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Ed Webb

Imperialist appropriation in the world economy: Drain from the global South through une... - 0 views

  • Unequal exchange theory posits that economic growth in the “advanced economies” of the global North relies on a large net appropriation of resources and labour from the global South, extracted through price differentials in international trade.
  • Our results show that in 2015 the North net appropriated from the South 12 billion tons of embodied raw material equivalents, 822 million hectares of embodied land, 21 exajoules of embodied energy, and 188 million person-years of embodied labour, worth $10.8 trillion in Northern prices – enough to end extreme poverty 70 times over.
  • Historians have demonstrated that the rise of Western Europe depended in large part on natural resources and labour forcibly appropriated from the global South during the colonial period, on a vast scale. Spain extracted gold and silver from the Andes, Portugal extracted sugar from Brazil, France extracted fossil fuels, minerals and agricultural products from West Africa, Belgium extracted rubber from the Congo; and Britain extracted cotton, opium, grain, timber, tea and countless other commodities from its colonies around the world – all of which entailed the exploitation of Southern labour on coercive terms, including through mass enslavement and indenture. This pattern of appropriation was central to Europe’s industrial growth, and to financing the expansion and industrialization of European settler colonies, including Canada, Australia, New Zealand and the United States, which went on to develop similarly imperialist orientations toward the South
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  • Our analysis confirms that unequal exchange is a significant driver of global inequality, uneven development, and ecological breakdown.
  • Today, we are told, the world economy functions as a meritocracy: countries that have strong institutions, good markets, and a steadfast work ethic become rich and successful, while countries that lack these things, or which are hobbled by corruption and bad governance, remain poor. This assumption underpins dominant perspectives in the field of international development (Sachs, 2005, Collier, 2007, Rostow, 1990, Moyo, 2010, Calderisi, 2007, Acemoglu and Robinson, 2012), and is reinforced by the rhetoric, common among neoclassical economists, that free-trade globalization has created an “even playing field”.
  • Emmanuel and Amin argued that unequal exchange enables a “hidden transfer of value” from the global South to the global North, or from periphery to core, which takes place subtly and almost invisibly, without the overt coercion of the colonial apparatus and therefore without provoking moral outrage. Prices are naturalized on the grounds that they represent “utility”, or “value”, or the outcome of “market mechanisms” such as supply and demand, obscuring the extent to which they are determined by power imbalances in the global political economy. Price differentials in international trade therefore function as an effective method of maintaining the patterns of appropriation that once overtly defined the colonial economy, allowing blame for “underdevelopment” to be shifted onto the victims.
  • Historians have demonstrated that the rise of Western Europe depended in large part on natural resources and labour forcibly appropriated from the global South during the colonial period, on a vast scale. Spain extracted gold and silver from the Andes, Portugal extracted sugar from Brazil, France extracted fossil fuels, minerals and agricultural products from West Africa, Belgium extracted rubber from the Congo; and Britain extracted cotton, opium, grain, timber, tea and countless other commodities from its colonies around the world – all of which entailed the exploitation of Southern labour on coercive terms, including through mass enslavement and indenture. This pattern of appropriation was central to Europe’s industrial growth, and to financing the expansion and industrialization of European settler colonies, including Canada, Australia, New Zealand and the United States, which went on to develop similarly imperialist orientations toward the South (e.g., Naoroji, 1902, Pomeranz, 2000, Beckert, 2015, Moore, 2015, Bhambra, 2017, Patnaik, 2018, Davis, 2002).
  • for every unit of embodied resources and labour that the South imports from the North they have to export many more units to pay for it, enabling the North to achieve a net appropriation through trade. This dynamic was theorized by Emmanuel (1972) and Amin (1978) as a process of “unequal exchange”.Emmanuel and Amin argued that unequal exchange enables a “hidden transfer of value” from the global South to the global North, or from periphery to core, which takes place subtly and almost invisibly, without the overt coercion of the colonial apparatus and therefore without provoking moral outrage. Prices are naturalized on the grounds that they represent “utility”, or “value”, or the outcome of “market mechanisms” such as supply and demand, obscuring the extent to which they are determined by power imbalances in the global political economy. Price differentials in international trade therefore function as an effective method of maintaining the patterns of appropriation that once overtly defined the colonial economy, allowing blame for “underdevelopment” to be shifted onto the victims.
  • Following Dorninger et al. (2021), we use a “footprint” analysis of input–output data to quantify the physical scale of raw materials, land, energy and labour embodied in trade between the North and South, looking not only at traded goods themselves but also the upstream resources and labour that go into producing and transporting those goods, including the machines, factories, infrastructure, etc.
  • Grounding our analysis in the physical dimensions of unequal exchange is important for several reasons. First, these resources – raw materials, land, labour and energy – embody the productive potential that is required for meeting human needs (use-value) and for generating economic growth (exchange-value). Physical drain is therefore ultimately what drives global inequalities in terms of access to provisions, as well as in terms of GDP or income (see Hornborg, 2020). Second, this approach allows us to maintain sight of the ecological impacts of unequal exchange. We know that excess energy and material consumption in high-income nations, facilitated by appropriation from the rest of the world, is causing ecological breakdown on a global scale. Tracing flows of resources embodied in trade allows us to determine the extent to which Northern appropriation is responsible for ecological impacts in the South; i.e., ecological debt (Roberts and Parks, 2009, Warlenius et al., 2015, Hornborg and Martinez-Alier, 2016).
  • Due to the growing fragmentation of international commodity chains, monetary databases on bilateral gross trade flows have been criticised for not accurately depicting the monetary interdependencies between national economies (Johnson and Noguera, 2012), i.e., the amount of a countries’ value added that is induced by foreign final demand and international trade relations. Trade in Value Added (TiVA) indicators Johnson and Noguera, 2012, Timmer et al., 2014 are designed to take into account the complexity of the global economy. The TiVA concept is motivated by the fact that, in monetary terms, trade in intermediates accounts for approximately two-thirds of international trade. Imports (of intermediates) are used to produce exports and hence bilateral gross exports may include inputs (i.e., value added) from third party countries (Stehrer, 2012). TiVA reveals where (e.g., in which country or industry) and how (e.g. by capital or labour) value is added or captured in global commodity chains (Timmer et al., 2014).
