The last ones were days of increasing tensions between the two biggest economic superpowers, the USA and China. The geopolitical crescendo seems to become always more intense, and the two giants are trying to build up two strong alignments against one another in a competition that Bloomberg defines a “Cold War 2.0.” or a “Tech War”. The implementation of 5G technologies plays a fundamental role in this “rush to the infrastructures” also due to their linkages with the “High-Frequency Trading” world; the sector of contemporary finance based on always faster algorithms and huge Data Centres that require strong software and the analysis of tons and tons of information to predict stocks fluctuations hence “to do God’s work” as Lloyd Blankfein (the actual Senior Chairman of Goldman Sachs) said in 2009 .
In the article “Digital Cold War” Marc Champion describes his strongly polarized vision of the global scenario in which the conflict would take place like two technological ecospheres; with half of the world where people are carried around by driverless cars created by Baidu using Huawei 5G’s, chatting and paying with WeChat and buying on Alibaba with an internet connection strictly controlled and limited by the Great Firewall; while on the other part of the world people with a less controlled internet connection buy on Amazon and use other dominating companies e.g. Google, Tesla, Ericsson, and Facebook. The latter presented scenario is always more tangible, indeed it is enough to consider that the People’s Republic of China has equipped itself with an alternative system to the GPS (the instrument that following the theory of the PRC caused the downfall of two Chinese missiles sent during the conflict with Formosa), created by Baidu on the 23rd July 2020.
The presentation of scenarios in which the 5G plays a crucial role makes it necessary to give a closer look at what 5G technologies technically are. 5G (Fifth-generation) stands for the next major phase of mobile telecommunications standards beyond the 4G/IMT Advanced standards. Since the first generation, that was introduced in 1982, it is observable a remarkable growth of cellular communication of about 40% per year; these issues led mobile service providers to research new technologies and improved services, basing on the evidence that wireless communication networks have become much more pervasive. Therefore, aiming to fulfill the growing need of human being, 5G will be the network for millions of devices and not just for smartphones, hence it grants connectivity between sensors, vehicles, robots and drones; and it provides data speed up to 1 to 10 Gbps, and a faster connection for more people in a km2, thus the creation of smart cities.
It is now more evident that the implementation of the fifth-generation technologies offers strategic slides of power and control to the companies, and the linked geopolitical actors, that manage the infrastructures and the network band. Therefore, 5G technologies play a crucial geopolitical role, being inter alia fundamental for strategic sectors, such as the high-frequency trading (that we are going to discuss later), that sustain and orientate the world’s economy. This rush to the infrastructure, hence to the technological supremacy led to a crescendo of reprisals among the world’s most influential countries. If we give a closer look at the relations between the USA and China, the last years were characterized by increasing tensions, in the commercial relations, in military ones linked to the Indo-Pacific area and the Xinjiang, and lastly, tensions concerning the approach to face the COVID-19 threat. USA and China, as Kishore Mahbubani says seems no longer partners either in business; but to fully understand the actual situation in terms of 5G the concrete measures and imposed bans are going to be presented. The fact that Chinese companies, in particular Huawei and ZTE, began focusing on acquiring a lead in 5G intellectual property well before their global competitors (with an expense, indicated in their annual report, of about $600 million between 2009 and 2013; and a planned one of about $800 million in 2019), being now leading ones in the implementation of the technology, led the US to be more consternated about their national security and global influence. Therefore, in the geopolitical logic of 5G, the US keep acting to opt against China as a country that “exploit data”, indeed Mike Pompeo in an interview in 2019 said “We can’t forget these systems were designed by- with the express (desire to) work alongside the Chinese PLS, their military in China”; while on the other side China has responded with a campaign that blends propaganda, persuasion, and incentives with threats and economic coercion, offering massive investments plans, aiming to reach the now well known “Belt and Road Initiative”. The Trump administration effectively banned executive agencies from using or procuring Huawei and ZTE telecommunication equipment with the National Defense Authorization Act signed in 2018, a ban that was challenged by Huawei in the court and obtained a favourable verdict; a ban that was later re-proposed in May 2019 with an executive order; that was followed by the US Commerce Department placing Huawei and 68 affiliates