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Chinese Private Security Companies Along the BRI: An Emerging Threat?

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When documenting China’s security footprint abroad, the PLA and the PLAN often get the spotlight. But under the hood, a relatively newer force is entering many conflicts ridden zones along China’s land based and maritime Silk Roads. These are up and coming Private Security Companies (PSCs) that are seeking to expand out of domestic Chinese markets and capitalize on growing Chinese businesses throughout the BRI. As the BRI continues to expand into countries with a weak state and ongoing conflicts, BRI businesses need security and protection. On the maritime front, increasing worries about sea piracy have created a demand for armed escorts for merchant ships. As was the case in Pakistan, on ground local government forces have repeatedly failed at providing adequate protection. This is where Chinese PSCs come in. With foreign forces failing to secure BRI projects, businesses are approaching Chinese companies. China’s entry into the international Private Military and Security Company (PMSC) market marks a significant departure in a space that continues to be dominated by American and British contractors. These westerns PMSCs have had decades to develop in the international sphere. During this tenurethey havealso managed to create a whirlwind of criticism around the field. It is in this space that Chinese PSCs, one of Asia’s strongest powers,are trying to leave a mark. Thus, it will be valuable to assess their scope, what they might evolve into, and their connection to the Chinese state. 

The Current International Chinese PSCLandscape

Chinese Private Security Companies are a relatively new entry on the international scene. Beginning in the early 2010s, violent incidences – including abductions, killings, brawls, piracy, etc. – involving Chinese individuals in countries such as South Sudan, Pakistan, and Mali experienced an uptick causing concern in Beijing. The wake-up call came in 2010 when separatists from the Baloch Liberation Army in Pakistan attacked the Zaver Palace Continental Hotel situated near the Gwardar port hoping to target Chinese investors.In 2014 ten Chinese individuals working on a Cameroonian construction site run by a state owned company were kidnapped. In 2015, Chinese citizens were kidnapped again in Nigeria and several more died in a car bomb explosion in Somalia. Beijing has responded to these concerns through two step, first by deploying the PLA and the PLAN where possible and secondly by allowing domestic security organizations to go abroad. Allowing PSCs to operate instead of PLAN can actually be the better choice in some situations. China is acutely aware of rising international fears around the potential of a hegemonic China, especially among developing nations. In other cases, using military resources would simply be excessive. In such situations, PSCs can provide a viable middle ground alternative.

Currently there are thousands of Chinese PSCs operational within the country which are providing risk assessment services, surveillance equipment, private security, etc. Much of these functions transfer on to international operations as well. As the domestic market saturatessome companies are looking abroad to expand their business. Consequently, the international footprint of Chinese PSCs is expanding. According to work done by Tsinghua University, Beijing, the top 10 PSCs in China with an international footprint are:

  1. G4S
  2. Control Risks
  3. Beijing Dewei Security Service
  4. ZhongguoAnbao China Security Industry
  5. HuaxinZhongan (Beijing) Security Service (HXZA)
  6. Shanghai Zhongchenwei Security Service Group
  7. Beijing DingtaiAnyuan Guard & Technology Research Institute
  8. ShengzhenZhongzhouTewei Security Consultant
  9. Beijing Guanan Security & Technology
  10. Shandong Huawei Security Group

