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The Industrial Spy Game: FSB as Russian Economic Developer

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Since the fall of the Soviet Union, the Russian Federation (RF) has sought to reclaim its former glory and regain recognition as a great power.

Throughout this progression the national science base to the RF’s economic development is of high importance. This has been demonstrated through policy documents like the RF’s National Security Strategy from 2009. The focus of this analysis is to examine the role of RF intelligence-gathering activities for the purpose of domestic modernization.

The National Security Strategy of the Russian Federation up to 2020 identified five key high-technology sectors: energy, information technology (IT), telecommunications, biomedicine and nuclear technology (RF, 2009). Nanotechnology was also highlighted as an important investment and growth area. In 2010, the RF announced plans that scientific and technological centers would focus on the development and domestic commercialization of modern technologies, motivated in part by the success of America’s Silicon Valley (Medvedev, 2010). There are many ways a nation can bolster a science and technology (S&T) foundation, not just through domestic industry, and each nation tends to use multiple options. A critical way that is not often discussed in mainstream media sources is to procure foreign knowledge and equipment through espionage activities. Russia engages this path aggressively with the likes of the Federal Security Service (FSB).

There is little doubt that the FSB has been active in S&T intelligence collection, concentrating on foreign nations for domestic modernization and improving Russia’s competitiveness in the global economy. The modern era of intelligence-collection capabilities sees the American intelligence community as dominant. Before the modern era (pre-2001), the RF operated one of the world’s largest S&T information-gathering apparatus, which worked almost as a substitute for legitimate industrial domestic research & development (Almquist, 1990). For the RF, intelligence support to the scientific community and its own domestic industrial complex was the standard, not the exception, and in 2010 Russia confirmed that it made no secret of its motivations to gather S&T intelligence for the benefit of its national security interests defined broadly.

The RF intelligence complex, including the FSB, has been obliged by federal law “to assist the country’s economic development and its scientific and technical progress and to ensure the military-technical security of the Russian Federation.” This activity is in line with Article 8 of the Federal Law on the FSB. The collection of S&T intelligence and “industrial espionage practices established a template for Soviet and later Russian [FSB] intelligence gathering that remains in use to this day; as long as U.S. technology maintains its preeminent global position, such espionage will likely continue” (Sibley, 2004). This was validated in 2010 by the American ODNI (Office of the Director of National Intelligence), which stated that the RF “continues to strengthen its intelligence capabilities and directs them against US interests worldwide. Moscow’s intelligence effort includes espionage, technology acquisition and covert action efforts.” (Blair, 2010) Jonathan Evans, the head of the domestic British Security Service (MI5), noted in 2007 that “the scope of the Russian intelligence gathering was equal to the Soviet effort during the Cold War… [and] that Russian intelligence services were particularly interested in British science and technology. (Brogan, 2007)

The RF, and specifically the FSB, has extensively leveraged operational cover from diplomatic missions abroad and the posting of illegal agents in their target countries to approach foreign researchers and entrepreneurs. They would often establish a career in one or several third countries, allowing agents to use academic research institutions or commercial companies as platforms for espionage activities (Kouzminov, 2006). But it has also been observed that the triumphs of human intelligence (HUMINT) operations during the former Soviet era are unlikely to be achieved in the present day RF. In the modern era the primary method for collecting S&T intelligence is through cyber espionage. In 2008, the US noted that more than 1 trillion USD worth of data was lost to cyber espionage (Ackerman, 2009). This fact is further confirmed with the knowledge that the RF is developing advanced offensive cyber capabilities (McAfee, 2009). In addition to cyber espionage, scientific and technological intelligence can be exploited through signals intelligence. This is another area where the RF intelligence services have leveraged the previous Soviet foundation with modern advancements in current technologies.

In conclusion, while the FSB has advanced significantly in S&T intelligence collection since the former Soviet period, “the FSB’s increased influence may prove to be counter-productive in terms of economic modernization and industrial restructuring. Despite its self-confidence, the FSB is scarcely prepared to manage all the industrial complexes with international standing.” (Gomart, 2008) This last point is crucial, as it implies that the gains made covertly through the intelligence community could in fact have an unintended detrimental effect on economic progress and industrial modernization happening more organically with native companies across Russia. This is not the desire effect, of course, but a consequence of the classical dilemma in modern market economies that try to figure out how much governmental intervention is positive before it hits a tipping point and becomes a net negative impact on development. This is not even considering the likely more severe stress this reliance on covert activity has on the entrepreneurial spirit and risk taking that is crucial for any developing economy in the 21st century. The Russian Federation operates no differently than the US intelligence community agencies in that it pursues its own national security interests and aims to improve its domestic standing on the global stage. The issue it should consider, however, is whether or not some old school spy thinking might be a less effective long-term strategy, even if it does produce more immediate results.

 


Bibliography

Russian Federation (RF). (2009). National Security Strategy of the Russian Federation up to 2020. Russian Security Council. Presidential Decree No. 537.

Medvedev, Dmitry. (2010). Dmitry Medvedev met with winners of international school and student Olympics and university students who hold presidential scholarships. The Kremlin, Moscow. http://en.kremlin.ru/events/president/news/7139.

Almquist, Peter. (1990). Red Forge: Soviet Military Industry Since 1965. New York. Columbia University Press.

Russian Federation (RF). (1995). Federal Law on Foreign Intelligence. No. 5-F, Article 5.

Sibley, K. (2004). Red Spies in America: Stolen Secrets and the Dawn of the Cold War. University Press of Kansas.

Blair, D. (2010). US Director of National Intelligence Annual Threat Assessment of the US Intelligence Community for the Senate select Committee on Intelligence. Office of the Director of National Intelligence. Washington, D.C.

Brogan, B. (2007). Soaring Number of Russian and Chinese Spies Diverting MI5 Attention from Terror Fight. Daily Mail. http://www.dailymail.co.uk/news/article-491830/Soaring-number-Russian-Chinese-spies-diverting-MI5-attention-terror-fight.html.

Kouzminov, A. (2006). Biological Espionage: Special Operations of the Soviet and Russian Foreign Intelligence Services in the West. Greenhill Military Paperbacks.