on an Entity List, a document that conditions the sale or transfer of American technology to that entities unless they have a special license; however the latter restrictions were imposed just for 90 days after the failure of the 11th round of trade talks between China and the US. Canada is another country with deteriorated relations with Beijing, after the arrest of Meng, who was extradited from the US territory. Furthermore, in recent days, as revealed by The Wall Street Journal, the UK announced that is going to ban Huawei 5G technologies from 2027, following the US imposition, and Beijing responded considering a possible ban on Chinese elements for the Finnish Nokia and the Swedish Ericsson. While the European Union keeps struggling to face the situation as a Union, and political reprisals between these two States occur e.g. the closure of the Chinese consulates in Huston and San Francisco and the closure of the US’ one in Chengdu; in a geopolitical context, the US are trying to build a strong anti-Chinese alignment in the Indo-Pacific area, with the support of countries like the Philippines, Singapore, Taiwan, South Korea, Japan, Australia, and New Zealand; also following the logic that in a strategic scenario the geopolitical actors, between two competitors States tends to choose the side of the farthest one. Another actor that could tip the balance in this global scenario is India; that following a government study of August 2018 could hit the national income of about $1 trillion by 2035 with the implementation of 5G technologies, improving the governance capacity, and enabling healthcare delivery, energy grid management and urban planning. However, high levels of automation and dependence on a communication network, if it would follow the investment plan proposed by Huawei (but also an extreme inclination to the US), could bring security threats and lack of supremacy, hence “voice” in a global scenario.
After having analysed the geopolitical patterns of 5G implementation, it is time to analyse a strategic sector linked to the fifth-generation technologies, which is the “engine” of the World’s economy, the finance. There are some milestones that have made national markets global ones; within what is called the “rebellion of the machines” that led the financial world to be totally based on algorithms hence on speed. The first one was the introduction of the Telegraph, introduced in 1848, and that both with the new Galena and Chicago Railroad promoted the born of the Chicago Board of Trade. The telegraph carried anthropological changes hence it was fundamental for the division between the price and the goods; and it seems to have carried with itself big changes in the finance world, the same thing 5G will do in our scenario. Among all the events that led to the second phase of the “rebellion” there is what happened in 2000, when after merging with other European markets, thanks to SuperCAC, the Paris stock exchange took the name EURONEXT. Later in 2007, the second phase of the rebellion took place in an increasingly globalized scenario; where the tech was already part of the finance, and there were a lot of digitalized platforms to trade-in. Therefore, following the development of the digital world The Chicago Mercantile Exchange created his own platform Globex, which in 2007 merged with the CBOT’s one Aurora that was based on a weak band network of about 19,2 kb. The banks created black boxes so dark that it would not allow them to be in control anymore; a very different situation from the conditions established by the Buttonwood agreement of 1792, the act at the basis of the birth of the second world market after that of Philadelphia which provided for the sale of securities between traders without going through intermediaries. Subsequently, the steps that favoured the rise of trading platforms, the development of adaptive algorithms based on the laws of physics and, mathematics and biology, were multiple, which therefore led to the development of what is called phynanza. In the 2000s the most influential banking groups, Goldman Sachs, Crédit Suisse, BNP Paribas, Barclays, Deutsche Bank, Morgan Stanley, Citigroup, through a strong deregulation and lobbying activities have directed the markets towards their deeper turning point; in an era in which the headquarters of the stock exchanges are not physical and the core bodies of the exchange markets are in the suburbs where large spaces and the technological infrastructures of network and data transmissions allow the creation of huge data centers, where powerful software, cooling systems and adaptive algorithms give life to the daily oscillations of global finance. Algorithms like Iceberg, that splits a large volume of orders into small portions, so that the entirety of the initial volume escapes the “nose of the hounds”; or Shark that identifies orders shipped in small quantities to glimpse the big order that Is hiding behind; or Dagger, a Citibank algorithm launched in 2012 that like Stealth, Deutsche Bank’s algorithm, is looking for more liquid values, and also Sumo of Knight Capital, a high frequency trading company that alone trades an amount of about $ 20 billion a day; and there are many others, from Sonar, Aqua, Ninja and Guerrilla.