These companies represent a very minor fraction out of a range of domestic PSCs. The reason for the small footprint abroad is manifold. Legally the Chinese government poses several restrictions on domestic PSCs that make it harder to operate abroad. The 1996 “Law of the PRC on Control of Guns” states that only the PLA, the police, and the militia can legally possess weapons andthose who possess arms overseas may face imprisonment for their crime.  This is clearly a significant hurdle for PSCs that wish to operate in conflict prone areas. In a 2010 law passed by the Ministry of Commerce concerning the operation of PSCs, the government added several strict criteria for firms looking to operate abroad. These included providing security training to their employees before sending them abroad, set up security management systems and mechanisms for emergency response. Providing security systems and training to employees of firms going abroad provides one avenue for PSCs to enter the international market. While the 2010 lawopens up some paths for PSCs looking to expand, these existing regulations still prove to be a major hurdle for all but a few PSCs. Most do not have the resources to fulfill these basic requirements and cannot afford to set up bases abroad. These concerns are reflected by the Wu Guohua, Executive chairman of the “Overseas Security Guardians” which operates Zhong Jun Jun Hong Security Group. He states that while since 2011 companies, small and large, have jumped at the chance to expand abroad, many smaller companies don’t have the resources to negotiate with foreign governments or local forces, educate their personnel thoroughly on local laws to the same level that bigger companies can. Additionally, major companies that do operate abroad, like the HuaxinZhongan Security Service (HXZA) and the Zhong Jun Jun Hong, also boast a range of international certifications to bolster their bid internationally. Many other security organizations are unable to acquire them. Thus, regulatory requirements in the future must reign in these elements and bring smaller companies into the fold as well.

Scope of Current PSC Tasks

Considering that Chinese PSCs are not permitted to carry arms abroad, PSCs often diverge into a range of other security services that do not require its personnel to be armed. These include training personnel, providing logistical assistance, serving as guards in factories, etc., and collaborating with armed local officials for providing protection to Chinese citizens abroad. The only service where Chinese PSCs have been allowed to use arms has been while escorting Chinese vessels through water bodies like the Gulf of Aden or the straits of Malacca. Maritime escorting is a rising field for many PSCs. Most major PSCs provide multiple, if not all, of these services. One of the largest is HuaxinZhongan(HXZA) Security Service that provides all of these above-mentioned services. HXZAis also recognized for their ability to communicate and cooperate with local authorities and PSCs for support. Another major PSC is the Overseas security Guardians Association, which is part of the Zhongjun Junhong group that operations other domestic security subsidiaries. The association is perhaps the most explicit in its connection to the BRI. The organization aims at “safeguarding the promotion of national ’one belt, one road’ strategy” and “building the great wall of steel” to guard the “overseas economic development and the safety of oversea China-invested enterprises and compatriots”.

Maritime escorting is slowly growing as a prominent service amongst organizations. This usually involves PSCs providing protection to merchant ships or fishing vessels in piracy prone areas of the Indian Ocean and the Gulf of Aden. While the affair is expensive, PSCs can find a relative niche for themselves in the work that sets them apart from the PLAN which frequently serves this purpose. In the Sohu Military Observer, Mr. Wu wrote that using PSCs for escorting services is often more cost effective then a PLAN deployment and PSCs tend to be better matched in force as well. The scale of piracy is also smaller than one would expect. Most piracy operations are not large scale and involve the use of small and fast boats, and light weapons. This strength of force can be proportionally dealt with by well-armed PSCs without the need for large scale investment of troops or equipment from the navy. Additionally, PLAN deployments carry the risk of sending a political statement, whether that was intended or not. Here too the commitments to bolstering the BRI arein both practice and rhetoric. In 2015, HXZA made headlines for escorting a Chinese sailor, Zhai Mo, who was took a 10,000 Nautical Mile journey retracing the ancient Maritime Silk Road.

These modes of engagement however are still limited due to few key restrains. Firstly, the inability of PSCs to use arms restricts their independent operations. Many organizations continue to provide logistical services. Like stated earlier many smaller companies do not have the connections to work with local PSCs or authorities to find local forces that can help provide the muscle. HXZA is one of the few companies that has been authorized to carry arms abroad. This also puts PSC employees into severe danger themselves. In Juba, the capital of South Sudan, Chinese security forces from DeWei Security Services found themselves stuck in an active shooting incident that was occurring between local warring factions. Unarmed and underprepared, the security workers and the employees of its client that it was sent to rescue were trapped in an insecure building awaiting government forces to evacuate them. Secondly, PSC operatives often have limited foreign language abilities, be that inEnglish or the native language in the area of deployment. This creates a barrier between locals and the PSC which makes collaboration even harder. In many BRI locations, local population are distrustful if not outright hostile to Chinese presence as demonstrated above. Lingual barriers can add on to this sense of division between locals and the Chinese guests in addition to posing obvious administrative difficulties.

