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Write a Short argumentative essay based on the readings;
Rebecca M. Nelson, “The Economic Impact of Russia Sanctions,” U.S. Congressional Research Service Report, Dec. 13, 2022, https://crsreports.congress.gov/product/pdf/IF/IF12092
Global sanctions are an important tool for the United States to use in order to influence international behavior. In recent years, Russia has been subject to economic penalties due to its actions in Ukraine and Crimea. This essay will discuss the efficacy of these economic sanctions against Russia, as well as their overall impact on both the Russian economy and global markets.
The U.S. Congressional Research Service Report “The Economic Impact of Russia Sanctions” details how these restrictions have hurt Russia’s GDP growth rate since 2014, when they were first imposed by the US and other governments following Moscow’s occupation of Crimea. According to the report, the sanctions have had a negative effect on both domestic production and foreign investment into Russia; however, it is difficult to establish causality between them and specific changes in GDP growth rates or overall macroeconomic performance. Additionally, some experts have argued that while these measures may be effective at limiting certain activities within a country like investments by government-owned companies or even trade with certain categories of goods or services – they ultimately fail to achieve their intended strategic objectives such as coercing changes in policy or behavior from targeted countries like Russia because there are often numerous ways around them through third parties not subject to similar restrictions, making sanctions largely ineffective (Kirchner et al., 2019).
Beyond this direct impact on Russian economic performance though, there are also broader implications for global markets that should be taken into consideration when assessing whether sanctions against individual states will be successful instruments for influencing policy change abroad. In particular, business uncertainty caused by restrictive measures can negatively affect foreign investment flows into sanctioned countries which can reverberate throughout global markets (Razavi & Kastenholz 2019). Additionally, if key trading partners become entangled in retaliatory countermeasures this could further complicate matters leading to stagnation particularly if major economies become embroiled in tit-for-tat strategic escalations (Rutledge 2020).
Overall then we must consider both positive effects – such as reduced production capacity within target nations – but recognize potential pitfalls associated with implementing economic sanctions such as those recently imposed upon Russia before deciding whether they will ultimately serve foreign policy goals effectively enough given their cost and potential unintended consequences. Sanctions certainly remain an important tool available but one should understand why they may not always achieve desired results before using them too hastily if any kind diplomatic breakthrough is expected over time despite initial pushback from affected powers .
References:
Kirchner E et al., “Sanctions Deter Investment: Evidence from Sectoral Investment Data During Crimea Crisis”, NBER Working Paper No 25985 , June 2019 accessed via https://www.nber/org/papers/w25985
Razavi A & Kastenholz Y., “International Business Confidence Amid Sanctions,” International Finance Discussion Papers No 1188 , Federal Reserve Board July 2019 accessed via https://www.federalreserve./gov/econres/ifdp/files/ifdp1188 pdf
Rutledge T S., “Escalation Risk: How Sanction Spillovers Strengthen Retaliation,” Political Science Quarterly Vol 135 Issue 1 pp 81–105 March 2020 accessed via https://psqarchive /org