Having failed to anticipate the Iraqi move, Arab and Western analysts
now argue that, with the benefit of hindsight, President Saddam
Hussein's verbal encounter with the West and Israel in the months pre-
ceding the invasion should have been interpreted as an indication of his
future aggressive designs towards Kuwait. Some would even go further
to argue that Hussein had already conceived of the invasion in the mid-
1980s and made the final decision to occupy Kuwait in February 1990.
He then engineered an acrimonious encounter with the West, Jhey argue,
to disguise his real intentions and to prepare a conducive regional atmos-
phere for such a move.1
However intriguing, this retrospection is fundamentally miscon-
ceived. Like the invasion of Iran a decade earlier, Hussein's latest
aggression against a neighbouring state had less to do with a premedi-
tated grand design than with his perennial sense of insecurity. In both
cases war was not his first choice but an act of last resort, taken only after
trying other means for shoring up his position in the face of great
adversity. In both instances the actual decision to use military force was
taken only a short while before the outbreak of hostilities, following a
prolonged process of heightening threat perception. The Iranian cam-
paign - an extremely risky move - was aimed at containing a fanatical
and uncompromising enemy who openly bayed for Hussein's head. The
occupation of Kuwait - a rather costless operation in the view of the
Iraqi leader - was designed to provide vital financial resources for the
economic reconstruction of Iraq, on which Saddam Hussein's political
survival hinged. In short, Kuwait has been the latest casualty of the Iraqi
Efraim Karsh is Lecturer at the Department of War Studies, King's College London.
Inari Rautsi is Researcher at the University of Helsinki. This article is adapted from
their political biography of Saddam Hussein, to be published in the spring of 1991
by Brassey's (London) and the Free Press (New York). Another version of the
article appeared in London Defence Studies, no. 2, December 1990.
This euphoria did not last long. As life returned to normal, a grim
realization that Iraq had emerged from the war a crippled nation began
to settle in. The Iraqi economy was wrecked. Economic estimates put the
cost of reconstruction at $US 230 billion (bn) (£148bn).2 Even if one
adopts the most optimistic (and highly unrealistic) assumption that
every dollar of oil revenues would be directed to the reconstruction
effort, it would require nearly two decades to repair the total damage. As
things stood a year after the termination of hostilities, Iraq's oil revenues
of $ 13bn per annum did not even suffice to cover on-going expenditures.
With civilian imports approximating $12bn ($3bn for foodstuffs), mili-
tary imports exceeding $5bn, debt repayments totalling some $5bn, and
transfers by foreign workers topping $lbn, the regime needed an extra
$ 1 Obn per annum to balance its current deficit, before it could embark on
the Sisyphean task of reconstruction.
Iraq's $80-bn foreign debt was extremely disturbing for Hussein since
repayment arrears and the consequent reluctance of foreign companies
and governments to extend further credits implied that economic recon-
struction would have to be shelved. Domestic economic problems
seemed equally ominous.3 Not only did the intensive privatization
measures taken by Hussein since the late war years not prove to be a
panacea, they in fact created a severe backlash. The high expectations
created among the various sectors of Iraqi society were only matched by
soaring inflation, forcing Hussein to reintroduce price controls and to
give the public its seasonal quota of scapegoats: in the spring of 1989 the
Finance Minister, Hikmat Mukhalif, and the acting Agriculture Minis-
ter, Abdallah Bader Damouk, were removed from their positions.
These moves, nevertheless, only scratched the surface of the Iraqi
economic malaise. Privatization has never been workable under Saddam
Hussein. With the real reins of economic power - the oil industry which
accounts for some 95% of Iraq's income - remaining in the hands of the
state, there is no viable basis for the creation of a significant private sec-
tor. Moreover, given the repressive nature of the regime and its arbi-
trary convulsions, entrepreneurs have always been wary of the system
and have, therefore, tried to reduce their risks by investing the barest
minimum in future expansion and reaping as much profit as they can.
20 Efralm Karsh and Inari Rautsi
Nor could Hussein provide his subjects with glowing foreign successes.
Apart from the formation of the Arab Co-operation Council which
boosted his prestige in the Arab World, Hussein's regional policy soured.
The clash which he initiated with Syria in Lebanon brought no results, as
the Iraqi protdge", General Michel Aoun, made no headway towards his
declared goal of 'liberating Lebanon from Syrian occupation'. Further-
more, in the Arab summit in Casablanca in May 1989 Hussein suffered
a public humiliation when his proposal for the replacement of the Syrian
military presence in Lebanon by a genuine Arab League force was
rejected in the face of tough opposition by Syrian President Hafez
al-Assad.
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More significantly, Hussein had failed to make even the slightest pro-
gress on the most important foreign-policy issue: a peace agreement
with Iran. If Iraq did in fact win the war, as its people were incessantly
urged to believe, then victory had to be formally sealed, and the hatchets
officially buried. The 65,000 war prisoners could then return to their
families, alongside hundreds of thousands of demobilized troops. Life
would return to normal, and reconstruction could begin.