PSCs and The Chinese State

For the longest time, the Chinese state and the domestic legal framework was not friendly to the establishment of Chinese PSCs abroad. However, over the past decade the ice has started to melt as ministries have eased legal restrictions and HXZA operatives were even allowed to carry arms. Chinese firms will perhaps slowly but surely continue to expand into these new markets. Increasing foot print of Chinese agencies that are actively engaged in security operations, risk assessment, provision of security equipment (as in the case of HXZA) etc., brings with it concerns about their connection to the Chinese state and if they can be fully autonomous in their operations. Many Chinese businesses, such as Huawei, have been subject to these fears thus is it logical to worry if PSCs will function as an extension of the PLA or even the Chinese state. The evidence insupport for this is currently weak. PSCs are still mostly engaged in services like anti-piracy operations, resolving kidnapping incidents, guarding Chinese citizens and infrastructure abroad, etc. This relatively narrow range of services is still quite niche and Chinese PSCs are yet to go fully mainstream. Additionally, while some successful PSCs may have connections with their domestic state clients, it may not necessarily translate into serving as an arm of the state abroad. Thus, today the verifiable connections between PSCs and the state are quite limited.

Perhaps as the industry grows and come of its own, the Chinese state will take greater cognizance of its potential uses for state aims. It is not entirely novel for PSCs or PMCs to take government provided tenders. Afterall, the precedent for this was already set by western PMSCs who provide their own government forces, or even foreign governments, with logistical services among other facilities. Thus, it would not be wise to erase the possibility of state influence altogether either. There are few possible avenues for state influence toseep in through. First, Private Security Companies in china often hire ex-PLA and ex-PAP (People’s Armed Police) officers into their ranks. Many higher-ranking positions within PSCs are also occupied by ex-military or former public security personnel. Second, there are reports that Chinese officials are actively pressuring Chinese enterprises abroad to hire PSCs of Chinese origin. 

Conclusion

The Chinese Private Security industry is still as its initial stages. However, it is likely that it will stay given government pressure over overseas enterprises and enthusiasm by Chinese PSCs to establish operations overseas despite the dangers. Little work has been done to study the nature of Chinese PSCs in depth, but as they grow in number and prominence it will become increasingly important to understand their ins and outs and monitor their relationship with the Chinese state. It will also be interesting to consider how, if at all, the role of the PLA might change given the emergence of these new security actors. Granted the PLA will be the most immediate and the strongest projection of Chinese national power, however this poignant power projection is not always desirable. In such scenarios PSCs may become a viable replacement in low intensity missions. Before any of this can happen however, the Chinese government would have to loosen regulation on PSC activities and develop a framework for their operation. For now, prospects are relatively limited, and existing organizations are acting in conjunction with local authorities and companies. However, the international PMSC industry is already under heavy scrutiny for acting eerily like modern mercenaries for hire. The same could happen for Chinese companies as well.

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Should Turkey and Azerbaijan Be Worried About Killed Syrian Mercenaries?

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Just a few weeks ago many analysts and observers were sceptical about reports of Turkey’s transferring units of its Syrian National Army (SNA) proxies to Nagorno Karabakh, even more so because Turkish officials denied any such claims. However, as evidence of massive casualties among the Syrian mercenaries continues to mount, there is little space left for doubt: SNA fighters have become cannon fodder in the Turkish operation in support of Azerbaijan.

The first batch of bodies of those Syrians who perished in Nagorno Karabakh counted over 50 people, according to messages and videos that went viral on opposition WhatsApp and Telegram channels. Among the dead who were delivered to Syria over Hiwar Kilis border crossing and were given a hasted burial were men from Aleppo, Idlib, Homs and other regions of Syria. Many of their relatives, like families of Muhammad Shaalan from Atareb and Kinan Ferzat from Maarat al-Nuuman, were shocked to learn about their death.