Usdin, S. (2009). The Rosenberg Ring Revealed: Industrial-Scale Conventional and Nuclear Espionage. Journal of Cold War Studies. MIT Press.

Ackerman, R. (2009). Threats Imperil The Entire U.S. Infostructure. SIGNAL: AFCEA. http://www.afcea.org/content/?q=threats-imperil-entire-us-infostructure-0.

McAfee. (2009). Virtual Criminology Report 2009. McAfee, Inc.

Gomart, T. (2008). Russian Civil-Military Relations: Putin’s Legacy. Carnegie Endowment for International Peace. Washington D.C.

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ISIS and the Continuing Threat of Islamist Jihad: The Need for the Centrality of PSYOP

Kimbra L. Fishel

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Defining the Problem

The National Security Strategy of the United States (NSS) calls for direct military action against ISIS in Syria and Iraq, the disruption of terror plots, the destruction of terrorist safe havens and sources of finance, a shared responsibility with allies in confronting the threat and combating radicalization to counter ISIS ideology. The Trump Administration’s NSS accurately identifies the ISIS end goal as creation of the global Islamic caliphate and notes its totalitarian vision. This strategy further acknowledges the threat posed by ISIS will remain after its territorial defeat in Iraq and Syria. While the Trump Administration put forth a series of wide ranging efforts spanning the instruments of power for insurgent warfare, the President is nearing a moment of critical decision regarding US involvement in Syria and Iraq. Early withdrawal risks abandoning the area to a reemergence of the regional caliphate as well as to Iranian and Russian influence. Declaring victory too soon could blind the US to the continued global threat of Islamist jihad. Therefore, US actions must secure the ways and means of meeting the Administration’s end goal – that of destruction of the ISIS threat and overall stability of the region — through a campaign heavily targeted on Islamist ideology and centered upon psychological operations.

This Islamic State evolved out of Al Qaeda in Iraq, a Sunni Islamist terror organization. ISIS represents a politico-religious ideology based on the 7th century Islamic Caliphate that is antithetical to Western values and ideals and opposes all Muslims who do not share its view of Islam. The organization’s infrastructure or Dawa seeks the conversion of non-Muslims and to instill Islamist views in all Muslims. ISIS is a global insurgency promoting subversion from within in which Sharia law replaces political institutions. It utilizes social media to incite global support for operations and mujahideen recruitment. By 2014, at least 60 militant Islamist groups had pledged allegiance to or support for the Islamic State. Since that time, a series of attacks throughout Europe, Southeast Asia, and the United States demonstrated ISIS’s global reach as well as its ability to attract a worldwide flow of recruits. Unlike Al Qaeda, which primarily stressed a global virtual network and the spectacular terror attack, ISIS initially captured and held territory in Iraq and Syria, functioning as a state as well as an Islamist terror network. In June 15, 2014, Operation Inherent Resolve began military intervention against ISIS in Iraq and Syria. In 2018, the regional caliphate in Iraq and Syria is all but destroyed by the United States and coalition partners.

ISIS’s success at establishing its transnational organization came by demonstrating an ability to acquire and hold territory while simultaneously spreading the concept of the global caliphate. It undermined competitors, attracted sympathizers, and grew in regions that were ungovernable by states. These areas include not only Iraq and Syria but also Yemen, regions of Saudi Arabia, Libya, and Nigeria, where Boko Haram pledged allegiance to the Islamic State and renamed itself the Islamic State’s West African Province. In 2016, terrorism specialist Rohan Gunaratna maintained that as ISIS loses territory in Iraq and Syria, it will continue to expand in Africa, the Middle East, the Balkans, and SE Asia and will eventually attempt a spectacular terror act utilizing its foreign fighters. The 2015 Paris attacks demonstrated the ISIS/local nexus and the capability to carry out such an attack.

Similarly, US Director of National Intelligence Dan R Coats maintains with the loss of territory, the ISIS threat in 2018is that the organization will regroup in a long-term insurgency to reestablish itself in the region while giving priority to transnational terror attacks and global interconnection. This threat includes home country attacks carried out by ISIS sympathizers. Since 2016, ISIS has published 13 magazines in languages including English, German, French, and Arabic and released videos promoting jihad. The August 2017 attack in Spain was detailed in the ISIS magazine Rumiyah, which also called for “all-out war” against the West. EUROPOL also recognizes the long-term security challenge from the increased threat of attack in European states as foreign fighters return home or infiltrate states as territory is lost in Iraq and Syria.

Proposed Resolutions

The 2017 NSS highlights a successful ground campaign in Syria and Iraq in which much of the territory captured by ISIS had been retaken and the physical caliphate had been destroyed. According to the former Deputy Assistant to President Trump, Sebastian Gorka, moving from the Obama strategy of attrition to the Trump strategy of annihilation resulted in military success on the ground. This involved the setting of grand strategy and policy at the NSC and DOD levels while leaving theatre operations to the commanders in the fields as well as calling for a Muslim/Arab partnership with the US to meet the ongoing threat. Still, others see the Trump strategy as merely an amplification of the Obama strategy.  Analyst Phillip Lohaus testified before Congress that despite successes certain elements of the Trump strategy remain similar to Obama’s strategy, including special forces direct action missions, airstrikes, and the use of drones. The problem remains that there is still no plan for a post-Islamic State in either Iraq or Syria: if American involvement is reduced too soon the Islamic State could reemerge.

In rightfully focusing on ideology, Ayaan Hirsi Ali argues that Obama’s policy of “countering violent extremism” failed to address the underlying threat that produces the violence. She is correct, as focusing on the tactic ignores the strategical underpinnings inherent in the threat, namely that of radical Islamism. She argues that the Trump Administration took a solid step by identifying the enemy. However, the focus of US strategy must not be exclusively on violence but must go straight to targeting the spread of ideology. Trump’s promise to be a friend to moderate Muslim reformers and to screen those entering the US for radical Islamist ideology is a start, but a full policy must be developed that targets how Islamist ideology is spread. This will require a careful balance between rights and security in a democratic Republic. It will also involve an understanding of the psychology surrounding the Islamist movement and those who seek to join it.