  • TiVA, which is sometimes referred to as the “value footprint”, is the monetary counterpart of the MRIO-based environmental footprint because both indicators follow the same system boundaries, i.e., all supply chains between production and final consumption of two countries including all direct and indirect interlinkages. Moreover, in contrast to global bilateral monetary trade flows, TiVA is globally balanced, meaning that national exports and imports globally sum up to zero. This is an important feature of the TiVA indicator that facilitates more consistent and unambiguous assessments.
  • for every unit of embodied raw material equivalent that the South imports from the North, they have to export on average five units to “pay” for it
  • For land the average ratio is also 5:1, for energy it is 3:1, and for labour it is 13:1
  • Table 1. Resource drain from the South.ResourceNorth → South flows 2015South → North flows 2015Drain from South in 2015Cumulative drain from South 1990–2015Raw material equivalents [Gt]3.3715.3912.02254.40Embodied land [mn ha]527.421,349.01821.5932,987.23Embodied energy [EJ]21.5543.5121.06650.34Embodied labour [mn py-eq]31.11219.22188.125,956.62
  • in the year 2015 the North’s net appropriation from the South totalled 12 billion tons of raw materials, 822 million hectares of land, 21 exajoules of energy (equivalent to 3.4 billion barrels of oil), and 188 million person-years equivalents of labour (equivalent to 392 billion hours of work). By net appropriation we mean that these resources are not compensated in equivalent terms through trade; they are effectively transferred gratis. And this appropriation is not insignificant in scale; on the contrary, it comprises a large share (on average about a quarter) of the North’s total consumption.
  • significant consequences for the global South, in terms of lost use-value. This quantity of Southern raw materials, land, energy and labour could be used to provision for human needs and develop sovereign industrial capacity in the South, but instead it is mobilized around servicing consumption in the global North.
  • Eight hundred and twenty-two million hectares of land, which is twice the size of India, would in theory be enough to provide nutritious food for up to 6 billion people, depending on land productivity and diet composition
  • material use is tightly linked to environmental pressures. It accounts for more than 90% of variation in environmental damage indicators (Steinmann et al., 2017), and more than 90% of biodiversity loss and water stress (International Resource Panel, 2019). Moreover, as Van der Voet et al. (2004) demonstrate, while impacts vary by material, and vary as technologies change, there is a coupling between aggregate mass flows and ecological impact. Net flows of material resources from South to North mean that much of the impact of material consumption in the North (43% of it, net of trade) is suffered in the South. The damage is offshored.
  • Industrial ecologists hold that global extraction and use of materials should not exceed 50 billion tons per year (Bringezu, 2015). In 2015, the global economy was using 87 billion tons per year, overshooting the boundary by 74% and driving ecological breakdown. This overshoot is due almost entirely to excess resource consumption in global North countries. The North consumed 26.71 tons of materials per capita in 2015, which is roughly four times over the sustainable threshold (6.80 tons per capita in 2015). Our results indicate that most of the North’s excess consumption (58% of it) is sustained by net appropriation from the global South; without this appropriation, material use in high-income nations would be much closer to the sustainable level.
  • In consumption-based terms, the North is responsible for 92% of carbon dioxide emissions in excess of the planetary boundary (350 ppm atmospheric concentration of CO2) (Hickel, 2020), while the consequences harm the South disproportionately, inflicting dramatic social and economic costs (Kikstra et al., 2021b, Srinivasan et al., 2008). The South suffers 82–92% of the costs of climate change, and 98–99% of the deaths associated with climate change (DARA, 2012)
  • Net appropriation of land means soil depletion, water depletion, and chemical runoff are offshored; net appropriation of energy means that the health impacts of particulate pollution are offshored; net appropriation of labour means that the negative social impacts of exploitation are offshored, etc (Wiedmann and Lenzen, 2018). In the case of non-renewable resources there is also a problem of depletion: resources appropriated from the South are no longer available for future generations to use (Costanza and Daly, 1992, World Bank, 2018), which is particularly problematic given that under conditions of net appropriation economic losses are not offset by investments in capital stock (cf. Hartwick, 1977). Finally, the extractivism that underpins resource appropriation generates social dislocations and conflicts at resource frontiers (Martinez-Alier, 2021).
  • the value of resources and labour cannot be quantified in dollars, and there is no such thing as a “correct” price.
  • Prices under capitalism do not reflect value or utility in any objective way. Rather, they reflect, among other things, the (im)balance of power between market agents (capital and labour, core and periphery, lead firms and their suppliers, etc); in other words, they are a political artefact
  • While prices by definition do not reflect value, they do allow us to compare the scale of drain to prevailing monetary representations of production and income in the world economy.
  • Fig. 2 shows that drain from the South in 2015 amounted to $14.1 trillion when measured in terms of raw material equivalents, $5.1 trillion when measured in terms of land, $3.6 trillion when measured in terms of energy and $20.3 trillion when measured in terms of labour.
  • Over the period 1990–2015, the drain sums to $242 trillion (constant 2010 USD). This represents a significant “windfall” for the North, similar to the windfall that was derived from colonial forms of appropriation; i.e., goods that did not have to be produced on the domestic landmass or with domestic labour, and did not have to be bought on the domestic market, or paid for with exports (see Pomeranz, 2000, Patnaik, 2018). While previous studies have shown that the price distortion factor increased dramatically during the structural adjustment period in the 1980’s (Hickel et al., 2021), our data confirms that since the early- to mid-1990’s it has tended to decline slightly. This means that the increase in drain during the period 1990–2007, prior to the global financial crisis, was driven primarily by an increase in the volume of international trade rather than by an increase in price distortion.
  • Table 3 shows that, over the 1990–2015 period, resources appropriated from the South have been worth on average roughly a quarter of Northern GDP.
