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Ed Webb

Despite Slump, U.S. Role as Top Arms Supplier Grows - NYTimes.com - 0 views

  • The United States signed weapons agreements valued at $37.8 billion in 2008, or 68.4 percent of all business in the global arms bazaar, up significantly from American sales of $25.4 billion the year before. Italy was a distant second, with $3.7 billion in worldwide weapons sales in 2008, while Russia was third with $3.5 billion in arms sales last year — down considerably from the $10.8 billion in weapons deals signed by Moscow in 2007.
  • The United States was the leader not only in arms sales worldwide, but also in sales to nations in the developing world, signing $29.6 billion in weapons agreements with these nations, or 70.1 percent of all such deals.The study found that the larger arms deals concluded by the United States with developing nations last year included a $6.5 billion air defense system for the United Arab Emirates, a $2.1 billion jet fighter deal with Morocco and a $2 billion attack helicopter agreement with Taiwan. Other large weapons agreements were reached between the United States and India, Iraq, Saudi Arabia, Egypt, South Korea and Brazil.
  • The top buyers in the developing world in 2008 were the United Arab Emirates, which signed $9.7 billion in arms deals; Saudi Arabia, which signed $8.7 billion in weapons agreements; and Morocco, with $5.4 billion in arms purchases.
Ed Webb

Russia may sell Iran $10 billion worth of tanks and jets in new arms deal - 0 views

  • further cement an alliance between Moscow and Tehran that is likely to prove a major stumbling block for any rapprochement between Vladimir Putin and Donald Trump, who has vowed to rip up a nuclear agreement with Iran that the Kremlin supports.
  • until 2020 deliveries of conventional weapons must be approved by the United Nations Security Council
  • Sergey Ryabkov, a deputy foreign minister, said on Monday that Russia’s support for the Iran deal “has not changed,” indicating that it would oppose any attempt to re-negotiate it. Russia has increased arms sales in recent years as it seeks to earn foreign currency and support potential allies in its confrontation with the West. 
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  • a $2 billion contract to deliver 24 advanced SU-35 jets to China, ending a decade-long unofficial moratorium on sales of hi-tech weaponry to Beijing because of fears over technology piracy.
  • Iran and China announced an agreement to hold joint military drills and cooperate in fighting terrorism
Ed Webb

The Military-Industrial Jobs Scam | naked capitalism - 0 views

  • despite defense contractor claims to the contrary, increased military spending has been accompanied by job losses in the US
  • the contracting fraud results in US taxpayers paying way more than it would have cost for US personnel to do the work…with the added insult that the tasks were performed by locals for a pittance
  • When contractors receive more taxpayer money, do they generally create more jobs? To answer it, we analyzed the reports of major defense contractors filed annually with the U.S. Securities and Exchange Commission (SEC). Among other things, these reveal the total number of people employed by a firm and the salary of its chief executive officer. We then compared those figures to the federal tax dollars each company received, according to the Federal Procurement Data System, which measures the “dollars obligated,” or funds, the government awards company by company
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  • the Trump administration has stopped at nothing to push the argument that job creation is justification enough for supporting weapons manufacturers to the hilt. Even before Donald Trump was sworn in as president, he was already insisting that military spending was a great jobs creator. He’s only doubled down on this assertion during his presidency. Recently, overriding congressional objections, he even declared a national “emergency” to force through part of an arms sale to Saudi Arabia that he had once claimed would create more than a million jobs. While this claim has been thoroughly debunked, the most essential part of his argument — that more money flowing to defense contractors will create significant numbers of new jobs — is considered truth personified by many in the defense industry
  • In addition to the reductions at Lockheed, Boeing slashed 21,400 jobs and Raytheon cut 800 employees from its payroll. Only General Dynamics and Northrop Grumman added jobs — 13,400 and 16,900 employees, respectively — making that total figure look modestly better. However, even those “gains” can’t qualify as job creation in the normal sense, since they resulted almost entirely from the fact that each of those companies bought another Pentagon contractor and added its employees to its own payroll
  • Pentagon spending was actually higher in 2018 than in 2012
  • From 2012 to 2018, overall employment at Lockheed actually fell from 120,000 to 105,000, according to the firm’s filings with the SEC and the company itself reported a slightly larger reduction of 16,350 jobs in the U.S. In other words, in the last six years Lockheed dramatically reduced its U.S. workforce, even as it hired more employees abroad and received more taxpayer dollars
  • where is all that additional taxpayer money actually going, if not job creation? At least part of the answer is contractor profits and soaring CEO salaries. In those six years, Lockheed’s stock price rose from $82 at the beginning of 2012 to $305 at the end of 2018, a nearly four-fold increase. In 2018, the company also reported a 9% ($590 million) rise in its profits, the best in the industry. And in those same years, the salary of its CEO increased by $1.4 million
  • From 2012 to 2018, the unemployment rate in the U.S. plummeted from roughly 8% to 4%, with more than 13 million new jobs added to the economy. Yet, in those same years, three of the five top defense contractors slashed jobs. In 2018, the Pentagon committed approximately $118 billion in federal money to those firms, including Lockheed — nearly half of all the money it spent on contractors. This was almost $12 billion more than they had received in 2012. Yet, cumulatively, those companies lost jobs and now employ a total of 6,900 fewer employees than they did in 2012, according to their SEC filings.
  • In 2012, concerned that those caps on defense spending would cut into their bottom lines, the five top contractors went on the political offensive, making future jobs their weapon of choice. After the Budget Control Act passed, the Aerospace Industries Association — the leading trade group of the weapons-makers — warned that more than one million jobs would be at risk if Pentagon spending were cut significantly. To emphasize the point, Lockheed sent layoff notices to 123,000 employees just before the BCA was implemented and only days before the 2012 election. Those layoffs never actually happened, but the fear of lost jobs would prove real indeed and would last.
  • “the aerospace and defense (A&D) sector scored record revenues and profits in 2018” with an “operating profit of $81 billion, surpassing the previous record set in 2017.” According to the report, Pentagon contractors were at the forefront of these profit gains. For example, Lockheed’s profit improvement was $590 million, followed closely by General Dynamics at $562 million. As employment shrank, CEO salaries at some of these firms only grew. In addition to compensation for Lockheed’s CEO jumping from $4.2 million in 2012 to $5.6 million in 2018, compensation for the CEO of General Dynamics increased from $6.9 million in 2012 to a whopping $20.7 million in 2018.
  • weapons-making outfits spend more than $100 million on lobbying yearly, donate tens of millions of dollars to the campaigns of members of Congress every election season, and give millions to think tanks annually
  • research has repeatedly shown that, even with this supposed “multiplier effect,” defense spending produces fewer jobs than just about anything else the government puts our money into. In fact, it’s about 50% less effective at creating jobs than if taxpayers were simply allowed to keep their money and use it as they wished
  • As Brown University’s Costs of War project has reported, “$1 billion in military spending creates approximately 11,200 jobs, compared with 26,700 in education, 16,800 in clean energy, and 17,200 in health care.”
  • not only are the green energy and education areas vital to the future of the country, they are also genuine job-creating machines. Yet, the government gives more taxpayer dollars to the defense industry than all these other government functions combined.
  • Reports from the industry’s own trade association show that it has been shedding jobs. According to an Aerospace Industries Association analysis, it supported approximately 300,000 fewer jobs in 2018 than it had reported supporting just three years earlier
  • add to their army of lobbyists, their treasure trove of campaign contributions, and those think tanks on the take, the famed revolving door that sends retired government officials into the world of the weapons makers and those working for them to Washington
  • since 2008, as the Project On Government Oversight’s Mandy Smithberger found, “at least 380 high-ranking Department of Defense officials and military officers shifted into the private sector to become lobbyists, board members, executives, or consultants for defense contractors.” 
Ed Webb

