By Dan Lieberman
President Donald Trump’s use of the most vicious aspects of economic warfare prompt another examination of the politics of starvation.
After George W. Bush’s administration, Presidents Barack Obama and Donald Trump lessened Bush’s aggressive war policies and leaned to economic warfare. Sounds harmless when compared to exploding bombs, but it is not — economic warfare can crush an adversary without firing a shot. Gone to its extreme, economic warfare has the force of a neutron bomb; it disables the nation’s infrastructure and debilitates its population. Isolation from the international financial system, material embargos, and other sanctions reduce living standards and bring populations close to starvation The most serious aspects of economic warfare are major crimes and a form of terrorism.
Iran, Cuba, North Korea, and Iraq endured the most punishing sanctions from the United States. Results of sanctions against these countries, models for the effects of sanctions, show that sanctions have rarely accomplished their stated purposes and their intentions may be for other reasons — stalling economic progress, weakening challenges to antagonistic actions, advancing dominance, and promoting regime change.
Iran
Disturbed with the rule of Ayatollah Ruhollah Khomeini, and infuriated by the hostage taking of 52 of U.S. embassy personnel by extreme Islamic students and militants, President Jimmy Carter froze several billions of dollars in Iranian bank deposits, gold and other properties, and followed with a 1980 embargo on trade with and travel to Iran. These punitive actions accomplished nothing for the United States, strengthened the Ayatollah’s Authority and hardened the student demands for releasing the captured embassy officials.
President Reagan, who partially owed his climb into the executive office to the hostage crisis, showed contempt for Iran’s resolution of the problem. Driven by the unproven assertion that Iran was involved in the 1983 bombing of a marine barracks in Beirut, and favoring Saddam Hussein’s Iraq in the Iraq-Iran war, the U.S. president imposed additional sanctions on the Islamic Republic. and, in 1987, banned all imports from Iran.
Duriing the Clinton administration, the Iran-Libya Sanctions Act (ILSA) penalized all foreign companies that provided investments over $20 million for the development of petroleum resources.
Iran’s entrance into the atomic age provoked a series of new sanctions. Economic warfare soon reached full scale by subduing Iran’s earnings from its most precious resource and export – oil. The U.S. Congress passed unilateral sanctions that targeted Iran’s energy and banking sectors. Sanctions did not halt Iran’s nuclear activities, or prevent it from signing contracts with foreign firms to develop its energy resources. Exports slowly grew to an estimated $82 billion in 2012, with liberated Iraq and independent China filling the gap as trading partners.
Nevertheless, economic warfare affected Iran’s industries and welfare. In October 2012, Iran’s currency, the rial, fell to a record low against the US dollar, losing about 80 per cent of its value in one year. Lack of spare parts and inability to replace planes affected aviation safety. Real growth rate in GDP, at a steady six per cent a year during the first decade of the twenty first century, fell to two per cent in 2011-2012. One report, citing officials from the U.S. Departments of State and Energy, concluded that gasoline imports in the Shah’s former kingdom declined from 130,000 barrels a day in 2009 to 50,000 barrels a day in 2011. Machinery wears, and the costs and time for repairs rapidly increased. A nation of educated professionals, who depended upon access to foreign technology and scientific cooperation, had their access to knowledge severely curtailed.
In a October 5, 2012 report to the UN General Assembly, UN Secretary General Ban Ki-moon summarized effects of sanctions on Iran’s population.
The sanctions imposed on the Islamic Republic of Iran have had significant effects on the general population, including an escalation in inflation, a rise in commodities and energy costs, an increase in the rate of unemployment and a shortage of necessary items, including medicine,.
The embargoes have also hampered humanitarian operations, as the imposed restrictions on Iran’s banking system have halted the imports of medicines needed for treating diseases like cancer and heart and respiratory conditions.
The Obama administration eventually eased restrictions on the sale of medicines to Iran, and, after the Joint Comprehensive Plan of Action, in which Iran halted and downsized its uranium enrichment, the UN lifted sanctions. In a following year, Iran GDP increased 15 percent.
On May 8, 2018, U.S. President Donald Trump announced that the United States would withdraw from the Iran nuclear deal. and U.S. sanctions came into effect again in November 2018. President Trump articulated his plan for renewed sanctions as, “to bring Iran’s oil exports to ‘zero’ and remove a main source of revenue for the regime.” Trump imposed the ultimate harm afforded by economic warfare — starve the people and have them revolt against the regime.
