he United States is mixed, but tends to be discouragingly ineffective. A study of more than 100 instances when economic sanctions were applied for political purposes, economic sanctions worked to some extent about one-third of the time (Haass 1997). This ineffectiveness is a serious concern in a globaleconomy where foreign competitors will gladly fillthe void left by American companies, and lendssupport to those who argue that sanctions orboycotts should only be employed for issues ofglobal security, and then only when there ismultilateral support. Holders of this view believethat foreign policy concerns are more effectively conveyed through “constructive engagement”continuing commercial ties that help developing countries progress economically (with the expectation of eventual political liberalization). Deeper economic ties, in turn also lend more weight to diplomatic pressure. In the case of the Three Gorges, American expertise could help ensure that the project is built safely and in a manner less damaging to the environment. On the other hand, imposing sanctions or implementing a boycott are sometimes the most unambiguous signals of disapproval that the U.S. government can convey to protest another country’s policies. Though it may be true that greater involvement by American firms may help mitigate some of the risks raised by the construction of the Three Gorges Dam, the more important issue is preventing similarly environmentally suspect projects in the future. This is a very real concern given plans for other megadams in the region such as Laos’ Nam Theun 2 Dam on the Mekong River. Weighing the economic costs of unilateral action against the implications of not registering the government’s reservations about the project, taking a stand against the Three Gorges Dam was a justifiable policy action. The extension of export credits would have set a precedent of the U.S. government assisting domestic ...