Yemen: War Profiteers | Yemen | Al Jazeera - 0 views

  • According to the United Nations, Yemen today is the world's worst humanitarian crisis. In 2018, the UN appointed a panel of experts to examine the coalition blockade on Yemen and the impact of the thousands of airstrikes launched against civilians there. It concluded that these practices could qualify as war crimes. It pointed not only at Saudi Arabia and the UAE, but also at the parties supplying the coalition with weapons, based on a multilateral treaty regulating arms sales that has been in force since 2014. Saudi Arabia buys its weapons from the United States and the United Kingdom, as well as from a number of European arms manufacturers, led by French and German companies.
  • The European parliament has called for a suspension of arms sales to Saudi. Although five EU member states have stopped selling war weapons to the kingdom, its five biggest suppliers, led by the UK, have not. 
  • In this film, we reveal details of the shadowy world of the so-called legal arms trade, the double-discourse of our democracies, and the shortcomings of European governments. And we pose a fundamental question: by pursuing trade with Saudi Arabia, are European countries complicit in war crimes?
Ed Webb

What Lockdown? World's Cocaine Traffickers Sniff at Movement Restrictions - OCCRP - 0 views

  • the predicament facing cocaine smugglers, as the global pandemic has increased scrutiny on them and disrupted their smuggling and distribution networks. But it also highlights their flexible approach to their trade, which has kept business booming even as many of the world’s legal sectors have ground to a halt.
  • OCCRP reporters have found that the world’s cocaine industry — which produces close to 2,000 metric tons a year and makes tens of billions of dollars — has adapted better than many other legitimate businesses. The industry has benefited from huge stores of drugs warehoused before the pandemic and its wide variety of smuggling methods. Street prices around Europe have risen by up to 30 percent, but it is not clear how much of this is due to distribution problems, and how much to drug gangs taking advantage of homebound customers.
  • In March and April, Spain seized over 14 tons of cocaine in inbound shipments — a figure six times higher than the same period the previous year, said Manuel Montesinos, the deputy director of Customs surveillance at the Spanish Taxation Agency. “We are very struck by the frenetic pace,” Montesinos said. “Almost every day we receive alerts of detections of suspicious operations.”
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  • As many countries begin partially reopening their economies, traffickers may now be in a position to become more powerful than ever. With economies in distress and many businesses facing ruin, cash-rich narcos may be able to cheaply buy their way into an even bigger share of the legitimate economy.
  • “There has always been a stock, it’s a very organized chain. It’s the way to control everything, especially the price. The stocks are on beaches such as Tarena [near the border with Panama], banana plantations, in the jungle. The stashes are everywhere,”
  • Traditionally, smugglers have used small, very fast speedboats, as well as fishing vessels and submarines, to ply their northern route. Lockdowns have made these methods harder to use, mainly for logistical reasons. So instead, smugglers are turning back to older, slower routes that are often broken up in parts.
  • Unlike exports to the United States, cocaine bound for Europe is typically moved in legal air and sea cargoes, especially fast-moving fresh goods such as flowers and fruit. The latter, as food, has continued to move unimpeded during the pandemic, helping feed Europe’s 9.1 billion euro-a-year cocaine habit. Colombia’s banana industry, for example, has been exempt from local lockdown measures, allowing cocaine to keep moving through the crop’s supply chain. “[Anyone] in the authorities or security that meddles with this route goes down,” said Rául, the Gulf Clan member, adding that people who are paid off to facilitate the smuggling of cocaine have an incentive to keep the drugs flowing. “Everybody eats,” he said.
  • Mexican cartels have used the crisis as a public relations opportunity. People associated with the cartels, including the daughter of imprisoned Sinaloa cartel chief Joaquín “El Chapo” Guzmán, have publicly distributed food and other essential items to the poor. Meanwhile, the country’s drug violence continues unabated, claiming an average of 80 lives per day.
  • cocaine continues to flow from South America to Europe and North America. Closed trafficking routes have been replaced with new ones, and street deals have been substituted with door-to-door deliveries.
  • Ramón Santolaria, the head of anti-narcotics at Spain’s national police in Catalonia, said cocaine traffickers may have mistakenly assumed that the pandemic would have reduced monitoring at ports. The cartels “have to continue exporting,” Santolaria said. “They are like a company. They can’t store everything in their countries, since it would be very risky.”
  • Italy has fallen silent as a point of arrival, despite being home to mafia groups that dominate Europe’s cocaine trade. Seizures dropped by 80 percent over the months of March and April compared to the same period last year
  • “Italy did not receive much via ports or airports and that is because during lockdown we have been controlling them a lot,” said Marco Sorrentino, the head of anti-mafia department of Italy’s financial police, the Guardia di Finanza. Italian crime groups have shifted their operations to Spain, where they have large “colonies” according to Sorrentino. “Italian mafias and their partners thus sent cocaine mainly to Algeciras or Barcelona, and then from there they moved it on wheels to the rest of Europe and to Italy,” he said. “As cover-up they used trucks filled with fresh fruits or also soy flour,” which resembles cocaine.
  • At the street level, lockdowns have played havoc with cocaine sales — but have also failed to stop the trade. But in some cases at least, dealers’ adaptations may have actually put them in a more profitable position than before, as cocaine users are desperate and confined at home. “Even though they don’t lack product, they have raised prices a bit and are cutting it more,”
  • The solution? Delivering it to customers in the guise of food orders, or couriered by essential workers carrying documents that give them permission to move around freely. Dealers have also staked out positions in socially distanced queues outside supermarkets — one of the only permitted places to gather in public under Italy’s strict lockdown rules, which began easing up in early May.
  • The main dark web marketplaces have seen an increase in sales of roughly 30 percent since lockdown measures started coming into effect worldwide
  • “Private citizens who are in need and won’t have access to a bank loan will be victims of loan sharks,” he said. “But what worries us the most is that licit companies might be in need, and be approached by mafia organizations that will propose to become minority shareholders.” “And once this happens, they actually take over the whole company,”
Ed Webb

Cost of Environmental Damage in China Growing Rapidly Amid Industrialization - www.nyti... - 1 views

  • The cost of environmental degradation in China1 was about $230 billion in 2010, or 3.5 percent of the nation’s gross domestic product — three times that in 2004, in local currency terms, an official Chinese news report said this week.
  • “Digging a hole and filling it back in again gives you G.D.P. growth. It doesn’t give you economic value. A lot of the activity in China over the last few years has been digging holes to fill them back in again — anything from bailing out failing solar companies to ignoring the ‘externalities’ of economic growth.”
  • The ministry has issued statistics only intermittently, though its original goal was to do the calculation — what it called “green G.D.P.” — annually.
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  • China Central Television reported that farmers in a village in Henan Province were using wastewater from a paper mill to grow wheat. But one farmer said they would not dare to eat the wheat themselves. It is sold outside the village, perhaps ending up in cities, while the farmers grow their own wheat with well water
  • There is consensus now that China’s decades of double-digit economic growth exacted an enormous environmental cost. But growth remains the priority; the Communist Party’s legitimacy is based largely on rapidly expanding the economy, and China officially estimates that its G.D.P., which was $8.3 trillion in 2012, will grow at a rate of 7.5 percent this year and at an average of 7 percent in the five-year plan that runs to 2015. A Deutsche Bank report released last month said the current growth policies would lead to a continuing steep decline of the environment for the next decade, especially given the expected coal consumption and boom in automobile sales.
Ed Webb

How Many Guns Did the U.S. Lose Track of in Iraq and Afghanistan? Hundreds of Thousands... - 0 views

