The Impact of Economic Sanctions on the Least Developed Countries (Comparative Case Studies of the DRС and Somalia)

Abstract

Least Developed Countries (LDCs) is an official term applied within the United Nations to the countries with low living standards, weak economies, where people and resources are highly exposed to the vulnerability criterion of natural shocks. The African continent has the largest number of such states (33). Simultaneously, various sanctions are in force or imposed on a number of this category of African countries, both by the UN and states individually. This article examines in detail two country cases of applying international sanctions against least developed African countries: the DRC and Somalia. The analysis of the economic dynamics of these countries (as well as the CAR and Mali that are also LDCs and are subject to sanctions regimes) led to the conclusion that the effectiveness of sanctions imposed against these countries and targeted sanctions against members of their political elites is low. The negative effects associated with the implementation of the sanctions policy against these states are manifested mostly by a decrease in the volume of exports and a decrease in FDI inflows.