It is clear that to support such an articulated financial apparatus it is necessary to connect and analyze data with microsecond accuracy. Therefore, another example of 5G geostrategy in finance is Coriolis 2, an oceanographic ship created in 2010 by Seaforth Geosurveys that offers maritime engineering solutions. Notably, among their clients there is Hibernia Atlantic; an underwater communication network, that connects North America to Europe, created in 2000 at a cost of 1 billion. The New Jersey office manufactures transatlantic cables that rent to telecommunications companies like Google and Facebook, obviously not to improve the circulation of stupid comments on social networks. The ship is preparing the construction of “dark fiber” cables, and the technical management and the end-use are by Hibernia who may not share the band with anyone. The peculiar thing is that who ordered the cable, Hibernia, was created specifically for financial market operators and it is part of the Global Financial Network (GFN), which manages 24.000Km of optical fiber that connects more than 120 markets. This new fiber at the cost of 300 million, will allow to gain 6 milliseconds, a time that a USA-UE investment fund can use to earn £100 million dollars more per year. The transmission networks are fundamental in guaranteeing trading and in high frequency and the motto has changed from “time is money” to “speed is money”.
 Laumonier A., 2018. 6/5, Not, Nero collection, Roma.
 Kewalramani M., Kanisetti A. 5G, Huawei & Geopolitics: An Indian Roadmap. 2019, Takshashila institution; Discussion document.
From our partner International Affairs
From nanotechnology to solar power: Solutions to drought
While the drought has intensified in Iran and the country is facing water stress, various solutions from the use of solar power plants to the expansion of watershed management and nanotechnology are offered by experts and officials.
Iran is located in an arid and semi-arid region, and Iranians have long sought to make the most of water.
In recent years, the drought has intensified making water resources fragile and it can be said that we have reached water bankruptcy in Iran.
However, water stress will continue this fall (September 23-December 21), and the season is expected to be relatively hot and short of rain, according to Ahad Vazifeh, head of the national center for drought and crisis management.
In such a situation, officials and experts propose various solutions for optimal water management.
Alireza Qazizadeh, a water and environment expert, referring to 80 percent of the arid regions in the country, said that “Iran has one percent of the earth’s area and receives only 36 percent of renewable resources.
The country receives 250 mm of rainfall annually, which is about 400 billion cubic meters, considering 70 percent evaporation, there is only 130 billion cubic meters of renewable water and 13 billion cubic meters of input from border waters.”
Referring to 800 ml of average rainfall and 700 mm of global evaporation, he noted that 70 percent of rainfall in Iran occurs in only 25 percent of the country and only 25 percent rains in irrigation seasons.
Pointing to the need for 113 billion cubic meters of water in the current year (began on March 21), he stated that “of this amount, 102 billion is projected for agricultural use, 7 percent for drinking and 2 percent for industry, and at this point water stress occurs.
In 2001, 5.5 billion cubic meters of underground resources were withdrawn annually, and if we consider this amount as 20 years from that year until now, it means that we have withdrawn an equivalent of one year of water consumption from non-renewable resources, which is alarming.”
The use of unconventional water sources can be effective in controlling drought, such as rainwater or river runoff, desalinated water, municipal wastewater that can be reused by treatment, he concluded.
Rasoul Sarraf, the Faculty of Materials at Shahid Modarres University, suggests a different solution and states that “To solve ease water stress, we have no choice but to use nanotechnology and solar power plants.
