Agricultural development in selected countries under sanctions
https://doi.org/10.26897/0021-342X-2024-1-121-139
Abstract
The world is increasingly using sanctions to achieve the economic and political goals of their initiators. They tend to target key sectors of the economy, including trade and finance. Sanctions are also applied to individuals and companies. At the same time, agriculture and food security are formally exempted from restrictions on humanitarian grounds, but are still negatively affected because they are an integral part of the economy. In many countries, the effects of sanctions are compounded by other factors of internal instability, such as military conflicts, natural disasters, and mismanagement. This article analyzes the dynamics of agricultural production, the use of production inputs and some indicators of food security in five countries under sanctions pressure (Iran, Syria, Venezuela, Cuba, and the Democratic People’s Republic of Korea). The aim is to analyze the development of the agricultural sector in these countries under sanctions. It is found that sanctions are a severe blow to the economy, including agriculture, but do not affect regime change, which is the ultimate goal of their initiators. The impact of sanctions is amplified in the case of secondary sanctions and the creation of a broad coalition. Moreover, the simultaneous application of financial and trade sanctions has a more pronounced negative effect. In addition to internal instability, sanctions significantly raise the composite Global Hunger Index, increasing the level of undernourishment in a country and negatively affecting the availability and stability of food supplies, while also increasing import dependence and food prices. In all the countries analyzed, the combination of constraints has led to a decline in agricultural productivity and access to resources, which has reduced agricultural production. At the same time, the industry is demonstrating its ability to adapt to prevailing conditions.
About the Authors
E. А. GataulinaRussian Federation
Ekaterina A. Gataulina, Leading Research Associate, CSc (Econ)
84 Vernadskiy Ave., Bldg 1, Moscow, 119571
phone: (499) 956-95-51
A. А. Potapova
Russian Federation
Aleksandra A. Potapova, Research Associate
84 Vernadskiy Ave., Bldg 1, Moscow, 119571
phone: (499) 956-95-51
References
1. Egupets A. Forty years of sanctions: how Iran survives the economic blockade of the West. Kommersant. (In Russ.) URL: https://www.kommersant.ru/doc/5269023?from=glavnoe_3
2. The EU facesthe challenge of the migration crisis. Positions of European countries. Ad. by N.K. Arbatova, A.M. Kokeev. Moscow, Russia: IMEMO RAN, 2016:52. (In Russ.)
3. Cuba has begun a reform. Buena Latina. (In Russ.) URL: http://www.buenolatina.ru/news.php?id=530
4. Oil Curse. The United States has deprived Venezuela of income from the largest oil reserves in the world. How does a country survive under sanctions? Lenta.ru. (In Russ.) URL: https://lenta.ru/articles/2022/06/24/venezuela/
5. Timofeev I.N., Morozov V.A., Timofeeva Yu.S. Sanctions policy: goals, strategies, tools: a textbook. 2d ed., rev. and exp. Rossiyskiy sovet po mezhdunarodnym delam (RSMD). Moscow, Russia: NP RSMD, 2020:452. (In Russ.)
6. USA trade and economic embargo caused Cuba $130 billion in damage. TAAC. (In Russ.) URL: https://tass.ru/ekonomika/4622420
7. Addressing food security challenges faced by Near East and North Africa region due to the Ukraine Crisis. FAO. Cairo, 2022:40.
8. Afesorgbor S.K. The impact of economic sanctions on international trade: how do threatened sanctions compared with imposed sanctions. European Journal of Political Economy. 2019;56:11–26.
9. Afesorgbor S.K., Mahadevan R. The impact of economic sanctions on income inequality of target states. World Development. 2016;83:1–11.
10. An analysis of the food security situation in Venezuela. USDA. URL: https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=An%20Analysis%20of%20the%20Food%20Security%20Situation%20in%20Venezuela_Caracas_Venezuela_VE2022–0026.pdf
11. Anderson K. Agricultural Trade, Policy Reforms, and Global Food Security. Palgrave Macmillan New York, 2016:270.
12. Atlas of Complexity. The president and fellows of Harvard College URL: https://atlas.cid.harvard.edu/explore?country=96&queryLevel=location&product=undefined &year=2020&productClass=HS&target=Product&partner=undefined&startYear=undefined
13. Boukherouaa B., Shabsigh G., AlAjmi K., Deodoro J., Farias A. at al. Powering the digital economy: opportunities and risks of artificial intelligence in finance. International Monetary Fund, Departmental Papers. 2021:34.
