Why sanctions are counterproductive
Sunday, March 09, 2025
Inside what used to serve as FDLR's 'Major' Benjamin Nimubutumwa's command post at Kanyamahoro, there is a bench, a table, two anti-tank weapon boxes, and pieces of communication gadgets.

Sanctions have long been used as a tool of economic and political coercion, ostensibly to compel nations to modify their policies or behavior.

Proponents argue that they represent a non-violent method to exert pressure on governments deemed to violate international norms.

However, history has repeatedly shown that sanctions often exacerbate crises rather than resolve them. They inflict immediate, devastating economic harm, disrupt developmental efforts, and create artificial shortages of essential goods.

Paradoxically, they also foster resilience, fuel innovation, and compel countries to reconsider their economic and diplomatic strategies.

The fundamental flaw in the logic of sanctions lies in their limited success in achieving intended political objectives. While they may cause temporary hardship, they often drive nations toward self-reliance, encouraging the development of alternative trade and governance systems. Ultimately, this weakens the very global hegemony that sanctions aim to uphold.

In the aftermath of sanctions, targeted economies typically face significant disruption.

Financial markets destabilize, foreign investors withdraw, and key industries may come to a standstill.

Inflation surges due to restricted access to foreign currency, often leading to a sharp depreciation of local currencies and eroded purchasing power. Countries reliant on imports suffer acute shortages of essential commodities—fuel, medicines, and food—as infrastructure projects are abandoned, social welfare programs curtailed, and businesses with international ties collapse under restrictions.

Ordinary citizens bear the brunt of this economic turmoil, experiencing job losses, declining living standards, and, in some cases, social unrest.

Despite these challenges, sanctioned nations do not simply disintegrate; they adapt. The loss of access to global markets compels economies to re-evaluate their strategies, prioritizing local production and regional trade partnerships over traditional alliances.

Examples of this unintended consequence abound. Iran, for instance, developed a robust domestic pharmaceutical industry after Western sanctions cut off access to essential medical supplies. Following the annexation of Crimea, Russia shifted its agricultural sector toward self-sufficiency, significantly reducing reliance on European food imports.

Similarly, Zimbabwe, after years of Western sanctions, strengthened local agricultural initiatives and economic policies to reduce dependency on foreign aid. These cases demonstrate that while sanctions aim to cripple an economy, they often spur economic restructuring, fostering resilience and independence rather than submission.

Sanctions also obstruct national development initiatives. Governments, grappling with economic constraints, divert resources from long-term development projects to address immediate crises.

This leads to slowed infrastructure development, budget cuts in education, and the deterioration of healthcare services due to shortages of essential medical supplies. For fragile economies, this can result in severe, long-lasting developmental setbacks as crucial programs for promoting stability and prosperity become unsustainable.

Paradoxically, sanctions can serve as a catalyst for innovation. Cut off from foreign technology, investment, and expertise, countries are compelled to seek alternative paths for progress.

This can lead to the emergence of entirely new industries, technological breakthroughs, and the cultivation of local expertise in fields previously dominated by outside entities. For example, Cuba, despite decades of economic embargo, has developed a world-class biotechnology sector that exports vaccines and medical treatments.

North Korea, similarly isolated from the global economy, has invested substantial resources in indigenous technological development, including its space program. While these cases do not imply that sanctions are advantageous, they highlight the unexpected consequences of forcing nations into self-sufficiency that might not have been necessary under normal circumstances.

One notable effect of sanctions is the creation of artificial shortages of essential goods. In heavily import-dependent nations, sudden disruptions to trade can have dire consequences, leading to scarce medicines, rationed energy supplies, and soaring food prices.

The ensuing suffering disproportionately affects vulnerable populations, including the poor, elderly, and those with chronic illnesses. Ironically, despite being imposed in the name of human rights, sanctions often deepen human suffering.

Countries facing shortages do not simply capitulate; instead, they actively seek alternative suppliers, often forming new trade relationships with nations willing to bypass imposed restrictions. This can inadvertently undermine the global financial system that sanctions are intended to reinforce.

The rise of alternative trade networks, barter agreements, and non-dollar-based transactions weakens the traditional dominance of Western financial institutions. Nations such as Russia, China, and Iran increasingly conduct trade outside of the US dollar, creating alternative payment systems that allow sanctioned countries to sustain economic activity despite restrictions.

This shift not only diminishes the effectiveness of future sanctions but also accelerates the decline of Western economic influence in the global marketplace.

Furthermore, a moral dilemma arises for neutral or well-meaning nations that seek to maintain humanitarian and economic ties with sanctioned countries. These nations are often caught between adhering to so-called global norms and acting in their own strategic interests. Ultimately, countries prioritize survival over ideological conformity.

As one prominent Western politician remarked, "You do not negotiate with a lion when your head is in its mouth.” Nations facing existential threats will resort to any means necessary to protect their economies and populations, even if it involves circumventing international restrictions.

The Author is an African Scholar, analyst, economic and political commentator