  • In all, Overton found, the Pentagon provided more than 1.45 million firearms to various security forces in Afghanistan and Iraq, including more than 978,000 assault rifles, 266,000 pistols and almost 112,000 machine guns. These transfers formed a collage of firearms of mixed vintage and type: Kalashnikov assault rifles left over from the Cold War; recently manufactured NATO-standard M16s and M4s from American factories; machine guns of Russian and Western lineage; and sniper rifles, shotguns and pistols of varied provenance and caliber, including a large order of Glock semiautomatic pistols, a type of weapon also regularly offered for sale online in Iraq. Advertisement Continue reading the main story Many of the recipients of these weapons became brave and important battlefield allies. But many more did not. Taken together, the weapons were part of a vast and sometimes minimally supervised flow of arms from a superpower to armies and militias often compromised by poor training, desertion, corruption and patterns of human rights abuses. Knowing what we know about many of these forces, it would have been remarkable for them to retain custody of many of their weapons. It is not surprising that they did not.
  • the Pentagon said it has records for fewer than half the number of firearms in the researchers’ count — about 700,000 in all
  • Overton’s analysis also does not account for many weapons issued by the American military to local forces by other means, including the reissue of captured weapons, which was a common and largely undocumented practice.
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  • One point is inarguable: Many of these weapons did not remain long in government possession after arriving in their respective countries. In one of many examples, a 2007 Government Accountability Office report found that 110,000 Kalashnikov assault rifles and 80,000 pistols bought by the United States for Iraq’s security forces could not be accounted for — more than one firearm for every member of the entire American military force in Iraq at any time during the war. Those documented lapses of accountability were before entire Iraqi divisions simply vanished from the battlefield, as four of them did after the Islamic State seized Mosul and Tikrit in 2014, according to a 2015 Army budget request to buy more firearms for the Iraqi forces to replace what was lost.
  • According to its tally, the American military issued contracts potentially worth more than $40 billion for firearms, accessories and ammunition since Sept. 11, including improvements to the ammunition plants required to keep the cartridge production going. Most of these planned expenditures were for American forces, and the particulars tell the story of two wars that did not go as pitched. More than $4 billion worth of contracts was issued for small arms, including pistols, machines guns, assault rifles and sniper rifles, and more than $11 billion worth was issued for associated equipment, from spare machine-gun barrels to sniper-rifle scopes, according to Overton’s count. A much larger amount — nearly $25 billion — was issued for ammunition or upgrades to ammunition plants to keep those firearms supplied. That last figure aligns with what most any veteran of ground combat in Iraq and Afghanistan could tell you — American troops have been involved in a dizzying number of gunfights since 2001, burning through mountains of ammunition along the way.
  • In April, after being approached by The New York Times and reviewing data from Armament Research Services, a private arms-investigation consultancy, Facebook closed many pages in the Middle East that were serving as busy arms bazaars, including pages in Syria and Iraq on which firearms with Pentagon origins accounted for a large fraction of the visible trade
  • The American arming of Syrian rebels, by both the Central Intelligence Agency and the Defense Department, has also been troubled by questions of accountability and outright theft in a war where the battlefield is thick with jihadists aligned with Al Qaeda or fighting under the banner of the Islamic State.
  • many new arms-trading Facebook pages have since cropped up, including, according to their own descriptions, virtual markets operating from Baghdad and Karbala
  • The data show large purchases of heavy-machine guns and barrels. This is a wink at the shift in many American units from being foot-mobile to vehicular, as grunts buttoned up within armored trucks and needed turret-mounted firepower to defend themselves — a matériel adaptation forced by ambushes and improvised bombs, the cheaply made weapons that wearied the most expensive military in the world.
  • a startlingly risky aspect of the Pentagon’s arming of local forces with infantry arms: the wide distribution of anti-armor weapons, including RPG-7s, commonly called rocket-propelled grenades, and recoilless weapons, including the SPG-9. Each of these systems fires high-explosive (and often armor-piercing) projectiles, and each was commonly used by insurgents in attacks. After the opening weeks of each war, the only armor on either battlefield was American or associated with allied and local government units, which made the Pentagon’s practice of providing anti-armor weapons to Afghan and Iraqi security forces puzzling. Why would they need anti-armor weapons when they had no armor to fight? All the while rockets were somehow mysteriously being fired at American convoys and patrols in each war.
  • a portrait of the Pentagon’s bungling the already-awkward role it chose for itself — that of state-building arms dealer, a role that routinely led to missions in clear opposition to each other. While fighting two rapidly evolving wars, the American military tried to create and bolster new democracies, governments and political classes; recruit, train and equip security and intelligence forces on short schedule and at outsize scale; repair and secure transportation infrastructure; encourage the spread or restoration of the legal industry and public services; and leave behind something more palatable and sturdy than rule by thugs.
  • The procession of arms purchases and handouts has continued to this day, with others involved, including Iran to its allies in Iraq and various donors to Kurdish fighters. In March, Russia announced that it had given 10,000 Kalashnikov assault rifles to Afghanistan, already one of the most Kalashnikov-saturated places on earth. If an analysis from the United States’ Special Inspector General for Afghanistan Reconstruction, or Sigar, is to be believed, Afghanistan did not even need them. In 2014 the inspector general reported that after the United States decided to replace the Afghan Army’s Kalashnikovs with NATO-standard weapons (a boon for the rifles’ manufacturer with a much less obvious value for an already amply armed Afghan force), the Afghan Army ended up with a surplus of more than 83,000 Kalashnikovs. The United States never tried to recover the excess it had created, giving the inspector general’s office grounds for long-term worry. “Without confidence in the Afghan government’s ability to account for or properly dispose of these weapons,” it noted, “Sigar is concerned that they could be obtained by insurgents and pose additional risks to civilians.” Write A Comment
  • What to do? If past is precedent, given enough time one of the United States’ solutions will be, once again, to ship in more guns.
Ed Webb

Uneasy Engagement - China Spreads Aid in Africa, With a Catch - Series - NYTimes.com - 0 views

  • From Pakistan to Angola to Kyrgyzstan, China is using its enormous pool of foreign currency savings to cement diplomatic alliances, secure access to natural resources and drum up business for its flagship companies. Foreign aid — typically cut-rate loans, sometimes bundled with more commercial lines of credit — is central to this effort.
  • Leaders of developing nations have embraced China’s sales pitch of easy credit, without Western-style demands for political or economic reform, for a host of unmet needs. The results can be clearly seen in new roads, power plants, and telecommunications networks across the African continent — more than 200 projects since 2001, many financed with preferential loans from the Chinese government’s Exim Bank.
  • “We know more about China’s military expenditures than we do about its foreign aid,” said David Shambaugh, an author and China scholar at George Washington University. “Foreign aid really is a glaring contradiction to the broader trend of China’s adherence to international norms. It is so strikingly opaque it really makes one wonder what they are trying to hide.”
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  • China, which is not a member of the O.E.C.D., is operating under rules that the West has largely abandoned. It mixes aid and business in secret government-to-government agreements. It requires that foreign aid contracts be awarded to Chinese contractors it picks through a closed-door bidding process in Beijing. Its attempts to prevent corrupt practices by its companies overseas appear weak.
Ed Webb

Why Gates and Obama Dropped The Bush Shield - The Atlantic Politics Channel - 0 views

