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:
- 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);
- 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;
- c) the communication matrix between the state and public opinion regarding the management and perception of the conflict.
China Development Bank could be a climate bank
Development Bank (CDB) has an opportunity to become the world’s most important
climate bank, driving the transition to the low-carbon economy.
CDB supports Chinese investments globally, often in heavily emitting sectors. Some 70% of global CO2 emissions come from the buildings, transport and energy sectors, which are all strongly linked to infrastructure investment. The rules applied by development finance institutions like CBD when making funding decisions on infrastructure projects can therefore set the framework for cutting carbon emissions.
CDB is a major financer of China’s Belt and Road Initiative, the world’s most ambitious infrastructure scheme. It is the biggest policy bank in the world with approximately US$2.3 trillion in assets – more than the $1.5 trillion of all the other development banks combined.
Partly as a consequence of its size, CDB is also the biggest green project financer of the major development banks, deploying US$137.2 billion in climate finance in 2017; almost ten times more than the World Bank.
This huge investment in climate-friendly projects is overshadowed by the bank’s continued investment in coal. In 2016 and 2017, it invested about three times more in coal projects than in clean energy.
scale makes its promotion of green projects particularly significant. Moreover,
it has committed to align with the Paris Agreement as part of the International Development Finance
Club. It is also
part of the initiative developing Green Investment Principles along the BRI.
This progress is laudable but CDB must act quickly if it is to meet the Chinese government’s official vision of a sustainable BRI and align itself with the Paris target of limiting global average temperature rise to 2C.
What does best practice look like?
In its latest report, the climate change think-tank E3G has identified several areas where CDB could improve, with transparency high on the list.
The report assesses the alignment of six Asian development finance institutions with the Paris Agreement. Some are shifting away from fossil fuels. The ADB (Asian Development Bank) has excluded development finance for oil exploration and has not financed a coal project since 2013, while the AIIB (Asian Infrastructure Investment Bank) has stated it has no coal projects in its direct finance pipeline. The World Bank has excluded all upstream oil and gas financing.
In contrast, CDB’s policies on financing fossil fuel projects remain opaque. A commitment to end all coal finance would signal the bank is taking steps to align its financing activities with President Xi Jinping’s high-profile pledge that the BRI would be “open, green and clean”, made at the second Belt and Road Forum in Beijing in April 2019.
CDB should also detail how its “green growth” vision will translate into operational decisions. Producing a climate-change strategy would set out how the bank’s sectoral strategies will align with its core value of green growth.
CDB already accounts for emissions from projects financed by green bonds. It should extend this practice to all financing activities. The major development banks have already developed a harmonised approach to account for greenhouse gas emissions, which could be a starting point for CDB.
Lastly, CDB should integrate climate risks into lending activities and country risk analysis.
One of the key functions of development finance institutions is to mobilise private finance. CDB has been successful in this respect, for example providing long-term capital to develop the domestic solar industry. This was one of the main drivers lowering solar costs by 80% between 2009-2015.
However, the extent to which CDB has been successful in mobilising capital outside China has been more limited; in 2017, almost 98% of net loans were on the Chinese mainland. If CDB can repeat its success in mobilising capital into green industries in BRI countries, it will play a key role in driving the zero-carbon and resilient transition.
From our partner chinadialogue.net
Oil-Rich Azerbaijan Takes Lead in Green Economy
Now that the heat and dust of Azerbaijan’s parliamentary election on February 9thhas settled, a new generation of administrators are focusing on accelerating the pace of reforms under President Ilham Aliyev, who has ambitious plans to further modernise its economy and diversify its energy sources.
Oil and gas account for about 95 percent of Azerbaijan’s exports and 75 percent of government revenue, with the hydrocarbon sector alone generating about 40 percent of the country’s economic activity. Apart from providing oil to Europe, Azerbaijan successfully completed the Trans-Anatolian Natural Gas Pipeline (TANAP) with Turkey in November 2019 to transfer Azerbaijani gas to Europe.
