Throughout history, sanctions have been used as powerful political weapons with major global economic impacts. As we move into a world of greater economic integration and higher retaliation risks, it’s time for our thinking about the implications of sanctions to catch up.
The goal of global sanctions is to pressure a country or regime with the hope of changing its behavior, policy, or leadership. Sanctions can be unilateral, imposed by a single government, or multilateral, requiring the agreement of several nations or international organizations. They can also be temporary or permanent.
Modern sanctions are a powerful weapon in the arsenal of foreign policy, but their effectiveness can vary enormously and depend on countless factors. They may achieve their desired economic impact but fail to bring about a desirable change in behavior; or they may cause great harm while failing to compel the target country to make any concessions.
As a result, sanctions are often misapplied and can have unpredictable consequences. They can be manipulated by the target country or by its trading partners to evade their full effects. They can be targeted at individuals (such as alleged associates of Russian President Vladimir Putin) or at entire sectors of the economy. And for those who are sanctioned, there is no clear way to have their assets ‘unfrozen’ unless they take legal action, which they often can’t afford. As a result, many people are trapped in an economic straightjacket, unable to support their families, businesses or investments.
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