None of these things happened. The UN-orchestrated peace talks in
Geneva quickly stalled as Iran would not negotiate directly with Iraq; suc-
cessive Iraqi initiatives led nowhere. Faced by a lack of progress, Hussein
was forced to look to his guns. The formidable Army remained by and
large mobilized, costing the destitute Iraqi treasury a fortune. The social
consequences were no less worrisome. An entire generation was lost: the
young conscripts who had been 18 when the war started were 26 by its end
and still under arms. They had no private life; they could neither study,
work, nor get married. Now that the war had been 'won', they began ques-
tioning the necessity of their continued mobilization. Hussein's attempt
to defuse this problem by ordering partial demobilization in 1989
backfired, as the huge numbers of young men pouring into the labour mar-
ket proved too much for the shaky Iraqi economy to absorb.
especially as the oil markets, or let us say the clients are, at least, pre-
pared to pay up to $25 for the next two years, as we have learned or
heard from the Westerners who are the main clients in the oil market?'
The answer to this question, in Hussein's opinion, was unequivocal.
The continued violation of oil quotas by some Arab states amounted to a
declaration of war on Iraq. 'War', he said, 'is fought with soldiers and
much harm is done by explosions, killing and coup attempts - but it is
also done by economic means. Therefore, we would ask our brothers who
do not mean to wage war on Iraq: this is in fact a kind of war against
Iraq.' 'Were it possible,' he concluded, 'we would have endured. But I
believe that all our brothers are fully aware of our situation. . .we have
reached a point where we can no longer withstand pressure.'7
Kuwait and the UAE were unmoved by Hussein's uncharacteristically
candid admission of weakness and his consequent blatant threat. While
replacing his Oil Minister in a clear attempt to appease the Iraqi leader,
the Emir of Kuwait would neither reduce oil production, nor forgive his
wartime loans to Iraq, nor extend additional grants to Baghdad. A Gulf
tour in June 1990 by Dr Sa'adoun Hammadi, Hussein's chief economic
adviser, as well as several tough warnings by Iraq's Oil Minister, failed to
cow Kuwait (and the UAE) into submission. Even a direct attack by
Hussein on this policy as a 'conspiracy against the region's economy
which serves Israel directly' left no discernible impact.8 It was only on 10
July, during a co-ordination meeting of the Gulf oil ministers in Jeddah,
that the two states succumbed to combined Saudi, Iranian and Iraqi
pressure and agreed to abide by their oil quotas.9
This concession, nevertheless, was too little too late. By that time,
Hussein was expecting far more from Kuwait. He probably had not yet
made up his mind to invade the tiny principality, but he was certainly
bent on extracting substantial grants on top of a complete moratorium
on war loans. Nothing less would satisfy him, particularly in light of the
widespread international pressure which he faced at the time.
Clashing with the West
At the centre of the acrimonious confrontation between Hussein and the
West in the spring of 1990 was the execution of Farzad Bazoft. Bazoft, an
Iranian-born journalist working for the London weekly newspaper, The
Why Saddam Hussein invaded Kuwait 23
only did it fail to take the pressure off Iraq, but President George Bush
hurried to deplore the statement in strong words. Israel, ignoring the
conciliatory part of the speech, hinted that an Iraqi chemical attack
might be met by a nuclear response.17 Yet Hussein's bellicosity proved
useful from his point of view: it threw him into a position of regional
prominence, as the Arab world unanimously hailed his 'heroic stand
against imperialist-Zionist machinations'. In the following months, the
Iraqi President would try to strike a delicate balance between the desire
to translate his newly-gained inter-Arab eminence into financial support
for Iraq's economic needs and the wish to avert a regional conflagration.
The outcome was a rather incoherent policy combining blatant threats
with attempts at appeasement. Hussein increasingly leaned on the pan-
Arab rhetoric which he had essentially abandoned more than a decade
earlier, expanding his 'burn Israel' pledge to cover potential Israeli
aggression against any Arab state rather than against Iraq alone. How-
ever, he also took great pains to reassure decision-makers in Jerusalem
and Washington that his statements should not be construed 'in the con-
text of threats or demonstrations of power'. 'Iraq does not want war,' he
said, 'jt fought for eight years and it knows what war means.'18
nation's soil, dignity, honour and wealth', Aziz tabled several demands:
the raising of oil prices to over $25 a barrel; the cessation of Kuwaiti
'theft' of oil from the Iraqi al-Rumaila oil field and the return of the
$2.4bn 'stolen' from Iraq; a complete moratorium on Iraq's wartime
loans; and the formation of'an Arab plan similar to the Marshall Plan to
compensate Iraq for some of the losses during the war'.20
A day later Hussein escalated the situation further. In an address to the
nation on the twenty-second anniversary of the Ba'ath Revolution, he
accused Kuwait and the UAE yet again of conspiring with 'world imperi-
alism and Zionism' to 'cut off the livelihood of the Arab nation', threat-
ening that Iraq would not be able to put up with such behaviour for
much longer, since 'one would be better off dead than having one's liveli-
hood cut off. The two states had therefore to come 'back to their
senses', he said, preferably through peaceful means. However, he cau-
tioned, 'if words fail to afford us protection, then we will have no choice
but to resort to effective action to put things right and ensure the resti-
tution of our rights.'21
The substance of the Iraqi demands was not new. They had been pre-
sented to the Kuwaiti and Arab governments on several previous
occasions. Yet by stating in public what had hitherto been said only
behind closed doors, Hussein had effectively crossed the Rubicon. He had
committed himself to certain objectives in such a way that any compro-
mise on his part would have been seen as a humiliating capitulation. In
his view, there was no room left for bargaining or procrastination. Kuwait
had to accept his demands completely, or face the grave consequences.