  • In terms of geopolitics, it was a zero sum game: empower NATO at the expense of Russia and convey a message to Iran that the U.S. was serious about protecting its allies from their developing threats.
  • There's also an illogic to the appeasement charge: because Russia opposed the missile sites, it does not follow that the U.S. decided to remove them to "appease" Russia's concern. Obama's premise is that the missiles -- leaving aside the open question about whether the technology works and whether it's cost effective -- were an irritant and a way for Russia to gum up negotiations on more important, more consequential decisions, like the stringency of economic sanctions against Iran, missile sales to Iran, and treaty negotiations.
  • The gamble here is that enough of the missile defense shield will be in place before Iran gets its act together. From a geopolitical perspective, poking Russia and Iran in the eye isn't worth the hassle.
Ed Webb

Jordan's uranium and Israel's fears | openDemocracy - 0 views

  • while supporting the development of its nuclear technology, America is insisting that Jordan purchase its reactor fuel on the nuclear market (it will “allow” Jordan to mine the uranium ore, but not convert it into fuel).  The Obama administration stresses that it will refuse to help Jordan if it makes use of its own uranium, and intends to model any deal with Jordan on the USA's recent nuclear agreement with the United Arab Emirates, who agreed to purchase their uranium on the international market, but reserve the right to renegotiate this deal if another country concludes an agreement on more favourable terms. Pursuing its right to enrich uranium without America's agreement would prove difficult for Jordan: the USA plays a powerful role in the Nuclear Supplier Group which monitors the sale of nuclear technology.  Moreover, many reactors from countries outside the USA contain American components which would require Jordan to gain America's approval to purchase.  But the USA's insistence that the country give up the right to use its own uranium seems to be a strategic miscalculation with the potential to alienate one of America and Israel's key Arab allies.  While the Jordanian government under reformist King Abdullah can certainly be criticised for its benign and even not-so-benign authoritarianism, it remains a positive presence in the Israel-Palestinian peace process (and the strongest ally of the USA in the Arab world). In fact, it was its willingness to 'help' in the war on terror that caused concern for human rights campaigners. Undermining the country's nuclear intentions when Jordan has done more than it is required to do in terms of tranparency and negotiation gives the impression that America will always treat Middle Eastern nuclear projects with suspicion, and that there's little incentive to cooperate.
  • To knowingly alienate Jordan by undermining the country's right to energy independence would be an act of masochism by Israel, particularly when the country's nuclear programme presents an opportunity to develop a model of transparency in nuclear energy development, and a chance to strengthen a more moderate presence in the region at a time when it is sorely needed.
Ed Webb

Mining the Future - Foreign Policy - 0 views

  • No new phone, tablet, car, or satellite transferring your data at lightning speed can be made without certain minerals and metals that are buried in a surprisingly small number of countries, and for which few commonly found substitutes are available. Operating in niche markets with limited transparency and often in politically unstable countries, Chinese firms have locked up supplies of these minerals and metals with a combination of state-directed investment and state-backed capital, making long-term strategic plays, sometimes at a loss
  • unprecedented concentration of market power
  • “Made in China 2025,” aims to build strategic industries in national defense, science, and technology. To meet these objectives, in October 2016, the Ministry of Industry and Information Technology announced an action plan for its metals industry to achieve world-power status: By deploying state-owned enterprises and private firms to resource-rich hot spots around the globe, China would develop and secure other countries’ mineral reserves—including minerals in which China already holds a dominant position
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  • By directly acquiring mines, accumulating equity stakes in natural-resource companies, making long-term agreements to buy mines’ current or future production (known as “off-take agreements”), and investing in new projects under development, Chinese firms traded much-needed capital for outright control or influence over large shares of the global production of these resources. Despite China’s slowing growth and a major pullback in its foreign direct investment in other sectors, the government has maintained robust financial support for resource acquisition; mergers and acquisitions in metals and chemicals hit a record high in 2018.
  • China lacks significant reserves of three resources vital to its tech ambitions: cobalt, platinum-group metals, and lithium. It has successfully employed two strategies to secure control of them. One is driven by China’s state-owned enterprises (SOEs), which use development finance and infrastructure investment to embed themselves in higher-risk countries, establishing close ties with government leaders. The second is investment by state-linked private firms in market-based economies. Both strategies have shown agility and an ability to effectively adapt to local circumstances to achieve the same end.
  • Chile is home to 57 percent of the world’s known lithium reserves, the world’s largest known concentration, and SQM controls roughly half the country’s production
  • DRC is home to nearly two-thirds of the world’s cobalt production and half of its known reserves. Those resources are the prime target of investors for the booming battery industry. Over a decade of steady engagement, China has staked out a dominant position by developing strong political ties and investing in production assets and related infrastructure
  • China’s SOEs and private firms have made at least eight major equity and off-take plays in platinum-group metals in the Bushveld Complex. Such investments in South Africa’s highly concentrated and strategic resource deposits have helped make metals the country’s leading source of export growth, with nearly 50 percent of its metal exports going to China—tying South Africa’s economic welfare directly to Chinese investment.
  • the three countries where nearly 90 percent of global lithium production and more than three-quarters of the world’s known lithium reserves are located: Chile, Argentina, and Australia. In just six years, China has come to dominate the global market: More than 59 percent of the world’s lithium resources are now under its control or influence
  • China now owns or has influence over half of the DRC’s cobalt production, and has a massive stake in its mining industry. Six months ahead of the presidential elections, the event also sent a strong message to candidates about China’s deep investment in copper and cobalt mining—which constitutes 80 percent of the DRC’s export revenue and thousands of jobs—and its capacity to influence the future of the DRC’s economy
  • Though the final agreement included restrictions on Tianqi’s board and committee participation and its access to SQM’s sensitive data, Tianqi’s equity position still confers considerable influence over SQM.
  • In a cash-strapped industry, Chinese firms are financing mine expansion and new development in exchange for a guaranteed supply of lithium in both mature and emerging markets. In Argentina, where President Mauricio Macri is eliminating mineral export taxes, reducing corporate tax rates, and allowing profit repatriation, China is establishing a dominant position in the nascent sector with “streaming deals,” which provide development capital in exchange for future lithium yields to help projects get off the ground. Chinese firms, led by Ganfeng, have stakes in 41 percent of the country’s major planned projects that account for 37 percent of Argentina’s reserves. This raw-material strategy is already coming to fruition: Lithium export volumes from Argentina to China rose nearly fourfold from 2015 to 2017, and China has secured access to the country's lithium for the longer term.
  • This same strategy, combined with asset acquisition, has also been successful in Australia, whose proximity to China, significant lithium reserves, and broad political support for mining investment have attracted Chinese investment. Tianqi and Ganfeng have established stakes in 91 percent of the lithium mining projects underway and 75 percent of the country’s reserves, including some of the world’s largest.
  • Natural resources are abundant in China; it is the No. 1 producer and processor of at least ten critical minerals and metals that are essential to high-tech industries and upon which China’s commercial and strategic competitors depend. To reinforce its strength, Chinese firms are acquiring mines and output from the next-largest producers and reserves, giving China both an economic edge in the next high-tech industrial revolution and increasing geopolitical power.
  • Perhaps the best-known example both of China’s natural-resource dominance and its willingness to exploit it is rare-earth elements, a group of 17 elements that (despite their name) are commonly found, but rarely in concentrations that can be economically extracted. They are important materials for the defense, aerospace, electronics, and renewable energy industries. Over the past two decades China has produced more than 80 percent of the world’s production of rare-earth elements and processed chemicals. In 2010 it cut off exports to Japan amid rising tensions over the East China Sea, and the following year it imposed export quotas that threw governments and manufacturers into a panic. But with the exception of Japan, the attention to this critical vulnerability was short-lived, and little action was taken by other countries reliant on imports to diversify their resources or develop minerals action plans of their own.
  • China declared rare-earth elements a strategic resource in 1990 and prohibited foreign investment in the sector. Six state-owned enterprises control the industry, and the government cut production quotas in 2018 by 36 percent. With global demand for rare-earth elements projected at a compound average growth rate of more than 17 percent to 2025, a supply crunch is likely approaching—and China is already securing other nations’ supplies
  • While Russia strictly limits foreign participation in rare-earth element development, Chinese firms have accumulated off-take agreements and stakes in rare-earth element mines in Australia and Brazil
  • in 2017, China’s Shenghe Resources and two U.S. private equity firms acquired the sole U.S. and North American rare-earth element producer and processor, Molycorp, and its idled mining operations at Mountain Pass, California.
  • In 2016, China’s Yellow Dragon Holdings Ltd. co-invested with Bushveld Minerals, the primary vanadium developer in South Africa’s massive Bushveld Complex, to acquire Strategic Minerals, which owned the Vametco vanadium mine and plant. Yellow Dragon subsequently increased its investment in Bushveld Minerals and has become the fifth-largest shareholder. The holdings deepen China’s influence over South Africa’s vanadium resources and its role in the country’s emerging high-tech sector
  • China’s position is even stronger in graphite, a crystalline form of the element carbon whose high conductivity makes it a major component in electrodes, batteries, and solar panels, as well as industrial products such as steel and composites. For the last 20 years, China has been the leading global supplier of graphite, representing nearly 70 percent of the world’s production in 2018 and 24 percent of its reserves. While synthetic graphite, which is produced from petroleum coke, is an alternative, unfavorable economics constrain its use
  • New projects are concentrated in Mozambique, where the world’s largest graphite mine and fourth-largest known reserves are located. Already, Chinese firms have secured off-take agreements with the three major developers in Mozambique for the majority of their graphite production, and they are financing new development.
  • Japan is 90 percent reliant on China for its graphite
  • This resource consolidation could determine whether China is able to overcome the last major hurdle to achieving its ambitions: a competitive semiconductor industry.
  • Semiconductors can be pure elements or compounds and altered with impurities to improve their conductivity. Several materials are now being used to improve speed and performance, including rare-earth elements, graphite, indium, gallium, tantalum, and cadmium. China is the dominant producer of five out of the six, controls more than 75 percent of the world’s supply of three, and is consolidating control over them all
  • Should China succeed technologically, its capacity to scale production and flood markets (as it has already done with solar panels and wind turbines) has serious implications not only for leading semiconductor producers, but also for national security, if Chinese-manufactured chips are embedded in the devices upon which our data-driven lives, our economies, and our defense systems increasingly depend. While government and industry officials have started to restrict semiconductor sales and scrutinize Chinese acquisition of technology firms—e.g., the United States’ temporary ban on selling semiconductors to ZTE, or the recent flare-up over Huawei —such moves are strengthening China’s resolve to develop its domestic industry. More attention should be paid to its efforts to consolidate critical raw materials and the computing power they confer.
  • In April, U.S. government officials announced plans to meet with lithium industry leaders and automakers with the intention of developing a national electric-vehicle supply chain strategy. It is a start.
Ed Webb

