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Economy

The Information warfare in the interpretation of Philippe Baumard and Jacques Baud

Gagliano Giuseppe

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There is no doubt- as Baumard claims- that information warfare plays a fundamental role in today’s economy and society. Furthermore, its importance has led to the emergence of a new form of conflict and therefore led to a change in reasoning. Our highly-digitalized economies and society obviously present significant windows of vulnerability linked to the fact that the modern economic system cannot but be open and fluid. At any rate, the concept of information warfare – as is widely known – emerges primarily from American publications and emerges in the moment in which the legitimacy of information has been placed under discussion in the American context. Required to deal with significant budget cuts, the leading US federal intelligence agencies have attempted to justify the preservation of their budget by emphasizing the importance of protecting the nation’s economic security; and yet as early as the 90s, it had become clear that the logics of conflict present in the geopolitical sphere have been transferred to the context of the economic sphere in which nations must be capable of implementing strategies of dominance based on the control of both the information infrastructure and the flows of technological and economic knowledge.

A strategy that takes into account modern new needs must give careful attention to the vulnerability of critical information infrastructures (on the other hand, the rapid growth in computerized piracy has encouraged nations to create ad hoc organizations for the control and surveillance of the development of this new crime). Another observation regards the increase in the strong economic rivalry between nations that has lead to the fundamental apprehension that economic intelligence has become an authentic fact of life for the world’s leading industries; deeper knowledge of information mechanisms, in fact, becomes a fundamental element of success or failure. It is now precisely this crucial importance in economic context of the leading industries and multinationals that has compelled nations to officialize their approaches in the context of information intelligence. Even if the use of denigration, discrediting and disinformation campaigns has always been a part of both the political and economic world, in today’s world the acceleration of the data digitalization has created the need for both nations and certain companies to adopt offensive and defensive systems sufficient to the situation.

A large-scale disinformation operation waged against an industry or multinational corporation can create enormous economic damage. As known to psychological warfare experts, disinformation is certainly an offensive resource with highly particular characteristics because it is a sword that cuts in one direction only, its effects are particularly insidious and can be discovered only in a second moment, but above all, the objectives of disinformation are oriented to the loss of the adversary’s reputation and legitimacy on one hand and the loss of its financial support (in the case of companies, for example), on the other. Yet whereas in traditional conflicts the economy of forces was based on a relationship of inertia, and logistic superiority represented a fundamental dimension for either victory or defeat, in cognitive warfare, similar asymmetry cannot be imposed in the knowledge system, and above all, unlike traditional conflicts, information warfare has its own autonomy regardless of who constructs or sends the message.

Eliminating the spokesman of the message therefore does not modify the dimension of the cognitive conflict but on the contrary only strengthens the adversary. Furthermore, Anglo-American practices are based primarily on the need to immediately control the electronic sources that underlay the economic, political, and military decision-making system. In this strategic view, controlling the public news infrastructure assumes fundamental importance; in any case, a closer analysis shows that the control of the world’s information infrastructure is incompatible with its ample and de-structured way of diffusion in today’s world. The exponential growth of the information infrastructure does not permit the possibility for vertical or hierarchical coordination. Furthermore, the concept of strategic dominance is based on the ability of a state to prohibit or dissuade a rival nation from emphasizing its rules of conduct and on perception of reality.

This approach starts from the assumption that the global control of news flows infrastructure would permit the achievement of global economic and political dominion. In any case, this concept is revealed ingenuous because it ignores the fact that the control of the news differs from the formation of judgments and beliefs. Faced today with the emergence of cognitive warfare and the complexity and fluidity of information, traditional security services do not possess adequate culture because the belief system on which such systems are based is built on the collection of observable facts and the processing of such information: we have agents collecting information on one hand and agents making analysis on the other. This dual organization is certainly suited to traditional conflicts but is not adequate to cognitive conflict: the logic is completely different because due to the speed with which information moves only a very short time is available to control and analyze it this therefore requires rapid decision-making processes.

In other words, the capacity for interpretation and attribution of meaning in real time is the basis for cognitive warfare; furthermore, given that most non-state organizations are in fierce competition and have access to the same news from the same sources, it is highly improbable that a private or state-owned organization will acquire a decisive competitive advantage unless an improvement is made in the satellite control system over news and human information. After this clarification has been made, it must be repeated once again how crucial the control of the news flow is to victory and how mistaken it is to believe that merely destroying the adversary’s information infrastructure will suffice. On the contrary, the destruction of the latter can offer the adversary a greater degree of freedom or promote the use of alternative information tools in a context where – as is known – the distribution of information has been liberalized. Security services must realize that the current trend in worldwide information infrastructure is its Balkanization, or in other words, its dispersion and fragmentation. Efficiency in any case depends more and more on the mastery of decentralized cognitive capacity and less and less on the control of the information infrastructure. Their economy of forces in the context of modern political conflict lies on the mastery of very different cognitive systems and the imposition of a unified interpretation schema is not a strategy capable of providing fruit in the long-term.