  • the North’s reliance on appropriation from the South has generally increased over the period (despite a significant drop after the global financial crisis), whereas the South’s losses as a share of total economic activity have generally decreased, particularly since 2003, due to an increase in South-South trading and higher domestic GDP creation or capture within the South, both driven largely by China
  • Aid flows create the powerful impression that rich countries give benevolently to poorer countries. But the data on drain through unequal exchange raises significant questions about this narrative.
  • net appropriation by DAC countries through unequal exchange from 1990 to 2015 outstripped their aid disbursements over the same period by a factor of almost 80
  • for every dollar of aid that donors give, they appropriate resources worth 80 dollars through unequal exchange. From the perspective of aid recipients, for every dollar they receive in aid they lose resources worth 30 dollars through drain
  • The dominant narrative of international development holds that poor countries are poor because of their own internal failings and are therefore in need of assistance. But the empirical evidence on unequal exchange demonstrates that poor countries are poor in large part because they are exploited within the global economy and are therefore in need of justice. These results indicate that combating the deleterious effects of unequal exchange by making the global economy fairer and more equitable would be much more effective, in terms of development, than charity.
  • In an equitable world, the resource trade deficit that the North sustains in relation to the South would be financed with a parallel monetary trade deficit. But in reality, the monetary trade deficit is very small, equivalent to only about 1% of global trade revenues, and fluctuates between North and South. In effect, this means that the North achieves its large net appropriation of resources and labour from the South gratis.
  • The question of sectoral disparities has been moot since the 1980s, however, as industrial production has shifted overwhelmingly to the South. The majority of Southern exports (70%) consist of manufactured goods (data from UNCTAD; see Smith, 2016). Of all the manufactured goods that the USA imports, 60% are produced in developing countries. For Japan it is 70%. We can see this pattern reflected also in the industrial workforce. As of 2010, at least 79% of the world’s industrial workers live in the South (data from the ILO; see Smith, 2016). This shift is due in large part to the rise of global commodity chains, which now constitute 70% of international trade. Between 1995 and 2013, there has been an increase of 157 million jobs related to global commodity chains, and an estimated 116 million of them are concentrated in the South, predominantly in the export manufacturing sector (ILO, 2015). In other words, during the period we analyse in this paper (1990–2015), the South has contributed the majority of the world’s industrial production, including high-technology production such as computers and cars. And yet price inequalities remain entrenched.
  • if Northern states or firms leverage monopoly power within global commodity chains to depress the prices of imports and increase the prices of final products, their labour “productivity” appears to improve, and that of their counterparts declines, even if the underlying production process remains unchanged. Indeed, empirical evidence indicates that real productivity differences between workers are minimal, and cannot explain wage inequalities (Hunter et al., 1990).
  • wage inequalities exist not because Southern workers are less productive but because they are more intensively exploited, and often subject to rigid systems of labour control and discipline designed to maximize extraction (Suwandi et al., 2019). Indeed, this is a major reason why Northern firms offshore production to the South in the first place: because labour is cheaper per unit of physical output (Goldman, 2012).
  • the terminology of “value-added” is a misnomer. In international trade, TiVA does not tell us who adds more value but rather who has more power to command prices. And in the case of global commodity chains, TiVA does not indicate where value is produced but rather where it is captured (Smith, 2016).
  • our analysis reveals that value in global commodity chains is disproportionately produced by the South, but disproportionately captured by the North (as GDP). Value captured in this manner is misleadingly attributed to Northern economic activities
  • rich countries are able to maintain price inequalities simply by virtue of being rich. This finding supports longstanding claims by political economists that, all else being equal, price inequalities are an artefact of power. Just as in a national economy wage rates are an artefact of the relative bargaining power of labour vis-à-vis capital, so too in international trade prices are an artefact of the relative bargaining power of national economies and corporate actors vis-à-vis their trading partners and suppliers. Countries that grew rich during the colonial period are now able to leverage their economic dominance to depress the costs of labour and resources extracted from the South. In other words, the North “finances” net appropriation from the South not with money, but rather by maintaining the prices of Southern resources and labour below the global average level.
  • Patents play a key role here: 97% of all patents are held by corporations in high-income countries (Chang, 2008:141)
  • In some cases, patents involve forcing people in the South to pay for access to resources they might otherwise have obtained much more affordably, or even for free (Shiva, 2001, Shiva, 2016).
  • In the World Bank and the IMF, Northern states hold a majority of votes (and the US holds a veto), thus giving them control over key economic policy decisions. In the World Trade Organization (which controls tariffs, subsidies, and patents), bargaining power is determined by market size, enabling high-income nations to set trade rules in their own interests.
  • ubsidized agricultural exports from the North undermine subsistence economies in the South and contribute to dispossession and unemployment, placing downward pressure on wages. Militarized borders preclude easy migration from South to North, thus preventing wage convergence. Moreover, structural adjustment programs (SAPs) imposed by the World Bank and IMF since the 1980s have cut public sector salaries and employment, rolled back labour rights, curtailed unions, and gutted environmental regulations (Khor, 1995, Petras and Veltmeyer, 2002).
  • SAPs, bilateral free trade agreements, and the World Trade Organization have forced global South governments to remove tariffs, subsidies and other protections for infant industries. This prevents governments from attempting import substitution, which would improve their export prices and drive Northern prices down. Tax evasion and illicit financial flows out of the South (which total more than $1 trillion per year) drain resources that might otherwise be reinvested domestically, or which governments might otherwise use to build national industries. This problem is compounded by external debt service obligations, which drain government revenue and require obeisance to economic policies dictated by creditors (Hickel, 2017). In addition, structural dependence on foreign investors and access to Northern markets forces Southern governments and firms to compete with one another by cutting wages and resource prices in a race to the bottom.
