As I have already pointed out, general audience, analysts, strategists & decision makers included holds unrealistic notions of how the global economy is organised. Now that is because they never see the back end of industrial civilisation
So let me show you some
There is a major delusion of seeing Europe as a sort of retired continent that "lags in tech" or even "doesn't produce anything". To some extent, it is just American hubris.
But there is more in there than just hubris. There is also some honest, sincere ignorance. The thing with most people is that they see only facade of industrial civilisation. They never ever had a chance to look behind the curtains
Whatever there is behind, is a total mystery
Now we come to the neat part. "Most people" includes almost the entire governing class of the West. Recruited from the service economy, it was never introduced to the back end. It has never been behind the curtains.
The governing class has no idea.
Seeing facade only means seeing only the final product. In this case the Angara rocket launch. We see it, we register it, we base our conclusions upon it. What we don't see, however, is the back end infrastructure supporting it all, hardware & software included.
Roscosmos is the Russian corporation responsible both for civilian space launches and for the ICBM production. In theory, civilian and military sectors are separated.
In reality, there is a certain overlap. Space rocket is not that different from an intercontinental missile.
The structure of Roscomos is typical for a Russian megacorporation. On the very lowest level, there are production facilities, manufacturing plants. They belong to the R&D facilities, Design Bureaus. So, these Design Bureaus form the vertically integrated companies of their own
One of these vertically integrated companies within the Roscosmos structure is Khrunichev Space Center. A smaller doll within Roscosmos, it has even smaller dolls (= manufacturing plants) inside. Again, visualising it all as a sort of of matryoshka can be very helpful.
Now let's go even further down the Roscosmos, structure. The manufacturing plant Polet. You can frame this production facility as the smallest doll within the gargantuan matryoshka. Producing the Angara space rockets, it also makes parts for other rockets & aircrafts.
Let's have a look at the Polet's 80th anniversary video. Published in 2021, it is very much available on youtube. Short as it is, it gives some glimpse into the back end infrastructure standing behind the space rocket production.
See a relevant fragment:
So, let's zoom in into some hardware & software we can register in this 3 minutes long video above.
Siemens 🇩🇪 CNC controller on what is very possibly a Dufleux 🇫🇷 milling machine.
(I believe MMS on the screen may refer to the Milling Mirror System)
We think of the UK as of a deindustrialised country. And there is certainly lots of truth in that. Still, it has some sophisticated, high end machinery production, for example of measuring equipment. We just don't see it, because it's all in the back end.
DMG Mori AG 🇩🇪 This seems to be an entire workshop equipped with DMG machines.
So what do wee see on this limited, 3 minutes long sample giving a glimpse to the Polet production facilities? We see German, Italian and French precision cutting machines. We see German CNC control systems. We even see the British metrological equipment.
Damn, it's all Europe.
What we see, is that the space rocket production relies on the computerised, software dependent machinery, 100% of our sample being recent European production.
Nothing Asian. Nothing American. And more interestingly, nothing old. All new stuff.
This is a very recent development. Until basically yesterday, the very same plant relied on manual, conventional methods. Extremely laborious, extremely difficult. Effectively semi artisanal. You do it all with your fingers, literally. Requires extreme eye to hand coordination.
Not that all people who could do that are dead (though most are). It's that these skills have never been passed to the younger generation. Younger workers do not know how to do precision machining by hand and not going to learn. They rely on modern, user friendly CAM & CNC.
Still, hardware makes for only part of the picture. Software is at least equally important. What you see here is instrumental for understanding the organisation of knowledge either on this specific plant, or in the aerospace industry in general.
See the red circle
How it used to work before? You draw the designs by hand. You make the calculations by hand. After many and many and many adjustments you send it to the workshop, only to make new adjustments after. It was the enormous investment of time and effort.
Much of this investment was inefficient. What one person did could be indecipherable to another (esp. the unfinished work). Much of the work done was lost or forgotten. So you would redo the same again, and again, while the 100% perfect design is lying in a dusty box somewhere.
Perhaps, no single factor has revolutionised the aerospace industry (aircraft & rockets included) as much as the implementation of fully integrated solutions by Siemens. You can see Teamcenter as an operating system, not of a plant, but of an entire production chain, top-down.
By this point, the Siemens integration turned into the key for the normal functioning of a modern aerospace plant. Being non-alternative, it is the foundation everything else is built upon. Any other CAD, CAE, ERP whatever else is tested for compatibility, and must be compatible
I will cover in more detail later. For now you need to believe
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In 1927, when Trotsky was being expelled from the Boslhevik Party, the atmosphere was very and very heated. One cavalry commander met Stalin at the stairs and threatened to cut off his ears. He even pretended he is unsheathing he sabre to proceed
Stalin shut up and said nothing
Like obviously, everyone around could see Stalin is super angry. But he still said nothing and did nothing
Which brings us to an important point:
Nobody becomes powerful accidentally
If Joseph Stalin seized the absolute control over the Communist Party, and the Soviet Union, the most plausible explanation is that Joseph Stalin is exercising some extremely rare virtues, that almost nobody on the planet Earth is capable of
Highly virtuous man, almost to the impossible level
Growing up in Russia in the 1990s, I used to put America on a pedestal. It was not so much a conscious decision, as the admission of an objective fact of reality. It was the country of future, the country thinking about the future, and marching into the future.
And nothing reflected this better than the seething hatred it got from Russia, a country stuck in the past, whose imagination was fully preoccupied with the injuries of yesterday, and the phantasies of terrible revenge, usually in the form of nuclear strike.
Which, of course, projected weakness rather than strength
We will make a huuuuuuge bomb, and drop it onto your heads, and turn you into the radioactive dust, and you will die in agony, and we will be laughing and clapping our hands
Fake jobs are completely normal & totally natural. The reason is: nobody understands what is happening and most certainly does not understand why. Like people, including the upper management have some idea of what is happening in an organisation, and this idea is usually wrong.
As they do not know and cannot know causal relations between the input and output, they just try to increase some sort of input, in a hope for a better output, but they do not really know which input to increase.
Insiders with deep & specific knowledge, on the other hand, may have a more clear & definite idea of what is happening, and even certain, non zero degree of understanding of causal links between the input and output
I have recently read someone comparing Trump’s tariffs with collectivisation in the USSR. I think it is an interesting comparison. I don’t think it is exactly the same thing of course. But I indeed think that Stalin’s collectivisation offers an interesting metaphor, a perspective to think about
But let’s make a crash intro first
1. The thing you need to understand about the 1920s USSR is that it was an oligarchic regime. It was not strictly speaking, an autocracy. It was a power of few grandees, of the roughly equal rank.
2. Although Joseph Stalin established himself as the single most influential grandee by 1925, that did not make him a dictator. He was simply the most important guy out there. Otherwise, he was just one of a few. He was not yet the God Emperor he would become later.
The great delusion about popular revolts is that they are provoked by bad conditions of life, and burst out when they exacerbate. Nothing can be further from truth. For the most part, popular revolts do not happen when things get worse. They occur when things turn for the better
This may sound paradoxical and yet, may be easy to explain. When the things had been really, really, really bad, the masses were too weak, to scared and too depressed to even think of raising their head. If they beared any grudges and grievances, they beared them in silence.
When things turn for the better, that is when the people see a chance to restore their pride and agency, and to take revenge for all the past grudges, and all the past fear. As a result, a turn for the better not so much pacifies the population as emboldens and radicalises it.