Economic sanctions are restrictive measures imposed by one or more countries, usually on another country, political party, or ruling regime to bring about political or economic change. Collective economic sanctions are also often imposed by a coalition of countries united by international organizations such as the United Nations. The purpose of such sanctions is to deter aggression and to prevent conflicts. In this article, we will explain why countries use economic sanctions to prevent conflict and discuss the types of sanctions commonly used.
History of Economic Sanctions
The use of economic sanctions as a form of deterrence dates back to the ancient world. For example, in the 5th century BCE, Athens used its economic power to limit the activities of hostile states such as Corinth and Megara. As states developed economically and politically, economic sanctions became a more common tool in international relations.
In modern times, economic sanctions have been used for various reasons, but primarily for political purposes. During the Cold War, for example, the United States and the Soviet Union imposed economic sanctions against each other for geopolitical reasons. The modern form of economic sanctions began in the 20th century, when countries started to use export and import embargoes, financial restrictions, and other restrictions to alter the behavior of target countries.
Reasons Why Countries Use Economic Sanctions
Countries use economic sanctions to prevent conflict. Economic sanctions give leaders the opportunity to pressure other nations into changing their policies without resorting to military action. This is done by either preventing the target country from buying or selling goods or services, or by reducing their capacity to do so.
Here are some reasons why countries use economic sanctions to prevent conflict:
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To persuade target countries to comply with international law: This is the most common reason for economic sanctions. Such restrictions are generally imposed by the United Nations or other international organizations on countries that have violated international laws or norms, such as trade embargoes.
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To compel target countries to change their policies: Countries often use economic sanctions to pressure other countries to change their policies or abide by international agreements. These sanctions usually take the form of trade embargoes, financial restrictions, or asset freezes.
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To force target countries to respect human rights: Governments often use economic sanctions to strengthen their positions in negotiations with target countries and to focus their attention on the issue of the respect of human rights. The use of economic sanctions by countries encourages respect of human rights by targeting the actions of civilian and military leaders that have committed human rights violations.
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To deter target countries from aggression: Economic sanctions can also be used to discourage a target country from taking hostile action against another country. Such sanctions could include an embargo or asset freeze so that the target country does not have the resources to fund aggressive operations.
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To remove unrecognized governments from power: Economic sanctions are imposed on countries with governments that lack international recognition or legitimacy to pressure those governments to comply with international standards and norms.
Types of Sanctions Used
There are several types of economic sanctions that countries commonly employ.
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Trade embargoes: Trade embargoes are restrictions on imports and exports to and from a target country, usually by withdrawing existing trade agreements or by creating restrictions on certain products.
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Asset freezes: Asset freezes are a type of economic sanctions which prohibit a target country from accessing funds and resources they may possess in foreign countries. This can include freezing of funds in bank accounts and other similar measures.
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Tariffs, quotas, and taxes: Governments may impose tariffs, taxes, and quotas on imports and exports to a target country. This usually increases the cost of goods, which makes doing business in the target country more difficult and can deter investment.
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Financial restrictions: Financial restrictions are a form of economic sanctions in which a government will restrict access to international financial markets, resulting in less access to funds needed for economic activities. This could include restricting access to international loans, foreign investment, or currency exchange.
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Export, import, and investment bans: Investment and import and export bans prevent a target country from buying and selling goods on the open market. Such bans are often imposed by countries to reduce the target country’s access to money, resources, and technology that could be used to build weapons or attack other countries.
Economic sanctions can be an effective tool to prevent conflict and deter aggression by forcing countries to comply with international law and respect human rights. Sanctions impose economic costs on the target country, which can have political implications and encourage them to change their policies. Different types of sanctions can be employed to target specific economic activities and limit access to resources that could be used for hostile purposes. Governments should use economic sanctions as a peaceful tool to promote international peace and security.
