In the last century in the world, one of the most popular tools for influencing a particular country is economic sanctions. This is considered a humane way compared to armed conflict. However, it has long become clear that this is not an effective way, since not only the country against which the sanctions are targeted, but also the initiating country is suffering.
goal
The main goal of economic sanctions is to force a country or several states to take certain actions. If we talk about examples, then there are a lot of them:
- The imposition of sanctions to suspend aiding terrorists, change the state of affairs within a country where human rights are violated or religious freedoms are infringed.
- Change of regime, but as a secondary goal. Examples are America’s sanctions on Cuba to destabilize the regime of Fidel Castro or the influence of the USSR on the policies of Yugoslavia aimed at overthrowing the Tito regime.
- Pressure on the country to cease hostilities. For example, US pressure during the struggle for independence of Bangladesh on Pakistan and India.
- Forcing a country to accede to and sign an international treaty on disarmament and non-proliferation of nuclear weapons.
- Achieving other goals, such as forcing Hussein to leave Kuwait.
International law
Economic sanctions are an instrument of influence on the government of a certain state or group of countries. Sanctions may be partial or complete. Most often they use a ban on imports from countries that are on the sanctions list. It may also impose a ban on imports on international financial transactions, including investment programs and cross-border settlements.
Along with unilateral sanctions in recent years, multilateral restrictive measures that are carried out through UN decisions have been widely used. At the same time, the UN charter does not have the concept of “economic sanctions”, “embargo”, but provides for a procedure for breaking economic relations, suspension of transport links, that is, without a clear terminology the procedure is still described. There is no concept of “sanction” in other international documents. Therefore, in each case, measures are considered individually in relation to each country.
It might seem that sanctions carried out through UN decisions should be as effective as possible. In fact, restrictive measures, like UN membership, are voluntary. Therefore, each country relies on its trade relations with the disgraced state and makes its own decision on what to do.
History reference
As history shows, economic sanctions are an instrument of influence that was used in ancient Greece. In 423 BC, the dominant Athenian authority in Hellas banned the ability to visit its own ports, markets and trade merchants from Megara. As a result, such actions led to the Peloponnesian war. So, there is a bright negative effect of the sanctions.
And some countries that worked closely with China tried to undermine the economy and weaken its influence by banning the wearing of silk garments inside their own country.
Napoleon Bonaparte also distinguished himself. To suppress Britain, he banned trade with it, not only France, but also to all controlled states.
From the nineteenth to the twentieth centuries, Great Britain enjoyed the most international sanctions. If you recall the year 1888, the population of England was only 2% of the total number of all people on the planet. However, the turnover of industrial goods of the whole planet in the amount of 54% was accounted for precisely this country. By the way, this indicator has not been surpassed to date by any country.
The economist John Smith generally put forward the theory that the First and Second World Wars began solely because of trade conflicts. After all, the politicians of that time, in particular France and Great Britain, said that the war with Germany (1914) was only a defense of the economic interests of their own countries.
A little later, in the 20-30s of the last century, the world economic depression begins. Most countries increase customs duties and reduce import quotas. And again, an economic conflict arises, and, as a result, the Second World War begins.
An interesting but little-known fact is that on the eve of the Japanese attack on the United States in 1941, the latter stopped supplying oil to the Land of the Rising Sun, and yet it has almost no mineral resources.
In the late 40s and early 50s, a new surge in the development of international relations began. And economic international wars were not long in coming. In 1973, oil exporting countries imposed an embargo on the United States. As a result, gas prices are skyrocketing, and as a result, a deep crisis is starting in Europe and North America. But the supplier countries themselves begin to suffer from the embargo. What is Europe doing? She embarks on a search for alternative energy sources and focuses her economy on saving.
Kinds
An embargo is the most common type of economic sanction. Simply put, a ban on export and import operations. The main goal of such events is that through a ban on exports, the country should feel a shortage of currency, therefore, it will not be able to make purchases outside the country. But there may be another situation. If the country's economy is focused on domestic production and consumption, then the restriction of exports, especially partial, may not even be noticed.
The second type of sanctions is the restriction of the supply of high technology and weapons to a country that is on the sanctions list. Here the situation is the same as with the embargo, if there are serious developments within the country, then it is impossible to inflict tangible damage on the state.
