Despite the pain now being inflicted on Iran's economy by Trump's sanctions, the success or failure of such sanctions depends on whether they bring about regime change, or change a government’s behavior. Given the prevailing misconceptions about their rationale, it is not surprising that economic sanctions so often achieve neither goal.
LONDON – The sanctions imposed on Iran by US President Donald Trump have begun to bite the country’s economy hard. Inflation, seemingly defeated by President Hassan Rouhani, has returned with a vengeance, hitting 31% in 2018. According to the International Monetary Fund, the economy is poised to shrink by 6% this year, and inflation could reach 37%. Many industries are experiencing severe difficulties, and unemployment is mounting. Aiming to cut Iranian oil exports to zero, Trump is threatening to sanction countries – like China, India, and Japan – that continue to buy Iranian oil.
LONDON – The sanctions imposed on Iran by US President Donald Trump have begun to bite the country’s economy hard. Inflation, seemingly defeated by President Hassan Rouhani, has returned with a vengeance, hitting 31% in 2018. According to the International Monetary Fund, the economy is poised to shrink by 6% this year, and inflation could reach 37%. Many industries are experiencing severe difficulties, and unemployment is mounting. Aiming to cut Iranian oil exports to zero, Trump is threatening to sanction countries – like China, India, and Japan – that continue to buy Iranian oil.