Kuwait, in a disagreement over payment of customs duties to ibn Sa'ud's regime, experiences border raids and a Sa'udi blockade.

In 1922, the exasperated British High Commissioner takes a red pencil and draws a line on a map, thereby fixing the boundaries between the Saudi realm and that of the Emir of Kuwait.

He also delineates two "neutral zones" along ibn Sa'ud's borders, one shared with Kuwait, the other with Iraq-termed "neutral" in both cases because the Bedouin would be able to pass back and forth to graze their flocks and because they would be jointly administered. (Source: Yergin, Daniel: The Prize; the Quest for Oil, Money & Power (Simon & Schuster, New York, 1991))

The fact of Saudi hegemony in Arabia has obviated all claim to former Arabian thrones, so the departing British invent two in the north, placing Faysal and 'Abd Allah, the sons of Sharif Husayn of Mecca, king of the Hejaz, on the thrones of Iraq and Transjordan, respectively.

These territories, together with the Hejaz, serve as a formidable British-protected cordon around the northern and western borders of the Wahhabi state.

Inevitably, frequent border incidents occur.

In 1921-1922, the Ikhwan conduct border raids against the two Hashemite kingdoms.

Stamboliyski's new pacifist policies have alarmed Bulgaria’s remaining strong nationalist elements, led by a large Macedonian group in Sofia.

Alienated also are the old political leaders, the Military League (composed of active and reserve officers), and Tsar Boris' court.

Bulgaria’s rightist parties, silent since the war but influenced by the successes of Benito Mussolini's fascist organization (known as the Blackshirts) in Italy, have reorganized into a confederation called the National Alliance, (later called Democratic Alliance) and plan to march on Sofia to wrest control of the country.

Stamboliyski's Orange Guard jails the leaders of that group in 1922, temporarily stopping its momentum.

Inflation and industrial exploitation continue.

Many of Stamboliyski's subordinates inflame social tensions by taking very dogmatic positions in favor of peasant rights.

The urban working class, unaided by agrarian reforms, gravitates to the communists or the socialist workers.

On the left, the communists view the Agrarian government as their principal opponent.

Nevertheless, the most dangerous enemies are the Military League and the Internal Macedonian Revolutionary Organization (IMRO).

IMRO, establishing effective control over the Pirin region, launches terrorist attacks across the border into Yugoslav and Greek Macedonia.

It also assassinates several Agrarian leaders.

The Kingdom of the Serbs, Croats, and Slovenes, having inherited formidable economic problems after the Great War, must repair war damage, repay debts, eradicate feudalism by passing land reform, integrate differing customs areas, currencies, rail networks, and banking systems, and make up for shortages of capital and skilled labor.

The agricultural sector, which employs over 75 percent of the Yugoslav population, undergoes a radical reform that fails to relieve nagging rural poverty.

Before the war, German, Austrian, and Hungarian families owned sprawling estates in Slovenia, Croatia, and Vojvodina; Turkish feudalism remained in Kosovo and Macedonia; Muslim landlords in Bosnia owned large farms worked by Christian sharecroppers; some Dalmatians remained tenant farmers in a system devised in Roman times; and Serbia was a chaotic blend of independent small farms.

The Yugoslav government has erased remnants of feudalism, but the peasants receive plots too small for efficient farming to support the rural population.

Yields fall; poverty and ignorance dominates most of the peasantry.

Industrialization and emigration does not ease overpopulation.

In the industrial sector, the kingdom concentrates on extracting raw materials, expanding light industry, and improving its infrastructure.

Insufficient domestic capital forces the Yugoslav kingdom to seek foreign investment.

The government sells mining rights to foreign firms and borrows heavily to build roads and rail lines, power plants, and a merchant marine.

Despite steady economic growth based on the food industry, mining, and textiles, the kingdom remains substantially undeveloped and falls far behind the rest of Europe.

Divergent economic interests and the widening differences in development of Croatia and Slovenia with the less developed southern regions exacerbate Serbian-Croatian tensions.

The development disparity especially embitters many Serbs, who believed that their sacrifices in the war have benefited former enemies more than themselves.

In Germany, The International Jew, an anti-Semitic book subsidized by Henry Ford and been translated into German, runs through sixteen editions between 1920 and 1922.