{"id":5999,"date":"2023-05-18T06:27:46","date_gmt":"2023-05-18T00:57:46","guid":{"rendered":"https:\/\/55nda.com\/blogs\/anil-khosla\/?p=5999"},"modified":"2025-01-04T14:12:02","modified_gmt":"2025-01-04T08:42:02","slug":"economic-sanctions-two-edged-sword","status":"publish","type":"post","link":"https:\/\/55nda.com\/blogs\/anil-khosla\/2023\/05\/18\/economic-sanctions-two-edged-sword\/","title":{"rendered":"353: ECONOMIC SANCTIONS: TWO-EDGED SWORD"},"content":{"rendered":"

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Sanctions as more than verbal condemnation and less than the use of armed forces.<\/em><\/span><\/p>\n

\u00a0<\/em><\/span>– UN general secretary Kofi Annan<\/span><\/span><\/p>\n

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The USA has been using economic sanctions as a foreign policy tool. It has imposed economic sanctions against Russia, China, North Korea, Iran, Afghanistan, Venezuela, etc.<\/span><\/p>\n

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Besides other countries, the sanctions are also used against members of commercial entities and private individuals, as well as non-state actors such as terror groups, etc. affecting their participation in global trade.<\/span><\/p>\n

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Nonviolent Coercive Diplomacy<\/u>. The sanctions in the conflict continuum fall somewhere midway between censure and armed hostilities. Sanctions are frequently used as part of nonviolent coercive diplomacy to coerce targets away from unacceptable behaviour and restrain them from behaving in those ways in the future as well. \u00a0This nonviolent nature of sanctions has made them so appealing in international relations and since the end of the cold war, they have grown very popular.<\/span><\/p>\n

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Likely Objectives<\/u>. Sanctions may also be in the form of penalties aimed at enforcing certain international norms such as nuclear non-proliferation, weapons of mass destruction, upholding human rights and acting against terror groups, thwarting drug trafficking, gun running, discouraging armed aggression, and regime change.<\/span><\/p>\n

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Financial Restrictions<\/u>. The sanctions in addition to economic measures include travel restrictions (such as denial of visas, and stoppage of flight operations, etc.), exclusion from international financial transactions, freezing of assets deposited in the host banks, trade embargoes, denial of foreign aid and loans, blocking Foreign Direct Investments, imposing unreasonably high tariffs to discourage trade, withdrawal of Most Favoured Nation status and negative votes in international financial institutions.<\/span><\/p>\n

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Impact of Sanctions<\/u>. The economic impact of the sanctions depends on the degree of integration of the target economy with the international economy and also the innovativeness of the target economy in circumventing the restrictions that accompany the sanctions.<\/span><\/p>\n

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Sanctions Paradox<\/u>. The sanctions do not affect only the target states but have an economic impact on the sanctioning country as well.<\/span><\/p>\n

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