The American Empire Is the Sick Man of the 21st Century - Foreign Policy - 0 views

  • classic Foundation series, Isaac Asimov imagines a Galactic Empire, governed from the city-world of Trantor, that has maintained peace and prosperity for thousands of years but that is teetering on the brink of decline. The only person who sees this clearly is the psychohistorian Hari Seldon, who has mathematically determined that the core conditions for the Empire are unsustainable and will crumble over the course of centuries. As Trantor “becomes more and more the administrative center of Empire, it becomes a greater prize,” a disciple says as he absorbs Seldon’s calculations. “As the Imperial succession becomes more and more uncertain, and the feuds among the great families more rampant, social responsibility disappears.” Asimov published these words in 1951, at the peak of U.S. global power. But they might as well be describing Washington in 2019, an imperial capital whose elite have transformed it into a great prize to be feuded over as surely as Asimov’s future empire did—and as other empires have done in the past.
  • much of the United States has experienced a steady decline while a handful of major cities, including Washington, have become hyperwealthy and almost unaffordable through the concentration of financial, tech, and media monopolies and their affiliated lobbyists. By now, many Americans know this story—but few think about what it means for their place in the world
  • The near-universal understanding of the United States as a powerful, unified global actor is flawed and in need of revision. The United States is less a great power exerting its will and more an open-air market for global corruption, in which outside powers can purchase influence, shape political outcomes, and play factions against each other in the service of their own competing agendas.
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  • Although Foundation drew its direct inspiration from Edward Gibbon’s The Decline and Fall of the Roman Empire, history is replete with examples of seemingly powerful empires run by weak, divided elites and picked apart by outside powers
  • Trump’s administration is openly bought by foreign governments via his international network of hotels and resorts, including the one located directly between the White House and the U.S. Capitol, where a Saudi-funded lobbyist rented 500 rooms in the month after the 2016 election. His political party, which still controls the Senate and increasingly dominates the judiciary, has no interest in holding him accountable for any of this. And of course there’s the small matter of Russian interference in the 2016 election; as the limited information known so far from special counsel Robert Mueller’s report confirms, Trump and the Republicans were at the very least the passive and willing beneficiaries of efforts by a foreign power to influence the election outcome.
  • the influence of outside money in Washington has become routine over the past generation. From the pervasive influence of the United Arab Emirates and other Gulf monarchies over think tanks and media organizations to virtually the entire U.S. government kowtowing before the American Israel Public Affairs Committee to China’s warm relationship with the Chamber of Commerce and with the heads of some of the most powerful U.S. companies to the funneling of foreign money through the real estate industries of the country’s largest and wealthiest cities—the U.S. government is for sale.
  • The complete deregulation of campaign finance and the subsequent legalization of corruption in Washington, on a scale unheard of in other developed countries, have resulted in a capital where the distinction between foreign and domestic monied interests is harder and harder to parse. The U.S. government, in other words, does not exist to serve the interests of Americans through either its foreign or its domestic policies; rather, it exists to perpetuate the interests of the globalized oligarchy.
  • While Rhodes and Obama also faced pressure from within the Washington establishment, they found their agenda for the Middle East repeatedly hijacked by foreign allies—the same governments that also lobbied, with varying success, for U.S. military operations from Syria to Yemen. American power, however mighty, means nothing if it’s being used for the ends of the highest bidders
  • what we’re seeing is neither a considered, responsible withdrawal from empire in order to invest in urgent needs at home nor a revolt against empire by the world’s wretched. Rather, it’s a drawn-out, decadent collapse recognizable to any student of Rome or Constantinople. America is the sick man of the 21st century, and anyone who has watched its president bumble through a gathering of bemused, pitying world leaders knows it.
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

