In the current era, the international relation among countries has a great importance because countries are more in need of each other as their societies and economies get involved together. As we can see these days a lot of countries do trading among them which make them better off in economic situation, and some countries have created a union together to facilities their trading and relations such as European Union. Still there are some countries which disobey international laws, and they do not respect human rights or they threat the international peace and security, so they can be expelled from international unions and communities, one of the main and strong tools to do so is, international sanction which can be imposed to those countries.
International sanctions have become an important and most usable tool in international politics, as the US and UN are playing the main actors in imposing sanctions. International sanctions are part of diplomatic attempts by countries against countries, organizations or a person, with aim to protect national security or to protect international laws and human rights. Sanction principally has a limited time which target the economy, trade, diplomacy, culture of targeted country and can be lifted when the motivating security concerns no longer apply, in some cases can be renewed or be more intense to put targeted country under more pressure. This practice can be one of the most effective weapons of the international community with offenders.
Sanctions are with aim and not a ruthless one-sided weapon, and the aim is to dissuade the offending country from acting or to bring it to the negotiating table. International sanction basically targets economy and diplomacy, however according to the international economist and researchers, economic sanctions are criticized for not being successful in achieving their goal and for having a negative effect on human rights, democracy, poverty, healthcare and basic living condition which can have more negative impacts on the people of Third World countries.
Sanctions are technically divided into four groups, which they are UN SECURITY COUNCIL, EU SANCTIONS, UNILATERAL SANCTIONS OF GOVERNMENTS AND US CONGRESS SANCTIONS, each with its own approval and repeal mechanism.
Table of Contents
1-CHAPTER ONE
-EFFECTS OF INTERNATIONAL SANCTIONS ON THE CURRENCY AND FINANCIAL MARKET OF TARGETED COUNTRY
1.1 FINANCIAL SANCTION
1.1.1 NORMAL FINANCIAL SANCTIONS
1.1.2 AGGRAVATED FIANCIAL SANCTIONS
1.2 BANK SANCTION
1.2.1 THE EFFECTS OF BANK SANCTION ON THE COUNTRY’S FINANCIAL AND MONETARY SYSTEM
2-CHAPTER TWO
-HOW TO SAVE AN ECONOMY DURING INTERNATIONAL SANCTIONS?
2.1-Conditions for making sanctions effective and useful
2.1.1-Importance of pre-sanctions trade
2.1.2-Sanctions are most likely to be succeed in the early years of implementation
2.1.3-Prospect, validity and strategic interplay
2.1.4-If the target is less authoritarian and more democratic the sanction can be more successful
2.1.5-Strong multilateral political obligation can increase the effectiveness of sanctions
2.1.6-Limited and narrowly defined aims & multiple policy instruments increase effectiveness rate of sanctions
2.1.7-Targeted sanctions are effective as much as comprehensive sanctions
2.2- Ways and methods to circumvent or dodge international sanctions
2.2.1-Bribes
2.2.2-Launching a product manufacturing company and money laundering under its auspices
2.2.3-Buying banned western goods under the name of companies in other countries
2.2.4-Using the flags of unknown countries
2.2.5-Establishment of an insurance syndicate to cover country’s ships
2.2.6-Using airports or non-targeted country people to transfer goods
2.2.7-Having influence on the UN institutions as much as possible
2.2. 8-Difficulty to inspect a ship without having sufficient proves
2.2.9-Creating charities and doing trade under their names
2.2.10-Establishing trade with foreign banks that have no ties to the united states
2.2.11-Look for influential people or institutions in new and emerging markets
2.2.12-Storage and sale of crude oil in third country facilities
2.2.13-Exchange of oil in exchange for the currency of the buyer country
2.2.14-Oil exchange with state-owned energy countries
2.2.15-Providing access to profitable trade in the market of targeted country
2.2.16-Refer to international private financial institutions
3-CHAPTER THREE
-Cryptocurrency and Sanction
3.1- Cryptocurrency strategies to circumvent sanctions:
3.1.1- Theft of cryptocurrencies
3.1.2- Cryptocurrency mining
3.1.3- Creation of national cryptocurrency
3.1.4- Coupling multiple states to a common cryptocurrency
3.1.5- Encouraging sanctioned state’s population and businesses to utilize all cryptocurrency freely
3.2- How US and West communities can preserve the power of economic sanctions
3.3- Cryptocurrency advantages
3.4- Cryptocurrency disadvantages
Research Objectives and Core Themes
This work examines the multifaceted impacts of international sanctions on the economies of targeted states, with a specific focus on the mechanisms of sanction evasion. The primary research goal is to understand how financial and banking sanctions affect the monetary systems of targeted countries and to analyze the strategies employed by these nations to mitigate economic hardship through alternative tools such as cryptocurrencies.
