The Efficacy Of Economic Sanctions As Instruments Of Foreign Policy in The ase of Iran - Essay Example

?Assess The Efficacy Of Economic Sanctions As Instruments Of Foreign Policy. Discuss Either In General or In Particular With Reference To Sanctions against Iran Table of Contents 1. Introduction 3 2. Efficacy of Using Economic Sanction as an Instrument for Foreign Policy 4 3. Relations ‘at Stake’ for Economic Sanctions as an Instrument for Foreign Policy 7 4. Using Economic Sanctions as an Instrument of Foreign Policy by Taking Examples from Iran 11 7. Conclusion 15 References 16 1. Introduction The notion of economic sanction is hardly considered as an effective tool for countries to empower international relationship (Haass, 1998). Conceptually, it is treated as a penalty charged by one country on another as a form of trade regulative measure restricting free flow of financial transactions between the national participants of the two countries (Galtung, 1967). In relation to the recent phenomenological transformation of the global nations, the term economic sanction has been experiencing radical implications due to its implications in polarising the global economy by segregating one of more countries in the domestic environment of a country. Subsequently, the policy analysis sources in this unconventional globalisation era has long been concerned regarding the usage of economic sanctions by the countries with the aim of achieving favourable and more constructive outcomes (Morgan & Schwebach, 1996). It has been in this dismay that various countries have experienced numbers of disagreements through the implementation of economic sanctions as a measure to control foreign relationships, during the period of 1990s (Delevic, n.d.). Emphasising this particular issue, the primary objective of this research is to bring adequate insights regarding the efficacies and implications of economic sanctions as an instrument to regulate foreign relationships, taking the example of Iran in the recent global context. Drawing inferences from a generalised understanding to the concept, the study will intend to assess the advantages, disadvantages and motivations associated with the utilisation of economic sanctions in today’s global economy to critically address its efficacy as a foreign policy instrument. 2. Efficacy of Using Economic Sanction as an Instrument for Foreign Policy Although using of economic sanctions, as an instrument for foreign policy, tends to face various criticisms within the global realm, it can also be implemented by the countries to achieve multiple goals with an intention to strengthen its political, economic and trade relations with other global countries. Conceptually, economic sanctions were generally used by countries in order to obtain better control of its economic sources from being exploited by foreign investors, thereafter making the domestic economy more dependent on the partnered nations. Arguably, it also enables the targeted country to influence stable and sustainable growth in the foreign market. With respect to the implementation of the sanction by numbers of global countries, it has been widely recognised that the sanctions are quite effective in terms of empowering nation’s power of domination and dealing with the negative influences of the particular country(s) (United States General Accounting Office, 1992). In this regard, the major advantageous implications, which can also be classified as the major motivations to countries applying economic sanctions as a tool for foreign policy measures, have been briefly demonstrated in the following discussion. The use of sanctions always tends to obtain adequate facility to the nation for accumulating a stable support in demonstrating authoritative supremacy and differentiating capability of the nation against the sanctioned country(s). Hence, it can also be used as a tool to obtain global power advantages to a substantial extent. Moreover, it also enables the country to uphold international policies through taking adequate measures against the targeted country, regulating controlled trade measures with the imposition of taxation and other forms of barriers. In this regard, it can be stated that the compliance of economic sanctions tends to facilitate the economic strength of the nation through the minimisation of different constraints associated with the economic sources. Therefore, economic sanctions significantly influence the countries in building adequate alliances with the overseas countries and enable them to stabilise their political, economic and trade relations (Rediker, 2009). Moreover, the use of economic sanction, as the tool for foreign policy can also be considered as a supportive decision of the countries in order to build independent stability for dealing with external threats. The implementation of the sanction has been a long-lasting phenomenon in imposing economic penalties with respect to each economic source of the nation. Therefore, it can also be stated that the strategy may also help the nation to strengthen its competitiveness and increase innate capability of dealing with the external challenges to gain a distinctive positioning within the global plethora. In this context, the practice of sanction would enable the country to highly concentrate on the internal development and enable the leader to increase the efficiency of the national resources as well as strengthen the country’s economic stability in the short-run (Berg, 2010). Additionally, the implementation of effective economic sanction has long been identified to ensure deterring the potential relation that might be generated by the other or targeted nations. With regard to the implications of the sanctions, it generally tends to compel adequate