Kleptocracy Is on the Rise in America - The Atlantic - 0 views

  • In the dying days of the U.S.S.R., Palmer had watched as his old adversaries in Soviet intelligence shoveled billions from the state treasury into private accounts across Europe and the U.S. It was one of history’s greatest heists.
  • Western banks waved Russian loot into their vaults. Palmer’s anger was intended to provoke a bout of introspection—and to fuel anxiety about the risk that rising kleptocracy posed to the West itself. After all, the Russians would have a strong interest in protecting their relocated assets. They would want to shield this wealth from moralizing American politicians who might clamor to seize it. Eighteen years before Special Counsel Robert Mueller began his investigation into foreign interference in a U.S. election, Palmer warned Congress about Russian “political donations to U.S. politicians and political parties to obtain influence.” What was at stake could well be systemic contagion: Russian values might infect and then weaken the moral defense systems of American politics and business.
  • Officials around the world have always looted their countries’ coffers and accumulated bribes. But the globalization of banking made the export of their ill-gotten money far more convenient than it had been—which, of course, inspired more theft. By one estimate, more than $1 trillion now exits the world’s developing countries each year in the forms of laundered money and evaded taxes.
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  • New York, Los Angeles, and Miami have joined London as the world’s most desired destinations for laundered money. This boom has enriched the American elites who have enabled it—and it has degraded the nation’s political and social mores in the process. While everyone else was heralding an emergent globalist world that would take on the best values of America, Palmer had glimpsed the dire risk of the opposite: that the values of the kleptocrats would become America’s own. This grim vision is now nearing fruition
  • in the days after the Twin Towers collapsed, George W. Bush’s administration furiously scoured Washington for ideas to jam into the 342-page piece of legislation that would become the patriot Act. A sense of national panic created a brief moment for bureaucrats to realize previously shelved plans. Title III of the patriot Act, the International Money Laundering Abatement and Anti-terrorist Financing Act, was signed into law little more than a month after September 11
  • If a bank came across suspicious money transferred from abroad, it was now required to report the transfer to the government. A bank could face criminal charges for failing to establish sufficient safeguards against the flow of corrupt cash. Little wonder that banks fought fiercely against the imposition of so many new rules, which required them to bulk up their compliance divisions—and, more to the point, subjected them to expensive penalties for laxity
  • nestled in the patriot Act lay the handiwork of another industry’s lobbyists. Every House district in the country has real estate, and lobbyists for that business had pleaded for relief from the patriot Act’s monitoring of dubious foreign transactions. They all but conjured up images of suburban moms staking for sale signs on lawns, ill-equipped to vet every buyer. And they persuaded Congress to grant the industry a temporary exemption from having to enforce the new law.The exemption was a gaping loophole—and an extraordinary growth opportunity for high-end real estate. For all the new fastidiousness of the financial system, foreigners could still buy penthouse apartments or mansions anonymously and with ease, by hiding behind shell companies set up in states such as Delaware and Nevada. Those states, along with a few others, had turned the registration of shell companies into a hugely lucrative racket—and it was stunningly simple to arrange such a Potemkin front on behalf of a dictator, a drug dealer, or an oligarch. According to Global Witness, a London-based anti-corruption NGO founded in 1993, procuring a library card requires more identification in many states than does creating an anonymous shell company.
  • Foreign Account Tax Compliance Act (fatca), legislation with moral clout that belies its stodgy name. Never again would a foreign bank be able to hold American cash without notifying the IRS—or without risking a walloping fine.
  • As the Treasury Department put it in 2017, nearly one in three high-end real-estate purchases that it monitors involves an individual whom the government has been tracking as “suspicious.” Yet somehow the presence of so many shady buyers has never especially troubled the real-estate industry or, for that matter, politicians. In 2013, New York City’s then-mayor, Michael Bloomberg, asked, “Wouldn’t it be great if we could get all the Russian billionaires to move here?”
  • the aluminum magnate Oleg Deripaska, a character who has made recurring cameos in the investigation of Russian interference in the 2016 presidential election. The State Department, concerned about Deripaska’s connections to Russian organized crime (which he has denied), has restricted his travel to the United States for years. Such fears have not stood in the way of his acquiring a $42.5 million mansion on Manhattan’s Upper East Side and another estate near Washington’s Embassy Row.
  • In 2016, Barack Obama’s administration tested a program to bring the real-estate industry in line with the banks, compelling brokers to report foreign buyers, too. The ongoing program, piloted in Miami and Manhattan, could have become the scaffolding for a truly robust enforcement regime. But then the American presidency turned over, and a landlord came to power. Obama’s successor liked selling condos to anonymous foreign buyers—and may have grown dependent on their cash
  • Around the time that Trump took up occupancy in the White House, the patriot Act’s “temporary” exemption for real estate entered its 15th year
  • Birkenfeld described how he had ensconced himself in the gilded heart of the American plutocracy, attending yacht regattas and patronizing art galleries. He would mingle with the wealthy and strike up conversation. “What I can do for you is zero,” he would say, and then pause before the punch line: “Actually, it’s three zeroes. Zero income tax, zero capital-gains tax, and zero inheritance tax.” Birkenfeld’s unsubtle approach succeeded wildly, as did his bank. As part of an agreement with the Justice Department, UBS admitted to hiding assets totaling some $20 billion in American money.
  • Nationwide, nearly half of homes worth at least $5 million, the Times found, were bought using shell companies. The proportion was even greater in Los Angeles and Manhattan
  • While the U.S. can ask almost any other nation’s banks for financial information about American citizens, it has no obligation to provide other countries with the same. “The United States had bullied the rest of the world into scrapping financial secrecy,” Bullough writes, “but hadn’t applied the same standards to itself.” A Zurich-based lawyer vividly spelled out the consequences to Bloomberg: “How ironic—no, how perverse—that the USA, which has been so sanctimonious in its condemnation of Swiss banks, has become the banking secrecy jurisdiction du jour … That ‘giant sucking sound’ you hear? It is the sound of money rushing to the USA.”
  • The behavior of the American elite changed too. Members of the professional classes competed to sell their services to kleptocrats
  • “They don’t send lawyers to jail, because we run the country … We’re still members of a privileged class in this country.”
  • Once upon a time, it might have been possible to think of Manafort as a grubby outlier in Washington—the lobbyist with the lowest standards, willing to take on the most egregious clients. But Mueller has exposed just how tightly tethered Manafort’s work on behalf of Ukrainian kleptocrats was to Washington’s permanent elite. Manafort subcontracted some of his lobbying to the firm of Tony Podesta, arguably the most powerful Democratic influence-peddler of his generation. And Manafort employed Mercury Public Affairs, where he dealt with Vin Weber, a former Republican congressman and a former chairman of the National Endowment for Democracy
  • The perils of corruption were an obsession of the Founders. In the summer of 1787, James Madison mentioned corruption in his notebook 54 times. To read the transcripts of the various constitutional conventions is to see just how much that generation worried about the moral quality of public behavior—and how much it wanted to create a system that defined corruption more expansively than the French or British systems had, and that fostered a political culture with higher ethical ambitions
  • The defining document of our era is the Supreme Court’s Citizens United decision in 2010. The ruling didn’t just legalize anonymous expenditures on political campaigns. It redefined our very idea of what constitutes corruption, limiting it to its most blatant forms: the bribe and the explicit quid pro quo. Justice Anthony Kennedy’s majority opinion crystallized an ever more prevalent ethos of indifference—the collective shrug in response to tax avoidance by the rich and by large corporations, the yawn that now greets the millions in dark money spent by invisible billionaires to influence elections.
  • American collusion with kleptocracy comes at a terrible cost for the rest of the world. All of the stolen money, all of those evaded tax dollars sunk into Central Park penthouses and Nevada shell companies, might otherwise fund health care and infrastructure. (A report from the anti-poverty group One has argued that 3.6 million deaths each year can be attributed to this sort of resource siphoning.) Thievery tramples the possibilities of workable markets and credible democracy. It fuels suspicions that the whole idea of liberal capitalism is a hypocritical sham: While the world is plundered, self-righteous Americans get rich off their complicity with the crooks.
  • The Founders were concerned that venality would become standard procedure, and it has. Long before suspicion mounted about the loyalties of Donald Trump, large swaths of the American elite—lawyers, lobbyists, real-estate brokers, politicians in state capitals who enabled the creation of shell companies—had already proved themselves to be reliable servants of a rapacious global plutocracy
  • by the time Vladimir Putin attempted to influence the shape of our country, it was already bending in the direction of his
Ed Webb

These Expats Are Stuck in Coronavirus Visa Hell-and Terrified of Going Back to U.S. - 0 views