That has not happened nor is predicted to occur. World Bank statistics from:
https://www.worldbank.org/en/country/iran/publication/economic-update-april-2019 indicate a severe slowing of the economy and steady rise of inflation.
As shown in the charts, oil production, and GDP growth dropped monotonicallyandseverely. Currency value suffered an initial shock and had some recovery. Inflation was up 40%, especially in food (up 60%) — — a suffering economy, a suffering people, and no political gain for the U.S.
Cuba
Immediately after the 1960 Cuban revolution, the United States imposed an embargo against Cuba. Fifty plus years of sanctions have not succeeded in accomplishing the purposes for which the United States proposed the sanctions — compensation to U.S. firms nationalized by Cuba and the overthrow of the Castro regime. The only result of the embargo has been deprivation of the Cuban people.
Although the United Nations General Assembly on November 2, 1995, voted 117 to 3 to recommend an end to the U.S. embargo against Cuba, President Clinton, on March 12, 1996, signed into law the misnamed Cuban Liberty and Democratic Solidarity Act. This Act imposed penalties on foreign companies doing business in Cuba, permitted U.S. citizens to sue foreign investors who make use of American-owned property seized by the Cuban government, and denied foreign investors in Cuba’s industry to enter the U.S.
The World Health Organization (WHO) complimented pre-90’s Cuba for its public health system, which had been credited with eliminating hunger and malnutrition and wiping out infectious diseases. A tightened embargo reinforced Cuba’s suffering after Russia withdrew subsidies. and, soon, Cuba of the mid-90’s portrayed another image. The American Association for World Health and the American Public Health Association ascertained that the embargo caused significant deterioration in Cuba’s food production and health care:
- Cuba was banned from purchasing nearly 1/2 of new drugs on the market.
- Physicians had access to only 890 medications, down from 1,300 in 1989.
- Deterioration of water supply increased water borne diseases.
- Daily caloric intake dropped by 33% between 1989 and 1993.
In 2000, the Clinton administration finally allowed Cuba to have some relief from an aggressive economic warfare. The administration allowed the sale of agriculture and medicine to Cuba for humanitarian purposes. According to the USDA’s Foreign Agricultural Service, U.S. agricultural exports to Cuba reached $380 million in 2004. However, after hitting a peak of $710 million in 2008, U.S. food sales to Cuba declined over 50 percent by the year 2011. Reasons for the decline were largely economic – lack of foreign currency and better financial terms being offered by other countries.
Dollars and Sense, 2009, The Costs of the Embargo, by Margot Pepper
Representatives of a dozen leading U.S. business organizations, including the U.S. Chamber of Commerce, signed a letter in December urging Barack Obama to scrap the embargo. The letter pegs the cost to the U.S. economy at $1.2 billion per year. The CPF’s estimates are much higher: up to $4.84 billion annually in lost sales and exports. The Cuban government estimates the loss to Cuba at about $685 million annually. Thus the blockade costs the United States up to $4.155 billion more a year than it costs Cuba.
After a period of harsh policy toward Cuba under President George W. Bush, President Obama announced in late 2014 that Washington and Havana would begin normalizing relations. To that end, the Obama administration achieved three pillars of normalization: 1) the removal of Cuba’s designation as a state sponsor of terrorism, which allowed Cuba to access international finance; 2) the reestablishment of diplomatic relations; and 3) relaxed restrictions on travel and trade through executive action. The embargo remained in place.
In 2017, the Trump administration reversed some of the changes made under President Obama, but the vast majority remained U.S. policy. Despite some tighter trade sanctions and limitations on authorized travel, there are still legal pathways for Americans to export and travel to Cuba. On the list of new sanctions is allowing Americans to sue foreign companies in Cuba that are profiting from or using properties that were seized during the Cuban revolution.
From CBS News, May 11, 2019.
Havana — The Cuban government announced Friday it is launching widespread rationing of chicken, eggs, rice, beans, soap and other basic products in the face of a grave economic crisis. Commerce Minister Betsy Díaz Velazquez told the state-run Cuban News Agency that various forms of rationing would be employed in order to deal with shortages of staple foods.
