Introduction

Economic sanctions are important instruments of public policy which have attracted much controversy in recent years because of their growing use and the significant economic and social costs they impose on target states, non-state actors and third parties. They have become integral features of many states’ regulatory systems and can take the form of trade embargoes, export controls, and restrictions on financing, investment and state aid. The experience of the United Nations sanctions programme against Iraq in the 1990s, however, demonstrated that broad-based economic sanctions can impose severe social costs on civilian populations while not necessarily achieving their objectives. Consequently, the sanctions programmes of the UN Security Council and many states have evolved to rely more on targeted sanctions (so-called ‘smart sanctions’) that consist of export controls on strategic goods and services, travel restrictions for designated individuals, and financial asset blocking orders. Since 11th September, 2001, the leading G10 developed countries, led by the United States, are increasingly using targeted economic sanctions against certain states, international terrorist organisations, and drug traffickers.