  • A lot of foreign travelers have found themselves in dramatic situations over the last few months, sometimes because they waited too late in the global pandemic game to go home due to ignorance, stubbornness, or being lied to by travel agents or cruise ships. But Daniel was simply jumping through the exhausting bureaucratic hoops necessary to live and work legally in the country he’s called home for seven years. 
  • “Immigrants are the ones blamed during economically hard times,” says Schober, “and people look for a scapegoat.” It’s pretty universal for humans to have less compassion for people they don’t have something in common with, he says, so foreigners around the world are often the most vulnerable.
  • It’s quite common for foreign contract workers in Myanmar, like Daniel, to cross the border every couple of months for a quick visa run, sometimes for months or even years on end while they await their residency cards (the equivalent of a U.S. green card). Daniel’s process has been held up by red tape and a landlord who won’t sign his final paperwork. It’s been six years already. Like most foreign nationals, he’s nervous the virus will result in immigration policy changes that might force him to go “home.” His current health insurance wouldn’t cover him in the U.S., though. “And I have no ‘home’ to go back to,” Daniel says. “My whole life is in Myanmar. I have nothing in the U.S.”
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  • Waters has no health insurance when he’s back in the U.S. (even as a nurse). Working on the front lines during a global pandemic is probably not the best place for an uninsured nurse. Like most expats, Waters has private health insurance that will cover him in literally any country in the world… except the U.S.
  • David’s visa is entirely tied to his job, which he fears will be axed soon in a country economically crushed by this pandemic. He could theoretically apply for other jobs before his visa expires, but not in reality. “The police won’t even let me leave my house!” If he loses his job, he’ll be forced to go home, though he hasn’t a clue where “home” would be. That and he would have no job, place to live, or health insurance. 
  • The uncertainty around visas is also hard on couples and families who have visas tied exclusively to their relationship, even though these are oftentimes the most secure ones to have
  • The endless paperwork involved in moving to another country has long been a slow-motion nightmare for most foreign nationals, but all the more so now that the coronavirus has forced border and, more importantly, embassy closures. Many expats, immigrants and asylum seekers are finding themselves in a state of legal limbo with no certainty in sight.
  • Immigration lawyer Diana Moller of Seattle says she’s concerned about green card holders who are stuck abroad. Legally, they can return to the U.S., but many are under lockdown due to the virus. In order for them to apply for citizenship, they can’t be overseas for long. “If a client is outside the U.S. more than six months, their continuous physical presence is at risk of being broken.” If they’re gone for a year, they’ll have to wait four years and one day before eligible again for citizenship.
  • Before any of the virus chaos started, the U.S. has notoriously made it hard for many (not rich) foreigners to live, work, or permanently immigrate here, but the pandemic has led some to just abandon ship entirely and go home.
  • Stéphane’s most recent visa was up for renewal again this spring, but the pandemic forced him and his wife to consider the risk of him losing his work contract, thus being locked into NYC illegally with no job, no way to pay rent, and no health insurance. “The U.S. looked like the worst place to be an illegal immigrant,” he says—especially during a pandemic. So he gave up the American life he spent five years building and took his family back to France, even though it means he’s now starting over. “The French health care/social net is way better and higher education is relatively cheap and good quality,”
  • Like every single American I spoke with, Sarah is pretty scared of getting sick in the U.S. due to lack of good insurance. “Honestly, my life would have been so much easier if me and my boyfriend had just gotten married two years ago,” like they’d considered. France is her home but she’s not allowed there any time soon. “I wish I’d just stayed in France.” She would have been illegal until getting married, but she would have at least been with him. And insured. 
  • “A good thing about having an ineffective Congress is that immigration changes are slow,” says Schober. “They can never agree on anything.”
  • important to remember that people working in immigration are doing their best to care for such a vulnerable group of people right now. Some are even putting their lives and health at risk to show up at court for their clients. Schober says it’s especially important to remember that the present situation will take a lot of patience from both the attorney and client. But for now, it’s a waiting game for millions of people in limbo around the world, all wondering if the countries they have built their lives in will soon change the rules and make them return home… wherever that is. 
Ed Webb

Why Putin's Africa Summit Was a Failure - 0 views

  • the first-ever Russia-Africa Summit, held in Sochi, Russia, last week
  • As Putin tries to court Africa’s leaders and stage a grand return to the continent, fears have been raised of a new scramble for Africa. It is a framing that seems to have stuck in Moscow, Beijing, and Washington, where officials have made clear to varying degrees that their engagement with the continent is part of a broader geopolitical struggle between each other.
  • in Libya, Russia has had even less luck. Two of the same Russian nationals who botched the Madagascar plot were found in July to be attempting to influence Libya’s recent elections. The Russians’ clueless antics got the duo arrested—no easy feat in a country that, according to Freedom House, entirely lacks both an electoral democracy and the rule of law.
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  • Since 2014, when sanctions following the annexation of Crimea forced Putin to find new markets and partners beyond the West’s regulatory reach, Russia has made a concerted effort to expand into Africa. It hasn’t had much effect. Today, only 3.7 percent of Russian goods end up in Africa. With more than 2.7 percent getting gobbled up by North Africa, a paltry fraction is destined for the bulk of the continent. It’s even worse in reverse, as African goods account for just 1.1 percent of Russian imports. The Sochi summit was supposed to change all this. However, there’s not much to suggest that it will. Of the $12.5 billion in deals that were allegedly signed, most were only memorandums of understanding that may never get off the ground.
  • Other than arms, of which Russia continues to be the continent’s key supplier, there is little it has to offer and less that Africa will take. For now, it’s hard to see how Putin’s plan to find new partners, make more money, and restart the Russian economy will succeed.
  • “The superpowers that are competing on this continent will determine the future of the world’s agenda,” Russian State Duma Deputy Anton Morozov awkwardly announced to a room full of African officials on the second day of the summit.
  • treating African states as easy-to-manipulate pawns is not only ethically and intellectually questionable—it’s also strategically silly
  • Judd Devermont of the Center for Strategic and International Studies explained, “The Russians go all in on the incumbent.”
  • As Omar al-Bashir was fighting to hold on to his blood-soaked dictatorship in the recent revolution, Russian actors swooped in with a misinformation plan to save him. They didn’t, and today Bashir is behind bars. Although the Russian-Sudanese relationship has resumed, it was a costly error in a country that can offer not only gold and oil, but also the Red Sea naval base that is one of Putin’s top priorities.
  • In 2018, associates of Yevgeny Prigozhin, the man who is believed to have masterminded Russian interference in the 2016 U.S. presidential election, trotted out similar tactics to disrupt a race in Madagascar. The idea was to use a troll farm to influence voter opinion by manipulating online media. However, in a nation where internet penetration is just 9.8 percent, about a quarter of what it is on average across the continent, the troll farm did not make a dent. The Kremlin’s candidates went on to lose, and subsequent allegations of bribes to Malagasy officials further sullied the Russian image.
  • There are plenty of problems with this framing, not least the way it portrays Africans as passive political objects, rather than actors in their own right
  • Although Putin has had success with many of his assertive endeavors in Europe and the Middle East—polarizing publics, aiding politicians, annexing eastern Ukraine, and turning the tide of the Syrian civil war—his aggressive maneuvering in Africa has come with clear costs. “When Russia overplays its hand, Africans have distanced themselves,” Devermont said.
  • African states naturally have their own political preferences that are not always up for sale or at one leader’s mercy. When Russia courts ruling elites and tries to undermine democratic elections, it ignores basic trends on the continent. In the latest round of polling from Afrobarometer, Africa’s leading public survey firm, 75 percent of respondents expressed their commitment to free and fair elections.
  • Today, just 0.0005 percent of Africans believe that Russia serves as the best development model for their country, an Afrobarometer spokesperson told Foreign Policy. What’s more, the spokesperson said, the percentage of Africans who believe that Russia has the greatest foreign influence in their country was “lost among the ‘Others.’”
  • As role models and political partners, the United States and China are leaps and bounds beyond Russia. Polling from Afrobarometer shows the United States to be the most desired development model on the continent, attracting approval from 30 percent of Africans. China, meanwhile, comes in second with 24 percent. The rankings reverse for greatest foreign influence: 23 percent of Africans believe China to be the most prominent noncolonial power in their country, while 22 percent of Africans believe the United States holds that distinction.
  • there is a clear path for Putin to catch up—with Washington at least. Last year, U.S. President Donald Trump announced a large military drawdown that comes even as there is crucial anti-terrorism work left to do against Boko Haram in the west, al Shabab in the east, al Qaeda in the north, and the Islamic State in the south. In addition, Trump has shown total diplomatic indifference to the continent, having not sent a senior aide to Africa since former Secretary of State Rex Tillerson visited last year (and was fired while he was there), having never paid a visit himself, and having filled the key role of the ambassador to South Africa with a fashion designer and Republican donor with no diplomatic experience.
  • As with U.S. missteps in the Middle East, Trump’s Africa policy, or lack thereof, has paved the way for Russia’s rise. “It’s another case where we’re withdrawing and Putin is moving in to fill the vacuum,” McFaul, the former ambassador, said
  • Regularly referencing its own encounters with Western imperialism, Beijing has proved quite adept at using a global south narrative to paint its engagement with Africa as one of mutual respect and noninterference.
  • At the 2015 and 2018 Forums on China-Africa Cooperation, Chinese President Xi Jinping declared his goal of “the building of a new model of international partnership” and changing “the global governance system.”
  • China has what Russia does not and what the United States, preoccupied with other problems, has been unwilling or unable to use: cash
  • One thing the great-power framing also fails to take into account is how African states, like all states, can maintain multiple partnerships. It is a basic diplomatic fact that offers particular benefits in Africa, McFaul said, given that the “U.S., Russia, and China play in different lanes.” Nigeria, which announced a new arms agreement in Sochi, is one such beneficiary. At the same time as Russia can equip the country to provide security in its volatile oil-rich southeast, China has helped fund and build its oil infrastructure, and the United States has bought its oil by the billions of dollars. On second look, the mistaken zero-sum framing becomes a positive-sum bonanza.
Ed Webb