14. Dithmer J., Abdulai A. Does trade openness contribute to food security? A dynamic panel analysis. Food Policy. 2017;69:218–230.
15. FAO/WFP crop and food security assessment mission to the Syrian Arab Republic. FAO. URL: https://www.fao.org/3/aq113e/aq113e.pdf
16. Farahmand Z., Zeraatkish S. The effect of economic sanctions on the volume of trade in the agriculture sector of Iran and business partners in the European Union. Economic Journal of Emerging Markets. 2019;11(1):97–103.
17. Global Hunger Index Scores by 2022 GHI Rank. URL: https://www.globalhungerindex.org/ranking.html
18. González-Corzo M.A., Nova González, A.U.S. Agricultural exports to Cuba: composition, trends, and prospects for the future. Choices. 2013;28(4):1–6.
19. Grain and feed annual report. April 2023. USDA. URL: https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Grain%20and%20Feed%20Annual_Dubai_United%20Arab%20Emirates_TC2023–0003.pdf
20. Hejazi J, Emamgholipour S. The effects of the re-imposition of US sanctions on food security in Iran. Int J Health Policy Manag. 2022;11(5):651–657.
21. Hufbauer G.C., Schott J.J., Elliott K.A., Oegg B. 2007. Economic Sanctions Reconsidered (3rd ed.). Washington, DC: Peterson Institute for International Economics, 2009:248. 22. Iran’s economic update. The World Bank, 2022. URL: https://thedocs.worldbank.org/en/doc/810065c29954527b3ae9f2b2586188bb0280012022/original/mpo-sm22-iran-irn-kcm3.pdf
22. Kanfash M. Sanctions and food insecurity in Syria. The World Peace Foundation. URL: https://sites.tufts.edu/reinventingpeace/2022/07/06/sanctions-and-food-insecurityin-syria/
23. Khaledi K.,Ardestani M.The impact of sanctions on economic growth of Iran’s agricultural sector. Agricultural Economics and Development. 2022;29(4):251–284.
24. Mulder N. The impact of the COVID 19 pandemic on the tourism sector in Latin America and the Caribbean, and options for a sustainable and resilient recovery. International Trade Series. 2020;157:46.
25. Neuenkirch M., Neumeier F. The impact of UN and US economic sanctions on GDP growth. European Journal of Political Economy. 2015;40:110–125.
26. Neuenkirch M., Neumeier F. The impact of US sanctions on poverty. Journal of Development Economics. 2016;121:110–119.
27. Noland M. North Korean food insecurity: is famine on the horizon? Analysis from the East-West Center. 2022;154:8. URL: https://www.eastwestcenter.org/sites/default/files/private/api154noland.pdf
28. Pond A. Economic sanctions and demand for protection. Journal of Conflict Resolution. 2017;61(5):1073–1094.
29. Silberstein B.K. Let them eat potatoes: communism, famine and the case of North Korea. North Korean Review. 2021;17(2):34–55.
30. The State of Food Security and Nutrition in the World 2017. Building Resilience for Peace and Food Security. Rome, FAO, 2017:132.
31. The State of Food Security and Nutrition in the World 2022. Repurposing Food and Agricultural Policies to Make Healthy Diets More Affordable. Rome, FAO, 2022:260.
32. Walterskirchen J., Mangott G., Wend C. Sanction dynamics in the cases of North Korea, Iran, and Russia. Objectives, Measures and Effect. Springer Cham, 2022:80.
33. Zandt F.The world’s most-sanctioned countries. Statista. URL: https://www.statista.com/chart/27015/number-of-currently-active-sanctions-by-target-country/
Review
For citations:
Gataulina E.А., Potapova A.А. Agricultural development in selected countries under sanctions. IZVESTIYA OF TIMIRYAZEV AGRICULTURAL ACADEMY. 2024;1(1):121-139. (In Russ.) https://doi.org/10.26897/0021-342X-2024-1-121-139