Stating that Western Society depends- as Baud claims -on information is certainly an undeniable logical truth. An awareness of current events but also the ability to provide prompt, pertinent response has become an integral part of today’s society. Yet in regard to information warfare too much accent has been placed on the West’s growing dependency on information technology; in any case the real threats come not only from the technological sector but also the amount of influence wielded by information. Consider the fact that terrorism can be seen also as a way of communicating. At any rate, unlike traditional weapons, those of information warfare can be used whenever necessary both to serve economic interests and neutralize international competition. Furthermore, they can be placed into action very easily and adopted by both organizations and individuals. The extent of dimension of the information warfare depends on three other types of war:

information warfare or the war of numbers regarding the destruction of information infrastructure and that aims at paralyzing the adversary’s defense system;

the cognitive warfare with the objective of acquiring, circulating and integrating the information necessary to maintain greater knowledge than the adversary in order to gain an operative advantage;

the war of influence waged to manipulate both religious and public opinion in order to facilitate action against the adversary.

Even if these three aspects are autonomous they are in any case closely interlinked. It must now be forgotten that in the struggle against terrorism the West has all too often concentrated its attention only on the information dimension whereas the real vulnerability of democratic society lies in the context of the influence that represents, we repeat, the terrorism’s field of action. Yet intelligence must intervene in information warfare – as in any other form of conflict – as a useful element in making decisions and not as a weapon. There is no doubt, in this regard, that with the objective of learning all it can about the adversary, intelligence may prove useful to information warfare in revealing the enemy’s weaknesses and waging influence campaigns.

We would now like to dedicate our attention to cognitive warfare that includes all the methods and processes required to acquire, explore and distribute the information necessary in operative context. Acquiring information in all its forms, even computerized, is a part of warfare and implies not only the power of obtaining more news than the adversary but also faster access to the sources of information in order to act on the same with greater efficacy. Consequently, cognitive warfare includes measures for the camouflage and protection of information – the so-called passive measures – and also the instruments destined to deceive the adversary of one’s real operative intentions (the so-called active measures). Furthermore, cognitive warfare is an element that is also found both in the mechanisms of industrial management as a completion of the notion of economic intelligence and in knowledge management mechanisms and processes of the diffusion of knowledge through mechanisms of protection.

The war of influence is not only a fairly present threat but also lies at the base of numerous asymmetrical conflicts, and primarily regards the use of the media and the utilization of messages destined to influence or manipulate public opinion (or political decisions). Democratic society based on the free circulation of information does not accept – at least openly – an active practice of influence; despite this, our democratic societies are very vulnerable to information manipulation. Such manipulation is naturally not only made by nations but also by private pressure groups, and can play a significant role in influencing public opinion. Second of all, the influencing actions must necessarily be aimed at the achievement of strategic objectives, known jointly in both civil and military context, monitored to achieve specific psychological ends, and be founded on close cooperation between civil and military intelligence organizations; as it concerns actions of influence, they have one fundamental objective, in other words, the restoration or maintenance of the trust of the civil population in the authorities or the weakening of the adversary’s will to fight. In order to achieve these objectives efficaciously, such influencing actions must be conducted as if they were military operations and therefore on the basis of non-factious objective information.

Naturally enough, these objectives can be pursued through secretive operations that include propaganda and disinformation. On the other hand, increasing one’s own power advantage – also by denigrating or compromising that of the adversary through disinformation – has always played a part in the art of war. In an open and democratic society, the manipulation of public opinion is certainly possible, of course, but it must be implemented through new forms. In the context of the struggle against terrorism, information remains a determinant element, and must be developed through these three objectives during information warfare:

  1. a) there must be an information matrix upstream from the operative decision-maker, and this requires the ability to generate an awareness of the battlefield and to integrate this knowledge with the information necessary to wage war (which is substantially the ability to anticipate the enemy’s moves);
  2. b) the information matrix downstream from the operative decision that serves to acquire and maintain the technical means and the processes of command and conduct that permit any determined mission to be followed;
  3. c) the communication matrix between the state and public opinion regarding the management and perception of the conflict.

