An analysis of the main reasons for imposing sanctions on countries’ economies and the reasons behind Iran’s failure to overcome the sanctions
Abstract
The imposition of sanctions against Iran over the years has caused extensive damage by affecting key sectors of the Iranian economy, including banking, energy, industry, healthcare, and the scientific arena. This raises the question of how to assess and compensate for these damages. Observations and studies on how Iran has dealt with these sanctions indicate that, despite the measures taken, the impact of the sanctions on various sectors of the country has not significantly diminished. Therefore, taking effective steps to reduce the effects of sanctions is a crucial necessity that must be addressed.
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Main Reasons for Imposing Sanctions on a Country’s Economy
Sanctions are imposed on countries primarily to:
- Encourage Policy Change – To pressure governments into altering domestic or foreign policies, such as on human rights or military programs.
- Prevent Access to Sensitive Technologies – To block the development or acquisition of weapons and advanced military technologies.
- Target Political and Economic Elites – Through financial and travel restrictions to influence decision-makers directly.
- Create International Isolation – To reduce a country’s diplomatic, economic, and cultural relations, weakening its global influence.
Reasons for Iran’s Failure to Overcome Sanctions:
Overall, the structure and lack of diversity in Iran’s economy, the extensive scope of sanctions, the complexity of the international financial system, domestic managerial inefficiencies, and diplomatic challenges have prevented Iran from effectively bypassing or mitigating economic sanctions.
Practical Steps for Better Confrontation with Sanctions
Iran can better confront sanctions by first recognizing their real impact and incorporating this understanding into economic planning. It should develop strategies for both sanctioned and non-sanctioned scenarios, raise awareness among all economic actors, and utilize new technologies like cryptocurrencies with proper regulation. Legal flexibility and identity adaptation, as seen in countries like North Korea, can also help reduce exposure. Ultimately, reducing sanctions through international economic engagement and diversifying the economy remains the most sustainable path.
This study was conducted at Paradigm Think Tank by Seyed Amin Tavakolani in 2022.
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