Some Lessons from Irag Economy Before Invasion to Kuwait

After the eightyears imposed war to Iran, Saddam’s regine started to reconstruct Iraq’s economy. Iraqi’s government carried out a series of structurl reforms and liberalization. This enterprise exacerbated Iraq’s foreign reserves and resulted in economic irregularities and hyperinflation in that country. The ruling government of Iraq invaded Kuwait with this illusion that with its military might and blackmailing that country, overcoming the deep-rooted economic problems of the country is not farfetched. In analyzing Iraq motivations to invade Kuwait, it has mainly been focused on the political aspects of the invasion and the economic contexts and factors are mainly ignored. This article tries to bring forward an economic account of this invasion.