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Economy

Afreximbank Meets Ahead of Russia-Africa Summit

Kester Kenn Klomegah

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The African Export-Import Bank (Afreximbank) plans to hold its 26th annual meeting in Moscow on 18-22 June. A series of closed sessions will be held as part of the event including the meeting of Board of Directors of Afreximbank and a meeting of Shareholders of Afreximbank, as well as the open Russia-Africa Economic Conference.

The African Export-Import Bank, the Roscongress Foundation, the Ministry of Finance of the Russian Federation, and the Russian Export Centre are the key organizers of this event. The Afreximbank Annual Meetings is a high-level event, bringing together political and business leaders from across Africa to discuss the issues of trade, industrialization, export, and financial stability and efficacy.

Key themes planned for the economic conference are: State of Russia-Africa Relations: An Overview; Mining Industry: An Integrated Approach to the Fields Development; Prospects for Multilateralism in an Era of Protectionism; Railways Infrastructure as the Key Element for Development in Africa; South-South Trade: Path for Africa Integration into the Global Economy.

The other topics are Emerging Trends in Sovereign Reserves Management; Reflections on the Transformative Power of South-South Trade; Launch Afreximbank ETC Strategy; Cyber Solutions and Cyber Security for Solving Governmental and Municipals Tasks; Financing South-South Trade in Difficult Global Financing Conditions; The Future of South-South Trade and Infrastructure Financing.

Over 1,500 delegates are expected to attend the economic conference, including shareholders and bank partners, government representatives, members of the business community and media representatives. The conference will be a crucial stage in preparation for the full-scale Russia-Africa political summit and the accompanying economic forum, scheduled for October 2019 in Sochi.

“Russian and African countries are basically on the track of bilateral strategic partnership and alliance based on openness and trust. The fact that the Afreximbank Annual Meeting is to be held in our country gives a positive momentum for the mutually beneficial cooperation of the parties ahead of the full-scale Russia-Africa Political Summit that will take place in Sochi in October, and will add to the inclusive nature of the events,” emphasized Anton Kobyakov, Advisor to the President of Russian Federation.

Following the setup of the Organizing Committee for the Russia – Africa summit and other Russia–Africa events in Russia in 2019, Russian officials have described that this year truly as a year of Africa for Russia.

“We witness the clear growing interests from the both sides to establish the new level of relationships, which means a perfect timing to boost the economic agenda. All economic events planned for this year will become a platform to vocalize these ideas and draw a strong roadmap for the future,” Russian Export Center’s CEO, Andrei Slepnev, argued in an emailed interview with Buziness Africa.

In December 2017, Russian Export Center became a shareholder of Afreximbank. Russian Export Center is a specialized state development institution, created to provide any assistance, both financial and non-financial, for Russian exporters looking for widening their business abroad.

On March 19, the Organizing Committee on Russia-Africa held its first meeting in Moscow. President Vladimir Putin put forward the Russia-Africa initiative at the BRICS summit (Russia, Brazil, India, China, and South Africa) in Johannesburg in July 2018.

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The silent revolution

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Jamaica is well known for its beautiful beaches, Bob Marley, and reggae music. But what is less known is that the Caribbean island started a silent revolution after being one of the most indebted developing countries in the world. Jamaica has shown a macroeconomic turnaround that is quite extraordinary.

As Bob Marley said, “It takes a revolution to make a solution”. After decades of high debt and low growth Jamaica has changed its growth trajectory, with positive economic growth for 16 consecutive quarters and growth getting closer to two per cent.

During that period, the Jamaica Stock Exchange went up more than 380 per cent.The credit agency Fitch upgraded the island’s debt to B+ rating with a stable fiscal outlook, and unemployment hit eight per cent in January, the lowest in decades.

The Government had a wake-up call when its debt overhang peaked at almost 150 per cent of GDP in 2013. With the support of the International Monetary Fund, the World Bank and the Inter-American Development Bank, the country embarked on an ambitious reform programme. These efforts have paid off. Jamaica is now one of the few countries that has successfully cut public debt by the equivalent of half its gross domestic product in a short time frame.

The fiscal turnaround and economic transformation were possible because of the strong commitment across political parties over two competing administrations and electoral cycles. The country also critically benefited from a sustained social consensus for change and the strong backing of the private sector.

The country has generated primary fiscal surpluses of at least seven per cent of GDP for the last six years, and remains steadfast in its commitment to fiscal discipline. These fiscal results make Jamaica a top performer internationally.

For this silent revolution to continue and bring greater prosperity to all its people, Jamaica will need to further boost the investment climate, strengthen economic and climate resilience and invest more in its people to build human capital. These are necessary complements to the maintenance of a strong macroeconomic framework and would help boost economic growth and job creation. There are encouraging signs that Jamaica is taking action in these areas.