respect for the country’s human rights or encourage constituting coercive measures in making significant changes in the governmental policy regimes focused on international political and economic relations. These coercive measures require a substantial amount of infliction, which is formed through causing severe deficiency within the country resulting to create individual deprivation. In this regard, the increasing individual deprivation turns the population to face unbearable inception of economic hardships. Subsequently, the population of the country is quite likely to revolt and raise their demands from the government along with various other external demands that would certain inhibit the political stability of the domestic nation to a substantial extent. Therefore, it can be stated that the dilemma likely to be faced by the general population due to unbound trade measures can be considered as one of the necessary features to motivate coercive economic sanctions (Davidsson, 2003). In addition, the economic sanctions are often used by the countries in order to promote and encourage a full range of objectives of the sanctioned countries. The sanctions can also be regarded as serious instrument and can be employed in order to increase the other policies of the country including military interventions, offering incentives and public diplomacy among others. However, the effective implementation is essentially required by the government, which can facilitate it to enhance the efficiency along with development of each public and private policy within the sanctioned country (Davidsson, 2003). Therefore, it can be stated that the implementation of economic sanctions can also provide effective support to the country while it is implemented as a tool for foreign policy. Although it generally incorporates a range of shortcomings along with issues that limits the governing process, the instrument can enable the country to build a strong and long-term sustainable framework while reforming economic sanctions as a foreign policy tool. 3. Relations ‘at Stake’ for Economic Sanctions as an Instrument for Foreign Policy With regard to the various observations concerning the role of using economic sanctions as an instrument of foreign policy, numerous arguments have been made in accordance with the developmental changes witnessed in the political and trade relations among countries participating in the global economy. Arguably, the implementation of this policy may have strengthened few nations to prohibit the potential threats from the different negative influences of unbound foreign policies. Nevertheless, the concern that although the use of sanctions as the tool of foreign policy can ensure to strengthen the authoritative supremacy over another country, it also bears certain negative influences that can severely impact the political and economic stability along with trade relation of the nation with other overseas regions, remains a focus on global debates even in the current period (Collins, 2012). The primary concern of utilising economic sanctions is generally witnessed to bear the risk of political unrests with the numbers of global countries, which can severely the global political positioning of a nation to make effective alliances and strengthen its economic conditions. In relation to the risk of political instability, the implementation of sanctions with a particular nation might negatively influence in maintaining a political alliance with other regions as they might have strong political alliances with the sanctioned countries. Therefore, a risk of international relation may arise through which, the country can also be polarised by the other global nations and hence, raiding chances of global power conflicts. A best example to this statement can be taken from the rudimental causes of World War 2, where the US imposed economic sanction created economic pressure on Japan, which in turn polarised the global economy into a conservative Eastern world and modernised western world. Relying on these facts, economic sanction can also be argued as a tool of warfare and not only a mere instrument to control foreign trade that evidently keeps global security and stability on stake (Von & et.al, 2009). In this concern it can be firmly stated that the risk of using economic sanctions as an instrument for foreign policy can drive apart the political conditions of the countries involved and make severe constraints to uphold effective alliances with the other global regions putting global peace at severe risk (Wallensteen, 2000). In the similar context, trade embargoes can also be considered as one of the major concerns for countries while using economic sanctions as an instrument for foreign policy. In relation to the recent phenomenon, countries seek to extend their trade relations with other global nations in order to strengthen their domestic economic conditions along with building strong political stability within the global economy. In this regard, the implementation of economic sanctions might be a major cause for a particular country to uphold strong trade relations with the other geographic regions, with the motive to gain supremacy in the global power shift (Cosic, n.d.). Using economic sanctions is often identified to make significant constraints involving particular countries along with different organisations and individuals. In this context, the restrictions can be considered to be increasing dynamism that often leads to significant penalties along with adverse publicity of the targeted nation, especially for the leading global marketers. Therefore, the trend of increasing territorial prohibition can significantly impact the trade practices of the targeted countries and hinder their economic growth