Just like the majority of the Syrians who travelled to Nagorno Karabakh,  Muhammad and Firzat were primarily motivated by lucrative rewards of up to 2,000 dollars promised by Turkey. “I came here to make money and have a better life back in Syria where the living conditions are miserable. I consider this a job, nothing else,” a member of Liwa Sultan Murad, one of the first SNA factions to deploy its fighters to the contested region, told Guardian.

The reason behind heavy casualties of the Syrian mercenaries is that they are thrown into action where the clashes are the most violent, including Jabrayil, Terter, Fizulin and Talysh. This move allows Azerbaijan to keep its military, who mainly provide air support including operating Turkey-made Bayraktar TB2 UAVs and coordinate artillery and missile strikes of the Armenian positions, out of direct contact with the enemy.

The estimates of the numbers of the Syrian mercenaries present in Nagorno Karabakh are wildly different. While initial reports put their number at 500 men, it is currently believed that the actual number may be in thousands. This data indicates that at least 10 percent of the fighters were killed during the very first days of the escalation – a serious alarm for the mercenaries as well as their Turkish backers.

These developments must ring a bell for Azerbaijan as well. The longer the conflict protracts, the higher the risk of casualties among the Azeri servicemen becomes, who have already suffered losses in Armenian retaliation strikes. Baku has managed to avoid discontent among the military as well as the civilian populace – not least thanks to the Syrian mercenaries crushed as cannon fodder – but this can not continue for long.

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Emerging Multipolarity and its consequences

Abdul Rasool Syed

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“Make America great again” a slogan that formed the nucleus of trump’s electoral campaign vividly suggests that America is no more a great country. It is, in fact, an implicit admission that U.S is gradually losing its clout in international politics and hence, its image as a sole superpower of the world has virtually tarnished. Let me rephrase this connotation; it means that the era of unipolar world is over and the world has now transitioned to a multipolarirty.

Currently, new power centers are emerging in transnational political landscape. China, Russia, India and Turkey are excessively engaged to carve a niche for them in evolving international order. Most importantly, with China and Russia’s mushrooming proximity, balance of power is now shifting from west to east. Former United States (US) Secretary of State, Hillary Clinton at her state visit to New Zealand was one of the first to observe “a shifting balance of power to a more multi-polar world as opposed to the Cold War model of a bipolar world”. This conspicuous change in multi-national political setup was also realized by Ban ki Moon, the then secretary- General of United Nations who stated at Stanford University in 2013 that we have begun to “move increasingly and irreversibly to a multi-polar world”. Russian Foreign Minister, Sergei Lavrov, also declared at the Russia-China Conference 2016 that “international relations have entered into a conceptually new historical stage that consists in the emergence of a multi-polar world order and reflects the strengthening of new centers of economic development and power”.

These manifestations of political spin doctors have since then revealed a general acceptance of the idea of multi-polar world as a concept that is inescapable political reality in the contemporary international dynamics.   However, when it comes to the transitions and inevitability of power structures, there is a little agreement among the international states.

A much stronger resistance to forego unipolarity remains embedded in the Trump administration vision to “make America great again”. Political pundits such  as Robert Kaplan continue to question, whether there is an overlap of unipolar and multi-polar world realities; where US continues to retain the supremacy in military realm of affairs and is anticipated to remain so for a considerable future time, whereby China leads in the economic realm. Additionally nations in the former Third World are acquiring status as rising powers, notably India who have over the years with smart diplomacy have acquired global outreach to shape international agenda.

Chronologically, After World War II, the U.S. became the undisputed and unchallenged global superpower. It was the only country, equipped with nuclear warheads and was one of the few countries involved in the war that came away from it relatively unscathed at home. The U.S. underwent a meager loss of approximately 400,000 soldiers and a fractional amount of civilians in the war. The Soviet Union, meanwhile, incurred a gigantic loss of around 11 million soldiers and some 7 million to 10 million civilians. While Soviet and European cities were undergoing the process of rehabilitation, American cities flourished. It seemed clear to all that the future belonged to the United States.

