9.4 Case Studies of Economic Coercion in International Conflicts

Economic coercion plays a crucial role in international conflicts. From Cold War-era sanctions to modern trade wars, nations use economic tools to influence behavior and achieve political goals. These case studies show how sanctions, embargoes, 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