potentials as well as their rise in the global economy at large (Trachsler, 2010). Moreover, it can also natively restrict the business operations of the companies that facilitate international trade, insurance service providers along with logistics and shipping service providers across the global destinations, thereby causing massive negative impacts on the continuous expansion of global industries. The consequent effects of the obstructed industrial growth can therefore be observed to cause immense hindrances not only in the growth of the targeted country but also on other countries associated throughout the chain. Such a risk further puts the economic interests of global associations, industries and various other nations on stake. With this concern, the risk of wide-ranging restrictions on trade along with regulatory obligations in the international trade can be considered as a major risk of implementing economic sanctions as an instrument of foreign policy (Dechert LLP, n.d.). When assessing the implications of using sanctions as the tool for foreign policy, the concerns associated with the economic development can be regarded as one of the long-standing issues identified in the recent global phenomenon. In relation to the recent practice of economic sanctions by the global countries, it is often observed that the implementation of economic sanctions seek to negatively influence the collective economic prosperity of the specific or targeted nations. In this concern, the sanctions significantly reduce the capabilities associated with international trade with the purpose of coercing target government to make significant alterations of the political regulations and applied frameworks (1Haass, 1998). Moreover, the coercion of sanctions can directly impose the target regulatory authorities regarding the concern associated with the price of stake that can also indirectly persuade the government by inducing pressure to impose revolt, often resulting as the establishment of governing body in making concessions. Despite the fact that the coercion process may influence the trade policies comprehensively, the use of economic sanctions as the tools for international policy characteristically focus on imposing costs on the overall economy of the targeted country. The partial postponement of the trade are significantly identified to be adopted as the part of the intended strategy in order to indicate the potential of worse pain to be derived subsequent to the non-compliance with the target. Consequently, the most essential measures regarding the intensity of the sanctions are deemed to aggregate the loss of the overall Gross National Product (GNP) of the countries experiencing economic sanctions (Pape, 1997). In various scenarios, the use of economic sanctions for foreign policy often unintentionally leads to the enforcement of oppressive supremacy of the elites in the global power countries that can impose severe impacts on the human rights of the targeted nations. This type of emergence tends to increase the amount of restrictions levied on the trade opportunities sought by the targeted country to manifest political disagreement. In the similar context, the use of sanctions for foreign policy also has dramatic influences concerning the social as well as cultural rights of the population. The sanctions often cause considerable disruptions in distributing foods along with pharmaceuticals and different sanitation supplies. Moreover, it may also lead towards jeopardising the quality of food items along with water that significantly interfere for the population in terms of developing their health, educational system and quality of life. Therefore, the use of sanctions might lead to jeopardise the human rights regarding the civic needs along with fundamental rights of the population (The Office of the High Commissioner for Human Rights, 2000). 4. Using Economic Sanctions as an Instrument of Foreign Policy by Taking Examples from Iran In relation to the recent observation of economic sanctions, a phenomenological invasion of the US towards its political and economic relation with Iran has been noted recently. One of the reasons for Iran to be allegedly isolated in the global context can be associated with the imposition of economic sanctions by the US along with European and other western territories. With respect to the implementation of economic sanctions against Iran to control foreign trade from the nation, its implications have created a thin line across the trade policies, economic development along with political instabilities within the global countries. The consequences of the sanctions have both directly and indirectly influenced the trade relation of Iran with the US along with different other nations, which has mostly been negative for the nation concerning its global positioning. The sanctions imposed by the US, in the year 1979, have often been argued to incorporate severe economic and political downfall experienced by Iran. The decision of structuring economic sanctions was taken initially by Mr. James Earl "Jimmy" Carter, Jr., the 39th president of the US, following the incident of holding hostage to fifty-two Americans in Iran in the year 1979. The president of the US had consequently frozen the assets through the imposition of economic sanctions, as an economic measure against the Iranian government. These assets were mainly controlled by the banking and financial institutions along with other large-sized businesses of the US. The implications thereafter led Iran to face severe economic depression with a loss of US$12 billion of its assets including gold and other properties. Moreover, the ramification of the fifty-two hostages in Iran also resulted in cutting off major trade operations