With regard to the business climate, the National Competitiveness Council has adopted a road map to fast-track reforms to improve the business environment. Jamaica features in the top 20 countries in the world for its comprehensive credit reporting systems and ranks among the best globally in the area of starting a business, according to the World Bank’s 2019 Doing Business report. It only takes two procedures and three days for an entrepreneur to start and formally operate a business.

There have been advancements on public-private partnership investments. For instance, the Norman Manley International Airport public-private partnership was recently completed with advisory support from the International Finance Corporation — the private sector arm of the World Bank Group.

Jamaica is also a front-runner among Caribbean countries in promoting climate and financial resilience in the face of natural disasters. The economic cost of these disasters for the Caribbean is substantial, exceeding US$22 billion between 1950 and 2016, compared with US$58 billion for similar disasters globally. One serious storm or natural disaster could set back the country’s growth prospects and development achievements of recent years. To tackle this, the Government has adopted a Public Financial Management Policy Framework for Natural Disaster Risk Financing to facilitate the availability of dedicated resources for recovery in the face of disaster risks.

In order to further support Jamaica in its efforts to strengthen the economy, build resilience, and support human capital development, the World Bank will expand its financing by US$140 million. This financing package will be for a series of two operations to help Jamaica be better prepared to mitigate the financial impact of natural disasters and build stronger infrastructure, and an additional project to strengthen social protection.

Despite unemployment at a new low, still too many young people are struggling to find a job. For Jamaica to continue to grow and prosper, it also needs to develop the skills for the workforce of tomorrow, especially in the areas of technology and digitalisation. This requires a sharp focus on creating the conditions for youths to strive and succeed in the modern business world and close cooperation with the private sector in this respect.

Today, more than ever before, young Jamaicans can dream of a brighter future where “every little thing is gonna be alright”. This is the generation that must aim higher and can write a new chapter for its country.

As we celebrate the 55th anniversary of the World Bank-Jamaica partnership, we look forward to working together to build on the success of the past few years and promote growth, jobs and resilience for Jamaica.

World Bank

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With or without sanctions, Iran needs to say goodbye to oil money

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Except Norway, almost all oil producing countries have made themselves more or less reliant on oil money.

Only oil producing countries with a small population, such as Kuwait and Qatar which is also a great gas exporter, have so been safe from fluctuations in the oil market. But, countries with large population, such as Iran, are prone to volatility in the oil market, let alone the mad sanctions introduced against the country.

There is no doubt that oil money has affected politics, economy, management system, culture, spending and consumption habits and many other issues in oil rich countries.

For example, Iran now has one of the cheapest energy prices in the world. This has led to an extravagant use of energy, especially an excessive use of private car, in the country.

Let’s make an example to clarify that oil money is not the road to progress and a vibrant economy. In the 1970s, Iran was more developed than South Korea, but now South Korea is much more successful than Iran in terms of economy and technology. South Korea does not have oil, but it has provided an opportunity for a competitive economy and capitalized on its talents.

It is true that the war imposed on Iran in the 1980s hindered Iran’s progress and inflicted about 1 trillion dollar in damages on the country, yet officials failed to take serious steps toward creating a competitive economic atmosphere with a focus on research and technology. The oil money has been the main blame for such an economic approach.

According to the successive five-year development plans which end on 2021, Iran had to reduce dependence on oil to a great extent, however, successive administrations, with varying degrees, did not fully act based on the development plan.

Iran is now subject to the toughest ever illegal sanctions by the Trump administration. Just on April 22, the United States ended sanctions waivers on Iran’s exports and announced it wants to zero out Iran’s oil exports by May 1.

Whether the Trump administration succeeds or not to implement its oil threats is an issue that we should wait and see, but it is necessary that Iran take a departure from oil export how much painful it will be.

Sorena Sattari, a graduate of Sharif University of Technology who serves as vice president for scientific affairs, told a meeting in Hamedan on Tuesday that sanctions have provided an opportunity that knowledge-based companies to intensify their efforts. Sattari also said plans have been drawn up to manufacture equipment and machinery that are subject to sanctions. 

Also, whether we like it or not, fossil fuels, especially crude oil, are losing their importance as renewable energy resources are gradually taking the center stage.

Saying goodbye to easily-gained oil revenues is a bitter pill that Iran should swallow. To do so, though very difficult under tough sanctions, officials need to find other sources of income.

They can invest on tourism as Iran is among the top countries in hosting touristic sites, establish an environment for a transparent competitive economy, close loopholes of corruption, involve competent persons in managerial posts, introduce a sound and workable tax system, end unnecessary subsidies, and more importantly prioritize research and development (R&D).

First published in our partner Tehran Times

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