Abstract

In the aftermath of the 1990-1991 Gulf War, the UN Security Council determined that Iraq was liable under international law for any direct damage resulting from its unlawful invasion and occupation of Kuwait. The United Nations Compensation Commission was established to process the claims against Iraq. Since 1991, the UNCC has received approximately 2.6 million claims, which it has subdivided in six categories, depending on the status of the claimant, the type of loss, and the amount claimed. For certain claims, the UNCC has established fixed compensation standards, rather than assessing the exact amount of the loss. Other innovative features include mass claims resolution techniques and methodologies such as data matching, grouping, and sampling. The reparation process was funded through oil exports under the oil-for-food program. A share of originally 30% and later 25% of the proceeds was reserved for compensation. The oil-for-food program was terminated after the new war in Iraq in 2003, and the share of oil revenues dedicated to reparation was lowered to 5%. As of June 2005, the UNCC has decided nearly all claims.