Stars, Stripes, & Sanctions: Understanding the Evolution of U.S. Economic Sanctions & Learning in Foreign Policy

Abstract

This thesis investigates the evolution of U.S. economic sanctions from comprehensive trade sanctions to targeted financial sanctions. Employing a qualitative and quantitative approach, this work suggests that three factors have contributed to this evolution: 1) a transition to directly target regime elites and avoid humanitarian crises, 2) the increasingly globalized financial system and the United States’ considerable systemic influence, and 3) the ease and rate of implementation of smart financial sanctions, and the high costs of evading them. Additionally, case studies on Russia and China are provided to demonstrate how the United States sanctions strategy has evolved to include the use of targeted financial sanctions. However, the development of this tool does not mean that it will be used instead of broad trade sanctions. It is often used in conjunction with other foreign policy tools, taking on a supplemental role. Finally, prior literature on foreign policy learning is applied to the case studies to examine how the U.S. has learned from previous personal and observed foreign policy situations. This study contributes to understanding how U.S. sanctions have evolved from broad trade sanctions to smart financial sanctions based on decision-makers’ prior experiences and their critical role in foreign policy despite their debated effectiveness.