Yet, with an eye on the future, the country has also begun to take huge strides in renewable energy. Solar and wind power projects have been installed, with their share in total electricity generation already reaching 17 percent. By 2030, this figure is expected to hit 30 percent.
Solar power plants currently operate in Gobustan and Samukh, as well as in the Pirallahi, Surahani and Sahil settlements in Baku.
The potential of renewable energy sources in Azerbaijan is over 25,300 megawatts, which allows generating 62.8 billion kilowatt-hours of electricity per year. Most of this potential comes from solar energy, which is estimated at 5,000 megawatts. Wind energy accounts for 4,500 megawatts, biomass is estimated at 1,500 megawatts, and geothermal energy at 800 megawatts.
President Aliyev has supported the drive for renewable energy. He signed a decree in 2019 to establish a commission for implementing and coordinating test projects for the construction of solar and wind power plants.
Azerbaijan’s focus on renewable energy has drawn interest from its European partners, with leading French companies seeking to invest in the country’s solar and wind electricity generation.
Azerbaijan is France’s main economic and trade partner in the South Caucasus. According to French ambassador Zacharie Gross, “the French Development Agency is ready to invest in Azerbaijan’s green projects, such as solid waste management. This would allow using new cleaner technologies to reduce solid waste. This is beneficial for the environment and the local population.”
“I believe that one of the areas that have greatest development potential is urban services sector. An improved water distribution system can reduce the amount of water consumed, improve its quality, and also solve the problem of flood waters in winter,” the French ambassador added.
Azerbaijan is currently a low emitter of greenhouse gases that contribute to climate change. According to the European Commission, the country released 34.7 million tons of CO2 into the atmosphere in 2018, i.e. just 3.5 tons per capita. This is lower than the norm adopted by the world: 4.9 tons.
In contrast, in 2018 Kazakhstan generated 309.2 million tons of CO2, Ukraine generated 196.8 million tons,Uzbekistan101.8 million tons, and Belarus 64.2 million tons.
And the amount of carbon dioxide emitted by Azerbaijan has been consistently falling. In 1990, Azerbaijan emitted 73.3 million tons, but in 2018 this had dropped to 34.7 million tons. By 2030 the country plans to reduce its annual greenhouse gases emissions by a further 35 percent.
Measures taken by the government include the early introduction of Euro-4 fuel standards in Azerbaijan, with A-5 standards to be introduced from 2021. An increasing number of electric buses and taxis are now transporting passengers in the main cities.
Another key step is the clean-up of the environmental degradation caused by over 150 years of oil production. Azerbaijan’s state oil company SOCAR is helping to recover oil-contaminated lands in Absheron Peninsula, particularly in the once critically contaminated area around Boyukshor Lake. This involves the removal of millions of cubic metres of soil contaminated with oil.
Azerbaijan is also reducing the amount of gas it wastes in flaring. In a study funded by the European Commission, Azerbaijan ranks first among 10 countries exporting oil to the EU in the effective utilisation of associated petroleum gas.The emission of associated gases decreased by 282.5 million cubic meters from 2009 through till 2015. This is expected to fall further to 95 million cubic meters by 2022.
The government is also encouraging large-scale greening of the land. In December 2019, a mass tree-planting campaign was initiated by First Vice President Mehriban Aliyeva to celebrate the 650thanniversary of famous Azerbaijani poet Imadeddin Nasimi. 650,000 trees were planted nationwide, including 12,000 seedlings that were delivered by ship to Chilov Island.
A 2018 survey, carried out in cooperation with Turkish specialists, found that forest area is 1.2 million square meters in Azerbaijan, i.e. 11.4 percent of the total area of the country.A new requirement was introduced last year to halt deforestation and to reduce the negative impact of business projects on the environment.
