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1. First, economic sanctions are ineffective because the regime leaders can bypass the costs.
Leaders mitigate the costs of sanctions by controlling the allocation of resources. As they
go down, they can redirect the economy so they still have access to goods making the rest
2. Second, leaders can maintain access to goods through illegal arms sales, drug smuggling,
and money laundering. For example, Kim Jong-Il in North Korea and Milosevic in
3. Third, turn it: the regime can use sanctions entrench its political power. Because the
leader has control over the resources, they can redirect the increasingly scarce resources
to supportive domestic political groups while they put the burden on opposition groups.
This consolidates political support while killing opposition. For instance, the Smith
regime in Rhodesia maintained its powers during sanctions by controlling the tobacco
4. Fourth, turn it: sanctions motivate the regime to become more oppressive and violent to
check back domestic protest. Because sanctions incentivize domestic violence motivated
5. Fifth, turn it again: foreign pressure encourages the regime to crack down harder on
opposition groups. The leadership perceives foreign pressure as a threat to its legitimacy
and support to domestic opposition groups. Therefore, the regime is incentivized repress
opposition groups to demonstrate its resolve and strength to the public. For example,
China viewed the threat of American sanctions as a threat to its regime stability so it was
6. Fifth, turn it: the NEG gives a ruse of solvency which only harms solvency in the long
run. Since the demanded reforms are often a threat to the leader’s survival, they may
purge all of its opposition in the beginning and then negotiate an end to sanctions
Moreover, they can kill and jail opposition and then offer prisoner releases as bargaining
chips to end sanctions. China followed this strategy when they arrested political
dissidents before visits by American diplomats and then released them at politically
7. Seventh, turn it: Economic sanctions trigger a “rally around the flag” effect as leaders use
economic pain to consolidate support for the regime. For example, sanctions increased
patriotic support for Mussolini’s military project. A study of sanctions against Israel,
Cuba, and Rhodesia by Jay Gordon shows that sanctions just strengthened the
8. Eight, turn it: Economic sanctions encourage sanction busting which strengthens the
regime by fostering a state alliance with clandestine transnational actors for mutual gain.
This allowed him to command loyalty by providing preferential access to the rich