What are economic sanctions and how do they work?

Economic sanctions are measures imposed on a country, group, or individual to change their attitude or behaviour. They can also be tools of foreign policy used by one country or a group of countries to influence the behaviour of another country. These sanctions involve the restriction of trade, investment, or financial activity with the target nation to pressure that nation to comply with specific demands. They are a common feature in international relations and have been employed by states and international organisations such as the United Nations (UN) to address issues like human rights abuses, territorial disputes, or nuclear proliferation. 

When are they used by countries or organisations?

In 1958, the United States imposed sanctions on Cuba during the overthrow of dictator Fulgencio Batista by Fidel Castro during the Cuban Revolution. Initially started as an arms-only embargo, it later spread to other products. The reason was stated to ensure the granting of improved human rights and freedoms by Cuba’s current government. In international relations, it is in such scenarios that economic sanctions may be used to create external pressure on countries having tumultuous internal affairs.

Sanctions may include the restriction of trade (banning imports and exports), freezing financial assets, limiting access to international banking systems, travel bans, or other measures that restrict economic activity. The underlying logic is simple: By cutting off a nation’s access to resources, finance, and trade, sanctions aim to put economic pressure on the government or leaders to alter their policies.

The mechanisms behind 

The success of economic sanctions hinges on their ability to create significant pressure on the targeted nation, compelling it to alter its behaviour. The primary method through which sanctions exert pressure is by causing economic pain. For example, trade restrictions can lead to shortages of goods and services, rising prices, and inflation; even the privileged will not have resources to turn to soon. The country might also be diplomatically isolated, reducing a country’s ability to form alliances and engage in meaningful international relations. This isolation can limit the country’s influence in global affairs, thus weakening its power on the world stage. It can also prevent the country from accessing capital markets, crippling its ability to fund governmental operations and projects.

Apart from these directly impactful sanctions, countries or organisations often put sanctions on a country as a note of disapproval. It is to show that certain actions or behaviours are not acceptable to the international community.

Is it right, though?

A big question that looms over the international community is whether economic sanctions are actually ethical. Will the administration or the common people be the actual sufferers under such pressure?

This is one of the most significant criticisms faced by sanctions. Comprehensive sanctions, in particular, can lead to shortages of food, medicine, and essential services, resulting in humanitarian crises. This can turn the international community’s efforts to punish a regime into a punishment for the population.

Additionally, the imposition of sanctions can lead to unintended consequences, such as pushing a target country closer to other adversarial nations, like China or Russia, for support. It may also lead to the rallying of internal power to hold onto their administration. For example, in countries like North Korea, sanctions seem to have helped in increasing the State’s power over its citizens.