Question

What is the purpose of economic sanctions? Are they a fair practice? What problems do sanctions pose for the nation initiating the sanctions? When are sanctions most successful in achieving their goals? In your response, provide a real-world example to justify your arguments. For your example, were sanctions effective at achieving their objective?

Answer 1

We know that economy is the backbone of any country.Its power,might,effectiveness etc. all depends upon the level of development,growth and smooth running of the economy.'Economic Sanctions' are the form of forceful financial and economical measures,steps taken by a country or a group of country,institution,organisation etc. against any country,group or organisation to achieve desirable purposes.It is a form of restriction or penalty,generally imposed by a more powerful institution,organisation,country againgt the less powerful.These are the authoritative steps taken to achieve a number of social,political,military and other domestic and foreign goals or purposes.It aims to compel the country on which sanctions are imposed,to show compliance or act/follow as per the norms established by the institutions,country etc.which imposes the sanctions.It mainly aims to effect the trade,commerce and economy of any nation in a negative way as we know that economy is of utmost importance for any nation.These sanctions mainly use trade restrictions on financial and economical transactions,tariffs and barriers,banning the usage of currrency etc.These may aim to freeze the financial assets,bank accounts of the country around the world.A series of restrictions are imposed on the export and import of various goods,quotas are fixed and much more.In other words,it mainly aims to harm financially as much as possible to the country concerned.In todays highly globalised world sanctions poses a number of threats to the country creating many problems as mentioned above.The factors mentioned above are the crucial players in any economy and are badly effected by the sanctions.Lets understand as follows,suppose the USA imposes sanctions against North Korea or Iran,it may includes several forms of restrictions but let us take a single factor to make it simple.As per the sanction,the Iran and the North korea cannot use the currency of US i.e.dollar for transactions and we know that dollar is the most stable,generally accepted currency in the world.Most of the country uses dollar to make and accept payments for international transactions and if the Iran or Korea would not be able make inteernational trancsactions easily as most country would ask payments in dollar but it doesnot have it to do so.

The fairness of such sanctions depends upon case to case and circumstances.In some cases,it seems to be fair whereas at the same time many powerful countries misuse it to show their might and attain their personal gains.

The effectiveness of such sanctions have been a matter of debate but more practically it depends upon the strength and might of the countries which impose it and countries on which they are imposed.Other thing is its connectedness and dependence with the world.If the economy is strong,self reliant etc.sanctions can affect in a limited way and vice versa.