But it didn’t take long for the luster of unrivaled power to tarnish. The U.S. military machine relaxed as quickly as it had mobilized, and wartime unity gave way to peacetime political debates over government spending and entitlement programs. Within five years, a bipolar world emerged: The Soviets attained an atomic bomb, and the U.S. was caught flat-footed in a war on the Korean Peninsula that ended in a stalemate. Soon thereafter, the U.S. was withdrawing from Vietnam and rioting at home. In 1971, then-President Richard Nixon predicted a world that he said would soon emerge in which the U.S. was “no longer in the position of complete pre-eminence.” Within 26 years of the end of World War II, Nixon’s prediction saw the light of the day and the U.S. had to resign to its fate.

Theoretically, multipolarity refers to a distribution of power in which more than two states have nearly equal amounts of military, cultural, financial and economic influence.

If we look at the contemporary world, we find that with the rise of like China, India, Russia, Indonesia, Turkey and Brazil, global power will spread across a wider range of countries, hence, a new world order with multipolar outlook is likely to emerge .

Realistically speaking, several revisionist powers are and will shaking up their regions. For instance, Russia invaded Georgia in 2008 and Ukraine in 2014 – annexing Crimea, over which it has fought several wars throughout history (mainly with Turkey). In turn, Turkey is asserting its sovereignty over the eastern Mediterranean to the frustration of countries like Greece, Egypt, Cyprus and Israel. Meanwhile, India has upped its aggression in its border dispute with Pakistan as Modi began a process to revoke the autonomous status of the disputed territories of Jammu and Kashmir.

Notably, after the age of city-states and nation-states, we are now entering the age of continental politics. The most powerful countries of the 21st century (the U.S., China, Russia India, Indonesia, and Brazil) are the size of continents. They have broad economic bases and their digital economies potentially have hundreds of millions of users. Internationally, their scale requires them to seek broad spheres of influence in order to protect their security.

Here the question arises what will be the impact of growing multipolarity in the world? First of all, revisionist powers will increasingly ignite tensions. The growing assertiveness of countries like Russia, Turkey and India is the new normal. As they grow more powerful, these countries will seek to revise arrangements in order to reflect the new realities of power. Because these (continental) states seek broad spheres of influence, many places are at risk of destabilization.

Second, one of the biggest risks is the growing paranoia of the hegemon (the U.S.). The current trade war has shown how destabilizing the policy of the (financial) hegemon becomes as it feels threatened by the rise of a rival. Historically, this has been the most important source of violent conflicts. Indeed, the biggest source of uncertainty in the coming years is how the U.S. will react to the rise of China.

Third, the world order will become more ambiguous. Two developments deserve our attention. First, the growing use of shadow power will make conflict more unpredictable. With digital tools, states (and non-state actors) are manipulating each other in subtle ways. For example, Russian hackers  posed as Iranians to hit dozens of countries and Americans blamed Russia for tampering with American elections. Second, alliances will also become more ambiguous. With ever changing dynamics of world economy, new alliances, motivated by the concept of triangulation (to keep balance in relation with the US and China, the trade warriors) will form and such alliances, as predicted by spin doctors; will be less stable than the blocs, formed in 20th century.

To sum it up, before we reach a multipolar world order, we will see a period of growing uncertainty based on the rise of revisionist powers, the paranoia of the U.S. and growing ambiguity of conflict and cooperation. Moreover, the political pundits are divided in opinion that whether multi-polarity is unstable than unipolarity or bipolarity. Kenneth Waltz strongly was in favor of “bipolar order as stable”. On the other side, Karl Deutsch and David Singer saw multi-polarity as guaranteeing a greater degree of stability in an article published in 1964, “Multipolar Systems and International Stability”. Simon Reich and Richard Ned Lebow in “Goodbye Hegemony” (2014), question the belief whether a global system without a hegemon would be unstable and more war prone. However, whatever the system the world is likely to witness in the days to come, let’s hope that this should be in the best interest of humanity and it should make the lives of the inhabitants of this planet peaceful and prosperous.

