The Economic Consequences of the Gulf War

The guns fell silent in the Persian Gulf on August 20 1988 when Iran and Iraqfinally agreed to a ceasefire. One of the longest and most devastatinguninterrupted... » 

The guns fell silent in the Persian Gulf on August 20 1988 when Iran and Iraqfinally agreed to a ceasefire. One of the longest and most devastatinguninterrupted wars among modern nation states since 1945 the IranIraqconflict produced neither victor nor vanquished yet the domestic regionaland international repercussions of the war clearly indicate that going backis not an option.The current crisis in the Persian Gulf has placed Iraq at the center of worldattention. This study provides one of the first examinations of the economicconsequences of the Gulf War and its impact on oil production exports foreignexchange earnings nondefense foreign trade and agricultural performance. Inthe final section Mofid brings together the component parts of the economiccost of the war to assign a dollar value to the devastation.The Gulf War has also provided some interesting and often alarming insightsinto international behavior. At one time or another almost onethird of UNmembers provided weapons ammunition or support systems to both countriessimultaneously and undercover partnerships and loose loyalties flourished.Although the terminology of ceasefire has centered on the idea ofreconstruction this book questions the immediate future for the region. Ispeace merely an opportunity to rearm consolidate and prepare for furtherclashes or is stability possible in a region devastated by war and shiftingallegiances? «