  • structural power imbalances in the world economy ensure that labour and resources in the South remain cheap and accessible to international capital, while Northern exports enjoy comparatively higher prices
  • Cheap labour and raw materials in the global South are not “naturally” cheap, as if their cheapness was written in the stars. They are actively cheapened
  • the analysis obscures class and geographic inequalities within countries and regions, which are significant when it comes to labour prices as well as resource consumption. The high levels of resource consumption that characterize Northern economies are driven disproportionately by rich individuals and affluent areas, as well as by corporations that control supply chains, and enabled by internal patterns of exploitation and unequal exchange in addition to drain through trade (Harvey, 2005). For example, there are marginalized regions of the United States that serve as an “internal periphery” (Wishart, 2014). It would also be useful to explore the gender dynamics of unequal exchange within countries. These questions cannot be answered with our data, however.
  • This research confirms that the “advanced economies” of the global North rely on a large net appropriation of resources and labour from the global South, extracted through induced price differentials in international trade. By combining insights from the classical literature on unequal exchange with contemporary insights about global commodity chains and new methods for quantifying the physical scale of embodied resource transfers, we are able to develop a novel approach to estimating the scale and value of resource drain from the global South. Our results show that, when measured in Northern prices, the drain amounted to $10.8 trillion in 2015, and $242 trillion over the period from 1990 to 2015 – a significant windfall for the North, equivalent to a quarter of Northern GDP. Meanwhile, the South’s losses through unequal exchange outstrip their total aid receipts over the period by a factor of 30.
  • support contemporary demands for reparations for ecological debt, as articulated by environmental justice movements and by the G77
  • True repair requires permanently ending the unequal distribution of environmental goods and burdens between the global North and global South, restoring damaged ecosystems, and shifting to a regenerative economic system.
  • It is clear that official development assistance is not a meaningful solution to global poverty and inequality; nor is the claim that global South countries need more economic liberalisation and export-oriented market integration. The core problem is that low- and middle-income countries are integrated into the global economy on fundamentally unequal terms. Rectifying this problem is critical to ensuring that global South countries have the financial, physical and human resources they need to improve social outcomes.
  • democratize the institutions of global economic governance, such as the World Bank, IMF and WTO, so that global South countries have more control over trade and finance policy.
  • end the North’s use of unfair subsidies for agricultural exports, and remove structural adjustment conditions on international finance, which would help mitigate downward pressure on wages and resource prices in the South while at the same time enabling Southern countries to build sovereign industrial capacity
  • a global living wage system, and a global system of environmental regulations, would effectively put a floor on labour and resource prices
  • Reducing North-South price differentials would in turn reduce the scale of the North’s net resource appropriation from the South (in other words, it would reduce ecologically unequal exchange), thus reducing excess consumption in the North and the ecological impacts that it inflicts on the South.
  • Structural transformation will only be achieved through political struggle from below, including by the anti-colonial and environmental justice movements that continue to fight against imperialism today
Ed Webb

Artificial intelligence, immune to fear or favour, is helping to make China's foreign p... - 0 views

  • Several prototypes of a diplomatic system using artificial intelligence are under development in China, according to researchers involved or familiar with the projects. One early-stage machine, built by the Chinese Academy of Sciences, is already being used by the Ministry of Foreign Affairs.
  • China’s ambition to become a world leader has significantly increased the burden and challenge to its diplomats. The “Belt and Road Initiative”, for instance, involves nearly 70 countries with 65 per cent of the world’s population. The unprecedented development strategy requires up to a US$900 billion investment each year for infrastructure construction, some in areas with high political, economic or environmental risk
  • researchers said the AI “policymaker” was a strategic decision support system, with experts stressing that it will be humans who will make any final decision
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  • “Human beings can never get rid of the interference of hormones or glucose.”
  • “It would not even consider the moral factors that conflict with strategic goals,”
  • “If one side of the strategic game has artificial intelligence technology, and the other side does not, then this kind of strategic game is almost a one-way, transparent confrontation,” he said. “The actors lacking the assistance of AI will be at an absolute disadvantage in many aspects such as risk judgment, strategy selection, decision making and execution efficiency, and decision-making reliability,” he said.
  • “The entire strategic game structure will be completely out of balance.”
  • “AI can think many steps ahead of a human. It can think deeply in many possible scenarios and come up with the best strategy,”
  • A US Department of State spokesman said the agency had “many technological tools” to help it make decisions. There was, however, no specific information on AI that could be shared with the public,
  • The system, also known as geopolitical environment simulation and prediction platform, was used to vet “nearly all foreign investment projects” in recent years
  • One challenge to the development of AI policymaker is data sharing among Chinese government agencies. The foreign ministry, for instance, had been unable to get some data sets it needed because of administrative barriers
  • China is aggressively pushing AI into many sectors. The government is building a nationwide surveillance system capable of identifying any citizen by face within seconds. Research is also under way to introduce AI in nuclear submarines to help commanders making faster, more accurate decision in battle.
  • “AI can help us get more prepared for unexpected events. It can help find a scientific, rigorous solution within a short time.
Ed Webb

Extreme Heat, Drought Drive Opposition to AI Data Centers - Bloomberg - 0 views

  • Meta Platforms Inc. is planning to build a €1 billion ($1.1 billion) data center. Meta expects the facility to use about 665 million liters (176 million gallons) of water a year, and up to 195 liters per second during “peak water flow,” according to a technical report. Enthusiasm about the jobs the project is expected to create (1,000 in total, about 250 of which will be permanent) is now being weighed against heightened concerns over water.
  • “People don’t realize that ‘the cloud’ is real, that it is part of an ecosystem that consumes many resources,” says Aurora Gómez, a spokesperson for Tu Nube Seca Mi Río (“Your Cloud Dries Up My River” in Spanish), a group created to fight the construction. “People are not aware of the amount of water that goes into watching a kitten meme.”
  • With drought spreading around the globe, battles are emerging between data center operators and adjacent communities over local water supplies in places such as Chile, Uruguay and parts of the southwestern US. In the northern Netherlands, public outrage erupted last year when a local news outlet reported that a Microsoft Inc. data center complex was consuming more than four times as much water as the company had previously disclosed.
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  • Operators of hyperscale data centers, those with more than 5,000 servers, are migrating to places where water is plentiful, such as Norway, but also to drought-prone places like Italy and Spain where energy is cheaper—and where extreme heat is becoming the norm.