Pointing to the sun as the main condition for solar power plant, and while pointing to 300 sunny days in the country, he said that at the Paris Convention, Iran was required to reduce emissions by 4 percent definitively and 8 percent conditionally, which will only be achieved by using solar power plants.
Hamidreza Zakizadeh, deputy director of watershed management at Tehran’s Department of Natural Resources and Watershed Management, believes that watershed management can at least reduce the effects of drought by managing floods and extracting water for farmers.
Amir Abbas Ahmadi, head of habitats and regional affairs of Tehran Department of Environment, also referring to the severe drought in Tehran, pointed to the need to develop a comprehensive plan for water management and said that it is necessary to cooperate with several responsible bodies and develop a comprehensive plan to control the situation.
He also emphasizes the need to control migration to the capital, construction, and the implementation of the Comprehensive Plan of Tehran city.
While various solutions are proposed by officials and experts to manage water and deal with drought, it is necessary for the related organizations to work together to manage the current situation.
Mohammad Reza Espahbod, an expert in groundwater resources, also suggested that while the country is dealing with severe drought due to improper withdrawal of groundwater and low rainfall, karst water resources can supply the whole water needed by the country, only if managed.
Iran is the fifth country in the world in terms of karst water resources, he stated.
Qanats can also come efficient to contain water scarcity due to relatively low cost, low evaporation rates, and not requiring technical knowledge, moreover, they proved sustainable being used in perpetuity without posing any damages to the environment.
According to the Ministry of Energy, about 36,300 qanats have been identified in Iran, which has been saturated with water for over 2,000 years.
In recent years, 3,800 qanats have been rehabilitated through watershed and aquifer management, and people who had migrated due to water scarcity have returned to their homes.
Water resources shrinking
Renewable water resources have decreased by 30 percent over the last four decades, while Iran’s population has increased by about 2.5 times, Qasem Taqizadeh, deputy minister of energy, said in June.
The current water year (started on September 23, 2020) has received the lowest rain in the past 52 years, so climate change and Iran’s arid region should become a common belief at all levels, he lamented.
A recent report by Nature Scientific Journal on Iran’s water crisis indicates that from 2002 to 2015, over 74 billion cubic meters have been extracted from aquifers, which is unprecedented and its revival takes thousands of years along with urgent action.
Three Iranian scientists studied 30 basins in the country and realized that the rate of aquifer depletion over a 14-year period has been about 74 billion cubic meters, which is recently published in Nature Scientific Journal.
Also, over-harvesting in 77 percent of Iran has led to more land subsidence and soil salinity. Research and statistics show that the average overdraft from the country’s aquifers was about 5.2 billion cubic meters per year.
Mohammad Darvish, head of the environment group in the UNESCO Chair on Social Health, has said that the situation of groundwater resources is worrisome.
From our partner Tehran Times
Technology and crime: A never-ending cat-and-mouse game
Is technology a good or bad thing? It depends on who you ask, as it is more about the way technology is used. Afterall, technology can be used by criminals but can also be used to catch criminals, creating a fascinating cat-and-mouse game.
Countless ways technology can be used for evil
The first spear was used to improve hunting and to defend from attacking beasts. However, it was also soon used against other humans; nuclear power is used to produce energy, but it was also used to annihilate whole cities. Looking at today’s news, we’ve learned that cryptocurrencies could be (and are) used as the preferred form of payments of ransomware since they provide an anonymous, reliable, and fast payment method for cybercriminals.
Similarly, secure phones are providing criminal rings with a fast and easy way to coordinate their rogue activities. The list could go on. Ultimately, all technological advancements can be used for good or evil. Indeed, technology is not inherently bad or good, it is its usage that makes the difference. After all, spears served well in preventing the extinction of humankind, nuclear power is used to generate energy, cryptocurrency is a promise to democratize finance, and mobile phones are the device of choice of billions of people daily (you too are probably reading this piece on a mobile).
