Backfire: How Sanctions Reshape the World Against U.S. Interests (Center on Global Energy Policy Series)

Sanctions have become the go-to foreign policy tool for the United States. Coercive economic measures such as trade tariffs, financial penalties, and export controls affect large numbers of companies and states across the globe. Some of these penalties target nonstate actors, such as Colombian drug cartels and Islamist terror groups; others apply to entire countries, including North Korea, Iran, and Russia. U.S. policy makers see sanctions as a low-cost tactic, but in reality these measures often fail to achieve their intended goals—and their potent side effects can even harm American interests.Backfire explores the surprising ways sanctions affect multinational companies, governments, and ultimately millions of people around the world. Drawing on interviews with experts, policy makers, and people in sanctioned countries, Agathe Demarais examines the unintended consequences of the use of sanctions as a diplomatic weapon. The proliferation of sanctions spurs...Sanctions have become the go-to foreign policy tool for the United States. Coercive economic measures such as trade tariffs, financial penalties, and export controls affect large numbers of companies and states across the globe. Some of these penalties target nonstate actors, such as Colombian drug cartels and Islamist terror groups; others apply to entire countries, including North Korea, Iran, and Russia. U.S. policy makers see sanctions as a low-cost tactic, but in reality these measures often fail to achieve their intended goals-and their potent side effects can even harm American interests. Backfire explores the surprising ways sanctions affect multinational companies, governments, and ultimately millions of people around the world. Drawing on interviews with experts, policy makers, and people in sanctioned countries, Agathe Demarais examines the unintended consequences of the use of sanctions as a diplomatic weapon. The proliferation of sanctions spurs efforts to evade them, as states and firms seek ways to circumvent U.S. penalties. This is only part of the story. Sanctions also reshape relations between countries, pushing governments that are at odds with the U.S. closer to each other-or, increasingly, to Russia and China. Full of counterintuitive insights spanning a wide range of topics, from Russia’s invasion of Ukraine to Iran’s COVID response and China’s cryptocurrency ambitions, Backfire reveals how sanctions are transforming geopolitics and the global economy-as well as diminishing U.S. influence. This insider’s account is an eye-opening, accessible, and timely book that sheds light on the future of sanctions in an increasingly multipolar world.Agathe Demarais is the global forecasting director of the Economist Intelligence Unit (EIU). She was previously a senior policy adviser for the French Treasury in Russia and Lebanon, working directly on sanctions and other economic and financial issues. "Sanctions are in fashion. But do they work? And what are their side effects and long-term impact? Agathe Demarais's excellent, clear-headed book has uncomfortable answers." - Daniel Franklin, The Economist "Balanced, fast-paced, and often surprising." - Paul Hannon, The Wall Street Journal Sanctions have become the go-to foreign policy tool for the United States. Coercive economic measures such as trade tariffs, financial penalties, and export controls affect large numbers of companies and states across the globe. Some of these penalties target nonstate actors, such as Colombian drug cartels and Islamist terror groups; others apply to entire countries, including North Korea, Iran, and Russia. U.S. policy makers see sanctions as a low-cost tactic, but in reality these measures often fail to achieve their intended goals--and their potent side effects can even harm American interests. Backfire explores the surprising ways sanctions affect multinational companies, governments, and ultimately millions of people around the world. Drawing on interviews with experts, policy makers, and people in sanctioned countries, Agathe Demarais examines the unintended consequences of the use of sanctions as a diplomatic weapon. The proliferation of sanctions spurs efforts to evade them, as states and firms seek ways to circumvent U.S. penalties. This is only part of the story. Sanctions also reshape relations between countries, pushing governments that are at odds with the U.S. closer to each other--or, increasingly, to Russia and China. Full of counterintuitive insights spanning a wide range of topics, from Russia's invasion of Ukraine to Iran's COVID response and China's cryptocurrency ambitions, Backfire reveals how sanctions are transforming geopolitics and the global economy--as well as diminishing U.S. influence. This insider's account is an eye-opening, accessible, and timely book that sheds light on the future of sanctions in an increasingly multipolar world. Sanctions have become the go-to foreign policy tool for the UnitedStates. Coercive economic measures such as trade tariffs, financialpenalties, and export controls affect large numbers of companiesand states across the globe. Some of these penalties targetnonstate actors, such as Colombian drug cartels and Islamist terrorgroups; others apply to entire countries, including North Korea,Iran, and Russia. U.S. policy makers see sanctions as a low-costtactic, but in reality these measures often fail to achieve theirintended goals-and their potent side effects can even harm Americaninterests. Backfire explores the surprising ways sanctionsaffect multinational companies, governments, and ultimatelymillions of people around the world. Drawing on interviews withexperts, policy makers, and people in sanctioned countries, AgatheDemarais examines the unintended consequences of the use ofsanctions as a diplomatic weapon. The proliferation of sanctionsspurs efforts to evade them, as states and firms seek ways tocircumvent U.S. penalties. This is only part of the story.Sanctions also reshape relations between countries, pushinggovernments that are at odds with the U.S. closer to each other-or,increasingly, to Russia and China. Full of counterintuitiveinsights spanning a wide range of topics, from Russia's invasion ofUkraine to Iran's COVID response and China's cryptocurrencyambitions, Backfire reveals how sanctions are transforminggeopolitics and the global economy-as well as diminishing U.S.influence. This insider's account is an eye-opening, accessible,and timely book that sheds light on the future of sanctions in anincreasingly multipolar world "Sanctions have become a go-to diplomatic tool for the US, be it against Iran, Russia or Turkey. However, sanctions come with unexpected, global side-effects that are rarely discussed. All of these side-effects have a meaningful impact on businesses, financial markets and governments. First, US sanctions are pushing countries that are at odds with the US, such as Turkey, Russia and Iran, closer to each other, with massive consequences on traditional alliances, such as NATO. Second, Russia and China directly benefit from US sanctions, as targeted countries are turning to Moscow and Beijing for strategic deals. Third, US sanctions can have unforeseen ripple effects on America's allies, which often fuels resentment against the US. In this book, sanctions expert Agathe Demarais presents a fresh take on U.S. sanctions from the outside, exploring how international relations, energy markets, and the global economy writ large is shaken in unforeseen ways when the U.S. decides to use sanctions as a political weapon"-- Provided by publisher