German expert: Sanctions against Russia are doomed to failure - they achieve the opposite effect

Thursday, September 4, 2014

Economic sanctions rarely achieve the desired effect, and centralized economies like the Russian can even benefit directly from sanctions said Dirk Ulbricht, an expert of German DIW Berlin (Deutsches Institut für Wirtschaftsforschung), in an interview with DPA news agency.

It is clear that sanctions imposed on Russia due to the Ukraine crisis have already achieved opposite results: an armed conflict has erupted in Ukraine and Vladimir Putin's position has been solidified. Sanctions imposed on Russia are doomed to failure.

Sanctions are not appropriate instruments to influence decisions to the right direction. It is inconceivable that Russia gives up Crimea and stops the supply of arms to the separatist forces in eastern Ukraine because of western sanctions, said the German expert.

There is no historical precedent for sanctions to achieve the desired effect when used against a state as large as Russia. Sanctions have not had the desired effect even in North Korea and Iran; and Cuba has been defying USA economic boycott for more than five decades.

Centralized systems like the Russian can directly benefit from sanctions.

The raw material based export-dependent Russian economy has already headed for economic recession, which now can be blamed on the sanctions; more than that, by using sanctions' socially cohesive effects the government can strengthen its power in Russian society.

Sanctions have not brought any political gain for the west so far, but they have already caused significant economic harm to their economies.

(MTI – hungarianambiance.com)

1 comments:

Anonymous said...

Reading the title, this (somewhat crude) saying comes to mind:
"No shit, Sherlock"

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