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The future of strategic intelligence

Giancarlo Elia Valori

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There are currently three types of intelligence transformations, namely conceptual, technological and operational.

 In the first case, we are dealing with a new and original intelligence paradigm.

 From a mechanism based on the identification of the need for information-research-processing and analysis-dissemination-feedback, we are shifting to what some people already call “position intelligence”.

 In other words, we are coming to an information mechanism that continuously perceives data and processes it, and then spreads it permanently and continuously to those who have to use it.

While the old intelligence model was “positivist”, i.e it concerned single objective and empirical data to be included in a decision-making process that is not determined by intelligence, currently it is instead a matter of building acontinuous follow-up not of data, but of political behaviours, perceptions of reality by the enemy-opponent, as well as complex phenomena that constantly reach the intelligence matrix from different parts and areas.

While in the past intelligence was rhapsodic and temporary, à la carte of politicians, and sometimes even unsolicited and not requested, it currently becomes the stable core of political, strategic, economic and industrial decisions.

This obviously results in a new relationship between politicians and Intelligence Services.

While, in an era we have already defined as “positivist”, facts, news and the unknown novelties of the enemy-opponent counted, what currently matters is the ever more evident integration between the intelligence system and politicians.

 There is obviously a danger not to be overlooked, i.e. the danger that – without even realizing it – the Intelligence Services take on responsibilities which must be typical of elective bodies only.

 But certainly intelligence currently plays a much greater role than in the past.

Another key element of the conceptual transformation of intelligence is the use not only of highly advanced and powerful information technologies, but also of scientific paradigms which were unknown to us only a few years ago.

Just think about Artificial Intelligence, but also cloud computing, algorithm theory and Markov chains – and here we confine ourselves to the mathematics that sustains current IT and computing.

 But there is also human ethology, an extraordinary evolution of Konrad Lorenz’s animal ethology, as well as social psychology, sociological analysis and scientific depth psychology.

 A whole universe of theories that, in Kant’s words, have recently shifted from metaphysics to science.

It must certainly be used to analyse, for example, mass behaviours that seem unpredictable, as well as the psychological reactions of both the ruling classes and the crowds, and the interactions between the various group behaviours of a country.

Nothing to do with the old Habsburg Evidenzbureau, which informed the General Staff of enemy troops’ movements or of the various generals’ lovers.

We here witness a substantial union between intelligence and political decision-making or, rather, between the thought produced by intelligence and the foundations of political decision-making.

 CIA has often tried to poison Fidel Castro’s beard.

 Today, apart from the doubtful rationality of that operation, it would be a matter of using – for example – advertising, TV series, Hollywood movies, the sugar, tourist or tobacco market cycles, not to poison late Fidel’s beard, but to put the Cuban economy and decision-making system into structural crisis.

 The typical idea of Anglo-Saxon political culture –whereby, once the “tyrant” is eliminated, everything can be fine and back in place – has been largely denied by facts.

 All this obviously without being noticed, as far as the operations for disrupting a country are concerned.

 Another factor of the conceptual transformation of intelligence is speed: currently the IT networks are such as to allow data collection in real time with respect to facts and hence favour wide-ranging decisions.

 As far as technology is concerned, it is well known that both the AI networks, the new calculation structures, and the networks for listening and manipulating the enemy-opponent data are such as to allow operations which were previously not even imaginable.

At this juncture, however, there are two problems: everybody has all the same tools available and hence the danger of not “successfully completing” the operation is great, unlike when the Intelligence Services’ operations were based on the skills, role and dissimulation abilities of some operatives – or on confidential and restricted technologies.

 The other problem is intelligence manipulation: a country that thinks to be a target can spread – in ad hoc networks – manipulated news, malware, data and information which are completely false, but plausible, and can modify the whole information system of the country under attack.