Similarly, in moving beyond the focus on violence, Gunaratna called for a full engagement of a four-dimensional threat composed of the ISIS core in Syria and Iraq, the ISIS branches, the global ISIS infiltration, and ISIS online.In short, ISIS loss of territory does not equate to victory against ISIS due to the ability of the organization to effectively move from one style of conflict to another: from a territorial-based operation to a decentralized global mode of recruitment and attack. It is because of the nature of the threat posed by ISIS that analyst Michael Pregent testified before Congress that from a tactical and operational standpoint what is needed beyond the taking of ISIS territory is for US forces to partner with local Sunni forces that can hold territory while US Special Operations Forces conduct kill and capture operations. Strategically, the US must work toward reconciliation in Iraq and Syria as well as the dismantling of the militia. However, Pregent fears this will not occur due to Russian and Iranian actions in the area. Thus, ISIS activity will remain a recurring problem.

New Recommendations

Countering the Islamic State requires at its center a psychological campaign targeting Iraq and Syria and ISIS threats to the United States and Europe and regions throughout the world.The concern about the creation of a power vacuum by premature withdrawal of US forces is a legitimate issue. President Trump recently indicated the United States would pull out of Syria “soon” and is considering his options, although the recent Syrian chemical attack in Douma will render that prospect moot in the short term. Whether Trump’s statements are part of diplomatic maneuvering to pressure other countries in the region and in Europe to take on more of the burden remains to be seen. However, the United States vacating the area is not a viable option, as the Islamic State will attempt to reestablish the regional caliphate and Iran will likely try to seek a permanent military base in Syria, potentially backed by the Russians. The political integrity of Iraq is necessary to counter Iran and its Shia form of Islamist militancy.

A campaign targeting ISIS infiltration into the United States as well as other host countries is also required. Expect an expansion of regional and global ISIS operations as operatives attempt to infiltrate communities to carry out attacks and inspire home-grown terrorist sympathizers. The non-radical Muslim communities of all countries should be targeted as allies against potential attack from extremist ideology.

Instead of Syrian withdrawal, military operations of seizing and holding territory should continue and a no-fly zone should be established. Operation Inherent Resolve must shift its primary focus to one of psychological operations. The combined Joint Inter Agency Task Force with US military command and operational control over all assets is critical because it allows for organizational control and the mixing of elements from CIA, State Department, and the military. Special operations forces in Syria and Iraq include Special Forces (Delta and Seal Team 6), Psychological Operations, and Civil Affairs units. The Psychological Operations focus will be on countering ISIS propaganda while Civil Affairs engages in national assistance to improve living conditions for the people on the ground so that they are willing to work with Special Forces and are susceptible to PSYOP. In general, there are three groups of Muslims present for target operations: the Islamists loyal to ISIS who must be isolated and destroyed, the Reformers who should be backed by US and coalition partners, and the vast majority of Muslims who are not Islamists and whose “hearts and minds” the coalition seeks to win over.

The Hearts and Minds of the Persuadable

The psychological component within the United States and Europe against ISIS remains the centerpiece of operations utilizing assets across the board. In the US, the department of Homeland Security becomes the lead agency with important agencies such as FBI and ATF working as part of the Joint Terrorism Task Force. As psychological operations are illegal within the US, the focus within the US is on public information. In Europe, the State Department will be the primary player in negotiation with host countries, with the National Security Council managing the effort. CIA is available for clandestine operations as needed. Specifically, in either the US or Europe, group identities will be either undermined or reinforced in those hostile and friendly groups respectively.

Host country populations will be mobilized to support Muslim reformist groups and the moderate majority, establishing intergroup linkages for possible assimilation into the population. Group and social identities of Muslims will be targeted, reinforcing those identities which bolster reformist Muslims and isolating those which reinforce radical Islamism. Given that Middle Eastern cultural and religious identity is a crucial component of worldview and that ISIS is a political religious ideology, targeting those social bonds that are vulnerable to ISIS propaganda and recruitment is a key operational element.  The goal is assimilation of the moderate majority who are persuadable away from radicalization and to break potential group fusion with radical Islamists before it occurs. Preventing the radicalization of moderate Muslims by Islamists is the preferred route, as de-fusion from a group is a difficult process, and will provide a possible foundation for better future engagement with Western powers.

 

References

Alexander, Michele G., Shana Levin and P.J. Henry. 2005 “Image Theory, Social Identity,

SocialDominance: Structural Characteristics and Individual Motives Underlying

InternationalImages.” Political Psychology, 26, no. 1: 27-45.

Ali, Ayaan Hirsi. 2017.The Challenge of Dawa Political Islam As Ideology and How to Counter

It.Stanford University: Hoover Institution Press.

Coats, Dan R. Statement for Record. Worldwide Threat Assessment of the US Intelligence

Community. February 13, 2018.

https://www.dni.gov/index.php/newsroom/congressional-testimonies/item/1845-

statement-for-the-record-worldwide-threat-assessment-of-the-us-intelligence-community

Europol. Changes in Modus Operandi of Islamic State (IS) Revisited. The Hague. November

  1. https://www.europol.europa.eu/publications-documents/changes-in-modus-

operandi-of-islamic-state-revisited

Gorka, Dr. S. Battlefield Successes and Challenges: Recent Efforts to Win the War Against ISIS.

January 17, 2018.  House Committee on Oversight and Government Reform

Subcommittee on National Security.

https://oversight.house.gov/hearing/battlefield-successes-challenges-recent-efforts-win-war-isis/

Griffin, Bryan. 2016. Encyclopedia of Militant Islam. New York: London Center for Policy

Research.

Gunaratna, Rohan. 2016. “Global Terrorism in 2016.”Revista UNSCI/UNSCIJournal40

(Enero/January):133-138.

Holland, Steve. March 30, 2018.  “Trump Tells Advisors He Wants US Out Of Syria.” Reuters.

https://www.reuters.com/article/us-usa-trump-syria/trump-tells-advisers-he-wants-u-s- out-of-syria-senior-officials-idUSKBN1H61J0

Lohaus, Phillip. January 17, 2017. Moving the Needle From Degradation to Defeat Aligning

Ends, Ways, and Means in the Fight Against the Islamic State.America

Enterprise Institute.