However, what is new with respect to the past (recent and distant) is that technology is nowadays much more widespread, pervasive, and easier to manipulate than it was some time ago. Indeed, not all of us are experts in nuclear material, or willing and capable of effectively throwing a spear at someone else. But each of us is surrounded by, and uses, technology, with a sizeable part of users also capable of modifying that technology to better serve their purposes (think of computer scientists, programmers, coding kids – technology democratization).
This huge reservoir of people that are capable of using technology in a way that is different from what it was devised for, is not made of just ethical hackers: there can be black hats as well (that is, technology experts supporting evil usages of such technology). In technical terms, the attack vector and the security perimeter have dramatically expanded, leading to a scenario where technology can be easily exploited for rogue purposes by large cohorts of people that can attack some of the many assets that are nowadays vulnerable – the cybersecurity domain provides the best example for the depicted scenario.
Fast-paced innovation and unprecedented threats
What is more, is that technology developments will not stop. On the contrary, we are experiencing an exponentially fast pace in technology innovation, that resolves in less time between technology innovations cycles that, while improving our way of living, also pave the way for novel, unprecedented threats to materialize. For instance, the advent of quantum computers will make the majority of current encryption and digital signature methods useless and what was encrypted and signed in the past, exposed.
The tension between legitimate and illegitimate usages of technology is also heating up. For instance, there are discussions in the US and the EU about the need for the provider of ICT services to grant the decryption keys of future novel secure applications to law enforcement agencies should the need arise –a debatable measure.
However, technology is the very weapon we need to fight crime. Think of the use of Terahertz technology to discover the smuggling of drugs and explosives – the very same technology Qatar has successfully employed. Or the infiltration of mobile phone crime rings by law enforcement operators via high tech, ethical hacking (as it was the case for the EncroChat operation). And even if crime has shown the capability to infiltrate any sector of society, such as sports, where money can be laundered over digital networks and matches can be rigged and coordinated via chats, technology can help spot the anomalies of money transfer, and data science can spot anomalies in matches, and can therefore thwart such a crime – a recent United Nations-sponsored event, participated by the International Centre for Sport Security (ICSS) Qatar and the College of Science and Engineering (CSE) at Hamad Bin Khalifa University (HBKU) discussed the cited topic. In the end, the very same technology that is used by criminals is also used to fight crime itself.
Don’t get left behind
In the above-depicted cybersecurity cat-and-mouse game, the loser is the party that does not update its tools, does not plan, and does not evolve.
In particular, cybersecurity can help a country such as Qatar over two strategic dimensions: to better prevent/detect/react to the criminal usage of technology, as well as to advance robustly toward a knowledge-based economy and reinforce the country’s presence in the segment of high value-added services and products to fight crime.
In this context, a safe bet is to invest in education, for both governments and private citizens. On the one hand, only an educated workforce would be able to conceptualize/design/implement advanced cybersecurity tools and frameworks, as well as strategically frame the fight against crime. On the other hand, the same well-educated workforce will be able to spur innovation, create start-ups, produce novel high-skill products, and diversify the economy.
In this context, Qatar enjoys a head start, thanks to its huge investment in education over the last 20 years. In particular, at HBKU – part of Qatar Foundation – where we have been educating future generations.
CSE engages and leads in research disciplines of national and global importance. The college’s speciality divisions are firmly committed to excellence in graduate teaching and training of highly qualified students with entrepreneurial capacity.
For instance, the MS in Cybersecurity offered by CSE touches on the foundations of cryptocurrencies, while the PhD in Computer Science and Engineering, offering several majors (including cybersecurity), prepares future high-level decision-makers, researchers, and entrepreneurs in the ICT domain – the leaders who will be driving the digitalization of the economy and leading the techno-fight against crime.
Enhancing poverty measurement through big data
Authors: Jasmina Ernst and Ruhimat Soerakoesoemah*
Ending poverty in all its forms is the first of the 17 Sustainable Development Goals (SDGs). While significant progress to reduce poverty had been made at the global and regional levels by 2019, the Covid-19 pandemic has partly reversed this trend. A significant share of the population in South-East Asia still lacks access to basic needs such as health services, proper nutrition and housing, causing many children to suffer from malnutrition and treatable illnesses.
