Select Committee on Economic Affairs Second Report


APPENDIX 3: CALL FOR EVIDENCE

The Economic Affairs Committee has decided to conduct an inquiry into 'The Impact of Economic Sanctions'.

Evidence is invited by 30 September 2006. The Committee will welcome written submissions on any or all of the issues set out below.

Economic sanctions are a traditional tool of foreign policy, typically applied in circumstances in which political pressure or military action are judged as likely to be ineffective or inappropriate as means of achieving specified objectives. Economic sanctions can take the form of unilateral or multilateral sanctions, with or without United Nations agreement, and they can be applied in a general or a targeted manner, against trade flows, specific commodities or financial transactions. In recent years in particular, sanctions have focussed on measures designed to target particular individuals or groups, via restrictions on specific sets of transactions and the freezing of foreign assets.

Economic sanctions are currently applied by the UK against a number of individuals and organisations and recent political debate in Europe and the United States has highlighted the possibility that there may be calls for sanctions against other countries or groups. Against this background, the Economic Affairs Committee has decided to undertake an inquiry into the nature and impact of economic sanctions.

The Committee will inquire into the impact of previously applied sanctions and the extent to which they can be regarded as having achieved their stated purpose. In this context, the Committee intends to gather evidence about the impact and effectiveness of both general and targeted sanctions, including financial sanctions as well as trade and specific commodity sanctions. The Committee also intends to examine current Government policy towards sanctions, with a view to determining whether it is coherent and soundly based on available evidence. The inquiry will seek answers to questions of the following kind.

1. What is the purpose of economic sanctions? Are they usually intended to effect regime change, policy changes by an existing regime, or to neutralise the threat posed by an existing regime, group or individual? Have the objectives of economic sanctions in the past been clearly stated?

2. What does the evidence suggest about the impact of previously applied trade sanctions? How did they affect the sanctioned economy? Did they mainly impact on the poorer or the richer groups? How did they affect the country or countries imposing the sanctions?

3. Is there any role for general economic sanctions in today's environment, or should sanctions normally be imposed in a targeted manner, against specific individuals or groups?

4. How effective are financial sanctions? Should they be used on their own or do they need to be used in conjunction with other measures?

5. What are the problems connected with the use of targeted economic and financial sanctions? Is there any evidence to suggest that they generate adverse consequences for individuals or businesses that were not intended to be targets? How important are such problems?

6. Does the evidence point to circumstances in which sanctions are most likely to be effective? What does the evidence suggest about the impact of unilateral sanctions?

7. Is there any evidence to suggest that targeted sanctions help to minimise any adverse humanitarian impact on the civil population?

8. In so far as sanctions affect the civilian population rather than the regime, does this typically put pressure on the regime to change or does it tend to increase support for the regime?

9. Is there any evidence to suggest that economic or financial sanctions have been successful in achieving their stated objective? If they don't achieve their objective, what should be the next step? Is this something which is normally considered when sanctions are formulated?

10. Does the British Government have a coherent policy with respect to economic and financial sanctions? Does it engage in a thorough analysis of the issues, including the likely economic impact, before deciding whether to promote or support sanctions in any particular case? What are the procedures used to review or revise current policy?



 
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