9.4 Case Studies of Economic Coercion in International Conflicts
4 min read•august 7, 2024
plays a crucial role in international conflicts. From Cold War-era to modern trade wars, nations use economic tools to influence behavior and achieve political goals. These case studies show how sanctions, , and trade restrictions can shape global politics and economics.
The effectiveness of economic coercion varies. While some cases led to policy changes, others resulted in unintended consequences or prolonged conflicts. Understanding these examples helps us grasp the complex interplay between economics and international relations in today's interconnected world.
Cold War Era Sanctions
US Embargo on Cuba
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- Imposed by the US in 1958 after the Cuban Revolution led to the nationalization of US-owned properties
- Aimed to pressure Cuba to transition to a democratic system and improve human rights
- Consists of economic, commercial, and financial restrictions on Cuba
- Prohibits most trade between the US and Cuba, including exports and imports (food, medicine)
- Travel restrictions for US citizens and residents to Cuba
- Controversial due to its long duration and impact on the Cuban population (shortages, economic hardship)
International Sanctions Against South Africa During Apartheid
- Imposed by various countries and international organizations in the 1980s to pressure South Africa to end apartheid
- Apartheid was a system of institutionalized racial segregation and discrimination in South Africa from 1948 to 1994
- Sanctions included arms embargoes, trade restrictions, and divestment campaigns (withdrawing investments)
- Aimed to isolate South Africa economically and politically
- Contributed to the eventual dismantling of apartheid and the transition to a democratic government in 1994
Nuclear Proliferation Sanctions
Sanctions on Iran's Nuclear Program
- Imposed by the UN, US, and EU to prevent Iran from developing nuclear weapons
- Concerns over Iran's uranium enrichment program and potential military applications
- Sanctions targeted Iran's energy, financial, and transportation sectors
- Included restrictions on oil exports, banking transactions, and foreign investment
- Led to the Joint Comprehensive Plan of Action (JCPOA) in 2015, which lifted sanctions in exchange for limits on Iran's nuclear program
- US withdrew from the JCPOA in 2018 and reimposed sanctions, creating tensions with Iran and other signatories (EU, China, Russia)
Sanctions on North Korea's Nuclear and Missile Programs
- Imposed by the UN, US, and other countries to pressure North Korea to abandon its nuclear weapons and ballistic missile programs
- North Korea has conducted multiple nuclear tests and missile launches, violating international agreements
- Sanctions target North Korea's trade, financial transactions, and access to technology
- Include bans on exports (coal, minerals, textiles) and imports (oil, machinery), as well as asset freezes and travel bans on individuals and entities
- Aim to cut off funding for North Korea's weapons programs and pressure the regime to engage in denuclearization talks
- Sanctions have had a significant impact on North Korea's economy but have not yet led to a complete abandonment of its nuclear ambitions
21st Century Economic Conflicts
US-China Trade War
- Began in 2018 when the US imposed tariffs on Chinese imports, citing unfair trade practices and intellectual property theft
- China retaliated with tariffs on US goods, leading to an escalating trade conflict
- US concerns include China's state subsidies, forced technology transfers, and market access barriers
- Tariffs have been imposed on a wide range of products (electronics, machinery, agricultural goods)
- Trade war has impacted global supply chains, increased costs for consumers, and slowed economic growth in both countries
- US and China signed a Phase One trade deal in 2020, but many issues remain unresolved
Sanctions on Russia Following Crimea Annexation
- Imposed by the US, EU, and other countries in response to Russia's annexation of Crimea from Ukraine in 2014
- Crimea is a strategic peninsula in the Black Sea that was part of Ukraine but has a majority Russian-speaking population
- Russia's actions were seen as a violation of Ukraine's sovereignty and international law
- Sanctions target Russian individuals, companies, and sectors (energy, defense, finance)
- Include asset freezes, travel bans, and restrictions on access to capital markets and technology
- Aim to pressure Russia to reverse its actions in Crimea and deter further aggression in the region
- Sanctions have had a significant impact on Russia's economy but have not led to a resolution of the conflict
Economic Sanctions on Venezuela
- Imposed by the US and other countries in response to the political and economic crisis in Venezuela under the government of Nicolás Maduro
- Concerns include human rights abuses, erosion of democracy, and economic mismanagement
- Sanctions target Venezuelan government officials, state-owned companies, and the oil sector
- Include asset freezes, travel bans, and restrictions on financial transactions and trade
- Aim to pressure the Maduro government to restore democratic processes and address the humanitarian crisis
- Sanctions have exacerbated Venezuela's economic difficulties, leading to hyperinflation, shortages of basic goods, and a refugee crisis
- Effectiveness of sanctions is debated, as the Maduro government remains in power despite international pressure and domestic opposition
Key Terms to Review (26)
Coercive Diplomacy: Coercive diplomacy is a strategy that uses threats and limited force to persuade an adversary to change its behavior or policy without resorting to full-scale military action. This approach typically aims to leverage the credibility of military power and economic sanctions to compel compliance while avoiding the costs of war. The effectiveness of coercive diplomacy often hinges on the ability to communicate resolve and the willingness to impose costs on the adversary if they fail to comply.