- The economic and financial consequences of international sanctions on targeted countries.
- Technical methods and strategies used by sanctioned states to circumvent international restrictions.
- The role of banking systems and the impact of central bank sanctions on national economies.
- The emerging use of cryptocurrencies as a tool for sanction evasion and economic resistance.
- The strategic response of Western powers to maintain the efficacy of economic sanctions.
Excerpt from the Book
1.1 FINANCIAL SANCTION
As we have mentioned above, sanctions can be imposing in different ways and of these ways is financial sanctions which targets more banks and monetary system of the targeted country. (Zachery Laub, 2015) defined financial sanctions as limitations imposed to some countries by united states (US), united nations (UN), European union (EU) and United Kingdom (UK) to achieve foreign policy or national security aims. These sanctions have power to limit and restrict financial services that includes also the country’s central bank. In the (Tejarat farad Journal, 2013) we can see financial sanctions are divided into two categories which are normal financial sanctions and aggravated financial sanctions. Beyond the effects of other international sanctions, (George A. Lopez and David Cortright,1997) added that the imposition of financial sanction looks like to have more effect within the targeted country.
Summary of Chapters
1-CHAPTER ONE: This chapter analyzes how international sanctions specifically impact the currency, financial markets, and banking systems of targeted countries, highlighting the resulting economic volatility.
2-CHAPTER TWO: This chapter explores the theoretical conditions that influence the effectiveness of sanctions and details various methods used by targeted states to circumvent or dodge these measures.
3-CHAPTER THREE: This chapter investigates the rising role of cryptocurrencies as a strategic tool for sanction evasion, including mining, theft, and the creation of national digital currencies.
Keywords
International Sanctions, Economic Sanctions, Financial Market, Banking System, Sanction Evasion, Cryptocurrency, Blockchain, Money Laundering, Monetary Policy, Inflation, Targeted Sanctions, Capital Outflow, Foreign Exchange, Geopolitics, Economic Resistance
Frequently Asked Questions
What is the core focus of this work?
The research primarily investigates the economic impacts of international sanctions on targeted states and evaluates how these nations attempt to maintain their economies through various evasion techniques.
What are the central themes discussed in this publication?
The key themes include the mechanics of financial sanctions, the vulnerability of national banking systems, methods of circumventing trade barriers, and the modern emergence of cryptocurrencies in sanction evasion strategies.
What is the primary objective of this study?
The primary aim is to analyze the effectiveness of sanctions and to map the strategic behaviors of countries, such as Iran and Venezuela, as they respond to economic pressure from the international community.
Which scientific methodology does the author utilize?
The author employs a comprehensive literature review and qualitative analysis, synthesizing research from international economists, journal reports, and financial datasets to assess the dynamics of modern economic warfare.
What topics are covered in the main body of the text?
The main body covers the impact of sanctions on currency and central banks, strategies for circumventing sanctions (from bribes to oil exchange), and the utilization of cryptocurrency and Blockchain technology for bypassing financial blockades.
Which keywords best describe this research?
The research is best characterized by terms such as economic sanctions, sanction evasion, cryptocurrency, blockchain, financial sovereignty, and geopolitical influence.
How does the author define "sanction busting"?
The author defines "sanction busting" as the process by which sanctioned countries or entities circumvent restrictions by replacing business partners, finding alternative trade routes, or utilizing creative methods to maintain economic relations.
What role does Cryptocurrency play according to the text?
Cryptocurrency is presented as an emerging tool for sanctioned states to interact with the global economy, offering a decentralized means to process transactions that are difficult for traditional regulatory bodies to monitor or block.
- Arbeit zitieren
- Hatam Ansari (Autor:in), 2020, International Sanctions. How Do They Affect a Country’s Economic and Financial System?, München, GRIN Verlag, https://www.grin.com/document/966210
