Monday, December 2, 2013

Why economic sanctions usually don't work

“There is a group of nouveaux riches who found wealth in the sanctions,” said Saeed Laylaz, an economist with close ties to the Rouhani government [in Iran]. For years, the new Porsches, Maseratis and Ferraris snaking their way through the narrow alleys of upscale North Tehran were among the most visible effects of the sanctions.

The drivers of these luxury cars, mostly young men in their 20s, are commonly referred to here as “aghazadehs,” the children of those with connections to power.
--Thomas Erdbrink, NYT, on the wrong people benefiting from sanctions