Category: Economics Essay

The modern world can be characterized as a complex system of social connections ranging at different levels. One of the highest levels among them is the relationship between the countries. In general, this relationship aims at cooperation, but there are cases when certain countries act hostile regarding the neighboring ones. In cases of such hostility, the others may use different instruments to prevent it. One of the organizations, which are responsible for the economic, political and social regulations in the world, is the United Nations Organization. It was established after World War II in order to restrain the worldwide military tensions and maintain peaceful resolutions in the world. Thus, UNO uses mostly economic and social tools in order to achieve its aims. That is why most of the countries participate in it and rely on its decisions and resolutions in case of conflicts. The major task of the UN is preventing wars. However, if certain states favor destructive international politics, the UN may use sanctions. Such sanctions may be also introduced into separate countries, which want to oppose the negative activity of particular states. Therefore, this paper dwells on the topic of the nature of sanctions, the reasons for their introduction, and the mechanisms of their functioning. The analysis of these aspects leads to the understanding of the basic principles of worldwide regulation and interaction between the countries.

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Sanctions and their Origin

Before characterizing the impact of sanctions and their role in the world, one needs to understand their nature. Experts define sanctions as a tool, which is used by countries or international organizations with the aim of persuading the changes in a particular government or their groups. Sanctions force these stakeholders to change their policy by means of restricting the capabilities of their commercial activity such as trade, investment, and others. For instance, the gravest need for sanctions is justified in case certain countries perform the activities aiming to create weapons of mass destruction. Other similar reasons are associated with the violation of human rights or principles of international trade. Typically, sanctions aimed at undermining the economy of the target state. As a result, the deteriorated economy restrains any activity of the country creating internal political, social, and economic pressure. Consequently, an adequate leader or a leading group of such state refuses from the violations, which leads to international agreements and termination of international sanctions. At the same time, the extent and the term of the sanctions depend on the severity of the violation (Kolodkin). For instance, in some cases, they may affect a certain industry or financial operations performed by particular banks in the targeted country. The example of this is economic sanctions, which are the removal of customary trade and financial relations for foreign and security policy purposes. Likewise, the severest sanctions mean the break of any economic and political relations, which leads to the country’s isolation. Sanctions are implemented through the refusal of the economic, political or social stakeholders of the initiating state with its counterparts from other states. As a rule, sanctions have a strong basis and are thoroughly evaluated before their implementation. The reason for them is that the international organization or countries applying them should be assured that the implemented measure would affect the targeted state.

Furthermore, sanctions may vary in terms of their types. Thus, there are such types of sanctions as arms and related materials embargo, asset freeze, export/import restrictions, financial prohibitions, technical assistance prohibition, and other related measures. When applied, arms embargo prevents various weaponry and related devices from their import or export to and from the targeted state. Such sanctions may be imposed under the United Nations Act (UNA) or the Special Economic Measures Act (SEMA). However, the import or export of non-lethal military gear used by human rights personnel might be an exclusion from this rule. Furthermore, assets freeze prevents business entities or governments from obtaining access to their financial accounts, which they may hold under jurisdictions of the initiating countries. These sanctions are especially influential when applied to the governments involved in corruption schemes, which create the outflow of the government finances offshore. The exceptions from these rules, as well as any financial sanctions, include the transactions with UN agencies and other international agencies protecting human rights or health (Types of Sanctions). Likewise, export and import restrictions are mainly targeted at affecting the countries industrial and economic sectors since they prohibit selling, buying or shipping the goods, which fall under sanctions. The exception from this rule may be food, fresh water, medical supplies or goods used for public health purpose or disaster relief. Furthermore, technical assistance prohibition restricts the targeted country from the obtainment of specified services and information related to the scope of products, which were or are banned. For instance, the UN may restrict access for engineers and other technical assistance to states, which are suspected in the development of nuclear weapons. Therefore, this type of sanctions is applied narrowly and does not affect the general population of the targeted country.

 

Along with the application of sanctions, there is a need for the protection of not guilty populations of targeted states. It is evident that the initiators of sanctions realize that they may drastically affect the non-protected populations of the targeted country. That is why the UN has introduced a variety of exceptions, some of which were mentioned above. Typically, these exceptions include goods, services, and economic activity directed towards the protection of human rights and the environment. Thus, in case the country has a restriction on financial transactions, the transactions financing the World Health Organization or the Human Rights Organization would be able to receive the money. Additionally, the UN and the countries favor the usage of specialized sanctions, which do not harm non-protected populations. The experts call such sanctions “smart” claiming that in contrast to the ordinary sanctions they tend to disproportionately damage innocent populations. In this respect, scholars claim that financial sanctions are more efficient than trade ones. The reason for it is that financial sanctions may target political elites directly, freezing the governmental assets without the influence on the population. Consequently, modern practitioners in the sphere of sanctions consider that financial restrictions have greater potential and are more humane when altered with war or trade sanctions.

UN and Countries under the Current Sanctions

Economic, political, and social relations between the states of the modern world have been aggravated by certain tensions. Therefore, one should consider the cases of application of different sanctions as well as the evaluation of their efficacy. Thus, one of the famous cases of the past is sanctions against South Africa, which almost led to its isolation. The reason for the introduction of sanctions was the policy of separating the races, which is one of the grave