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The United States announced new sanctions on seven Russian government officials April 28. A long-used tactic, sanctions can yield unpredictable effects or have no effect at all, depending upon how they are crafted. It is commonly assumed that sanctions are applied when a target country’s actions are deemed unacceptable. The sanctioning nation presumably chooses sanctions to avoid war when war would be too costly or could result in defeat.
Sanctions’ stated purpose is to induce behavioral changes in a target state by causing economic pain. To work, sanctions must therefore cause pain. But they must not be so severe that they convince the target state that war is more desirable than capitulating to the demands of the sanctioning nation.
When Sanctions Work Too Well
In July 1941, when the Japanese invaded Indo-China, the United States responded by freezing all Japanese assets. The United Kingdom and the Dutch East Indies (today’s Indonesia) followed suit. The sanctions were quite effective, and Japan wound up cut off from the bulk of international trade, losing 90 percent of its imported oil. Japan had to respond, but instead of withdrawing from Indo-China, it attacked Pearl Harbor.
The Japanese example is worth considering. The United States placed Japan in a situation where its oil supplies would be depleted in months, at which point Japan would cease to be an industrial power. Tokyo could have accepted the American terms, but once it did this, it would have established a U.S. veto over Japanese decisions.
The Japanese did not trust the United States and were convinced that any capitulation to sanctions would simply lead to more U.S. demands. Tokyo understood the risks of war but calculated that these risks were lower than the risks of complying with U.S. demands (though the Japanese might well have been wrong in this calculation, and Franklin Roosevelt might well have known that Tokyo would choose war over capitulation). Faced with sanctions that would cripple the nation, Japan chose war.
Sanctions perform better against nations that lack retaliatory options, including the option of waging war. Iran is an example of a perfect target for sanctions. Without a deliverable nuclear device, it lacks the option to wage war, and it has few other ways to retaliate. (Even with countries like Iran, however, sanctions can have a limited effect if the target can find ways to get around the sanctions.)