 Another problem of current intelligence technologies is their distance from the “traditional” political decision-making centres.

 A politician, a Minister, a Premier must know what comes out of the intelligence system. Nevertheless, it is so specialised and sectorial that the distance between technical data processing and the “natural language” of politics is likely to make data ambiguous or unclear and of little use.

 Moreover, there is a purely conceptual factor to be noted: if we put together the analysis of financial cycles, of technology change, of public finance and of political and military systems, we must connect systems that operate relatively autonomously from each other.

 In other words, there is no “science of the whole” that can significantly connect such different sectors.

 Therefore, there is the danger of projecting the effects of one sector onto another that is only slightly influenced by it, or of believing that, possibly, if the economy goes well, also the public debt – for example -will go well.

 The room for political decision-making is therefore much wider than modern intelligence analysts believe.

Political decision-making is still made up of history, political-cultural traditions and of perceptions of reality which are shaped by many years of psychological and conceptual training.

With specific reference to operativity, once again we are dealing with radical changes.

 Years ago, there was the single “operative” who had to decide alone – or with very little support from the “Centre” – what to do on the spot and with whom to deal.

 Today, obviously, there is still the individual operative, but he/she is connected to the “Centre” in a different way and, in any case, imagines his/her role differently.

 On the level of political decision-making, intelligence is always operative, because reality is so complex and technically subtle that it no longer enables even the most experienced statesman to “follow their nose”.

The primary paradox of the issue, however, is that intelligence cannot take on political roles that imply a choice between equivalent options.

 This is inevitably the sphere of politics.

 Another factor of the operational transformation is the inevitable presence of intelligence operatives in finance, in the scientific world, in high-level business consulting, in advertising, communication and media.

 Intelligence has therefore progressively demilitarised itself and is increasingly operating in sectors that we would have previously thought to be completely alien to Intelligence Services. Instead, they are currently the central ones.

 Moreover, we are currently witnessing a particular mix of strategic intelligence, geopolitics and financial analysis.

 Why finance? Because it is the most mobile and widespread economic function.

 We are witnessing the birth of a new profession, namely currency geopolitics.

 Hence we are also witnessing the evolution of two new types of intelligence, namely market intelligence (MARKINT) and financial intelligence (FININT).

 An old and new problem is secrecy. The greater the extent to which old and new intelligence is used, the less it can keep secrecy, which is essential now as it was in the past.

 What has always been the aim of strategic intelligence? To predict phenomena starting from a given context.

Contexts, however, change quickly and the interaction between sectors is such as to change the effect of forecasts.

 The formalised techniques for analysis-decision making are manifold: intelligence data mining, “grid technologies”, knowledge creation and sharing, semantic analysis, key intelligence needs (KINS) and many others.

 All operations which are often necessary, but currently we need to highlight two factors typical of the North American intelligence culture which, unfortunately, also negatively affects the models used by U.S. allies.

 The first aspect is that, strangely enough, the same formal models are proposed for both companies and States.

 A State does not have to maximize profits, while a corporation does, at least on a level playing field with its competitors.

 A State is not a “competitor” of the others and ultimately a State has no specific “comparative advantage” but, on the contrary, some of its companies have, if this happens.

 Therefore, the overlap between business intelligence, which is currently necessary, and States’ intelligence is a conceptual bias, typical of those who believe that a State is, as Von Mises said, “the joint stock company of those who pay taxes to it”.

 For companies, it is obvious that all specific and original intelligence operations must be known to the State apparata, which may coordinate them or not, considering that they inevitably have additional data.

On the other hand, some business operations can become very useful for intelligence.

Hence a structure would be needed to put the two “lines” of operations together, and above all, a new intelligence concept is needed.

In the past, the Intelligence Services’ operations were largely defensive: to know something just before it happened, to avoid the adverse operations of a State hitting its own resources, but all with often minimal time limits.

 Now we need expressly offensive intelligence which can hit the opponents’ (commercial, economic and strategic) networks before they move and in good time.

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