The Gulf crisis and the collapse of Soviet Bloc were responsible, to a certain extent, for the economic crisis of 1991. Discuss.
The Gulf crisis and the collapse of Soviet Bloc were responsible, to a certain extent, for the economic crisis of 1991. Discuss.
The Gulf crisis and the collapse of Soviet Bloc were definitely responsible, to a certain extent, for the economic crisis of 1991.
The US declared war with Iraq in early 1991 because of Saddam Hussein's attempt to take over Kuwait. Iraq and Kuwait were supplies of oil to India. With an ongoing war, ships found it hard to reach the Persian Gulf. Also, many oil wells were burnt. This led to a very rapid increase in oil prices.
Collapse of Soviet Bloc: Since 1960, the Soviet Union was our biggest export destination. By 1991, it split into 15 nations (Russia, Ukraine, etc). This significantly affected our exports. With import bill rising (Gulf crisis) and exports falling (collapse of the Soviet Union), our foreign exchange position worsened.
The Gulf crisis and the collapse of Soviet Bloc were definitely responsible, to a certain extent, for the economic crisis of 1991.
The US declared war with Iraq in early 1991 because of Saddam Hussein's attempt to take over Kuwait. Iraq and Kuwait were supplies of oil to India. With an ongoing war, ships found it hard to reach the Persian Gulf. Also, many oil wells were burnt. This led to a very rapid increase in oil prices.
Collapse of Soviet Bloc: Since 1960, the Soviet Union was our biggest export destination. By 1991, it split into 15 nations (Russia, Ukraine, etc). This significantly affected our exports. With import bill rising (Gulf crisis) and exports falling (collapse of the Soviet Union), our foreign exchange position worsened.
