The 1991 Gulf War followed by the 2003 Iraq War accorded Iraqi Kurds an opportunity for the first time in their recent history to mold the building blocks of a de facto state called the Kurdistan Regional Government (KRG). The Kurds were able to fill the administrative, security and political vacuum left behind by the central government's departure from the region in 1991. The KRG used its Kurdish peshmarga fighters to create a safe and secure environment, which encouraged external and internal investments. The political and diplomatic cadres assembled by the KRG attracted numerous foreign diplomatic and commercial missions to the region. They wanted to take part in developing the region's rich resources, especially oil and gas, and a fast growing economy. Through diplomatic exchanges and frequent travel to foreign capitals, KRG increased the anxiety of the newly emerging Shiite rulers in Baghdad, who feared that the Kurds might be on their way to splitting from Iraq. As they consolidated their political and military powers, the new Shiite rulers tightened the screws on the KRG, especially after the departure of US forces from Iraq at the end of 2011, in order to bring them under central government control. The objective of this study is to identify and analyze the various measures undertaken by the central government to reverse territorial, political, security and economic gains made by the KRG since 1991.