Collective Punishment: Collective punishment refers to the practice of holding a group responsible for the actions of one or more individuals within that group, often resulting in punitive measures against innocent members. This concept is particularly relevant in contexts where state or military authorities target entire communities as a means of retaliation or deterrence. Such actions can exacerbate existing tensions and lead to further conflict, as it violates principles of justice and individual accountability.
Cuba Embargo: The Cuba Embargo refers to a series of economic sanctions imposed by the United States against Cuba, starting in 1960, aimed at isolating the Cuban government and limiting its economic resources. This embargo has played a significant role in shaping U.S.-Cuba relations and has often been cited as a key example of economic coercion in international conflicts, highlighting the complexities of diplomacy and power dynamics between nations.
Economic coercion: Economic coercion is a strategy used by states or groups to influence the behavior of another state or group through the manipulation of economic resources, often by imposing sanctions or trade restrictions. This form of pressure is intended to compel compliance with political demands, aiming to achieve desired outcomes without resorting to military force. Economic coercion can also impact international relationships and global markets, making it a crucial aspect of international conflict.
Economic collapse: Economic collapse refers to a severe and rapid downturn in a nation's economy, characterized by a dramatic decline in economic activity, widespread unemployment, and the failure of financial institutions. It often leads to social unrest, political instability, and can be triggered by factors such as excessive debt, loss of investor confidence, or external shocks. The consequences of economic collapse can create conditions for conflict and influence international relations.
Economic interdependence: Economic interdependence refers to the mutual reliance between countries for goods, services, and resources, where the economic activities of one nation significantly impact the economic conditions of another. This interconnectedness can influence state behavior, reduce the likelihood of conflict, and reshape international relations as nations become more integrated through trade, investment, and supply chains.
Economic Sanctions on Venezuela: Economic sanctions on Venezuela refer to the restrictive measures imposed by various countries, primarily the United States, aimed at exerting pressure on the Venezuelan government to change its policies and address issues like human rights violations, corruption, and the deterioration of democratic institutions. These sanctions have significantly impacted Venezuela's economy, which is heavily reliant on oil exports, and have contributed to widespread economic hardship and humanitarian crises within the country.
Economic statecraft: Economic statecraft refers to the use of economic tools and resources to achieve foreign policy objectives or influence the behavior of other states. This approach can involve a range of measures, such as sanctions, trade restrictions, or incentives aimed at coercing or persuading other nations to align with one's interests. Understanding economic statecraft is crucial as it highlights how economic power can be wielded in international conflicts and negotiations.
Embargoes: Embargoes are official government orders that restrict or prohibit trade with specific countries or groups, often used as a form of economic coercion. They are typically employed to achieve foreign policy objectives, such as punishing nations for actions deemed unacceptable or preventing the flow of goods that could contribute to military capabilities. By limiting access to markets and resources, embargoes aim to pressure targeted states to change their behavior.
Humanitarian intervention: Humanitarian intervention refers to the use of military force by a state or group of states to protect human rights and provide relief to individuals facing severe suffering, typically in response to crises like genocide or gross violations of human rights. This concept is closely tied to debates about sovereignty, moral responsibility, and the effectiveness of international law in protecting vulnerable populations during conflicts.
International Sanctions Against South Africa: International sanctions against South Africa were measures imposed by various countries and international organizations aimed at ending the apartheid system that enforced racial segregation and discrimination. These sanctions included trade embargoes, financial restrictions, and diplomatic isolation designed to pressure the South African government to dismantle apartheid and promote equal rights for all citizens.
Just War Theory: Just War Theory is a philosophical framework that outlines the moral principles governing the justification for war and the ethical conduct within war. It emphasizes that wars should only be fought for just causes, such as self-defense or protecting human rights, and that even in war, combatants must adhere to certain ethical standards to minimize harm to civilians and non-combatants.