The Biggest Social Media Operation You've Never Heard Of Is Run Out of Cyprus by Russia... - 0 views

  • The vast majority of the company’s content is apolitical—and that is certainly the way the company portrays itself.
  • But here’s the thing: TheSoul Publishing also posts history videos with a strong political tinge. Many of these videos are overtly pro-Russian. One video posted on Feb. 17, 2019, on the channel Smart Banana, which typically posts listicles and history videos, claims that Ukraine is part of Russia
  • the video gives a heavily sanitized version of Josef Stalin’s time in power and, bizarrely, suggests that Alaska was given to the United States by Soviet leader Nikita Khruschev
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  • The video ends by displaying a future vision of Russian expansion that includes most of Europe (notably not Turkey), the Middle East and Asia
  • In another video on Smart Banana, which has more than 1 million views, the titular banana speculates on “12 Countries That May Not Survive the Next 20 Years”—including the United States, which the video argues may collapse because of political infighting and diverse political viewpoints
  • According to publicly available information from the YouTube channels themselves—information provided to YouTube by the people who set up and operate the channels at TheSoul Publishing—as of August 2019, 21 of the 35 channels connected to TheSoul Publishing claim to be based in the U.S. Ten of the channels had no country listed. Zodiac Maniac was registered in the U.K, though TheSoul Publishing emphasizes that all of its operations are run out of Cyprus.
  •  Now I’ve Seen Everything was the only channel registered in the Russian Federation. That channel has more than 400 million views, which, according to the analytics tool Nox Influencer, come from a range of countries, including Russia and Eastern European and Central Asian countries—despite being an English-language channel
  • According to Nox Influencer, Bright Side alone is earning between $314,010 and 971,950 monthly, and 5-Minute Crafts is earning between $576,640 and $1,780,000 monthly through YouTube partner earning estimates. As a privately held company, TheSoul Publishing doesn’t have to disclose its earnings. But all the Cypriot-managed company has to do to earn money from YouTube is meet viewing thresholds and have an AdSense account. AdSense, a Google product, just requires that a company have a bank account, an email address and a phone number. To monetize to this magnitude of revenue, YouTube may have also collected tax information, if TheSoul Publishing organization is conducting what it defines as “U.S. activities.” It’s also possible that YouTube verified a physical address by sending a pin mailer.
  • Facebook pages are not a direct way to increase profit unless a company is actively marketing merchandise or sales, which TheSoul Publishing does not appear to do. The pages coordinate posting, so one post will often appear on a number of different pages. To a digital advertiser, this makes perfect sense as a way to increase relevance and visibility, but it’s far from obvious what TheSoul Publishing might be advertising. Likewise, there’s no obvious financial benefit to posting original videos within Facebook. The company did not meaningfully clarify its Facebook strategy in response to questions on the subject.
  • Facebook forbids what it describes as “coordinated inauthentic behavior,” as its head of cybersecurity describes in this video. While TheSoul’s Publishing’s behavior is clearly coordinated, it is unclear that any of its behavior is inauthentic based on information I have reviewed.
  • One thing that TheSoul is definitely doing on Facebook, however, is buying ads—and, at least sometimes, it’s doing so in rubles on issues of national importance, targeting audiences in the United States. The page Bright Side has 44 million followers and currently lists no account administrators located in the United States, but as of Aug. 8, 2019, it had them in Cyprus, Russia, the United Kingdom, El Salvador, India, Ukraine and in locations “Not Available.” It used Facebook to post six political advertisements paid for in the Russian currency.
  • the point here is not that the ad buy is significant in and of itself. The point, rather, is that the company has developed a massive social media following and has a history of at least experimenting with distributing both pro-Russian and paid political content to that following
  • TheSoul’s political ads included the one below. The advertisement pushes viewers to an article about how “wonderful [it is] that Donald Trump earns less in a year than you do in a month.” The advertisement reached men, women, and people of unknown genders over the ages of 18, and began running on May 15, 2018. TheSoul Publishing spent less than a dollar on this advertisement, raising the question: why bother advertising at all?
Ed Webb

Trump's State Department Watchdog Quits Less Than 3 Months Into Job - 0 views

  • “The system is broken. The work of IG has been made so political that it’s no longer safe for anyone to come forward, especially with allegations against political appointees,” said one State Department official, speaking on condition of anonymity. “It is clear that the leadership of the department is sidestepping the watchdog and is not looking out for the best interest of the department, but instead a select few at the top.”
  • The State Department inspector general’s office has drawn criticism from senior administration officials for allegedly leaking sensitive information to the media and for pursuing investigations into allegations that Pompeo and his wife, Susan Pompeo, were misusing State Department resources for personal gain.
  • The OIG was also conducting an investigation into Pompeo’s decision to expedite arms sales to Saudi Arabia, despite strong opposition from a bipartisan group of U.S. lawmakers. 
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  • the growing politicization of the State Department in the Trump era
  • Top Democrats on committees that oversee the State Department have accused the administration of stonewalling them on the justification for Linick’s firing. On Aug. 3, top Democrats on the Senate Foreign Relations Committee, House Foreign Affairs Committee, and House Committee on Oversight and Reform issued subpoenas for four senior political appointees at the State Department over Linick’s abrupt firing in May. 
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