Díaz blamed the hardening of the U.S. trade embargo by the Trump administration. Economists give equal or greater blame to a plunge in aid from Venezuela, where the collapse of the state-run oil company has led to a nearly two-thirds cut in shipments of subsidized fuel that Cuba used for power and to earn hard currency on the open market.
Another suffering economy, suffering people, and no political gain for the U.S.
North Korea
The proud and impoverished nation of North Korea has been continually subjected to sanctions, threats of economic sanctions, and hastily withdrawn sanctions. The media is peppered with the words: “U.S. Lifts sanctions,” “U.S. recommends sanctions,” “South Korea wary of sanctions.” It’s difficult to know if North Korea is being sanctioned or being forced into being sanctioned. After its 2006 claim of conducting a nuclear test, the DPRK (Democratic People’s Republic Korea) leaders responded to intended sanctions by labeling them as “a declaration of war.”
The DPRK has,suffered from economic warfare, which includes restrictions on trade and financial transactions. Export of sensitive dual-use items (items that have both military and non-military uses) have, at times, been prohibited. During March 2012, the politics of starvation entered the situation; angered by an intended North Korea missile test, the U.S. suspended food aid to the “hermit kingdom.”
WASHINGTON (Reuters) – The United States has suspended planned food aid to North Korea as Pyongyang vows to push ahead with a plan to launch a long-range missile in defiance of international warnings, U.S. military officials said on Wednesday.
Under President Obama, sanctions increased as a policy of “strategic patience;” the US waited for North Korea to change its bad behavior before engaging with the state. As a result, trade between North Korea and China increased and sanctions did not encourage Kim Jong-An to discuss de-nuclearization.
On September 21, 2017, President Donald Trump, as part of his administration’s “maximum pressure” campaign, allowed severing from its financial system and/or freezing assets of companies, businesses, organizations, and individuals who traded in goods, services, or technology with North Korea.
U.S. negotiations with North Korea have a built-in error; they request de-nuclearization in exchange for improved relations and reduction in sanctions. Not considered is that North Korea’s development of a nuclear arsenal was a response to its regard of U.S. actions in the Korean peninsula as a direct threat to its regime and the developments had no relation to sanctions. Therefore, the DPRK will not trade de-nuclearization for relief of sanctions, and that approach is a non-starter.
Sanctions, intended to collapse the North Korea regime, have not halted its development of nuclear weapons and guided missile delivery systems. They have collapsed the economy and harmed the North Korean people; starvation during droughts have occurred. Although some international assistance has been provided to North Korea, the intensive economic warfare waged against the “hermit kingdom” has exacerbated its problems, without any apparent benefit to its principal antagonist, the United States.
Iraq
If Iraq were Pompeii, then the US would be Mt. Vesuvius.
The sanctions against Iraq began August 6, 1990, four days after Hussein invaded Kuwait, and featured a near-total financial and trade embargo. Resultant suffering has been outlined in a UN Report on the Current Humanitarian Situation in Iraq, submitted to the Security Council, March 1999. Due to the length of the report, only significant features are mentioned.
Before the Gulf War
- before 1991 Iraq’s social and economic indicators were generally above the regional and developing country averages.
- Up to 1990, the Food and Agricultural Organization (FAO) cited Iraq as having one of the highest per capita food availability indicators in the region.
- According to the World Health Organization (WHO), prior to 1991, health care reached approximately 97% of the urban population and 78% of rural residents. A major reduction of young child mortality took place from 1960 to 1990; with the infant mortality rate at 65 per 1,000 live births in 1989 (1991 Human Development Report average for developing countries was 76 per 1,000 live births). UNICEF indicates that a national welfare system assisted orphans and children with disabilities and supported the poorest families.
- Before 1991, southern and central Iraq had well developed water and sanitation systems, composed with two hundred water treatment plants (“wtp’s”) for urban areas and 1200 compact wtp’s to serve rural areas, as well as an extensive distribution network. WHO estimates that 90% of the population had access to an abundant quantity of safe drinking water.
From Sanctions After the Gulf War
- Economist Intelligence Unit estimates that Iraqi GDP may have fallen by nearly 67% in 1991, and the nation had “experienced a shift from relative affluence to massive poverty” and had infant mortality rates that were “among the highest in the world.”
