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Economic Development in Kuwait Introduction Al

Although the Gulf War destroyed much of Kuwait's infrastructure, the country continues to be quite a wealthy one because of the oil resource. Nonetheless, the Kuwaiti government, like many of the Middle Eastern governments, has focused on diversifying the economy in order to reduce dependence on this one resource. The intent in the following pages is to look at economic development in Kuwait, beginning with the historical background.

Before the Kuwait economy depended on the oil resource, it depended upon pearldiving for much of its income. Crystal (1994) noted that during the nineteenth and early twentieth centuries, Kuwait exploited its natural pearl banks, which were some of the world's richest. Kuwait had a fleet of over 700 boats and the pearldiving industry employed almost 15,000 people. In addition to pearldiving, which was an occupation for the summer, Kuwaitis concentrated on trade.

This was the primary occupation of early Kuwaitis. Kuwait was a trade center, serving as a commercial entrypoint and middleman for India, Africa, and Europe. Essentially, the thing that drew Saddam Hussein to Kuwait  its access to the Gulf and harbor facilities  was what drew the Bani Utub tribal peoples to the region. In addition, Kuwaiti people became known for their shipbuilding and seafaring, while fishing was a peripheral, but important, industry (Crystal, 1994).

The problems of reliance on one industry are apparent in what happened in Kuwait during the early twentieth century. The pearl industry, which was central, began to decline because of the development of the process of making cultured pearls. World War I contributed to the decline of the trading focus, and the Great Depression effectively ended the contribution of the pearl market to the economy (AbuHakima, 1983).

The oil industry was not an immediate replacement, since production did not actually began until the late 1930s. Development of the oil resour...

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Economic Development in Kuwait Introduction Al. (1969, December 31). In LotsofEssays.com. Retrieved 11:42, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1683905.html