The third type is sanctions not against the state itself, but against certain companies from third countries that cooperate directly with the country in respect of which they want to take measures at the international level.
The fourth type - bans on financial transactions with rogue countries. As a rule, a ban is imposed on large operations. This also includes investment bans. A striking example - in 1996, the US government banned investment in the development of the oil industry in Libya and Iran.
American whip
Since the end of the Cold War, the United States began to use sanctions in foreign policy much more actively. For 84 years (1918-1992), America used sanctions against other countries 54 times, and already from 1993 to 2002, the state resorted to this instrument of pressure 61 times.
The main motive of the government is to prevent the threat of terrorism, to protect against illegal trade in arms, drugs and precious metals. Although US sanctions are not always associated with economic bans. Thus, tough measures were taken against the Gambia and Burundi, but trade with them was not prohibited.
Efficiency
The debate over the effectiveness of economic sanctions has been ongoing for more than a year. The main point that is not taken into account when introducing restrictions is that the goals of such measures are usually too ambitious, but the efforts are too small, and very often there is no support from other countries.
History also shows that very often against the background of sanctions within the country, internal forces are mobilized, the population is rallying and an active search is being made for a solution to existing problems. This happened under pressure from the USSR on Yugoslavia.
Often on the world market, it happens that a country that has fallen under sanctions has external sponsors who are ready to help solve problems. Moreover, most often the parties involved are establishing more profitable economic ties.
And a confrontation may arise at the level of the union states and the disgraced country. Compassionate partners may refuse to follow the instructions of America.
Huffbauer, an expert on trade, generally believes that the economic sanctions of the West or the United States have little effect, since they do not exceed 2% of the state’s GDP. Great effect can be felt by individual companies or sectors of the economy.
USSR and sanctions
Sanctions against Russia, which have been imposed since 2014, are not a unique phenomenon. Before the collapse of the Soviet Union, they were used more than once, one might even say that a permanent economic war was fought against the country. However, due to the small dependence on the external market for the USSR, all restrictions were practically insignificant, and generally invisible to the population.
One of the most striking examples when in 1917 the Entente countries imposed a trade and sea blockade on the Soviets. This was due to the nationalization of enterprises that belonged to foreigners, and the refusal to make payments on the debts of the Russian Empire.
Then there were many more examples. So, in 1980, America tried to influence the economy of the Soviets due to the introduction of troops into Afghanistan. In addition, there was an impact on investors who invested in the construction of the Urengoy-Pomary-Uzhgorod gas pipeline. However, Germany and France continued to cooperate, and the project was successfully completed in 1982, that is, they did not feel any consequences of economic sanctions in the USSR. In that situation, the partners took the side of the disgraced state, since the benefits were obvious.
Anti-Russian economic sanctions
The main goal of all US restrictions in relation to the Russian Federation is to weaken the state’s economy and strengthen the discontent of the population in relation to the government. When Trump came to power, it seemed that his policy would be aimed at maintaining ties with Putin, but the American president met with huge opposition in Congress on this issue. And now it is clear that the strategy has changed, Trump continues to impose sanctions. And these restrictions are more aimed at intimidating the Russian elite so that it itself decides to change the power in Russia.
So, new economic sanctions already consist of a disgraced list of individuals. It has 1759 people. 786 enterprises were sanctioned, even political and public organizations.
EU sanctions
Since 2014, countries of the European Union have also introduced economic sanctions against the Russian Federation, constantly replenishing the list and extending the deadlines. In particular, access to the financial market is closed for many state-owned companies, such as Rosneft, Transneft, Sberbank, Vnesheconombank and others.
And in relation to enterprises of the military industry, an embargo was imposed. It is even forbidden to import into the territory of Russia equipment that allows for shelf exploration in the Arctic.
Sanctions against Russia have also been introduced at the personal level, in particular with regard to public servants from the Crimean peninsula.
The response of the Russian Federation
The government of our country also did not stand aside. A number of persons from the USA, Canada and the EU are prohibited from entering Russia, in particular, these are public figures and government officials. Moreover, these lists are constantly updated according to the mirror principle.
When America froze MasterCard and Visa payment transactions, work on the creation of a national and independent payment system intensified inside the country. If payments by MasterCard and Visa in Russia are completely stopped, then both companies will suffer big losses, at the level of 160 and 47 million dollars a year, respectively. In any case, the Russian-made payment system Mir has already been launched.