  • A survey conducted last year by the Uptime Institute, a consulting firm, found that only 39% of data centers even tracked their water use, a 12 percentage-point drop from 2021. Tech companies in the past have refused to disclose information about individual centers’ energy and water consumption, claiming that such data was a trade secret.
  • Over the last couple of years, Google, Meta and Microsoft have started publishing their total water use across their operations, but they don’t break the number down by business unit nor use standardized metrics. Bluefield Research has estimated data centers use more than a billion liters of water per day, including water used in energy generation.
  • Operators often use shell companies to apply for planning permissions, and a data center can look like any large warehouse or factory from the outside.
  • Arman Shehabi, a researcher at the Lawrence Berkeley National Laboratory in California best known for a landmark paper on energy consumption at data centers, thinks the facilities could contribute to scarcity as droughts become longer and more intense. Part of the problem, he says, is that data center operators “are generally the last ones to the table to ask,” straining the system by asking for access to scarce water after agricultural interests and local communities have already come up with a plan. “Everybody is going to feel that,” he says.
  • Companies say data centers are getting more energy-efficient, but the increase in overall demand for computing power is outpacing such gains.
  • The specialized chips required for AI—broadly known as accelerators—emit so much more heat than general-purpose chips do that data center operators are having to rethink their cooling systems entirely
  • over time data centers will need to radically change the way they dissipate heat. The gold standard, he says, is a process called immersive cooling, in which servers are bathed in a special fluid that transfers heat from the chips. For now, operators are likely to opt for a hybrid model, wherein a high-performance section of the data center will be liquid-cooled while the rest will continue to use air conditioning
  • Amazon Web Services, Google and Microsoft have all made water stewardship pledges, promising to use more nonpotable and recycled water and to replenish more water than they consume operationally by 2030. This is the equivalent to offsetting carbon by planting trees—something that looks good on paper but may not directly benefit the communities affected by data centers, because water may be replenished only in places where it’s easy to do so.
Ed Webb

'A mass assassination factory': Inside Israel's calculated bombing of Gaza - 0 views

  • The Israeli army’s expanded authorization for bombing non-military targets, the loosening of constraints regarding expected civilian casualties, and the use of an artificial intelligence system to generate more potential targets than ever before, appear to have contributed to the destructive nature of the initial stages of Israel’s current war on the Gaza Strip, an investigation by +972 Magazine and Local Call reveals
  • The investigation by +972 and Local Call is based on conversations with seven current and former members of Israel’s intelligence community — including military intelligence and air force personnel who were involved in Israeli operations in the besieged Strip — in addition to Palestinian testimonies, data, and documentation from the Gaza Strip, and official statements by the IDF Spokesperson and other Israeli state institutions.
  • The bombing of power targets, according to intelligence sources who had first-hand experience with its application in Gaza in the past, is mainly intended to harm Palestinian civil society: to “create a shock” that, among other things, will reverberate powerfully and “lead civilians to put pressure on Hamas,”
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  • the Israeli army has files on the vast majority of potential targets in Gaza — including homes — which stipulate the number of civilians who are likely to be killed in an attack on a particular target. This number is calculated and known in advance to the army’s intelligence units, who also know shortly before carrying out an attack roughly how many civilians are certain to be killed
  • “The numbers increased from dozens of civilian deaths [permitted] as collateral damage as part of an attack on a senior official in previous operations, to hundreds of civilian deaths as collateral damage,”
  • another reason for the large number of targets, and the extensive harm to civilian life in Gaza, is the widespread use of a system called “Habsora” (“The Gospel”), which is largely built on artificial intelligence and can “generate” targets almost automatically at a rate that far exceeds what was previously possible. This AI system, as described by a former intelligence officer, essentially facilitates a “mass assassination factory.”
  • the increasing use of AI-based systems like Habsora allows the army to carry out strikes on residential homes where a single Hamas member lives on a massive scale, even those who are junior Hamas operatives. Yet testimonies of Palestinians in Gaza suggest that since October 7, the army has also attacked many private residences where there was no known or apparent member of Hamas or any other militant group residing. Such strikes, sources confirmed to +972 and Local Call, can knowingly kill entire families in the process.
  • at least until the current war, army protocols allowed for attacking power targets only when the buildings were empty of residents at the time of the strike. However, testimonies and videos from Gaza suggest that since October 7, some of these targets have been attacked without prior notice being given to their occupants, killing entire families as a result.
  • there are “cases in which we shell based on a wide cellular pinpointing of where the target is, killing civilians. This is often done to save time, instead of doing a little more work to get a more accurate pinpointing,”
  • Over 300 families have lost 10 or more family members in Israeli bombings in the past two months — a number that is 15 times higher than the figure from what was previously Israel’s deadliest war on Gaza, in 2014
  • “There is a feeling that senior officials in the army are aware of their failure on October 7, and are busy with the question of how to provide the Israeli public with an image [of victory] that will salvage their reputation.”
  • “The emphasis is on damage and not on accuracy,” said IDF Spokesperson Daniel Hagari on Oct. 9.
  • “We are asked to look for high-rise buildings with half a floor that can be attributed to Hamas,” said one source who took part in previous Israeli offensives in Gaza. “Sometimes it is a militant group’s spokesperson’s office, or a point where operatives meet. I understood that the floor is an excuse that allows the army to cause a lot of destruction in Gaza. That is what they told us. “If they would tell the whole world that the [Islamic Jihad] offices on the 10th floor are not important as a target, but that its existence is a justification to bring down the entire high-rise with the aim of pressuring civilian families who live in it in order to put pressure on terrorist organizations, this would itself be seen as terrorism. So they do not say it,” the source added.
  • “I remember thinking that it was like if [Palestinian militants] would bomb all the private residences of our families when [Israeli soldiers] go back to sleep at home on the weekend,” one source, who was critical of this practice, recalled.
