Our guest author is Ali Gharib, a national security reporter at the Center for American Progress.
Yesterday, the Washington Post reported that, amid a debate on impeaching the Iranian finance minister in Iran’s majles, or parliament, Pres. Mahmoud Ahmadinejad admitted that sanctions were having an impact on the ability of Iranians to do financial transactions abroad. Defending his cabinet’s handling of a $2.6 billion banking embezzlement scandal, Ahmadinejad mentioned the constraints on Iranian business. The Post’s Thomas Erdbrink reported:
“Our banks cannot make international transactions anymore,” the embattled president said in a speech before parliament to defend his minister of economic affairs and finance against impeachment charges related to the scandal.
The frank admission from Ahmadinejad is likely to be heard any number of ways in Washington, depending on who’s doing the listening. For Iran hawks, who have insisted that sanctions aren’t working (and yet call for more), the news from Ahmadinejad might be a thorn in their side. For those who say some sanctions are misguided and more engagement is necessary to resolve the crisis between Iran and the West, this news could also be viewed as a set-back.
But neither view is entirely right. The issue at hand is the common conflation of larger, broad economic sanctions and those targeted at particular Iranian behavior or activity. Ahmadinejad’s statements yesterday weren’t about either nuclear sanctions or human rights sanctions (which have been effective and remain the morally right thing to do, respectively). Instead, the embattled president was referring to the economic sanctions which have cut off Iran’s financial institutions from the rest of the world. But the intended effect of this particular sort of isolation is not quite what its proponents probably intended. Indeed, if the current full-court press for more sanctions is any indication, Iran’s economic isolation backfired today.
Economic sanctions are, as now-Secretary of Defense and then-CIA director Leon Panetta said in 2010, supposed to "help weaken the regime." But that’s not what happened Thursday in Tehran. Ahmadinejad instead appealed to the duress placed on Iran by Western sanctions precisely to avoid the prospect of his cabinet falling apart because of the embezzlement scandal (which was unrelated to sanctions and seems not to have even touched the regime itself, meaning the office of the Supreme Leader). According to the Wall Street Journal, Ahmadinejad told the majles: "Iran is facing unprecedented pressures from international sanctions and the finance minister has a pivotal role in managing this situation."
From there, Erdbrink reported in the Post that it was this pressure on Iran that led powerful Ahmadinejad rival and majles speaker Ali Larijani to defend the government and bless the continued service of the finance minister:
The minister, Shamseddin Hosseini, was spared impeachment when a leading Ahmadinejad opponent, parliamentary speaker Ali Larijani, came to the government’s defense and urged the lawmakers to keep Hosseini in the cabinet — with a warning — on grounds that Iran already faces too many problems. The parliament then voted 141 to 93 against impeaching Hosseini…. Larijani, the influential speaker of parliament and former nuclear negotiator, pleaded with the lawmakers to forgo impeaching Hosseini, arguing that the embezzlement case affected the entire political system and that a more thorough investigation was needed. He also pointed to the increasing pressure on Iran. “We are not in a condition to increase the cost of running the country,” Larijani told parliament. “You have showed a yellow card to the minister, and that is enough for now.”
Still, Washington’s hawks will almost certainly press on. Sen. Mark Kirk (R-IL) has said he intends to push sanctions on Iran’s central bank mindful of the fact that it could hurt ordinary Iranians — or, as he put it, "take the food out of the mouths" of ordinary Iranians. It apparently doesn’t much matter that these broad economic sanctions, in this case, also helped the government paper over its problems, at least for the time being.