Economics

Applying Behavioral Economics to Improve Cyberspace Strategy

Applying Behavioral Economics to Improve Cyberspace Strategy

Addressing cybersecurity through an economic lens highlights the impact of market failures—information asymmetries and misaligned incentives. Some entities fail to invest in adequate security controls because they do not incur the full costs associated with a security incident. The current public and private divide creates an environment where society shoulders most of the risk of cyber-insecurity. To keep pace with relevance, all organizations, including those beyond critical infrastructure sectors, must be able to share information and respond to cyber risk in as close to real-time as possible.

Does Economic Deterrence Work? Understanding the West’s Assumptions About Keeping Russia in Check

Does Economic Deterrence Work? Understanding the West’s Assumptions About Keeping Russia in Check

In the lead-up to the February 24, 2022 invasion of Ukraine, Western nations threatened Russia with severe economic sanctions, export controls, and other punitive economic measures if it proceeded with an invasion. These threats were ignored. Over a year into the invasion, Russia’s economy and war-fighting capabilities are hurting. Punitive economic measures by the West have shut Russia out of the global economy and challenged its ability to profit from oil sales, import critical technology, and finance its war effort.

Reconceiving U.S. Economic Strategy

Reconceiving U.S. Economic Strategy

The mental model of a unified government “orchestrating” the economic instrument of power is fundamentally misleading. Rather, the more appropriate “mental model” to describe the milieu of the economic instrument is as a network of a variety of entities, and even more specifically to describe that milieu as a complex adaptive system. Behaviors in such a system are inherently decentering– no single node in the system predominates. Understanding how the economic instrument can operate in this system also requires understanding the rest of the elements and their interconnected interdependencies.

The Topography of Geopolitics: Net Resources and the Past, Present, and Future of American Power

The Topography of Geopolitics: Net Resources and the Past, Present, and Future of American Power

Net resources offer an additional insight into historical, present, and future trends of the global balance of power, enhancing and expanding our understanding of great power politics and competition. They can be a modern-day oracle—imperfect and imprecise, but nonetheless useful…The concept of net power resources and what it indicates is relevant, and deserves closer analysis by those wishing to understand the topography of the past, present and future geopolitical challenges.

Strategic Failure: America is (Literally) Missing the Boat Competing with China

Strategic Failure: America is (Literally) Missing the Boat Competing with China

As the name suggests, great power competition—the newest focus of the U.S. Department of Defense—is about power. However, despite the recent fetishization of great power competition within the defense community, few people give serious thought to what power is and how great powers wield it to compete. In today’s great power competition with the People’s Republic of China, American strategists appear stuck focusing on archaic instruments of power and power projection to the detriment of national security. The Department of Defense spends billions on military hardware while rhetoric and neglect undermine the political partnerships and economic integration on which American power is based. Strategists pay lip service to strengthening alliances, then trumpet a foreign policy of “America first.” They highlight creating new partnerships, but fail to consider the economic and financial tools that establish genuine interdependence and influence. China is using a variety of initiatives to make advances across the globe while the United States is missing the boat.

Choosing Interests While You Sleep? #Reviewing The Senkaku Paradox

Choosing Interests While You Sleep? #Reviewing The Senkaku Paradox

If the U.S. should concede ground on partner territories or interests, the nation must articulate a new policy. The other option would be to compete against near-peer competitors in such a manner that maintains the present security environment with enough flexibility to deter conflict and, if needed, limit escalation. Either way, we must move forward into the reality of great power competition with our eyes wide open and with a determined gait, not dozing and stumbling forward.

Information, Interdependence, and Friction in Strategy

Information, Interdependence, and Friction in Strategy

Information has a critical place in warfare. It is at once the source of both intelligence and the fog of war. Information is a nebulous infinite set from which we draw our frameworks, biases, and facts. The growing surfeit of data has led to proclamations that “data is the new oil” and even the idea that the information extracted from this data constitutes a kind of currency. At the tactical level, the intelligence born out of information preparation certainly constitutes a means of transacting operations. Yet beyond the battlefield, and into the realm of grand strategy, the utility of information can be uncertain.

Exit, Voice, and Loyalty: Leveraging Migrant Communities

Exit, Voice, and Loyalty: Leveraging Migrant Communities

Two years have passed since the refugee wave that took European politics by storm. Since then, much of the continent’s leadership has settled on a strategy aimed at managing the incoming migration flow abroad while trying to contain the mounting pressure at home. The public discourse is dominated by two opposing camps: on one side, re-surging ethno-nationalist movements argue against the dangers of multicultural society, which is often painted as a driver of security risks and terrorism; on the other, progressive parties that try to balance their sense of humanitarian obligation with the temptation to pander to the masses with equally xenophobic campaigns.

Examining War's Economic Incentives and Sanctions

Examining War's Economic Incentives and Sanctions

Over the past 100 years economics has been transformed from a prime motivator for war, through the imperialist ideals of national prestige and territorial expansion, to a tool best used as a means to try and avoid war. Additionally through the establishment of the rules based global order that emerged after the Second World War the economic motivation for war has not only been diminished but has effectively been rendered illegal and immoral. While economic considerations may be enshrined in the architecture of the current global order and serve to provide a means for modern nations to collectively pursue peace through mutual prosperity (as demonstrated by the EU), economic considerations do nothing to deter an irrational actor motivated by non-material means.

Against the Tide: A Look at Chinese and Indian Strategies to Become Superpowers

Against the Tide: A Look at Chinese and Indian Strategies to Become Superpowers

While the United States is currently considered the world’s hegemonic power, several other states possess the potential to be superpowers in the making, such as Brazil, Russia, India, and China (the so-called BRIC countries). Assuming these great powers desire to better their positions, their respective strategies may either propel them into a leading international role or act as a hindrance to their ascent. The examples of China and India, in particular, serve as interesting cases to explore due to their potential to become superpowers as well as their vastly different approaches in world affairs.

Thinking Strategically About NAFTA

Thinking Strategically About NAFTA

Before considering the terms of a revised NAFTA, one should consider the thought-provoking insights of international relations scholar Parag Khanna. Khanna notes how outdated political boundaries serve as a constraint on the American economy because they prevent the integration of social, economic, and industrial components across state lines. He concludes that by redefining the American political map, that is, rethinking our current state borders, the economy will be better positioned for the future. This change of perspective, more so than a grand military strategy, will enable the US to remain a superpower. Renegotiating NAFTA must be viewed through this strategic lens.

What if Saudi Arabia were Poor?

What if Saudi Arabia were Poor?

America benefits from Saudi Arabia’s wealth. By virtue of being rich in oil reserves, and able to spend the proceeds from that oil however its royal family sees fit, the Kingdom of Saudi Arabia has great sway in the Middle East. Instances of the Kingdom’s impact include the multinational coalition it currently leads against the Shi’a Houthi regime in Yemen and its continuing power within the Organization of Petroleum Exporting Countries (OPEC).Saudi Arabia’s wealth is important to those interested in US foreign policy because America is an unofficial guarantor of Saudi sovereignty, tacitly giving assurance that it will protect the Kingdom from invasion.  It is also important because the US leverages its relationship with Saudi Arabia to implement its policy in the region. From the US’ perspective, an affluent Saudi Arabia helps America get what it wants.

Not Dead Yet

Not Dead Yet

Numerous voices have claimed that the day of conventional war is over. For years, these voices have predicted that “war amongst the people,” or “hybrid war,” or “gray zone operations,” or “distributed security missions,” are the new face of war. But conventional war—however it may be changing—may not be as dead as some believe. Danger is already emerging from the confluence of several unfolding trends.