How Kuwait Got Successful and Rich

Kuwait's Brief History

Kuwait wanted British's support to preserve its independence from the several dominant Arabian Peninsula groups and from the Turks during the 19th century. A ruler named Sheikh Mubarak Al Sabah signed a treaty with the British promising himself and his successors not to receive any representative from the foreigners without the consent of the United Kingdom's government.

It is also stated in the treaty that he is not to cede any territory without the consent of the British government. Kuwait got its independence from Turkey in the year 1932 but Iraq claimed Kuwait due to the fact that it had been part of the Ottoman Empire. After 7 months, the Iraq was forced out of Kuwait with the help of the United States of America.

The Castes and Classes in Kuwait

The 5 classes that can be found in Kuwait are the foreigners, the Arabs, Arabian Desert nomads, old Kuwaiti merchant families, and the ruling family. In order to maintain the social structure, strong kinship bonds can be found within these classes.

Kuwait's government and economy

Kuwait, a small open economy which proven to be the third richest country in the Muslim world by the merchandise of crude oil reserves of a surprising amount of 96 billion barrels ( measures to be 15km3 ) for about 10% of world reserves. Petroleum accounts almost reached a quantity of about as half of GDP (Gross Domestic Product which is one of the ways of measuring marketing value).

The economy of Kuwait has been conventionally subjugated by its oil industry and by the state. The country profited from the excellent rise in oil prices during the 1970s when it has become a member of the Organization of Petroleum Exporting Countries.

However, Kuwait's economy experienced a downfall because the oil market crashed in 1982, the decrease in the price of oil, and the occupation and invasion of the Iraqi in 1990. Basically, Kuwait's wealth really depended on capital and oil reserves. So when the Iraqi invaded and occupied Kuwait, the economy of Kuwait got sternly damaged.