National Security Strategy of the United States. December 2017. The White House.

https://www.whitehouse.gov/wp-content/uploads/2017/12/NSS-Final-12-18-2017-        0905.pdf

Pregent, Michael. Wednesday, January 17, 2018. “Battlefield Successes and Challenges: Recent

Efforts to Win the War Against ISIS.” US House of Representatives Committee on

Oversight and Government Reform’sSubcommittee on National Security.

https://oversight.house.gov/wp-content/uploads/2018/01/Pregent-Hudson-Statement-1-

17-NS-ISIS.pdf

State of New Jersey. October 2, 2017. ISIS Poised for Attacks in Europe and Australia.

https://www.njhomelandsecurity.gov/analysis/isis-poised-for-attacks-in-europe-and-

Australia

Swann, William B. Jr., Jolanda Jetten, Angel Gomez, Harvey Whitehouse and Brock Bastian.

  1. “When Group Membership Gets Personal: A Theory of Identity Fusion.”

PsychologicalReview12, no.3: 441-456.

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The GMO case in the interpretation of the School of Economic Warfare

Gagliano Giuseppe

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In 1983 laboratory experimentation on genetic mutation seemed to pave the way for a future technological revolution. Entrepreneurs heavily invested in research and development of bio-technologies applied for agricultural purposes. In this regard, businessmen sealed a number of deals concerning new varieties of plants created through transgenic processes. European farmers were particularly concerned about this fast-paced development and aggressive propaganda in favor of transgenic products, especially because the agro-chemical sector had confirmed their resistance to pesticides and herbicides.

The development of genetically modified organisms (GMOs) raised some concerns about their impact on human health and on the ecosystem. At the same time, the European agricultural business sector feared that the development of GMOs would have created a dependency on U.S. multinational agro-chemical corporations.

The European public opinion – whose trust had already been broken after the scandals of BSE (mad cow disease) and dioxin in chicken – has so far been caution and vigil towards this new form of agriculture and demanded specific labeling for all GMO products (officially approved in February 2000).

American consumers instead, relied on quality controls provided by the federal agencies like FOOD & DRUG ADMINISTRATION  and EPA , which were considered reliable watchdogs for public health and environmental safety. Since their approval is automatically considered as a guarantee for consumers’ safety, the GMO labeling procedure appears as superfluous. Free market regulations prescribe that every country intending to reject the import of a given product, must provide a proof of its health risks. The transatlantic debate on this topic mostly focused on food safety and environmental protection preserving biodiversity in the long run and promoting a healthy diet. The failure of Cartagena Convention to draft a protocol on biotechnological risks occurred during a phase in which European consumers demanded their governments to make clearer decisions. When in December 1996 the EU Commission authorized the placing on the market of transgenic corn (that benefited the company Novartis), many EU countries expressed their concerns. In February 1997, Austria and Luxembourg prohibited the import of that specific type of corn; similarly, in September 1998, Greece and the United Kingdom banned the rapeseed produced and distributed by Agrevo. Over the course of the same year, Denmark banned all kinds of GMOs and France suspended the farming of transgenic corn in accordance with the decision made by the Council of State on September 25th, 1998. Public opinion was also very worried and reluctant towards GMOs products. Fearing that governments would have not protected the interests of consumers, many associations and environmental movements vocally campaigned against GMOs and showed civil society’s response to the economic dominance of the United States. In January 1999, the Organization for Biological Certification Soil Association condemned the company Monsanto for the insufficient protective measures against the pollination of surrounding plantations. Soil Association  revealed  the risks of cross-contamination operated by  winds and insects moving the pollen of transgenic plants for long distances. At the same time, a poll conducted by the French NGO Friends of the Earth revealed that numerous fast food chains had already eliminated – or were about to do so – all GMO based food.

The environmental experts of the scientific community were concerned about the impact of the extensive use of chemicals on the crops whose genes were resistant to herbicides; they hypothesized that in response to this, insects might develop a gene mutation as well. The British Medical Association demanded the creation of a health agency and the ban of antibiotic-resistant marker genes in transgenic food. They basically asked for a moratorium.

Already in August 1998, the British researcher Arpad Pusztai pointed out some health risks caused by GMO potatoes and a few days later he lost his job at the Rowett Research Institute. This episode – that had received extensive media coverage – reinforced the stances of the GMOs critics as it was perceived as an attempt to bury a certain kind of scientific research in order not to spread fear. For their part, consumers were already shocked by the BSE scandal and started reducing significantly the purchase of transgenic products. Pushed by public opinion, the British government – that had previously welcome GMO biotechnologies – recognized the importance of a moratorium. Therefore, it commissioned two studies on the impact of GMOs on health, agriculture and environment. Large retailers were therefore forced to yield to the will of consumers. Sainsbury – second largest grocery store in the UK – together with Body and Mark and Spencer announced the withdrawal of all GMO products and some other big European groups followed their example: Carrefour (France), Esselunga (Italy), Migros (Switzerland), Superquinn (Ireland), Delhaize (Belgium). These latter issued a press release in which they committed to addressing the requests of consumers and only sell GMO free products, in agreement with agricultural and raw materials industries.

They appointed Law Laboratories Ltd, an independent research lab, for quality controls in cultivated fields and in food-production chains in order to detect the potential presence of GMOs. Some GDO companies offered consumers the choice between transgenic products and a GMO-free alternative of their own production. Paradoxically, the campaign against GMOs turned into a marketing strategy that favored national brands over the big industrial chains. On April 27th 1999, Tesco, leader in the UK food distribution, decided to collaborate with Greenpeace in order to identify suppliers that guaranteed GMO free products. Tesco’s commitment in the distribution of biological products resulted in both great enthusiasm of environmentalist groups and in Greenpeace’s success in the countries where Tesco was present (Hungary, Czech Republic, Slovakia and Poland).

On April 28 of the same year, Unilever, the first grocery store that introduced GMOs on the UK food market, decided to stop distributing these products; so did Nestlé – the Swiss titanic food industry- and H. McCain, world leader in the frozen food distribution, that withdrew the sale of transgenic potatoes as consumers had requested. The actions taken by the European agro industrial sector led many foreign companies to adjust their policies. In the United States, for example, Gerber – company specialized in food for children – decided to utilize only organic corn. As a result, most American farmers realized that transgenic seeds were the reason of the drop in exports (60% drop in 1998). The reports issued by the federal agencies USDA  and EPA clearly showed that the amount of insecticides used for a transgenic sowing was exactly the same used for traditional sowing. Besides, and that certain types of insect were resistant to the toxins present in transgenic plants.