  • On Oct. 22, the Israeli Air Force bombed the home of the Palestinian journalist Ahmed Alnaouq in the city of Deir al-Balah. Ahmed is a close friend and colleague of mine; four years ago, we founded a Hebrew Facebook page called “Across the Wall,” with the aim of bringing Palestinian voices from Gaza to the Israeli public. The strike on Oct. 22 collapsed blocks of concrete onto Ahmed’s entire family, killing his father, brothers, sisters, and all of their children, including babies. Only his 12-year-old niece, Malak, survived and remained in a critical condition, her body covered in burns. A few days later, Malak died. Twenty-one members of Ahmed’s family were killed in total, buried under their home. None of them were militants. The youngest was 2 years old; the oldest, his father, was 75. Ahmed, who is currently living in the UK, is now alone out of his entire family.
  • “Hamas is everywhere in Gaza; there is no building that does not have something of Hamas in it, so if you want to find a way to turn a high-rise into a target, you will be able to do so,”
  • for the most part, when it comes to power targets, it is clear that the target doesn’t have military value that justifies an attack that would bring down the entire empty building in the middle of a city, with the help of six planes and bombs weighing several tons
  • Although it is unprecedented for the Israeli army to attack more than 1,000 power targets in five days, the idea of causing mass devastation to civilian areas for strategic purposes was formulated in previous military operations in Gaza, honed by the so-called “Dahiya Doctrine” from the Second Lebanon War of 2006.
  • As documented by Al Mezan and numerous images coming out of Gaza, Israel bombed the Islamic University of Gaza, the Palestinian Bar Association, a UN building for an educational program for outstanding students, a building belonging to the Palestine Telecommunications Company, the Ministry of National Economy, the Ministry of Culture, roads, and dozens of high-rise buildings and homes — especially in Gaza’s northern neighborhoods.
  • Previous operations have also shown how striking these targets is meant not only to harm Palestinian morale, but also to raise the morale inside Israel. Haaretz revealed that during Operation Guardian of the Walls in 2021, the IDF Spokesperson’s Unit conducted a psy-op against Israeli citizens in order to boost awareness of the IDF’s operations in Gaza and the damage they caused to Palestinians. Soldiers, who used fake social media accounts to conceal the campaign’s origin, uploaded images and clips of the army’s strikes in Gaza to Twitter, Facebook, Instagram, and TikTok in order to demonstrate the army’s prowess to the Israeli public.
  • since October 7, Israel has attacked high-rises with their residents still inside, or without having taken significant steps to evacuate them, leading to many civilian deaths.
  • evidence from Gaza suggests that some high-rises — which we assume to have been power targets — were toppled without prior warning. +972 and Local Call located at least two cases during the current war in which entire residential high-rises were bombed and collapsed without warning, and one case in which, according to the evidence, a high-rise building collapsed on civilians who were inside.
  • According to intelligence sources, Habsora generates, among other things, automatic recommendations for attacking private residences where people suspected of being Hamas or Islamic Jihad operatives live. Israel then carries out large-scale assassination operations through the heavy shelling of these residential homes.
  • the Habsora system enables the army to run a “mass assassination factory,” in which the “emphasis is on quantity and not on quality.” A human eye “will go over the targets before each attack, but it need not spend a lot of time on them.” Since Israel estimates that there are approximately 30,000 Hamas members in Gaza, and they are all marked for death, the number of potential targets is enormous.
  • A senior military official in charge of the target bank told the Jerusalem Post earlier this year that, thanks to the army’s AI systems, for the first time the military can generate new targets at a faster rate than it attacks. Another source said the drive to automatically generate large numbers of targets is a realization of the Dahiya Doctrine.
  • Five different sources confirmed that the number of civilians who may be killed in attacks on private residences is known in advance to Israeli intelligence, and appears clearly in the target file under the category of “collateral damage.” 
  • “That is a lot of houses. Hamas members who don’t really matter for anything live in homes across Gaza. So they mark the home and bomb the house and kill everyone there.”
  • According to the doctrine — developed by former IDF Chief of Staff Gadi Eizenkot, who is now a Knesset member and part of the current war cabinet — in a war against guerrilla groups such as Hamas or Hezbollah, Israel must use disproportionate and overwhelming force while targeting civilian and government infrastructure in order to establish deterrence and force the civilian population to pressure the groups to end their attacks. The concept of “power targets” seems to have emanated from this same logic.
  • According to former Israeli intelligence officers, in many cases in which a private residence is bombed, the goal is the “assassination of Hamas or Jihad operatives,” and such targets are attacked when the operative enters the home. Intelligence researchers know if the operative’s family members or neighbors may also die in an attack, and they know how to calculate how many of them may die. Each of the sources said that these are private homes, where in the majority of cases, no military activity is carried out.
  • there is ample evidence that, in many cases, none were military or political operatives belonging to Hamas or Islamic Jihad.
  • The bombing of family homes where Hamas or Islamic Jihad operatives supposedly live likely became a more concerted IDF policy during Operation Protective Edge in 2014. Back then, 606 Palestinians — about a quarter of the civilian deaths during the 51 days of fighting — were members of families whose homes were bombed. A UN report defined it in 2015 as both a potential war crime and “a new pattern” of action that “led to the death of entire families.”
  • according to the Committee to Protect Journalists, by Nov. 29, Israel had killed 50 Palestinian journalists in Gaza, some of them in their homes with their families
  • The intelligence officers interviewed for this article said that the way Hamas designed the tunnel network in Gaza knowingly exploits the civilian population and infrastructure above ground. These claims were also the basis of the media campaign that Israel conducted vis-a-vis the attacks and raids on Al-Shifa Hospital and the tunnels that were discovered under it.
  • Hamas leaders “understand that Israeli harm to civilians gives them legitimacy in fighting.”
  • while it’s hard to imagine now, the idea of dropping a one-ton bomb aimed at killing a Hamas operative yet ending up killing an entire family as “collateral damage” was not always so readily accepted by large swathes of Israeli society. In 2002, for example, the Israeli Air Force bombed the home of Salah Mustafa Muhammad Shehade, then the head of the Al-Qassam Brigades, Hamas’ military wing. The bomb killed him, his wife Eman, his 14-year-old daughter Laila, and 14 other civilians, including 11 children. The killing caused a public uproar in both Israel and the world, and Israel was accused of committing war crimes.
