Peyman ADL DOUSTI HAGH: Economic Sanctions Against Iranians

What is a sanction?

When political actors or non-state actors threaten other nations' safety and security, the political actors or non-state actors violate international norms.1 Furthermore, political actors or non-state actors are violating human rights in their countries. The United Nations has the responsibility for the safety and security of people. The Responsibility to Protect (R2P or RtoP) is a global political commitment that all member states of the United Nations at the 2005 World Summit endorsed to address its four key concerns: preventing genocide, war crimes, ethnic cleansing, and crimes against humanity.

The other countries or international communities are not using their military troops to correct international violations. They are using economic forces against the violators to restore order in the international community.2

What are the types of international violations?

These violations range from human rights violations, promotion of democracy, conflict resolution, cybersecurity, counterterrorism, and counternarcotics.3

How many bodies are having the legitimacy to impose economic sanctions against violators and legally binding?

There are three international bodies that they can impose an economic sanction against violators of international norms.4

United Nations
United States of America
European Union

The Islamic Republic of Iran and Economic Sanctions

In 1979, the clerics formed a state, and this faction attacked the US embassy and took several individuals hostage. Consequently, the cleric faction violated international law, and the cleric's action has deemed an attack on US soil in Iran. The US did not retaliate with military force against the cleric in Iran. The US used diplomacy against the cleric in Iran by imposing economic sanctions against Iran and Iranian by issuing Executive Order 12170. Executive Order 12170 froze $12 billion assets in the US, including bank deposits, gold, properties, and faced a trade embargo. In 1981, the US secured the release of the hostages, and Executive Order 12170 lifted.

In 1981, the rulers in Iran developed a foreign policy of terrorism by targeting American tourists. The US returned to an economic sanction strategy against Iran and Iranians. In 1995, the US developed a more comprehensive economic sanction package against Iran and Iranians.

In 2005, Mahmoud Ahmadinejad was appointed to the presidency's office by the head of state, Ayatollah (Sign of God)Ali Khameini. Mr. Ahmadinejad began to threaten Israel's safety and security by uttering the statement that once the cleric regime in Iran has nuclear capability, the rulers in Iran will obliterate Israel from the map. Mr. Ahmadinejad no longer was making an idol threat to Israel. He talked about his ability and intention to commit another holocaust.

On July 31st, 2006, United Nations Security Council Resolution approved 1696 against Iran's nuclear proliferation. This resolution failed to accomplish its objective. The regime pursued its nuclear ambition by disregarding neighboring nations' safety and security because Iran implemented the Shia sect as the state religion, and the surrounding countries are Sunni sects.

On December 23rd, 2006, the United Nations Security Council Resolution 1737 passed by the United Nations Security Council as France, Germany, and England supported the resolution.

On April 02nd, 2015, the illegitimate Islamic Republic in Iran came to a mutual consent with P5 and one not to have military nuclear capabilities, but to have civilian nuclear facilities. On October 18th, 2015, the Joint Comprehensive Plan of Action adopted the proposal of P5, and 1. On January 16th, 2016, the United Nations lifted sanctions against Iran and Iranians.

On May 08th, 2018, Mr. Trump nullified the agreement between Iran's regime and P5, and 1. Consequently, economic sanctions began to overshadow Iran's economy.

The Economic Consequences of Economic Sanctions on Iran and Iranians:

According to the World Bank, the recession in Iran accelerated in 2019/20 as US sanctions progressively tightened. Iran's GDP contracted by 7.6% in the first nine months of 2019/20 (Apr-Dec 2019), primarily due to a 37% decline in the oil sector. Since the reintroduction of US sanctions in 2018, oil production has dwindled, reaching a record low of 2 Mbps in December 2019. Non-oil GDP growth in Apr-Dec 2019 was close to zero, a marginal improvement compared to the sector's 2.1% contraction in 2018/19. In the same period, non-oil industries grew by 2%, driven by construction and the utility sectors, while services value-added contracted by 0.2%. The recent COVID-19 outbreak has significantly disrupted trade, tourism, and retail business during the busiest period for travel and commerce. 5

The World Bank asserts Iranians face a growing pandemic COVID-19, low oil prices, and increasing sanctions, Iran's GDP growth projected to remain subdued in 2020/21-2022/23. The baseline outlook is primarily driven by the COVID-19 outbreak reducing oil and non-oil GDP in 2020/21 and two subsequent years of modest recovery. Oil production in 2021/22 and 2022/23 expected to grow in line with long-term domestic consumption growth. The fiscal deficit projected to widen as revenues fall short of targets, and COVID-19 adds to expenditures. The 2020/21 draft budget, though contractionary in real terms, relies on optimistic assumptions. The expected widening budget deficit, especially in light of COVID-19 and other exogenous shocks, is likely to lead to further debt issuance and withdrawals from strategic reserves. 6

The current unique situation of Iran's economy presents significant downside risks for the baseline forecast. The most significant risk is a more substantial and more protracted impact of the COVID-19 outbreak through various channels, including widescale contractions in commerce, tourism, and trade, as well as higher production costs. The persistence of lower oil prices and export volumes (e.g., due to a significant decline in China's oil demand) would result in a substantially larger overall shock and fiscal deficit in 2020/21. 7

How do economic sanctions impact Iranians?

One such nation that has been crippled by economic sanctions is Iran. The political sanctions, set on Iran since 1979, have attempted to spare the average citizen from harm by explicitly excluding the health care system from trade restrictions. However, the health care system is indirectly affected by the sanctions, as we have learned from personal interviews with physicians in Iran and by reading locally published articles during the summer of 2013. 8

Having difficulty trading with the West, the Iranian government is currently trading with its eastern allies. This exchange is indeed helpful for Iran to obtain the necessary supplies. However, many newer medications are still under a pharmaceutical patent and not being manufactured outside of the United States or Europe, limiting Iran's access to them. Some supplies manufactured within Iran are a limited manufacturing method. The limit on currency transfer has made importing starting material such as active pharmaceutical ingredients and finished products difficult and often impossible for Iran. The sociologist S. A. Hosseini writes that the "quality of pharmaceuticals and treatment of patients have been affected due to changing the sources of imported medicines and raw materials for locally produced pharmaceuticals. 9

Faced with decreased access to medication, Iran's health care professionals burdened with the unenviable task of determining where, and to whom, their resources should be allocated. While resources are typically allocated based on need, with fatal diseases and emergency surgery as the highest priority, supplies are limited even for patients with the greatest need. An ENT surgeon describes his thoughts on Iran's current situation: "Things are more challenging, and some drugs are no longer found. Transplant and cancer patients suffer the most because of the lack of medicines. Things that scarce things, like positron emission tomography machines and drugs, chemotherapy, and anesthesia. 10

Inconclusion, the Islamic Republic in Iran disregarded Iranians' well-being and pursued its global hegemony foreign policy. The regime in Iran wanted to have a Shia sect, Islam, to become a global faith. It did not matter the financial cost or human cost. Iranians are paying for the clerics' policy of Islam while the clerics' children are acquiring higher education in Canada and other western nations. Plus, the cleric class is enjoying a luxury lifestyle in Iran. At the same time, Iranians do not have access to the basic necessity of life, such as drinking water as people are walking to lakes to collect water and bring the water home to drink. As they collect water from a lake or pond, wild animals are attacking them and killing them.

Endnote:

Peyman ADL DOUSTI HAGH

Sunday, 27 September 2020

Economic Sanctions Against Iranians

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