What is a political or economic punishment against a nation or group called?

it is called reparations. now this is most commonly associated with World War 1 when after the central powers were defeated, and in Germany's case particular, were imposed with war reparations this essentially means that the winning side charges the losing side with the cost of the war. this would be like you breaking someone's arm in a fight but the broke both your legs causing you to lose then after they visit you in the hospital and hand you the bill for fixing there arm. in short it is adding insult to injury to the losing side to convince them not to do it again. (worked out great didn't it...)