For a country with the 20th largest oil reserves in the world, Azerbaijan could well have chosen to stick to a hydrocarbon future. But it has instead dared to think beyond oil and gas in its energy, transportation, economy and environment. The country is setting a template that should inspire other large oil producers to emulate.
China-US: How Long Will the Phase One Agreement Hold?
Although the recently signed Phase One agreement between the US and China has put a halt to the ongoing trade war between the two global economic superpowers, it cannot be viewed as a long-term solution. At its best, it is a temporary truce. The language of the eighty-six page document, including its ambiguities and the unrealistic promises upon which the entire agreement is based, suggests that it is based on two unreconcilable compromises between the two parties.
Some of the main highlights of the deal include: China must give an action plan on “strengthening intellectual property protection” and it must reduce the pressure on international companies for “technology transfer.” China has promised to increase the purchase of goods and services from US by $200 Billion over two years. Other key points include easy access to Chinese markets. The 15th December tariffs of $160 Billion have been delayed in December 2019. Tariff rates on $120 bn of goods (imposed on September 01, 2019) have been reduced from 15 to 7 percent although tariffs of $250 Billion at a rate of 25 percent will remain.
The 86 page document, when analyzed, displays an ambiguity in its language, as well as the absence of any enforcement plan and dispute settlement process. Therefore, whenever an issue might arise (and it will) there is a likelihood the deal may implode. For instance, whilst mentioning enforcement of payment of penalties and other fines, the word “expeditious” remains unclear. What is the time period and how will enforcement be accomplished? At another point, while referring to China to send a case for criminal enforcement the word “reasonable suspicion” which can be based on “articulable facts” makes it very abstract. Chad Brown, a trade expert in an article for Business Insider, says that there is no specific way mentioned in the document to penalize the party who violates any provision. Moreover, there is no body (like WTO) that will take decisions but is rather left to the USTR and discussions with Chinese counterparts – a recipe for confusion.
Then there are the promises. But we have to consider different variables. But if it turns out that China carries out its promise to buy crude oil, LNG and coal, the global commodity markets will feel the heat – in a negative way. Under the agreement China will buy an additional $52 bn of energy products in the span of coming two years- 418.5 Billion in 2018 and $33.9 in 2021. This year China will have to buy about $27 Billion energy purchases from U.S. To put this in context, China imported 14 million barrels of oil in November 2018 which is its highest ever. Assuming that China buys the same amount for 12 months it would yield only $9 to $10 billion in revenue! In a similar calculation for coal and LNG, Clyde Russell, in an article for Reuters, concludes that in order to fulfill the above target (of $27 Billion) China would have to double the amount of these imports from US!
Moreover, the Phase One agreement has a snapback clause which implies that upon quarterly reviews if the Chinese side isn’t holding true to their promises the agreement can become null and void.
Even if China fulfills its promise, the purpose wouldn’t be served: the US. deficit won’t reduce significantly. The US trade deficit with China for the first 10 months of 2019 was $294 Billion – in other words, roughly 40 percent of the country’s total trade gap. However, for the same period, Chinese sold goods more than four times that amount (or about $382 bn). China will need to half its exports to the U.S. for a “meaningful” drop in the deficit – something that seems highly unlikely.
Also, the US might even end up more dependent on China. Increased demand for US oil will spike its prices and might trigger other suppliers of China to increase their output in order to fight for the market share. The global energy and commodity markets could face disruption. Similarly, Brazil and other countries, beneficiaries of this trade war, can decrease soy bean prices in order to retain their market share, giving farmers in the US a tough time.
As the U.S. Treasury Secretary, Steven Mnuchin, said that tariffs can remain in place even after a Phase Two agreement, we, therefore, have to be patient and observe the trajectory of Phase One trade agreement carefully. Chinese promise of $200 bn purchases, the lack of a proper dispute resolution mechanism and technical loopholes in language puts the future of the agreement in doubt.
Both sides are keeping some cards in their deck; we have yet to witness the end of this trade-war saga.
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