war & peace
‘economic weapon’. The severance of trade and financial contacts in the First World War had been so traumatic and damaging that many internationalists believed that the threat of economic sanctions alone could eliminate interstate conflict. Unfortunately, the League’s deterrent had problems. The absence of the United States and (for most of the period) the Soviet Union – both major commodity exporters – from the League undermined the legitimacy and effectiveness of its ‘economic weapon’. Worse, the new legal power to apply economic coercion outside of conflict was destabilising, creating what one contemporary perceptively termed a condition of ‘peacewar’.
Even so, economic sanctions were important in maintaining European peace during the 1920s. Threats of blockade successfully halted a Yugoslav incursion into Albania in 1921 and terminated a border war between Greece and Bulgaria in 1925. Feminists criticised the ‘economic weapon’, recognising that its victims were disproportionately the poorer classes, particularly women and children, but internationalists in the League felt vindicated. They even tried, in the abortive Geneva Protocol of 1924, to strengthen sanctions, proposing automatic implementation wherever the League’s Council saw aggression. Further evidence of sanctions’ potential to restrain weaker, import-dependent states came in 1940, when a deliberate slowdown of US oil supplies kept Spain from joining the Second World War.
Worryingly for the West’s current confrontation with Russia, from the very start sanctions proved difficult to agree on and less effective against larger, more powerful states. Mulder details how the major test came in 1935 against Europe’s fascist regimes. In response to Nazi Germany’s reintroduction of conscription (a contravention of the Versailles Treaty), France and the Soviet Union planned what would have been tough and, for Nazi rearmament, highly damaging restrictions on mineral imports. Thanks largely to British pusillanimity, however, these sanctions were never imposed. In contrast, the League of Nations did declare Italy an aggressor and activated Article 16
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Available in hardback from Yale University Press after Mussolini invaded Ethiopia. Yet the leading powers of the League shrank from imposing the most disruptive measures – an oil embargo or the closure of the Suez Canal to Italian shipping – and the sanctions that were introduced failed to take full effect before Ethiopian resistance collapsed.
Most disturbingly, Mulder warns that sanctions, or even just the expectation of sanctions, instead of maintaining peace can escalate conflict. Nazi Germany’s leaders were obsessed with the threat of blockade, and this encouraged them to seek autarky by way of expansion by force. Yet violence and Versailles Treaty revisionism were central to Nazi ideology, so the threat of sanctions may still have served a purpose in prompting the Nazis to launch a war that was in any case inevitable before they were fully prepared. The role of the ‘economic weapon’ in propelling Japan into the Second World War is clearer. US and European sanctions designed to choke oil and metal imports so hamstrung Japan’s military-industrial complex that Japanese hardliners were persuaded in December 1941 to launch a war they knew they could not win.
What insights does Mulder’s excellent historical study offer for the current crisis? First, as early 20th-century internationalists discovered, the ‘economic weapon’ is no panacea. Determined regimes may still act against their own material self-interest in single-minded pursuit of political, military and ideological goals. Sanctioninduced hardship often fails to bring democratic regime change, an ambition scarcely known in interwar Europe but which since 1945 has been a prominent justification for sanctions. Nonetheless, the West has acted well. Today, US and European cooperation against Russian aggression contrasts with the disunity among non-fascist states in the 1930s. Sharp financial sanctions introduced quickly – such as those imposed on Putin’s regime (though more should still be done, especially against Russia’s energy exports) – have the best chance of success. A lesson of the Second World War, that economic and military assistance must flow to the victimised state, has been absorbed. Today’s sanctions, backing Ukraine’s resistance, may yet stifle Putin’s bloody challenge to democracy and a rules-based international order.
Literary Review | april 2022 8