Do Economic Sanctions Work?

The US and European nations are prepared to punish Russia economically if it invades Ukraine. But the impact of these measures is disputed.

• The US and other Western countries are preparing a massive package of economic sanctions against Russia, were it to invade Ukraine. The measures would focus on finance, energy and technology.
• Punitive measures like these have become increasingly popular in conflicts with rogue states or countries aggressively engaging in war. In most cases the purpose is to avoid military engagement.
• The impact of economic sanctions is heavily debated however. Resistance is strong in export oriented countries depending on barrier-free trade. Businesses are afraid to suffer themselves.
• Furthermore there is an academic discussion among economists over whether sanctions are effective. Current research suggests that the impact is modest at best.
• Whether sanctions work as a foreign policy tool depends in large part on the goal. The conflict with Russia may well become a further test case.