Karen_A._Mingst,_Ivan_M._Arregu_n-Toft]_Essentia

The Exercise of State Power 157

InSTrumEnTS of

EconomIc STaTEcrafT

Positive Engagement

The Ac TiviTy exAmple

Give the target state the same

trading privileges given to your best

trading partner (most- favored- nation

[MFN] status) as incentive for policy

change.

The United States granted MFN

status to China, in spite of that

country’s poor human rights rec ord.

Allow sensitive trade with target

state, including militarily useful

equipment.

France and Germany export

equipment to Iran, even though Iran’s

government is hostile to the West.

Give corporations investment

guarantees or tax breaks as

incentives to invest in target state.

The United States offered insurance

to U.S. companies willing to invest in

post- apartheid South Africa.

Allow importation of target state’s

products into your country at best

tariff rates.

Industrialized states allow imports

from developing countries at lower

tariff rates.

negative Sanctions

The S AncTion exAmple

Freeze target state’s assets.

The United States froze Ira nian

assets during 1979 hostage crisis;

Libyan assets, 2011 to pres ent; Islamic

State and al- Nusra Front assets, 2014

to pres ent.

Arms embargo. 2006 to presSudan (militias), 2004 to pres ent; North Korea, 2006.ent; I^ ran,

Export or import limits of selected

technology and products.

Liberia (diamonds), 2001–2007; Côte

d’Ivoire (diamonds), 2004–2014;

Somalia (charcoal), 2012 to pres ent.

Comprehensive sanctions. Iraq, 1990–2003; Yugo1992–1995.^ slavia,

TablE 5.1