Moral hazard: Moral hazard refers to the situation where one party is incentivized to take risks because they do not bear the full consequences of their actions. This concept is particularly relevant in economic contexts, where the behavior of individuals or nations might change once they feel shielded from risk, often due to insurance or external support. In international conflicts, moral hazard can manifest when states engage in aggressive behavior, assuming that economic sanctions or coercive measures will not fully affect them.
Nuclear proliferation sanctions: Nuclear proliferation sanctions are measures imposed by countries or international organizations to prevent the spread of nuclear weapons and technology to states or non-state actors that are not compliant with international non-proliferation agreements. These sanctions can include economic restrictions, trade embargoes, and diplomatic isolation, aimed at compelling the targeted state to halt or roll back its nuclear program.
Regime change: Regime change refers to the process of overthrowing or replacing a government or political system in a country, often through force or external intervention. This concept is closely tied to international relations, as it frequently involves foreign nations attempting to alter the political landscape of another state for various reasons, including security interests, economic policies, or ideological alignment.
Robert Pape: Robert Pape is a prominent political scientist known for his research on international relations, particularly in the context of strategic bombing and economic coercion. His work highlights the effectiveness and consequences of using economic sanctions as a tool of foreign policy, illustrating how states use these measures to influence the behavior of other nations in conflict situations.
Sanctions: Sanctions are restrictive measures imposed by countries or international organizations to influence a nation's behavior, typically in response to violations of international norms or security concerns. They can take various forms, including economic, diplomatic, or military actions, and are intended to exert pressure on the targeted country to change its policies or conduct.
Sanctions on North Korea's nuclear and missile programs: Sanctions on North Korea's nuclear and missile programs refer to the economic and political measures imposed by various countries and international organizations to curb the country's development and proliferation of weapons of mass destruction. These sanctions aim to pressure North Korea into compliance with international agreements and to prevent further advancements in its military capabilities, thereby serving as a form of economic coercion in international relations.
Sanctions on Russia Following Crimea Annexation: Sanctions on Russia following the annexation of Crimea in 2014 refer to a series of economic and political measures imposed by various countries, primarily Western nations, in response to Russia's aggressive actions in Ukraine. These sanctions aimed to pressure the Russian government to reverse its annexation and to discourage further destabilizing behavior in the region.
Soft Power: Soft power refers to the ability of a country to influence others through attraction and persuasion rather than coercion or force. It encompasses cultural appeal, political values, and foreign policies that are seen as legitimate or moral, allowing countries to shape the preferences of others without direct confrontation. This concept is crucial in understanding how nations navigate their international relations and manage conflicts.
Thomas Schelling: Thomas Schelling was a prominent American economist and political scientist, recognized for his influential theories on conflict resolution and game theory, particularly in the context of international relations. His work emphasized the strategic use of threats and promises in negotiations, showcasing how economic coercion can serve as a tool to achieve political ends during conflicts.
U.S. Sanctions on Iran: U.S. sanctions on Iran refer to economic and political restrictions imposed by the United States aimed at influencing Iran's behavior, particularly regarding its nuclear program and regional activities. These sanctions have significantly affected Iran's economy, restricting its access to international markets and financial systems, which connects to broader themes of economic coercion in international conflicts.
United Nations: The United Nations (UN) is an international organization founded in 1945, aimed at promoting peace, security, and cooperation among countries. It plays a central role in addressing global challenges, managing conflicts, and facilitating diplomatic dialogue, making it essential to understanding international relations and conflict dynamics.
US Embargo on Cuba: The US embargo on Cuba refers to a series of economic sanctions and restrictions imposed by the United States against Cuba, initiated in the early 1960s. These measures were primarily aimed at isolating Cuba economically and politically, following the Cuban Revolution and the rise of Fidel Castro's communist regime. The embargo has had significant impacts on Cuba's economy, international relations, and domestic policies, serving as a key example of economic coercion in international conflicts.
US-China Trade War: The US-China Trade War refers to the ongoing economic conflict between the United States and China, characterized by the imposition of tariffs and trade barriers by both countries in response to trade practices deemed unfair. This conflict has significant implications for global trade dynamics, reflecting deeper resource-based conflicts and economic motivations, as both nations seek to protect their economic interests and assert their dominance in the global market.
World Trade Organization: The World Trade Organization (WTO) is an international organization that regulates trade between nations by providing a framework for negotiating trade agreements and resolving disputes. The WTO aims to ensure that trade flows as smoothly, predictably, and freely as possible, promoting economic interdependence among countries, which can help prevent conflicts.