  • Fifteen years after insisting that the army was taking pains to minimize civilian harm, Gallant, now Defense Minister, has clearly changed his tune. “We are fighting human animals and we act accordingly,” he said after October 7.
Ed Webb

The Digital Maginot Line - 0 views

  • The Information World War has already been going on for several years. We called the opening skirmishes “media manipulation” and “hoaxes”, assuming that we were dealing with ideological pranksters doing it for the lulz (and that lulz were harmless). In reality, the combatants are professional, state-employed cyberwarriors and seasoned amateur guerrillas pursuing very well-defined objectives with military precision and specialized tools. Each type of combatant brings a different mental model to the conflict, but uses the same set of tools.
  • There are also small but highly-skilled cadres of ideologically-motivated shitposters whose skill at information warfare is matched only by their fundamental incomprehension of the real damage they’re unleashing for lulz. A subset of these are conspiratorial — committed truthers who were previously limited to chatter on obscure message boards until social platform scaffolding and inadvertently-sociopathic algorithms facilitated their evolution into leaderless cults able to spread a gospel with ease.
  • If an operation is effective, the message will be pushed into the feeds of sympathetic real people who will amplify it themselves. If it goes viral or triggers a trending algorithm, it will be pushed into the feeds of a huge audience. Members of the media will cover it, reaching millions more. If the content is false or a hoax, perhaps there will be a subsequent correction article – it doesn’t matter, no one will pay attention to it.
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  • The combatants view this as a Hobbesian information war of all against all and a tactical arms race; the other side sees it as a peacetime civil governance problem.
  • Information war combatants have certainly pursued regime change: there is reasonable suspicion that they succeeded in a few cases (Brexit) and clear indications of it in others (Duterte). They’ve targeted corporations and industries. And they’ve certainly gone after mores: social media became the main battleground for the culture wars years ago, and we now describe the unbridgeable gap between two polarized Americas using technological terms like filter bubble. But ultimately the information war is about territory — just not the geographic kind. In a warm information war, the human mind is the territory. If you aren’t a combatant, you are the territory. And once a combatant wins over a sufficient number of minds, they have the power to influence culture and society, policy and politics.
  • Cyberwar, most people thought, would be fought over infrastructure — armies of state-sponsored hackers and the occasional international crime syndicate infiltrating networks and exfiltrating secrets, or taking over critical systems. That’s what governments prepared and hired for; it’s what defense and intelligence agencies got good at. It’s what CSOs built their teams to handle. But as social platforms grew, acquiring standing audiences in the hundreds of millions and developing tools for precision targeting and viral amplification, a variety of malign actors simultaneously realized that there was another way. They could go straight for the people, easily and cheaply. And that’s because influence operations can, and do, impact public opinion. Adversaries can target corporate entities and transform the global power structure by manipulating civilians and exploiting human cognitive vulnerabilities at scale. Even actual hacks are increasingly done in service of influence operations: stolen, leaked emails, for example, were profoundly effective at shaping a national narrative in the U.S. election of 2016.
  • The substantial time and money spent on defense against critical-infrastructure hacks is one reason why poorly-resourced adversaries choose to pursue a cheap, easy, low-cost-of-failure psy-ops war instead
  • Our most technically-competent agencies are prevented from finding and countering influence operations because of the concern that they might inadvertently engage with real U.S. citizens as they target Russia’s digital illegals and ISIS’ recruiters. This capability gap is eminently exploitable; why execute a lengthy, costly, complex attack on the power grid when there is relatively no cost, in terms of dollars as well as consequences, to attack a society’s ability to operate with a shared epistemology? This leaves us in a terrible position, because there are so many more points of failure
  • This shift from targeting infrastructure to targeting the minds of civilians was predictable. Theorists  like Edward Bernays, Hannah Arendt, and Marshall McLuhan saw it coming decades ago. As early as 1970, McLuhan wrote, in Culture is our Business, “World War III is a guerrilla information war with no division between military and civilian participation.”
  • The 2014-2016 influence operation playbook went something like this: a group of digital combatants decided to push a specific narrative, something that fit a long-term narrative but also had a short-term news hook. They created content: sometimes a full blog post, sometimes a video, sometimes quick visual memes. The content was posted to platforms that offer discovery and amplification tools. The trolls then activated collections of bots and sockpuppets to blanket the biggest social networks with the content. Some of the fake accounts were disposable amplifiers, used mostly to create the illusion of popular consensus by boosting like and share counts. Others were highly backstopped personas run by real human beings, who developed standing audiences and long-term relationships with sympathetic influencers and media; those accounts were used for precision messaging with the goal of reaching the press. Israeli company Psy Group marketed precisely these services to the 2016 Trump Presidential campaign; as their sales brochure put it, “Reality is a Matter of Perception”.
  • There’s very little incentive not to try everything: this is a revolution that is being A/B tested.
  • Combatants are now focusing on infiltration rather than automation: leveraging real, ideologically-aligned people to inadvertently spread real, ideologically-aligned content instead. Hostile state intelligence services in particular are now increasingly adept at operating collections of human-operated precision personas, often called sockpuppets, or cyborgs, that will escape punishment under the the bot laws. They will simply work harder to ingratiate themselves with real American influencers, to join real American retweet rings. If combatants need to quickly spin up a digital mass movement, well-placed personas can rile up a sympathetic subreddit or Facebook Group populated by real people, hijacking a community in the way that parasites mobilize zombie armies.
  • Attempts to legislate away 2016 tactics primarily have the effect of triggering civil libertarians, giving them an opportunity to push the narrative that regulators just don’t understand technology, so any regulation is going to be a disaster.