These revelations produced some troubles in the agro-chemical sector that controlled 2/3 of the global market of pesticides and one quarter of the seeds one and the whole market of transgenic plants. Multinational corporations like Monsanto (USA), Du Punt de Nemours (USA), Novartis (Switzerland), Aventis (France and Germany) and Zenecca (United Kingdom) had made huge investments in order to reach the global control of pesticide market. They engaged in the significant challenge of setting the regulations of a new market (norms, rules, financing) to secure their absolute primacy in the biotechnological field.  These companies also initiated a communication campaign on global food security with slogans like: “Acting in harmony with Nature” (Novartis); “You have the right to know what you are eating. Especially if it’s the best” (Monsanto).  Since June 1999, Monsanto Director-General, Robert Shapiro, launched a massive advertising campaign involving the most important news outlets in the UK and in Europe in response to the protests.  The leitmotiv of this campaign was the idea of improving people’s diet and health while protecting the environment. In an open letter addressed to the President of Rockefeller Foundation, Gordon Conway (that had previously discredited this technologies and highlighted the disadvantage of developing countries), Shapiro announced Monsanto’s intention to use biotechnologies to produce sterile seeds. Later, on October 6th, 1999 Shapiro intervened in a conference-call during the debate in London with Greenpeace. Loaded by the criticism of environmentalist and consumers, Monsanto tried to regain some credit. Since it was aware of the fact that the opposition to GMOs was caused by its obstinate attempt to acquire the absolute primacy in seed production and distribution, Monsanto decided to change strategy. The political change of course was due to the necessity of meeting market and investor requests, that started to share their very low expectations of growth for the agrochemical food sector.

In December 1999, thanks to the fusion with the group Pharmacia-Upjohn, Monsanto sold 20% of its agricultural division and developed its pharmaceutical branch, whose outcomes were very positive thanks to the sales of Celebrex – an analgesic medicine used in the treatment of arthritis. Most likely, this strategy paved the way and favored the increase in production of medicated feed, also known as “pharma-food”. These products that can be found on the counter of big food chains in the shape of candies for the sight-improvement or chewing gum for the cold. The core concept of the pharma-food is the focus on the advantages of a healthy diet and is one of the innovative challenges of the next century. This moment marked the beginning of a partnership between pharmaceutical laboratories and food industries on nutrigenetics, a new science that offered evidence for a healthy diet with healing properties. In recent years, about eight billion dollars invested in life sciences led to significant achievements in this new biotechnological branch. Nevertheless, the worldwide opposition of consumers and environmentalists made investor fear a sharp fall in sales and therefore the agro-chemical industry changed direction. The trade of transgenic products is a very important challenge for the U.S. government that traditionally supported the agrochemical industry. The United States never denied the favor towards the agrochemical industry and its ability to boost the production process, like in the case of the medicated feed. During the Cartagena conference in 1999, the opposition of a group from Miami led by the United States referred the matter to the World Trade Organization (Seattle, December 199) but no deal was reached anyways.

The US strongly supported the Montreal Conference (January 24 – 28th 2000) and managed to secure an important benefit. On the one hand, the act of the conference recognized the precautionary principle that granted the importer countries the right to ban GMO products; on the other hand, it was not very clear how these countries could claim this right in practice. The text of the agreement stated:  “the exporters are only requested to inform about the possibility that a load may or not contain GMOs, without specifying the nature or ensure the presence of GMOs”. This formulation allowed the US to buy time since there was no specific measure prescribing the creation of a separate production chain.

Congressional lobbies – agricultural professional organizations backed by scientists and academics – defended the GMO cause in front of the U.S. Senate and asked for the government’s unconditional support and opposed the compulsory labeling procedure requested by the EU. The President of the National Organization of Corn Producer, Tim Hume, strongly criticized the European skepticism towards GMOs: in his opinion, European or American organization opposing GMOs only aim at increasing their profits through the exploitation of people’s fears and concerns. According to several researchers, GMOs would be the only solution to fight world hunger and cure many diseases. According to John Oblorogge, Professor at the University of Michigan, the second generation of transgenic plants will allow to increase the nutritive content of the crops. Charles Arntzen, Emeritus Professor at Arizona State University and former President of the Research Institute Boyce Thompson, considered the labeling process as an unjustified scaremongering for consumers and concluded that “The microbiological contamination of food is a problem as much as the labeling”.

Scientists therefore requested public funding to support university research on biotechnologies in order to avoid big corporation funding that usually represents an obstacle to independence and objectiveness.

In order for their strategy to be effective, GMOs critics needed to cast doubts on transgenic product and amplify it through local and regional press, TV channels, environmental associations websites, internet forums (that are often loaded with information). Besides, due to GMO critics’ initial disadvantage, they had to identify the contradictions in GMOs supporters discourse and exploit them to their own benefit. On their side, businessmen in the agrochemical sector had to conduct a number of tests on their products in order to prove the absence of toxicity before putting them on the market. Entrepreneurs must anticipate the strategy and study the potential of the opponent in order to foresee its attacks towards their products or their company and be able to react rapidly. It is no more a matter of crisis management and substantial communication, but rather of managing the power during the attack and react accordingly, case by case.

