When do problem states give in?
“We finally need smart sanctions”
12/02/2022 6:44 p.m
Can problem states be persuaded to give in with economic sanctions? The star lawyer and trade expert Anahita Thoms says in the podcast “The hour zero”: Yes – if the West uses the right means.
The question divides the experts: what effect do economic sanctions have – and do they end up harming the originator more than the sanctioned country? This year, the debate is even more heated than usual because two countries are in the center of attention that are being put under economic pressure by the West: Russia, which is waging a war against Ukraine, and Iran, in which the mullahs’ regime attempted to brutally crush the uprising of the civilian population.
Anahita Thoms, trade expert at the renowned law firm Baker McKenzie, explains in the podcast “The Zero Hour” why “smart sanctions” are needed in these cases. “Economic sanctions are all the more successful the more individual and concrete they are,” says Thoms, whose family is from Iran itself. “They have to be multilateral. The more states that go along, the stronger the impact.” At the same time, care must be taken to ensure that it is not the civilian population but the elites who experience restrictions.
From Thoms’ point of view, the concept of “change through trade”, which was promoted in Germany by various federal governments, is not outdated, despite the current crisis and the Russian attack on Ukraine. “Change through trade is not dead,” she says. “But to believe that the Western democratic model will be exported and adopted all over the world – that has always been naïve.”
Thoms describes in detail the mistakes companies make in crisis situations and why some products in global trade simply cannot be replaced. “Globalization is not a thing of the past,” she says. “But we need to make our supply chains more resilient.”
Listen in the new episode of “Zero Hour”:
- What Anahita Thoms recommends to companies in conflict countries
- Why, despite everything, she is optimistic about Iran
All episodes can be found directly at AudioNow, Apple or Spotify or via Google.