including import and export commerce between these two countries, making Iran the ultimate sufferer (Carswell, 1981). The sanctions imposed by the US were also aimed to control the assets of Iran that were invested by the country in different global businesses, financial services and individual accounts located outside the US. The country had cut off numerous export and import transactions and also requested United Nation Security Council to impose similar sanctions with Iran, which further observed to gradually lower the rate of international trade with Iran and eventually, isolate the country from the rest of the participants in the global economy. The imposition of the sanctions have radically deprived Iran in terms of performing export activities and enforced the country to bear extensive numbers of unreliable deals deteriorating its economic climate further (Carswell, 1981). In relation to the blocking of a large portion of national assets of Iran since 1979, it has also been observed that a substantial numbers of rigorous steps have been taken by the global nations in imposing economic sanctions against the country in the recent phenomenon (International Campaign for Human Rights in Iran, 2013). Few of these include the International Atomic Energy Agency (IAEA) in 2002 and a series of six resolutions adopted by The United Nations Security Council since 2006 as per the Nuclear Non-Proliferation Treaty (NPT). To be noted in this context, majority of these sanctions, brought in action against Iran have been targeting its energy sector, which is often accounted as the most powerful and costly natural resources on earth (BBC, 2013). The chart below comprehensively reflects upon the economic sanctions imposed against Iran by the US, the UN and the EU in the early decade of the 21st century. Source: (BBC, 2013) In accordance with the in-depth understanding of the concept of economic sanctions along with its implications, it can be argued that such a tool for foreign trade control causes numerous issues to be faced by the countries through the implementation of sanctions for foreign policy. Over the last few decades, the use of sanctions have widely been witnessed to act as a major tool by the US, the UN and the European nations commonly targeting Iran and its energy sector. The motives underlying such measures can be evidently related with the political conflicts and economic interests of the application nations (including the US, the UN and the EU). Where on one hand, the imposition of economic sanctions have been said to be primitively focused on discouraging the nation from practicing unethical prejudices within the global economy, the allied motives to the situation reveals that Iran has since 1979 (with the initial imposition of economic sanctions by President Carter) been experiencing deprivation from taking part in the global economy, which has thereafter being affective its political, economic as well as social well-being to a substantial extent (International Campaign for Human Rights in Iran, 2013). Reflecting upon the implications of economic sanctions, the illustration of Iran reveals that such instruments of foreign trade may hinder the obtainment of adequate capability and sustainable position of the targeted nation causing a series of political and social unrests (Habibi, 2009). The imposition of economic sanctions by the US initially against Iran also encouraged other first-world countries to follow the similar strategy, which further segregated the nation (Iran) from the global economy, igniting polarisation between the Islam and non-Muslim worlds (International Campaign for Human Rights in Iran, 2013). 7. Conclusion The impact of economic sanctions in the recent globalised world can be stated as one of the long-standing issues that severely hinder the targeted country to build strong political alliance with other participants of the global economy. Undoubtedly, when the economic stability and prosperity in the 21st century depends largely on the global positioning of an economy, the far reaching implications of economic sanctions, ranging from the economic and political isolation of the target nation to its social deprivation may have considerable negative implications. In relation to the unconventional pace of globalisation, the use of economic sanctions for foreign policy tends to radically impact the countries to build new political alignment or trade partners across the different territories. Although the implementation of economic sanctions is effective to protect countries from different external threats, it is also essential for the countries to be supported by a large number of global participants. The example of Iran can be further stated as a major concern which had faced numerous challenges due to the political turmoil with the US. As the strong political and trade relations of the US with the global regions, the implementation of sanctions as an instrument for foreign policy has significantly empowered the country to maintain its global positioning in the current phenomenon. This particular finding raises a debatable issue as to whether economic sanctions can be stated as a mere instrument to secure economic interests from foreign trade, or is it a political tool to gain empowerment in global positioning. References BBC, 2013. Q&A: Iran Sanctions. News. [Online] Available at: http://www.bbc.co.uk/news/world-middle-east-15983302 [Accessed November 30, 2013]. Berg, L. D., 2010. Economic Sanctions: An Effective Tool of Foreign Policy Statecraft? Queens Policy Review, Vol. 1, No. 1, pp. 3-17. Carswell, R., 1981. Economic Sanctions and the Iran Experience. Foreign Affairs, Vol. 60, No. 2, pp. 247-265. Collins, S., 2012. 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