Greenpeace has indeed contributed to boosting the campaign against multinational agricultural corporations Unilever and Nestlé, which were forced to withdraw their transgenic products from the United Kingdom. The analysis of Greenpeace French website reveals a manipulative communication strategy. The absence of transparency of the debate on GMOs is quite remarkable in the narrative employed in the brief introduction to the topic posted in the topical issues section: “Manipulators”; “Sorcerer’s apprentices”; “disturbing lottery”; “inadequate and weak responses”; “the future of our health is at stake”; “environmental impact”; “risks for public health”. This narrative reflects the clarity of the premises of Greenpeace as a protest movement: it portrays the duel between the weak (consumers) and the strong (agrochemical multinational corporations), and exploits the power of the general discontent linked to the primary need of nutrition that is common to each human being. Its technique consists in manipulating the consumers (both figuratively and tangibly) according to the following scheme from the INFO-CONSUMERS section on Greenpeace website, articulated in four simple concomitant steps:

  1. Spread the two lists of products with the producers’ names: the white list of GMOs-free products for which it is possible to track the origin of the ingredients and additives; the black list of products that might contain GMOs and for which the supplier (highlighted in bold) does not oppose GMOs possible presence and cannot formally deny it.
  2. Questions to the suppliers through spamming the administration of the targeted company with petitions, fax, mail, phone calls in order to push it to take some measures in response, usually through a public statement. For this purpose, the website offers some pre-compiled letter templates that are filled with the address of the negligent industrial groups (Danone Unilever France and Nestlé France). In addition, Greenpeace shared a successful story of a company that, after having found its name on the black list and received a number of petitions, had publicly apologized for the presence of GMOs and issued a written statement declaring their withdrawal from its production.
  3. Forwarding the response of the company and the letters to at least 5 people.
  4. Keeping Greenpeace posted with updates on the activist participation and the recruiting of new activists.

This pressing strategy against agro-chemical industries turned out to be effective because it forced producers to report on their activities. Greenpeace has recently published other two lists containing all the GMOs introduced in the animal feed and asked consumers to make sure that poultry farmers used the organic ones. Activists are also asked to communicate the answers through updating the lists.

Whenever necessary, Greenpeace may also resort to disinformation. In its magazine, the organization reports that in 1998 the Council of States favored Greenpeace in revoking the authorization for the cultivation of GMOs corn that had been granted at the beginning of the year. Although on February 5th 1998, Greenpeace and other organizations had requested the annulment of a decree of the French Minister of Agriculture, the Council of State had simply decided on September 25th 1998 to suspend that decree and refer to the EU Court of Justice for the interpretation of the EU law. The activists did not actually win, but they have leveraged on a free interpretation of reality and deliberately spread misinformation across public opinion. In fact, what is important for Greenpeace is to push the intervention of national courts, no matter the result obtained. Greenpeace has also proved capable of considering all the nuances of a given issue, when it decided to admit a mistake and play the transparency card. In 1998, British researcher Arpad Pusztai was fired because he had proved that some test animals fed with transgenic potatoes presented some organic atrophies. In reality, the variety of potatoes that the researcher used in his experiments had been transformed with a gene of a toxin of a different species; therefore, these potatoes were not harmful because of the presence of GMOs, but because of this toxin that was harmful per se. In August 1998, Greenpeace had presented Pusztai as a renowned expert that had been unfairly fired after proving the toxicity of transgender plants. The following year, Greenpeace specified: “The conclusions of this research is still fragile, as some varieties of potatoes produce their own insecticide. Besides, similar vegetables are regularly sold in Canada”.  In this specific case, Greenpeace managed to appear as genuinely misguided by this research, and recognizing to have made a mistake just like anyone else.

Transgenic market represents a strategic field for the U.S. government. Since the early ‘80s, multinational chemical and pharmaceutical corporations have freely operated in the field of genetic engineering and allowed the US to establish their worldwide primacy. Nowadays a consistent part of EU and U.S. public opinion (consumers and farmers) strongly opposes these initiatives. On the other hand, US government criticized the European public opinion and attacked the EU weaknesses in response, without offering justifications for its own support for GMOs. According to Alan Larson (Undersecretary ad interim for Economic, Trade and Agricultural Affairs):“because of the EU, many U.S. corn producers are deprived of almost 200 million dollars in exports. (…)Some EU agencies specialized in food safety revealed to be easily influenced by politics and should take inspiration from the FDA. I had never witnessed such a level of scaremongering in Europe between consumers.”

It is important to note that there is no independent health agency at the EU level. The only authorities that can effectively address this issue belong to Member States, that is the reason why it is legitimate to question their impartiality. According to James Murphy, U.S. adjunct representative for international trade:

Our ability to sell these products goes beyond economic data. It is more a humanitarian, ecological and food safety issue. We are witnessing a strong opposition from Europe … with the lack of trust of public opinion towards science … the opposition group were able to exploit the anxiety of consumers that have consequently lobbied their political representatives.”

David Sandalow, Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs, that represented the US at the Montreal Conference in 2000, declared to the Washington File that

Focusing on biodiversity and environmental protection can sometimes overshadow the debate on food safety. Negotiations…should not be focused on trade regulations…that could hinder international trade. The United States will not support it. According to many experts, the scaremongering in Europe towards GMOs, risks to let thousands of people die from hunger and millions of children of developing countries, if scientists and institutes financing researches refuse to apply modern biotechnologies. The safety and the quality of the food produced through modern biotechnological techniques are not different from traditional food”.

The skepticism of the scientists and of the EU politicians is the proof of their incapacity to support research on GMOs and this delay is the cause of many deaths in developing countries. The defense strategies that the Department of Agriculture and the Federal Agencies put in place consisted in a discourse centered on accountability and justification: on November 1st1999, the U.S. Department of Agriculture launched its new internet website in order to inform consumers on the state of biotechnological research applied to the agricultural sector. The website was aimed at providing an answer to the most Frequently Asked Question (FAQ) and shed light on regulations and information on international trade related to agricultural products. The U.S. Food and Drug Administration organized three public conferences on the GMOs issue: Chicago – November 18th; Washington November 30th; Oakland – December 13th1999. These public debates allowed U.S. consumers to express their views on the policies of the FDA: many associations like Consumer Union demanded the labeling of transgenic product to ensure the respect of the right of choice.

During the Washington session, Joseph Levitt, Director of the Center of Food Safety at FDA declared: “Taken note of the controversy … we want to point out your recommendations in order to improve our verification of food safety strategies and optimize the sharing of information on the public level.”