Delivering on the commitments of the 2030 Agenda for Sustainable Development and leaving no one behind requires monitoring of the SDG implementation trends. At the country level, national statistics offices (NSOs) are generally responsible for SDG data collection and reporting, using traditional data sources such as surveys, census and administrative data. However, as the availability of data for almost half of the SDG indicators (105 of 231) in South-East Asia is insufficient, NSOs are exploring alternative sources and methods, such as big data and machine learning, to address the data gaps. Currently, earth observation and mobile phone data receive most attention in the domain of poverty reporting. Both data sources can significantly reduce the cost of reporting, as the data collection is less time and resource intensive than for conventional data.
The NSOs of Thailand and the Philippines, with support from the Asian Development Bank, conducted a feasibility study on the use of earth observation data to predict poverty levels. In the study, an algorithm, convolutional neural nets, was pretrained on an ImageNet database to detect simple low-level features in images such as lines or curves. Following a transfer learning technique, the algorithm was then trained to predict the intensity of night lights from features in corresponding daytime satellite images. Afterwards income-based poverty levels were estimated using the same features that were found to predict night light intensity combined with nationwide survey data, register-based data, and geospatial information. The resulting machine learning models yielded an accuracy of up to 94 per cent in predicting the poverty categories of satellite images. Despite promising study results, scaling up the models and integrating big data and machine learning for poverty statistics and SDG reporting still face many challenges. Thus, NSOs need support to train their staff, gain continuous access to new datasets and expand their digital infrastructure.
Some support is available to NSOs for big data integration. The UN Committee of Experts on Big Data and Data Science for Official Statistics (UN-CEBD) oversees several task teams, including the UN Global Platform which has launched a cloud-service ecosystem to facilitate international collaboration with respect to big data. Two additional task teams focus on Big Data for the SDGs and Earth Observation data, providing technical guidance and trainings to NSOs. At the regional level, the weekly ESCAP Stats Café series provides a knowledge sharing platform for experiences related to the impact of COVID-19 on national statistical systems. The Stats Café includes multiple sessions dedicated to the use of alternative data sources for official statistics and the SDGs. Additionally, ESCAP has published policy briefs on the region’s practices in using non-traditional data sources for official statistics.
Mobile phone data can also be used to understand socioeconomic conditions in the absence of traditional statistics and to provide greater granularity and frequency for existing estimates. Call detail records coupled with airtime credit purchases, for instance, could be used to infer economic density, wealth or poverty levels, and to measure food consumption. An example can be found in poverty estimates for Vanuatu based on education, household characteristics and expenditure. These were generated by Pulse Lab Jakarta – a joint innovation facility associated with UN Global Pulse and the government of Indonesia.
Access to mobile phone data, however, remains a challenge. It requires long negotiations with mobile network operators, finding the most suitable data access model, ensuring data privacy and security, training the NSO staff and securing dedicated resources. The UN-CEBD – through the Task Team on Mobile Phone Data and ESCAP – supports NSOs in accessing and using mobile phone data through workshops, guides and the sharing of country experiences. BPS Statistics Indonesia, the Indonesian NSO, is exploring this data source for reporting on four SDG indicators and has been leading the regional efforts in South-East Asia. While several other NSOs in Asia and the Pacific can access mobile phone data or are negotiating access with mobile network operators, none of them have integrated it into poverty reporting.
As the interest and experience in the use of mobile phone data, satellite imagery and other alternative data sources for SDGs is growing among many South-East Asian NSOs, so is the need for training and capacity-building. Continuous knowledge exchange and collaboration is the best long-term strategy for NSOs and government agencies to track and alleviate poverty, and to measure the other 16 SDGs.
*Ruhimat Soerakoesoemah, Head, Sub-Regional Office for South-East Asia
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