Napoleon Bonaparte's blockade of Britain in the 19th century backfired when London forged a trade relationship with the US. Getty Images
Napoleon Bonaparte's blockade of Britain in the 19th century backfired when London forged a trade relationship with the US. Getty Images
Napoleon Bonaparte's blockade of Britain in the 19th century backfired when London forged a trade relationship with the US. Getty Images
Napoleon Bonaparte's blockade of Britain in the 19th century backfired when London forged a trade relationship with the US. Getty Images


Lessons from Napoleon on how economic warfare can seriously backfire


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September 11, 2025

French Emperor Napoleon Bonaparte famously blockaded the British during the early 19th century in an attempt to economically coerce France’s erstwhile adversary. Ultimately, his efforts backfired, contributing to his eventual capitulation in 1815. Today, in 2025, leaders looking to use economic isolation against geopolitical rivals would do well to heed the lessons offered by Napoleon’s failed foray.

In 1806, as part of his multi-front war with Great Britain, Napoleon launched the “Continental System”, whereby European countries were banned from trading with Britain. The island state’s rapid population growth during the Industrial Revolution had raised its demand for food, while technological advancement meant that agriculture now competed with manufacturing for land use.

As a result, Britain was more dependent than ever on food imports – and hence more susceptible to the pain caused by a disruption to those supply chains. Moreover, the continent was a critical outlet for British manufactured goods, which in turn financed the all-conquering British navy. For the French emperor, this presented an opportunity to coerce the British without the logistical challenges of an amphibious assault.

On the surface, it is easy to see why this approach was so appealing to Napoleon. No country that depends as heavily as the British did on international trade can resist a blockade indefinitely. Moreover, having recently expanded his empire with devastating speed, Napolean imagined that getting European businesses and citizens to comply with the embargo required no more than issuing the order. An added feature of the Continental System is that it nominally reduced the need for military confrontation, with Britain’s pocket being deemed weaker than its sword.

In the increasingly quasi-lawless international relations of the 21st century, many of these expectations are shared by leaders looking to coerce rival countries through economic pressure, and to avoid the need to deploy expensive military hardware in an uncertain and rapidly evolving battlefield. However, like Napoleon, they, too, are finding out that the use of extreme trade barriers does not always yield the desired results.

More specifically, one of the key weaknesses in Napoleon’s approach was his overestimation of the ease of enforcing the embargo. Allies and vassal states did not take kindly to being ordered to cease trade with the British since they had fundamentally different interests to those of the fast-expanding French nation.

That created fertile ground for smuggling, forcing Napoleon to redirect valuable military resources away from the battlefields towards the mundane and vexing task of enforcing an embargo. Moreover, even when his efforts were successful in limiting trade with Great Britain, the result was significant economic pain – in the form of acute key commodity shortages – in the countries being forced to toe the line.

On the surface, it is easy to see why this approach was so appealing to Napoleon

Napoleon also underestimated Britain’s resourcefulness in developing alternative trade partnerships. Across the Atlantic Ocean, then-US president Thomas Jefferson – fed up with impressment and piracy by British and French-aligned navies – initially imposed a comprehensive embargo on Europe.

However, he eventually relented due to the adverse consequences on the US economy, inadvertently providing the British with a valuable lifeline. Put short, Britain remained resilient, while France weakened its own allies and provoked resentment among its coalition.

In 2025, the odds are arguably even more in favour of the country being targeted with economic isolation. The unipolar world of the 1990s is dead, and in its stead has emerged a multipolar configuration where no country wields sufficient influence to economically cripple a sizable adversary.

Too many other countries correctly perceive the profitability of helping the targeted country out through the maintenance of trade relations, and regard undermining the blockading state as either an acceptable cost of doing business or even a welcome act of defiance.

A further complication is that supply chains are now much more integrated and complex than at any other time in history. This amplifies the risk of an embargo having a counterproductive effect on the imposing country, while also accentuating the fallout among friends and foes alike as they reel from the instability.

Moreover, while Napoleon’s navy had the option of explicit military coercion aided by an acute asymmetry in combat capabilities, in today’s world of airborne and seaborne drones, a blockading ship that costs hundreds of millions of dollars can be impaired or even sunk at the cost of a few thousand dollars.

The above, however, does not imply that economic coercion is useless. Instead, it affirms the importance of embedding it in a credible, multilateral economic strategy that involves both carrots and sticks for participating nations. A well-structured plan that has buy-in from a large international coalition can still be effective, whereas banging one’s fist on the table and demanding compliance is unlikely to work.

Napoleon thought he could starve Britain into submission, but it was his own empire that went hungry. Policymakers today should take note before setting another blockade that backfires.

yallacompare profile

Date of launch: 2014

Founder: Jon Richards, founder and chief executive; Samer Chebab, co-founder and chief operating officer, and Jonathan Rawlings, co-founder and chief financial officer

Based: Media City, Dubai 

Sector: Financial services

Size: 120 employees

Investors: 2014: $500,000 in a seed round led by Mulverhill Associates; 2015: $3m in Series A funding led by STC Ventures (managed by Iris Capital), Wamda and Dubai Silicon Oasis Authority; 2019: $8m in Series B funding with the same investors as Series A along with Precinct Partners, Saned and Argo Ventures (the VC arm of multinational insurer Argo Group)

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Wednesday (Kick-offs UAE)

FC Copenhagen (0) v Istanbul Basaksehir (1) 8.55pm

Shakhtar Donetsk (2) v Wolfsburg (1) 8.55pm

Inter Milan v Getafe (one leg only) 11pm

Manchester United (5) v LASK (0) 11pm 

Thursday

Bayer Leverkusen (3) v Rangers (1) 8.55pm

Sevilla v Roma  (one leg only)  8.55pm

FC Basel (3) v Eintracht Frankfurt (0) 11pm 

Wolves (1) Olympiakos (1) 11pm 

The stats

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Ship class: Meraviglia Class

Delivery date: February 27, 2019

Gross tonnage: 171,598 GT

Passenger capacity: 5,686

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Length: 315.3 metres

Maximum speed: 22.7 knots (42kph)

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Heather, the Totality
Matthew Weiner,
Canongate 

Name: Peter Dicce

Title: Assistant dean of students and director of athletics

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Favourite team: Bayern Munich

Favourite player: Franz Beckenbauer

Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates 

 

Like a Fading Shadow

Antonio Muñoz Molina

Translated from the Spanish by Camilo A. Ramirez

Tuskar Rock Press (pp. 310)

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Remaining Fixtures

Wednesday: West Indies v Scotland
Thursday: UAE v Zimbabwe
Friday: Afghanistan v Ireland
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Temple numbers

Expected completion: 2022

Height: 24 meters

Ground floor banquet hall: 370 square metres to accommodate about 750 people

Ground floor multipurpose hall: 92 square metres for up to 200 people

First floor main Prayer Hall: 465 square metres to hold 1,500 people at a time

First floor terrace areas: 2,30 square metres  

Temple will be spread over 6,900 square metres

Structure includes two basements, ground and first floor 

Updated: September 25, 2025, 9:05 AM