Here is Your Essay on Ku­wait

The tiny constitutional monarchy of Ku­wait (area: 6,880 sq. miles and population 1.9 million) is among the most prosperous nations in the world. The per capita in­come of its inhabitants approximates its gross national product at $21,000 and ri­vals that of the most developed nations of Europe and the U.S. Wedged between Saudi Arabia and hostile Iraq at the mouth of the Gulf in an oil-rich belt, the location is particularly significant as the Gulf War of 1990 demonstrated. Kuwait can easily control the entry of Iraq (albeit with the help of military powers) into the Gulf, and just as easily Iraq can over-run Kuwait from the land frontier.

The country is largely a sandy desert except for the few oasis-patches. It has vir­tually no agricultural land, and pastures account for less than 8 percent of the land where sheep, goats, and cattle are raised. Although some vegetables and fruits are produced, and commercial fishing is lo­cally important (pearl fishing has declined in recent years as easy money can be ob­tained from oil), almost the entire food-grain requirements are met through imports. Food and live animals account for one-sixth of all imports.

Oil is the nation’s major resource. Nearly 10 percent of the world’s total re­serves exist here, next only to that of Saudi Arabia. Production is a little more than 2 percent of the world’s total. Natural gas re­serves and production are much smaller, but are still quite substantial. The eco­nomic transformation of the nation has been dramatic and spectacular from the sleepy, pearl-diving, small-trading, and fishing economy of the 1950s to a highly developed welfare state.

At the turn of the 20th century there were no schools or hos­pitals and much of the drinking water had to be hauled in by boats from neighboring Iraq. Today, all that has been replaced by modern air-conditioned schools and hospi­tals equipped with the latest facilities, the world’s largest water distillation plant, large boulevards, modern banks, and shop­ping centers. The entire length of 2,700 miles (4,300 km) of roadways is paved. All this has been possible through the enor­mous oil wealth that has flowed into the country.

Since 1970, the government has owned all the petroleum and natural gas undertak­ings and derivative industries, electric- generation companies as well as desaliniza­tion plants, whereas trade, manufacturing of building materials, and banks are in the private sector. Apart from various petro­leum products, the manufacturing sector includes the production of plastics, ce­ment, ceramic goods, metal pipes, electric cables, and furniture.

Petroleum and petro­leum products account for over 90 percent of all exports. In the 1970s and 80s, exports have exceeded three times the value of im­ports in normal years (production and world prices of oil would affect trade bal­ances). Western Europe, the U.S., Pakistan, Singapore, India, China, and Tai­wan are the major export destinations. Imports include machinery, manufactured goods, food, and chemicals.

The U.S., Ja­pan, Germany, the U.K., India, and Saudi Arabia are the principal suppliers. Capital­izing on oil revenues, and recognizing limitations of domestic development, the administration has made enormous over­seas investments that should provide substantial future revenues (Kuwait owns shipyards in France, automobile compa­nies in Germany, commercial properties in London, and office buildings in the U.S.).

Iraq’s invasion in 1990 destroyed most of the nation’s infrastructure (including 1,300 of the country’s oil wells) and de­pleted the nation’s treasury. Following the U.N. assisted peace, a swift reconstruction and recovery program was put in place. Kuwait City is the national capital, which together with the suburban metropolitan areas contains a population of over one- half million. It is a modern city, complete with such modern facilities as super mar­kets, automobile dealerships, elegant hotels, banks, schools, and parks. The city has attracted thousands of immigrants from other Arab nations, and foreign com­panies.

Two tiny, diamonds shaped Neutral Zones border Kuwait; the western one is jointly controlled by Iraq and Saudi Ara­bia, and the eastern one is under the joint jurisdiction of Saudi Arabia and Kuwait. Each covers roughly 50 sq miles (130 sq km) of barren desert land. They were created in 1922 when boundaries between Kuwait and Saudi Arabia could not be) agreed upon by Iraq, Saudi Arabia, and Kuwait.

Initially useless territory, the zones became hot real estate property when in the 1970s and 80s substantial oil reserves were located in this tiny territory. In 1990 the eastern Neutral Zone came un­der heavy Iraqi bombardment and most of its working oil wells were destroyed; they have since been repaired through help from the U.S.