International sanctions and economic immunity

16/9/2018 12:00 am

Dr.. Mustafa Kamel
The economy consists of two aspects, one of which is aggregate demand and the other is the total supply.
And that total demand is the desire of individuals and institutions to acquire various goods and services, but provided that the total supply is specific, that is to become goods and services desired by individuals and institutions visible, tangible and negotiable must be produced by the productive apparatus contained therein
Economy.
The economic immunity is the ability of the local production system to satisfy the demand of individuals and institutions of goods and services over time, so be keen to provide raw materials for its productive activities locally as
Possible.
Thus, the productive apparatus is flexible and otherwise inflexible, ie, the economic resilience lies in the degree of flexibility that characterizes the local productive apparatus. Where goods and services can not be produced locally, the policy maker must provide the alternative, which is often through
Import.
Thus, the overall supply is a simple form of production and import of goods and services. The more productive the production is, the greater the degree of economic immunity, ie, the economy is strong, solid and cohesive and can absorb shocks and problems.
And constraints.
The lower the level of production, the lower the level of economic immunity, ie, the economy is weak, fragile and vulnerable to shocks and problems. Thus, the flexibility of the productive system becomes the most important factor in assessing the world's economies in terms of its ability to cope with the growing demand over time. Population growth, degree of development, publicity and publicity, degree of economic openness, etc. That is, it is not linked to the overall objective supply factors associated with the formation of institutions and the abundance of raw materials and the type of regional and international partnerships
Economy.
When the international community decides to impose economic sanctions, economic sanctions or economic war on an economy, it carefully examines the degree of immunity enjoyed by that economy to deal with such sanctions, that is, the degree of flexibility of the productive apparatus, with the greatest possible paralysis and incapacity to effect
Required.
In other words, it does not impose economic sanctions on aggregate demand but on the overall supply through cutting off external supplies and narrowing the potential of the economy while betting on the total demand side (increasing by population increase) to complete the desired impact of economic destruction. Output has become crippled by sanctions. Imports should be stimulated to compensate for the shortfall in overall domestic supply, which creates the problem of currency depletion
Hard.
Which would reduce economic immunity more quickly. If an economic blockade is imposed and the economy is isolated from the world, the total demand machine will boil to gradually stimulate the signs of inflationary pressures, which will negatively affect the local currency, economy and society after a period of time.
The international community currently imposed sanctions on Iran and Turkey and in the past on Iraq, but the productive apparatus of Iran and Turkey are flexible, while the Iraqi production system was weak and limited flexibility
relatively.
At a time when Iran's productive apparatus is self-sufficient, its resistance to international shocks and sanctions and its ability to satisfy Iran's overall demand
, The Turkish production system is very flexible and the Turkish economy enjoys a high quality network of regional and international relations.
Despite the initial impact of sanctions on these two economies, which is the high prices, but the great economic immunity allows the necessary adjustment to restore the conditions to serve the economy and recovery from
new.
Assuming that in the short term these sanctions are in line with the direction of adjustment, the long-term impact of those sanctions on these economies will fade.
This is unlike what happened in Iraq, where the international sanctions and the siege of the Iraqi economy have been destroyed and left their impact to the present time, and the reason is the difference in the degree of economic immunity among the economies of the world.


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