Unfortunately, the Kuwaitis failed to grasp the seriousness of their
situation. However startled they may have been by the harsh Iraqi rhet-
oric, they remained complacent, interpreting Hussein's demands as a
bargaining chip rather than as an ultimatum. The prevailing view within
the Kuwaiti leadership was, therefore, that surrender to such extortionist
methods would only lead to unlimited demands in the future. They sus-
pected that some concessions might be necessary, but were determined
to reduce them to the barest minimum. They felt that military action
could not be ruled out but believed that it was extremely unlikely, and
that in the worst case it would be confined to a small disputed area such
as the al-Rumaila oil field and Bubiyan island, which in the past Iraq had
26 Efraim Karsh and Inari Rautsi
tary defeat in the 1956 Suez campaign into a resounding political vic-
tory, so Iraq's loss of Kuwait during the course of hostilities might not
be taken against Saddam Hussein. Rather, he is likely to be lauded by the
Arab masses as a new Nasser, the defender of Arabism against the evil
machinations of 'world imperialism'.
Given this balance of forces, opportunities and risks, it is difficult to
predict which path Hussein will take. His past political record indicates
that he is both utterly ruthless and overly pragmatic. Should he be given a
face-saving formula, he is likely to seize it and to claim a victory over
'world imperialism', a claim which will undoubtedly be shared by many in
the Arab world and will, consequently, entail grave consequences for the
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Notes
1
The Economist, 29 September 1990, pp. involved a plan to shoot down Hussein's
19-22; International Herald Tribune, 25 plane on his way from a state visit to
September 1990; Judith Miller and Laurie Egypt. Another coup attempt, which
Mylroie, Saddam Hussein and the Crisis apparently took place in northern Iraq in
in the Gulf (New York: Times Books, late 1988 or early 1989 was ruthlessly
1990), pp. 8-12. suppressed with dozens, if not hundreds,
2
The Independent, 20 July 1988. of officers executed. Another coup attempt
3
About half of the debt was owed to was aborted in September 1989, and in
Arab Gulf states, Saudi Arabia and January 1990 Hussein narrowly escaped an
Kuwait in particular. Guaranteed trade assassination attempt by Army officers
debt to Western countries amounted to while he was riding his car through Baghdad.
between $16-$20bn. Most of the rest were 11 See, for example, al-Jumhuriya, 20
military debts, much of which was owed February 1990; al-Qadisiya, 6 March 1990.
12
to the USSR. See, for example, The Al-Thawra, 2 March 1990.
13
Economist, 30 September 1989, 4 August Baghdad Domestic Service in Arabic, 5
1990; The Middle East, December 1989. January 1990.
4 14
Miller and Mylroie, op. cit. in note 1, p. 12. Interview with Richard Murphy, 1
5
The Observer, 21 October 1990. November 1990.
6 15
Iraqi News Agency (hereafter INA), 17, INA, 29 March 1990.
16
20 February, 1 May 1990; Baghdad Voice Baghdad Domestic Service in Arabic, 2
of the Masses, 20 February 1990; al-Sharq April 1990.
17
al-Awsat (London), 18 May 1990. The Economist, 20 September 1990.
7 18
Baghdad Domestic Service in Arabic, 18 INA, 7, 8 April 1990.
19
July 1990. Baghdad Domestic Service in Arabic,
8 INA, 19, 26 June 1990; Hussein's 17 July 1990.
20
interview with the Wall Street Journal, 26 Ibid., 18 July 1990.
21
June 1990. Ibid., 17 July 1990.
9 22
Miller and Mylroie, op. cit. in note 1, p. 15. Al-Qabas, 20 July 1990; al-Ray
10
Between the end of the war and the al-Amm, 26 July 1990.
23
execution of Bazoft, Hussein escaped For Iraq's feuds with Kuwait during
several attempts on his life. The first took the 1960s see, for example, Majid
place in November 1988 and reportedly Khadduri, Socialist Iraq (Washington DC:
30 Efraim Karsh and Inari Rautsl
26
The Middle East Institute, 1978), pp. International Herald Tribune, 22
153-9. October 1990.
24 27
International Herald Tribune, 17 See a statement by a Kuwaiti official to
September 1990; The Economist, 29 Radio Monte Carlo, 1 August 1990.
28
September 1990; The Observer, 21 For excerpts of U N Resolution 678,
October 1990. see the Documentation section of this
25
Personal communication. issue of Survival.
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