What Is An Embargo: Economics And Politics

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What Is An Embargo: Economics And Politics
What Is An Embargo: Economics And Politics

Video: What Is An Embargo: Economics And Politics

Video: What Is An Embargo: Economics And Politics
Video: The History Of America's Cuba Embargo 2024, December
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Political scientists and economists argue that an embargo is one of the ways of waging war, an opportunity to test the strength of the world's superpowers, to squeeze competitors both in the economic and political fields.

What is an embargo: economics and politics
What is an embargo: economics and politics

Increasingly, the word "embargo" appears in news feeds on TV, in print and online publications. But few readers or viewers know what it is, what danger it carries, and how it affects their lives. In fact, the embargo is of great importance not only for countries, but also for industrial and agricultural enterprises and people working for them, clerks from offices and state employees from central regions and the periphery. The success of the regions and the country as a whole, the fall and rise in the exchange rate, political relations between the leading world states depend on the embargo.

What is an embargo - concept and classification

Embargo is a Spanish word that literally translates to prohibition, arrest, hindrance or hindrance. In modern times, the concept is most often associated with sanctions, which are so popular now in the political arena. With the help of an embargo, military, economic and political differences are resolved, although initially this method of relations between states was used only in trade.

The embargo has ceased to be a method of improving the economic condition of the country, and began to be used as a way of putting pressure on political regimes and states. The game has ceased to be fair, the very understanding of the embargo and its principles have changed. According to the principle of operation and goals, the embargo is divided into three main types:

  • temporary sanctions aimed at stabilizing the situation in the field of ecology, health care, preventing radical climate change,
  • economic embargo - a ban on the import or export of products of any type, the exchange of developments in the field of innovative and industrial technologies,
  • political bans imposed by the UN Security Council or the leadership of one country in relation to another state.

An embargo does not always bring success to its initializer. The degree of risk for the state that proposes to impose certain sanctions is often not calculated. In world history, there are many examples of how the state that initiated it suffered from the embargo.

Embargo in the economy

In economic terms, the embargo is trade and food. Sanctions of this type are imposed against one country or group of states. Trade restrictions consist in the prohibition of the import of goods manufactured in the territory of the country to other countries, or from other states to the state that has been declared an embargo. That is, the government will have to look for ways to fill its own markets with goods that have fallen under the ban. A trade embargo may negatively affect the economy of the country against which the sanctions are imposed, and the global economy as a whole. The crisis comes as a result of the fact that manufacturers simply lose their market share.

The food embargo only applies to the sale and purchase of food. It could have even more dire consequences for both sides. Such sanctions, as a rule, are applied to undermine the authority of the ruling power, and are already interpreted as political ones. Moreover, the initiators of the embargo are often the losers, since the state, deprived of the opportunity to replenish its food market from the outside, is forced to develop the agrarian and food industry on its territory.

Both food and trade embargoes negatively affect the global economy as a whole. Numerous historical examples have already proved the ineffectiveness of such measures, but, despite this, the sanctions effect on unwanted states is actively practiced in economics and politics.

Embargo in politics

A political embargo is a fairly new concept in interstate relations, but it is already quite developed. It represents a peaceful blockade of the state. Not only trade relations with the country that fell into the embargo zone are banned, but also political, public ones, for example:

  • limitation of diplomatic powers,
  • partial or complete prohibition of transport interaction,
  • termination or restriction of cultural, sports communication,
  • complete or partial cessation of the exchange of scientific and technical achievements,
  • deprivation of the right to vote at international meetings.

Political embargo often becomes the cause of exacerbation of international relations between states, which leads to wars. It is much more dangerous than trade and food sanctions.

Such sanctions cannot be adopted unilaterally, and must be considered at the UN Security Council - an organization that is called upon to control both the economic and political situation. If a state and its government sees an urgent need to apply a political embargo against another country, it must submit its decision to the public in the person of the UN, and give weighty arguments in its favor. And only after consideration and approval of the decision can sanction measures of a political nature be taken.

Embargo in peacetime and wartime - differences and features

In peacetime, an embargo can be a measure to ensure the independence, security and economic development of an individual state. By introducing a ban on the import of certain products, one can stimulate the development of one's own industry and agriculture. In addition, food and commodity sanctions, a ban on transport links can protect against the penetration and development of epidemiological diseases into the territory of the state. Peaceful embargoes also include prohibitions of an ecological type, as a form of protest against cruelty to animals or neglect of the natural resources of one of the states.

The purpose of the embargo in wartime, as a rule, is the only one - to ensure the safety of the citizens of the state and to prevent the country from being drawn into hostilities. The ban is on the import and export of weapons, goods of strategic importance, a restriction on attending world-class scientific and medical meetings, where innovative discoveries are discussed. Most often, the ban is not the acquisition of new knowledge, but the leakage of information about certain discoveries made by citizens of the state. A striking example of a military embargo is the period of the Second World War, when any developments were kept in strict secrecy and protected from disclosure. Violation of the embargo in wartime amounts to high treason. It is actively used during warfare and food embargo - with the aim of weakening the leader of action, a potential winner.

Embargo in world history

The embargo has been used as a political measure for thousands of years. The first mention of such sanctions in historical annals dates back to 432 BC. e. Megarian merchants fell under the embargo and were prohibited from visiting the Athenian ports, bazaars and markets. The reason for the restrictions was the murder of the ambassador from Athens and the massive fishing in the waters of the state.

At all times, trade and food have been the most effective interventions. The embargo on restricting the supply of food products and prohibiting trade in large ports, movement along one or another sea route caused colossal financial damage to merchants, and seafarers, and states. And not always those who were subject to sanctions. Countries where large ports and markets were located were also covered by the economic crisis, as they simply lost their source of basic income.

In 1774, the American colonies declared a trade boycott against a major supplier of goods and intermediary in the supply of food - Great Britain. This embargo serves as a kind of example of failure, as it almost provoked a recession in both the economic and industrial development of the New World. Another British embargo was declared by Napoleon in 1806, but it also turned out to be a failure. The result of the sanctions was the development of smuggling and the economic crisis in France, and against the background of a stable situation in other European countries.

The largest, and longest, embargo was the restriction of trade and political relations with Cuba between 1960 and 1977. The sanctions imposed by the United States did not bring tangible damage to Cuba, but negatively affected the economy of the initiator of the embargo. American business - industrial, trade and food enterprises were nationalized and practically lost to the United States.

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