  • The entities best suited to mitigate the threat of any given emerging tactic will always be the platforms themselves, because they can move fast when so inclined or incentivized. The problem is that many of the mitigation strategies advanced by the platforms are the information integrity version of greenwashing; they’re a kind of digital security theater, the TSA of information warfare
  • Algorithmic distribution systems will always be co-opted by the best resourced or most technologically capable combatants. Soon, better AI will rewrite the playbook yet again — perhaps the digital equivalent of  Blitzkrieg in its potential for capturing new territory. AI-generated audio and video deepfakes will erode trust in what we see with our own eyes, leaving us vulnerable both to faked content and to the discrediting of the actual truth by insinuation. Authenticity debates will commandeer media cycles, pushing us into an infinite loop of perpetually investigating basic facts. Chronic skepticism and the cognitive DDoS will increase polarization, leading to a consolidation of trust in distinct sets of right and left-wing authority figures – thought oligarchs speaking to entirely separate groups
  • platforms aren’t incentivized to engage in the profoundly complex arms race against the worst actors when they can simply point to transparency reports showing that they caught a fair number of the mediocre actors
  • What made democracies strong in the past — a strong commitment to free speech and the free exchange of ideas — makes them profoundly vulnerable in the era of democratized propaganda and rampant misinformation. We are (rightfully) concerned about silencing voices or communities. But our commitment to free expression makes us disproportionately vulnerable in the era of chronic, perpetual information war. Digital combatants know that once speech goes up, we are loathe to moderate it; to retain this asymmetric advantage, they push an all-or-nothing absolutist narrative that moderation is censorship, that spammy distribution tactics and algorithmic amplification are somehow part of the right to free speech.
  • We need an understanding of free speech that is hardened against the environment of a continuous warm war on a broken information ecosystem. We need to defend the fundamental value from itself becoming a prop in a malign narrative.
  • Unceasing information war is one of the defining threats of our day. This conflict is already ongoing, but (so far, in the United States) it’s largely bloodless and so we aren’t acknowledging it despite the huge consequences hanging in the balance. It is as real as the Cold War was in the 1960s, and the stakes are staggeringly high: the legitimacy of government, the persistence of societal cohesion, even our ability to respond to the impending climate crisis.
  • Influence operations exploit divisions in our society using vulnerabilities in our information ecosystem. We have to move away from treating this as a problem of giving people better facts, or stopping some Russian bots, and move towards thinking about it as an ongoing battle for the integrity of our information infrastructure – easily as critical as the integrity of our financial markets.
Ed Webb

China's Glass Ceiling - By Geoff Dyer | Foreign Policy - 1 views

  • Rather than usher in a new era of Chinese influence, Beijing's missteps have shown why it is unlikely to become the world's leading power. Even if it overtakes the United States to have the biggest economy in the world, which many economists believe could happen over the next decade, China will not dislodge Washington from its central position in global affairs for decades to come.
  • China's assertiveness is generating intense suspicion, if not outright enmity, among its neighbors. Its "peaceful rise" is not taking place in isolation. There may be echoes in today's Asia of the late-nineteenth century in Europe and North America, but this is the one critical difference. The United States came into its own as a great power without any major challenge from its neighbors, while Germany's ascent was aided by the collapsing Austro-Hungarian and Ottoman empires and Russian monarchy on its frontiers. China, on the other hand, is surrounded by vibrant countries with fast-growing economies, from South Korea to India to Vietnam, who all believe that this is their time, as well. Even Japan, after two decades of stagnation, still has one of the most formidable navies in the world, as well as the world's third largest economy. China's strategic misfortune is to be bordered by robust and proud nation-states which expect their own stake in the modern world.
  • On the economic front, Beijing is taking aim at another pillar of U.S. power: the dominance of the dollar. China is putting in place an ambitious long-term plan to turn the renminbi into one of the main international currencies. Chinese leaders often discuss the project in technical terms, about reducing currency risk for their companies, but they also do little to hide their frustration with the dollar's privileged status. One Chinese academic even likens the importance of the project to turn the renminbi into a major reserve currency to China's acquisition of a nuclear weapon in the 1960s. The politics of the currency plan are themselves an interesting sidebar to the over-hyping of Chinese influence. While American politicians have been worrying loudly about the risk of China owning so many Treasury bonds ("How do you deal toughly with your banker?" Hillary Clinton asked at a private lunch with then Australian Prime Minister Kevin Rudd in March 2009) China has been fretting about how little leverage its U.S. bond holdings give it. The desire to dethrone the dollar is partly rooted in China's frustration that it has absolutely no influence over the Federal Reserve. And yet it has few options other than buying American debt, because the U.S. Treasury bond market is the largest and most liquid in the world.
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  • The key to Chinese state capitalism is control over a relatively closed financial system, which allows the Communist Party to funnel huge volumes of cheap credit to select projects, industries, and companies. But to have a truly international currency, one that the world's central banks want to hold, China would have to let investors from around the world buy and sell large volumes of Chinese financial assets. As a result, Beijing would have to dismantle that system of controls. It would need to permit capital to flow freely in and out of the country, let the market set interest rates and allow the currency to float. An independent legal system and transparent economic policymaking would also be useful. China has a choice. It can have an international currency that might challenge the U.S. dollar or it can keep its brand of state capitalism that has driven the economy and kept the Communist Party in power. But it cannot have both.
  • Beijing is not looking to export its economic and political model around the world, but it has become obsessed with soft power -- the idea that countries can get their way through the attractiveness of their society, rather than just by force or money. China is opening hundreds of Confucius Institutes around the world and spending billions to send its main state-owned media groups overseas, including launching a cable news channel in the United States. At the very least, Beijing hopes these investments can shift the way the world thinks about China, and maybe even chip away at the cultural influence the United States enjoys
  • Soft power is generated by society rather than the Ministry of Culture. The effort to shift its image is constantly undermined by the way that China actually treats its more awkward and interesting citizens -- from well-known figures like Nobel Peace Prize winner Liu Xiaobo and artist Ai Weiwei to the writer Yu Jie
  • The balance of influence between the United States and China over the coming decades will hinge to a large degree on which nation can mobilize other nations to its cause. This is an area where Washington is far more skilled. The new bursts of free trade projects in the Pacific and with the European Union are one example, even if they are far from being completed, and its long-lasting military alliances in Asia and Europe another.
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    How to navigate shifting balance of power in Asia.
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