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Explainer of my recent @GLOBSEC paper (link at end) on #NATO policy on #innovation and #AI, what should come next, and how that could also help #Ukraine.
Background bit: I explain the concept of General-Purpose Technology (GPT). AI is a GPT.
This changes the policy mix.
2-12
For any new technology, one could reason that high defence spending and a robust defence industry could internalise: hire lots of new talent and done.
Why, then, do we pursue new forms of partnerships?
Aim is to tap into a broader pool of innovative talent that is...
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...decentralised and dispersed across a wide range of civilian organisations. That's the GPT effect: a narrow new technology, e.g. better radar, would be much more internalised in a small number of "traditional" defence organisations.
Not so for AI.
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That's what led NATO to develop the Defence Innovation Accelerator for the North Atlantic (DIANA), which aims to:
5-12 1. develop a network of national organisations, test centres, innovation accelerators; 2. competitively select private sector innovators and allow them to use national organisations in the network to interface with mil end-users and mil capability development specialists;
6-12 3. provide mentorship and education to innovators to familiarise with the defence and security sectors; 4. develop a database of trusted financial investors and support matchmaking w. innovators; 5. provide expert advice on defence and security innovation to stakeholders
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With DIANA, I argue NATO has reached “the end of the beginning” in designing new pathways for defence innovation. Salient questions now concern overall coherence - how should the new mechanisms be combined with traditional innovation & industry?
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The ultimate goal is innovating faster and better than dangerous rival powers, so as to then produce superior military capabilities at speed and at scale.
It is not enough to innovate, one must also be assured one could manufacture at scale - mass produce if need be.
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How can we know whether new mechanisms are fit-for-purpose? The ultimate test is an exercise, a simulation of a real-life scenario on a realistic scale, akin to a military exercise.
So: exercise DIANA to innovate *and* the rapid manufacturing that would follow.
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The war in Ukraine provides an opportunity for a win-win exercise.
I propose one should design an exercise combining rapid innovation and manufacturing of new capabilities, based on a concrete problem statement that Ukraine and one NATO Ally (e.g. Poland) would agree upon.
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Should the exercise proceed successfully, Allies who are in any case willing to fund military assistance to Ukraine will have developed a useful new capability that supports common NATO and Ukrainian needs, with the possibility of immediate operational deployment.
1-8 Given the China challenge, some US analysts dismiss Europe, and indeed the rules-based order, as irrelevant. But are they?
A few facts and figures.
First, the US draws as much investment income from Europe as from all other world regions combined.
2-8 The US and European economies are deeply integrated, and it's about much more than trade, it's about our corporations on both sides of the Atlantic, massive volumes of mutual investment, again leaving the Asia-Pacific far behind.
3-8 Consumers across the US and the world are concerned about fuel prices. But oil prices have spiked before - 1973, 1979, 2008. Would the US avoid these problems by dropping its European allies? Of course not, the issues are unrelated. Price spikes will happen again.
1-8 Interesting piece on how the West should think about how to respond if Putin uses nuclear weapons.
The article lays out three options for a US / NATO response. 1- no response 2- retaliate with nuclear means 3- enter the war with conventional means
2-8 For background, working assumption is that main scenario of Putin using a nuclear weapon is if he is clearly losing in Ukraine and chooses to "escalate to deescalate" (destroy a lot to force a surrender)
3-8 The article tends towards preferring a large conventional response following a Russian nuclear strike. By implication, further nuclear strikes by Russia would lead, at some point, to nuclear retaliation against Russia.
1/5 The market was never the answer for energy security
There was always a design flaw in liberalising energy markets in response to energy security concerns.
2/5 What does a liberalised market do? It converts quantity changes into price changes, in pretty extreme ways if supply changes a lot while demand stays roughly the same, as it does with energy. Very inelastic demand. Economists have known this for decades.
3/5 The key to energy security has always been to make sure you have enough *quantities*. That works through storage of the fuel in question, and of alternative fuels provided you have fuel-switching capabilities, and if you need to last longer on low supplies, rationing.
1-11
A story that was passed down to me by my father, who grew up in Britain during the Second World War.
He knew a Jewish girl from Germany. At some point, likely around the time of Kristallnacht, men had broken into their home and were smashing it up.
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Her father intervened, they roughed him up. He had a heart attack and died. She ended up in Britain.
My father was a teenager, she was slightly older.
My father thought she'd be better off if she finished her education. But she had chosen to work in a munitions factory.
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She had chosen to work in a munitions factory because her goal, and she said so, was to make weapons to kill Germans.
And the weapons surely did kill Germans.
And then the war stopped.
And Germans never went to war again.
And what was left of her nation lived.
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For those wondering why I posted this meme, some considerations follow regarding the NATO-Russia Founding Act and the German Chancellor's stance and arguments towards it.
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As reported by GER public broadcaster (source follows):
' When asked, the Chancellor said that the NATO countries were not violating the NATO-Russia Founding Act by increasing their forces. It is important not to revoke the Act, even if Russia violates it massively. '
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' "It exists, it has not been terminated," said Scholz about the Founding Act. "That's right, too, because every time you open it, you can read to Russia what it has committed itself to, namely to say that borders are inviolable, that borders will not be moved by force..." '
1-6 I'm sorry to disappoint you, Jona, but the Tagesschau version of the #Lithuania story is just as bad as what Politico picked up (see next tweet).
In addition, in the Tagesschau version we see #Scholz repeating his bizarre logic about the NATO-Russia Founding Act (more below).
2-6 While #Scholz does say it's up to the Commission, he uses one of Russia's justifications - that it's two parts of Russia - to suggest a deescalation path, which suggests pretty strongly that he's pushing for concessions to be made, which is what I am weary of.
3-6 As for the NATO-Russia Founding Act: he defends it because, in his words, one can "open the document, read it to Russia, and remind them of what they committed to".
Analogy: little old men who read out the law to street thugs get laughed at - if they're lucky.