US Economic Sanctions and Their Key Role in Shaping Washington's Foreign Policy — Case Study: Iraq from 1990 to 2000

Abstract

Monetary and financial restrictions are among the most important tools used by the United States in implementing its foreign policy, where they are employed as a means of pressure on states considered to oppose its interests or threaten its national security. These measures include economic, trade, and banking restrictions aimed at influencing the behavior of targeted states and directing their policies without resorting to military force. Iraq is one of the most prominent examples of countries subjected to comprehensive sanctions and financial restrictions, particularly after its invasion of Kuwait in 1990. Strict measures were imposed on it with international support, which had profound economic and social consequences. Historically, financial restrictions gained increasing importance after World War II as an effective instrument in managing international relations, often becoming more influential than traditional foreign policy tools. International experience has shown that economic power has become a decisive factor in shaping the balance of power among states, alongside military and political power. These tools have also evolved to become part of the international system, sometimes implemented through international institutions such as the United Nations and the UN Security Council, which authorizes non-military measures. However, the United States has increasingly relied on them in its foreign policy as a less costly alternative to military intervention and a more effective means of exerting pressure to achieve strategic objectives. In the post–Cold War era, particularly during the 1990s, financial restrictions emerged as a key instrument in American foreign policy, reflecting the growing importance of the economic dimension in international relations, where economic weakness has become a direct indicator of the decline of states’ political and military influence.