You are here

Abuse of economic power

Aug 07,2018 - Last updated at Aug 07,2018

The US is using its sanctions regime as a powerful whip against countries which it views as hostile.

President Donald Trump has used this weapon against Iran with considerable success by forcing the effective devaluation of its currency and bringing the country to its knees. Several Iranian cities have witnessed lately demonstrations against the dire economic conditions in the country. Tehran has since signalled that it wants to talk with Washington about its differences with it on several fronts. Iran is no longer defiant as it once was.

A similar threat hangs ominously over Turkey for the arrest of a US pastor and other major policy differences, with the mere thought of applying US sanctions against Ankara has caused the Turkish lira to drop to unprecedented low levels. The Turkish economy is undermined already and risks losing steam.

Of course, Washington applied its sanctions weapon against Russia, causing it to think twice before escalating the tension between the two countries. The US also used such an economic and fiscal tool against other nations across the globe with considerable success, including North Korea, Syria and even China.

Imposing higher tariffs by the US against EU nations, Canada and Mexico is causing uproar in these countries and forcing them to reciprocate the punitive US tariffs by imposing their own on US exports.

What all of this means is that mighty nations need not use guns anymore to fight their enemies. In a world dominated by economic and fiscal considerations, all that giant nations need to do is making economic and fiscal threats against unfriendly nations to prosecute certain policies.

The overriding policy issue for the international community is whether to allow the use of economic or fiscal threats as lawful and, therefore, tolerated. With all fairness it should not. The US and its various specialised agencies must get their act together and adopt a position against such an abuse of economic and fiscal power. A special resolution to that effect is therefore much needed.

up
24 users have voted.

Comments

Paul M: Iran has not desecrated Iran, Libya, arguably Syria and many other parts of the work for corporate profits. It is not profiting from weapons sales and geopolitical control.

In my opinion abuse of power is coming from the US more than anywhere else.
When 21 trillion as able to disappear from the Department of Defense, at various times 6 trillion from the Federal Reserve, who claimed they "weren't sure which countries it went to) it shows that there is no accountability at all for economic wars.
Uniting the Arabic nations under a single currency backed by oil would disappear any kind of actuality left behind the dollar, and bring back balance to the region.

WHILE I DO AGREE WITH RAFIQ AND COMPLIMENTS THE JORDAN TIMES EDITORIAL, CAN WE ALSO CALL THE ACT OF PUNISHING JORDANIAN WOMEN MARRIED TO NON JORDANIAN MEN THE " ABUSE OF TESTESTORONE POWERS "????????????????????????????

A case of the 'end justifies the means' surely (?) - 'Tehran has since signalled that it wants to talk with Washington about its differences with it on several fronts. Iran is no longer defiant as it once was.'

To quote Mike Pompeo: "Iran a ‘Despotic Theocracy’ Like the Islamic State (sic)"

My compliments to the editors of The Jordan Times to speak up against this abuse of power. Sanctions always hit the wrong people, the 'common folks' in the target country, 'innocent' businesses in otherwise friendly countries. Usually Jordan (and others) do not speak out against its donor nations and when it is done we have to appreciate it even more.

Add new comment

CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
1 + 4 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.

Newsletter

Get top stories and blog posts emailed to you each day.