According to the Director of the Center for Biotechnologies for Agriculture and Environment of the University of Rutgers, the skepticism of European consumers towards GMOs was the result of ineffective norms that had been proved incapable of preventing the BSE diseases and the sale of animal feed containing dioxin. James Maryanski, FDA Coordinator of biotechnologies maintained that EU regulations focused on product, foods and additives rather than on the plants used in the production process. Today FDA is managing to adopt new regulations to apply when a product does not comply to certain safety standards. The only law controlling the food obtained from transgenic plants dates back to 1992 and essentially consists in the same safety measures foreseen for traditional food. This law was heavily criticized by an American author, because it allowed the commercialization of GMOs without any proof of safety or authorization. It seems that at the moment FDA is imposing the agrochemical industries to carry out preemptive checks in order to avoid any risk for the health. Multinational corporations like Monsanto and Du Pont de Nemours were forced to batten down the hatches and tried to adopt a new approach based on accountability and justification. On October 6th, 1999 during a debate with Greenpeace, Monsanto took the initiative and admitted its lack of listening and conciliation spirit. Similarly, Du Pont de Nemours, recognized that businessmen were incapable of addressing the concerns of public opinion and considered them as the result of ignorance. Between the counter-offensive techniques used by Monsanto, the use of advertising campaigns as communication weapons plays a prominent role: “The protests of farmers, consumers and businessmen forced Shapiro to publicly withdraw Terminator technology from the market”.

This principle – an open letter addressed to a famous Foundation – allowed to orient the message towards the desired direction, limiting the competitor’s operating space.

“(…) The decision has therefore taken into account the opinions that you have expressed and those of a huge number of experts and personalities, included the representatives of our important agricultural community. We have consulted many international experts in order to get to a deep and independent evaluation of the subject. We will continue to encourage a free and transparent debate”.

This press release portrays Monsanto as a responsible company that pays attention to collective interests and partners up with farmers to help them improving their harvest, rather than a monopolistic corporation that exploits on its power.

The strong mobilization of GMOs detractors and its media echo provoked a sudden halt in the GMOs scientific progress. In fact, transgenic plants were created in order to improve agricultural output, but their long-term impact on people had not been considered. To this day, nobody is able to guarantee that GMOs are fully harmless. This is a key issue that is capable to persuade part of the U.S. population.

This year, the FDA has been subject to a legal action because of its politics on food biotechnologies that was considered too lightly regulated. This is the commercial reason why some U.S. retailers must obtain supplies of non-transgenic corn, so that they comply with the traceability designed at the EU level. The European campaign was not addressed to cope with the economic rivalry with the US on GMOs, but rather from a complete absence of clear information and from food safety issues (BSE and dioxin in chicken).

Agrochemical industries completely misinterpreted the balance of power and this precluded the chance of anticipating and foresee such a campaign. It was too late when they understood the necessity of changing communication strategies, since US farmers refused to buy their seeds.

When the protests broke out, companies showed their lack of global vision and knowledge of the fields, environment in general and of the other actors, so that the ignorance on competition principles dragged them into a crisis.

Managing information risks cannot be improvised but needs to be based on a substantial plan. This episode shows the power of information as offensive strategy and the limitations that companies go through when they have to reorganize their communication approach to attract consumers.

In a meeting, it is not so important to know the interlocutor, but rather having the ability of putting oneself in the other’s shoes.

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Intelligence

Strategy of U.S. Anti-Russia Sanctions Becomes Clearer

Eric Zuesse

Published

on

On Friday, April 6th, Reuters headlined “Russian businessmen, officials on new U.S. sanctions list”, and opened: “The United States on Friday imposed major sanctions against 24 Russians, striking at allies of President Vladimir Putin over Moscow’s alleged meddling in the 2016 U.S. election and other ‘malign activity’. Below are the most prominent businessmen targeted along with their main assets and connections as well as extracts from the U.S. Treasury statement.”

As that Reuters list makes even clearer than before, U.S. economic sanctions against Russia are focused against mainly the following four categories of targets in Russia:

Russian competitors to America’s largest international oil companies. These specific U.S. firms were listed, on March 27th, in an excellent article by Antonia Juhasz in Pacific Standard magazine, “INSIDE THE TAX BILL’S $25 BILLION OIL COMPANY BONANZA: A Pacific Standard analysis shows the oil and gas industry is among the tax bill’s greatest financial beneficiaries.” There, they were listed in rank order. For example: the largest such firm, Exxon/Mobil, was given $5.9 billion in “2017 Tax Act Savings,” and the second-largest, Philipps 66, won $2.7 billion in it. The latest round of anti-Russia sanctions focuses clearly against these international U.S. oil firms’ Russian competitors.

However, previous rounds of U.S. sanctions have especially focused against:

Russian competitors of Lockheed Martin and other international U.S. weapons-firms —  Russian manufacturers that are selling, to foreign governments, military aircraft, missiles, and other military equipment, on the international markets: competing military products. The competitive purpose of these sanctions is to boost not U.S. international oil-firms, but U.S. international weapons-firms.

Russian banks that lend to those firms. Some of these banks have also other close ties to those firms.

Russian Government officials, and billionaires, who cooperate with Russia’s elected President, Vladimir Putin. Putin refuses to allow suppliers to the Russian military to be controlled (such as are the military suppliers to America’s Government) by private investors (and especially not by foreigners); he wants the weapons-manufacturers to represent the state, not the state to represent the weapons-manufacturers; i.e., he refuses to privatize Russia’s weapons-producers, and he instead insists that all firms that supply Russia’s military be controlled by Russia’s elected Government, not by any private investors. (By contrast, The West relies almost entirely upon privately owned weapons-makers.) He also prohibits foreign interests from controlling Russia’s natural resources such as oil firms, mining, and land-ownership, and this explicitly applies even to agricultural land. However, most important are Russia’s Strategic Sectors Law (otherwise known as “Strategic Investment Law”), which defines as a “Strategic Entity” and thus subject strictly to control only by the Russian Government and citizenry, four categories: Defense, Natural Resources, Media, and Monopolies. Russia’s refusal to allow U.S. billionaires to buy control over these — to buy control over the Government — is, to a large extent, being punished by the U.S. anti-Russia sanctions.