- The United Nations Population Fund (UNFPA) estimated the maternal mortality rate increased from 50/100,000 live births in 1989 to 117/100,000 in 1997. The under-five child mortality rate increased from 30.2/1000 live births to 97.2/1000 during the same period. The United Nations Department of Economic and Social Affairs (DESA) calculates that the infant mortality rate rose from 64/1000 births in 1990 to 129/1000 in 1995 (the Human Development Report set the average infant mortality rate for Least Developed Countries at 109/1000). Low birth weight babies (less than 2.5 kg) rose from 4% in 1990 to around a quarter of registered births in 1997, due mainly to maternal malnutrition.
- Calorie intake fell from a pre-war 3120 to 1093 calories per capita/per day in 1994-95. The prevalence of malnutrition in Iraqi children under five almost doubled from 1991 to 1996 (from 12% to 23%). Acute malnutrition in Center/South rose from 3% to 11% for the same age bracket.
- The World Food Program (WFP) estimated that access to potable water decreased to 50% of the 1990 level in urban areas and 33% in rural areas.
- School enrollment for all ages (6-23) declined to 53%. According to a field survey conducted in 1993, as quoted by UNESCO, in Central and Southern governorates, 83% of school buildings needed rehabilitation, with 8613 out of 10,334 schools having suffered serious damages. The same source indicated that some schools with a planned capacity of 700 pupils actually have 4500 enrolled in them. Substantive progress in reducing adult and female illiteracy ceased and regressed to mid-1980 levels. More families are forced to rely on children to secure household incomes. Figures provided by UNESCO indicate that drop-outs in elementary schools increased from 95,692 in 1990 to 131,658 in 1999.
Sanctions, and its toll on the Iraqi people, continued until the U.S. invasion of Iraq in 2003.
Excerpts from Invisible War: The United States and the Iraq Sanctions, Joy Gordon. Harvard University Press, 2010, describe the extent of irrational economic warfare conducted by the United states against a defenseless Iraq.
While the United States consistently justified its policies in terms of preventing Iraq from developing weapons or threatening its neighbors, the U.S. policy went well beyond any rational concern with security. There was an elaborate architecture of policies that found a dozen other ways to simply do gratuitous harm that had not the least relation to the threat Iraq might have posed to its neighbors or to anyone else.
For thirteen years the United States unilaterally prevented Iraq from importing nearly everything related to electricity, telecommunications, and transportation, blocked much of what was needed for agriculture and housing construction, and even prohibited some equipment and materials necessary for health care and food preparation.
As the criticism grew, there is no sign that anyone in the U.S. administration, and only a tiny handful within Congress, actually took it to heart– actually questioned the sanity and legality of reducing an entire civilization to a preindustrial state, of bankrupting an entire nation for the purpose of containing one tyrannical man.
On May 12, 1996, Madeleine Albright, then U.S. Ambassador to the United Nations, appeared on the CBS program 60 Minutes. Commentator Lesley Stahl asked, “We have heard that half a million children have died. I mean, that’s more children than died in Hiroshima. Is the price worth it?” Madeleine Albright replied, “we think the price is worth it.” Is that an expected response from a normal human being?
The U.S. 2003 invasion of Iraq accomplished what sanctions failed to accomplish — push Iraq to total ruin. A question, “Why war, if had sanctions, or why sanctions if need to go to war?”
CONCLUSION
As shown, sanctions never accomplished their stated purposes and gravely harmed populations. The economic warfare had equivalents to military war. The country that took the offensive became the aggressor, as in any war, and the destruction to the defending state was equally brutal. In the one-sided engagement, the civilian population of the defending nation suffered greatly and the aggressor country suffered few losses. The economic wars never achieved the results that the offended party desired, and no peace treaties were signed. The struggles remained an open issue.
A limited form of economic warfare may, at times, have a legitimate purpose. A complete economic war, that invades all aspects of a country’s life and continues until it debilitates the population, cannot be accepted. In a military campaign, atrocities and human rights violations are often committed. Although no shots are fired and battlefields are not identifiable, economic warfare cannot camouflage its atrocities and disguise its human rights violations.
Dan Lieberman is the editor of Alternative Insight, a web based newsletter.
20 May 2019
Source: countercurrents.org