A New World Order

The dissolution of the Soviet Union left the United States as the world’s only remaining superpower. Global capitalism seemed triumphant. Observers wondered if some final stage of history had been reached, if the old battles had ended and a new global consensus built around peace and open markets would reign forever. “What we may be witnessing is not just the end of the Cold War, or the passing of a particular period of post-war history, but the end of history as such,” wrote Francis Fukuyama in his much-talked-about 1989 essay, “The End of History?”^[1] Assets in Eastern Europe were privatized and auctioned off as newly independent nations introduced market economies. New markets were rising in Southeast Asia and Eastern Europe. India, for instance, began liberalizing its economic laws and opening itself up to international investment in 1991. China’s economic reforms, advanced by Chairman Deng Xiaoping and his handpicked successors, accelerated as privatization and foreign investment proceeded.

Intervention in Panama

The dust had barely settled on the crumbling Berlin Wall when the Bush administration announced a bold military intervention in Panama in December 1989. Claiming to act on behalf of human rights, U.S. troops deposed the unpopular dictator and drug smuggler Manuel Noriega swiftly, but former CIA connections between President Bush and Noriega, as well as U.S. interests in maintaining control of the Canal Zone, prompted the United Nations and world public opinion to denounce the invasion as a power grab.

The Persian Gulf War

Figure 1. During the Gulf War, the Iraqi military set fire to Kuwait’s oil fields, many of which burned for months. March 21, 1991.

As the Soviet Union was ceasing to be a threat, the Middle East became a source of increased concern. In the wake of its eight-year war with Iran from 1980 to 1988, Iraq had accumulated a significant amount of foreign debt. At the same time, other Arab states had increased their oil production, forcing oil prices down and further hurting Iraq’s economy. Iraq’s leader, Saddam Hussein, approached these oil-producing states for assistance, particularly Saudi Arabia and neighboring Kuwait, which Iraq felt directly benefited from its war with Iran. When talks with these countries broke down, and Iraq found itself politically and economically isolated, Hussein ordered the invasion of oil-rich Kuwait in August 1990. Bush faced his first full-scale international crisis.

In response to the invasion, Bush and his foreign policy team forged an unprecedented international coalition of thirty-four countries, including many members of NATO (North Atlantic Treaty Organization) and the Middle Eastern countries of Saudi Arabia, Syria, and Egypt, to oppose Iraqi aggression. Bush hoped that this coalition would herald the beginning of a “new world order” in which the nations of the world would work together to deter belligerence. A deadline was set for Iraq to withdraw from Kuwait by January 15, or face serious consequences. Wary of not having sufficient domestic support for combat, Bush first deployed troops to the area to build up forces in the region and defend Saudi Arabia via Operation Desert Shield. On January 14, Bush succeeded in getting resolutions from Congress authorizing the use of military force against Iraq, and the U.S. then orchestrated an effective air campaign, followed by Operation Desert Storm, a one-hundred-hour land war involving over 500,000 U.S. troops and another 200,000 from twenty-seven other countries, which expelled Iraqi forces from Kuwait by the end of February.

Some controversy arose among Bush’s advisors regarding whether to end the war without removing Saddam Hussein from power, but General Colin Powell, the head of the Joint Chiefs of Staff, argued that to continue to attack a defeated army would be “un-American.” Bush agreed and troops began moving out of the area in March 1991. Although Hussein was not removed from power, the war nevertheless suggested that the United States no longer suffered from “Vietnam Syndrome” and would deploy massive military resources if and when it thought necessary. In April 1991, United Nations (UN) Resolution 687 set the terms of the peace, with long-term implications. Its concluding paragraph authorizing the UN to take such steps as necessary to maintain the peace was later taken as the legal justification for the further use of force, as in 1996 and 1998, when Iraq was again bombed. It was also referenced in the lead-up to the second invasion of Iraq in 2003, when it appeared that Iraq was refusing to comply with other UN resolutions.

The Gulf War was a swift victory for the United States. New technologies—including laser-guided precision bombing—amazed Americans, who could now watch twenty-four-hour live coverage of the war on the Cable News Network (CNN). The Iraqi army disintegrated after only a hundred hours of ground combat. President Bush and his advisors opted not to pursue the war into Baghdad and risk an occupation and insurgency. This victory momentarily showed the “ghosts of Vietnam” had been exorcised.^[2] Bush won enormous popular support. Gallup polls showed a job approval rating as high as 89 percent in the weeks after the end of the war.