Focusing on the latest round: The Reuters article lists the specific main targets of the new sanctions. These targets are, as described by the U.S. Treasury Department, and as quoted by Reuters:

  • “Oleg Deripaska is being designated … for operating in the energy sector of the Russian Federation economy.”
  • “Viktor Vekselberg is being designated for operating in the energy sector of the Russian Federation economy.”
  • “Kirill Shamalov is being designated for operating in the energy sector of the Russian Federation economy.”
  • “Andrei Skoch is being designated for being an official of the Government of the Russian Federation.”
  • “Suleiman Kerimov is being designated for being an official of the Government of the Russian Federation.”
  • “Vladimir Bogdanov is being designated for operating in the energy sector of the Russian Federation economy.”
  • “Igor Rotenberg is being designated for operating in the energy sector of the Russian Federation economy.”

Those are the ones that the Reuters article specifically listed. In addition, there are:

DESIGNATED RUSSIAN GOVERNMENT OFFICIALS

Andrey Akimov, chairman of the board at Gazprombank

Andrey Kostin, president of VTB bank

*Alexey Miller, chief executive of Gazprom

Mikhail Fradkov, president of the Russian Institute for Strategic Studies

Sergey Fursenko, member of the board of directors of Gazprom Neft

Oleg Govorun, head of the Presidential Directorate for Social and Economic Cooperation with the Commonwealth of Independent States Member Countries

Gazprom is Russia’s oil-and-gas giant; and, likewise in accord with Putin’s demand that national-security industry remain under state-control instead of control by private investors, its controlling investor is the Russian Government. However, a few individuals are listed who are simply Russian Government officials, presumably likewise more cooperative, with carrying out the intentions of the elected President, than the U.S. and its allied governments consider to be acceptable.

Clearly, the special focus of these sanctions is on supporting U.S. international oil firms competing against Russian international oil firms.

On January 26th, Reuters bannered “U.S. hits Russian deputy minister and energy firms with sanctions”, and opened:

The United States added Russian officials and energy firms to a sanctions blacklist on Friday, days before details of further possible penalties against Moscow are due to be released.

A Treasury Department spokesperson said the department is “actively working” on reports required under the “Countering America’s Adversaries Through Terrorism Act” and aimed to release them consistent with timelines in the legislation.

Trump or his Treasury Secretary were actually responding to pressure from “Democrats” and unnamed others; but, when the final statement from the Treasury was issued on January 29th (and largely ignored by the press), it turned out that no new sanctions were issued, against anyone. The billionaires’ lobbyists had achieved nothing more than to provide (via the anti-Russia verbiage from members of Congress) to the American public, yet more anti-Russia indoctrination in support of America’s war against Russia; but, this time, no real action was taken by the President against Russia.

On 28 December 2017, the ‘private CIA’ firm Stratfor, which does work for the CIA and for major U.S. corporations, had headlined, “Russia Won’t Sit Still for Additional U.S. Sanctions”, and summarized prior U.S. economic sanctions against Russia:

Since the Soviet period, the United States has targeted Russia with numerous sanctions. The primary ones currently in effect were instituted over human rights violations and the conflict in Ukraine. In late 2012, the United States expanded its Soviet-era sanctions over human rights and approved the Magnitsky Act to punish those deemed responsible for the death of Russian tax accountant Sergei Magnitsky, a whistleblower who investigated Kremlin abuses and a tax-fraud scheme. The act penalizes dozens of people believed to be involved in the case, but the measure has evolved into a platform for the United States and its allies to punish Russia for a much wider scope of human rights abuses. 

The Ukraine sanctions imposed by the United States (and, to a lesser extent, by the European Union, Canada, Australia and Japan) stem from Russian involvement in the conflict there and includes the conflict in eastern Ukraine, Russian support of the previous government, the downing of Malaysia Airlines Flight 17 and the annexation of Crimea. Those penalties include:

  • Limits on debt issuance to Russia’s six largest banks, four primary state oil firms and four state defense firms.
  • Sanctions on Russia’s energy industry, prohibiting U.S. firms from providing, exporting or re-exporting goods and technology related to deep-water, Arctic offshore and shale oil and natural gas projects in Russia.
  • Bans on subjects receiving dual-use goods by Russia’s primary state defense companies.
  • Sanctions (travel and asset freezes) against hundreds of Russian entities and individuals. 

That was a fair summary; but, because Stratfor derives some of its income from the CIA, it stated as being facts, instead of as being lies, that “Sergei Magnitsky [was] a whistleblower who investigated Kremlin abuses and a tax-fraud scheme,” even though Magnitsky actually was never a “whistleblower,” and he was, to the exact contrary, assisting an American hedge-fund operator to illegally avoid $230 million in taxes that were due to the Russian Government and which tax-fraud had been reported not by Magnitsky as any ‘whistleblower’ but instead by, essentially, a bookkeeper, who was afraid of being prosecuted if she didn’t report to the police this tax-evasion that she was working on. Furthermore, Stratfor’s “to punish those deemed responsible for the death of” Magnitsky also is a lie, because the only person who so “deemed” was the American tax-fraudster who had employed Magnitsky. That employer accused Russia’s police of beating to death in prison this criminal suspect, Magnitsky, and he used, as ‘documentation’ for his charges, fake ‘translations’

into English of the police documents, and these ‘translations’ were taken at face-value by U.S. and EU officials, who couldn’t read Russian, and who wanted to cooperate with, instead of to resist, the U.S. Barack Obama Administration and the UK David Cameron Administration.

Furthermore, Stratfor, when it refers to “human rights violations and the conflict in Ukraine,” is actually referring instead to “the most blatant coup in history”, as the head of Stratfor put it when describing what the Obama regime referred to as the ‘revolution’ that in February 2014 had overthrown Ukraine’s democratically elected Government and that then began an ethnic-cleansing campaign to get rid of the residents in the areas that had voted over 75% for the President whom the U.S.-run operation had overthrown. In fact, U.S. think-tanks criticized Obama for providing insufficient assistance to the newly installed Ukrainian regime’s firebombings of the places where over 90% of the residents had voted for the now-ousted Ukrainian President. And that was entirely typical. This is a sort of ‘philanthropy’ that America’s billionaires receive ‘charitable’ tax-writeoffs for funding (donating to). No matter how aggressive a U.S. President may be against Russia, America’s aristocracy (through their ‘philanthropies’ etc.) complain that it’s not aggressive enough — America’s Government must do yet more, in order to ‘support human rights’ abroad.

So, that’s what America’s anti-Russian sanctions are all about: serving America’s billionaires.

first published at strategic-culture.org

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