Economic Statecraft

1. ECONOMIC
STATECRAFT
International Atatyurk Ala-Too University
Department of International Relations
Subject: Foreign Policy
Analysis
Lecturer: Ibrahim Koncak
Student: Eliza Sulaimanova

2. STATECRAFT CAN BE DEFINED AS THE USE OF
INSTRUMENTS AT THE DISPOSAL OF CENTRAL
POLITICAL AUTHORITIES TO SERVE FOREIGN POLICY
PURPOSES. THE INSTRUMENTS OF STATECRAFT FALL
COMMONLY INTO 3 MAIN CATEGORIES:
-diplomatic
-military
-ECONOMIC
Economic statecraft may be negative, involving the threat or use
of sanctions or other forms of economic coercion or
punishment, or it may be positive, involving the use of
economic relationships as incentives or rewards.
Unilateral (involving efforts by one government)
Multilateral (involving attempts by multiply governments to
coordinate their economic recourses )

3. ECONOMIC STATECRAFT HAS A LONG
HISTORY, DATING BACK AT LEAST TO
THE PELOPONNESIAN WARS OF
ANCIENT GREECE
Economic Statecraft has been used
with increasing frequency during
the 20 century, as countries in the
international system became more
interdependent and a global
economy formed.

4. Economic Statecraft is part of the wider
array of foreign policy instruments the
states have at their disposal; more often
than not, economic measures are used in
conjunction with diplomatic and military
ones as part of any government’s overall
approach to addressing foreign policy
problems and opportunities
The interplay of economic sanctions,
diplomacy, and military force, so crucial to
understanding the broad schema of
foreign policy, is then explored.

5. INSTRUMENTS AND OBJECTIVES
-trade restriction
-financial sanctions
-investment restrictions
-monetary sanctions

6. ECONOMIC SANCTIONS: NOT
ALWAYS SUCCESSFUL, BUT STILL
USEFUL
The following are among the most
celebrated cases of sanction failures,
a cumulative record that may lead
scholars reflecting on the post-war
experience to conclude that economic
sanctions were for the most part an
ineffective of statecraft

7. WHY IS IT DIFFICULT FOR
SANCTIONS TO SUCCEED?
The 1st challenge that sanctioners must confront is the difficulty of
maximizing economic pain
The 2nd challenge that sanctioners is that even the imposition of
considerable economic pain does not necessarily translate into the
desired political changes
The 3rd, the imposition of sanctions can be costly to the sanctioner as
well as the target, making it difficult to sustain political support over
time within a coalition of sanctioning states.
The 4th, sanctions can create political and public relations problems for
the senders when their effects fall disproportionately on innocent
victims
Smart sanctions — measures such as arms embargoes, asset freezes,
and travel bans on key individuals and organizations.

8. WHY GOVERNMENTS STILL FIND
SANCTIONS USEFUL
THE TOOLS OF ES
-comprehensive trade embargo
-selective trade embargo
-freezing of financial assets
-restrictions on foreign direct investment
-dumping of another currency to depress its exchange rate
-restrictions on foreign aid
-increases in economical aid
-preferential trade arrangements and etc.

9. Recent structural changes such as the
end of the Cold War, the rise of
globalization, and the spread of
democracy worldwide each have
important implications for the practice
of economic statecraft
Positive economic statecraft has
become more important since the end
of the Cold War. Scholars should pay
as much attention to positive
economic statecraft as they do to

10. ECONOMIC INTERDEPENDENCE:
SOURCE OF POLITICAL HARMONY
OR CONFLICT?
Whether economic interdependence
leads to peace, as liberals believe, or
to political conflict, as realists believe,
depends on a number of intervening
variables, including the future
expectations of policy makers, the
nature of the military balance, and the
form that economic interdependence

11. THANK YOU FOR
ATTENTION!)