Tuesday, February 18, 2020

The making of Middle-East Proxy War



US and Iran have been going through a long process of negotiations of a nuclear agreement by which US was going to lift sanctions and develop peacefully free of advent of nuclear programs and enrichment.

In the last two years, the trump admin imposed primary and secondary sanctions to cripple and have an no last resort negotiation tactics with Iran. The nail on the coffin has been the authorized drone killing of Qassim Soleimani, the Iranian major general in the Islamic Revolutionary Guard Corps (IRGC), has the potentiality of starting a war. This operation was not a covert or a secret mission and has been very open invitation to Iran for a challenge. This action can be deemed clear to have taken a different path than the dialogue and has taken the challenge to Ayatollah Khamenei, the supreme leader for Iran. 

Iran has avoided the Al Kurds force, which is responsible for the Iran’s overseas clandestine operations, for the last 4 decades, there has been no direct confrontation with Iran and Israel for that time. The strike also killed the Iraqi miltia commander, Abu Mahdi al-Muhandis, who was the deputy leader of the Al-Hashd Al-Shaabi which will leave a vacuum in the organizational hierarchy of the militia.

The direct confrontation of Iran in the Middle east with Saudi Arabia or US and its allies is totally out of question as it has avoided so for the last 4 decades. Interestingly, this will lead to a birth of an intensified proxy war being fought in the realms of Iraq, Syria, Yemen, Libya and Lebanon to a certain extent.

The possible options of eventuality are expected to revolve around below areas in the coming decade.

1. Trump’s plan is concrete to bring back the troops home as it has happened in Syria and complete the peace process handover to Afghanistan, while recalling the troops is a sure shot speculation which might materialize within a quarter. The response to this action and the discussion with Taliban and Afghanistan triangle will have a possibility of an unhappy “divorce settlement”, it will also lead to the spill-over effect of the regional unrest. Make no mistake there will be an increased unrest and possibly a regime change in the region. Trump’s re-election campaign could also be around the ‘Deal of the century’ for a peace breaking treaty in the region for Israel and Palestine. This will surely result in some serious escalation resulting in unrest in the Gaza strip. It will be interesting to note the policy of the countries influencing the geopolitical mood of the region. A lot will also be revolving around the re-election campaign of Trump in the upcoming US November 2020.

2. The US administration will have to prepare for a scenario of increased cold war in the Middle East, which it has be a strong part of considering the geopolitical influence of Middle east in the global politics of energy. Its external political strategy around the Saudis will be tested in the wake of increased risk of military deployment of US forces in the coming years.

3. Covert operations. An increase in covert operations will be seen from both the blocks fueling the cold war, which will require increasing funding to be deployed in the area. It is to be seen how the US would want to balance the attention of resources and political maneuvering between Middle East and rising African countries in the coming decade. The increasing focus of the Chinese into Africa and its operations would become geopolitical issue for US and its allies to manage the rising Africa, its aspirational growth and the opportunity to be an ally and access to the markets of Africa and be part of the largest growing population for the next decade.

4. Systematic planned long process of assassination against US and its allies by cuts by thousand slices strategy. We will be seeing an increased aggression in the militia activities in the lands of Syria, Iraq, Yemen, Jordan and Lebanon. We also might see resurgence of attacks in other Islamic countries such as Afghanistan and North West frontier Pakistan more so following the Sunni-Shiite century old rivalries. The militant groups such as Taliban, Daesh, Hamas, Hezebollah, Al-Qaeda will see a renewed activity and funding to disrupt the region’s peace in the coming decade.

Opinion : The Hoo-Aww-Wei War in the arena of 5G runway

The next decade will see a fervent of activities of gulf escalation, risking international peace and security situation in the region. It will also demand more funding for the humanitarian groups such as UN Programmes and Red Cross and others for field budgets for the times to come. As global economies, we should always remember that such humongous budgets also play a pivotal role in diverting focus from health and education focused developments in the region hampering global growth and well-being for decades. 

While these possibilities play out in reality, It is also important to keep an eye on the developments around the Iran nuclear deal, US decision to pull out of the deal and its ramifications in the Europe. Each of these topics are a strong backdrop and forms a story of its own but the puzzle completes when as an economist/ geopolitical observer you tie them together in the perspective of global power hegemony for decades to come.

Readers please let me know what you would want me to write on. Sometimes with so much going on, I lose focus on the relevance of what readers are interested to read about.

Tuesday, February 4, 2020

Hoo-Aw-Why (Huawei) war to be fought at 5G runway ?



The recent visit by Mike Pompeo to Britain has one of the critical discussion agenda to completely ban Huawei, the Chinese tech giant, one of the leading telecom technology companies for the 5G technology. His visit is to highlight concerns and to egg Britain to rethink its decision of allowing Huawei a limited role in implement the 5G technology.

The ban is a continued effort to ban US in terms of lobbying its allies to ban Huawei, which it alleges that the Chinese government is using Huawei for spying on citizens. Pompeo is of the view that Chinese govt has a legal mandate to obtain the information of the citizens transiting in the Huawei network. It was also mentioned that Britain new proposal to allow Huawei to build the non-core parts of the 5G infrastructure jeopardizes the intelligence sharing between the 5 EYES security alliance.

Boris Johnson, UK prime minister is of the view that it will work towards providing access to the best of the technology to its citizens, He also added that he doesn’t want to impair Britain relation with US and to compromise its national security infrastructure or imperil the Five Eyes securities cooperation.

The Five Eyes is formed of US, UK, Australia, New Zealand and Canada.

US has imposed trade restrictions on Huawei. It has further blocked  American companies from dealing with it and has asked for a complete  ban on Huawei in 5G networks.

Australia and New Zealand have followed suit and have banned Huawei,  while Canada is still sitting on the fence on the issue.

Interestingly, EU also has security concerns, although it hasn’t banned  Huawei but it has issues guidelines to its members to restrict 5G technology  from its “high risk suppliers”.

Let’s look at makes Huawei so enigmatic in the world of telecom.

There is an increasingly global alarm being sounded about domination of China in the 5G technology network. Huawei, in the last 15 years, has seen a stupendous rise, which is alluded to the close links to the Chinese govt, the subsidies received from the Chinese government and other assistance offered.

Critics also raise concerns that Huawei has appropriated some western competitive technology which has allowed to take a notch up in the growth curve evolution.

Interestingly, the state of alternative suppliers in the global markets is also a concern. The weakening state of competitors in the global market including the competition from China has weakened them immensely. This can allow Huawei to come with a very low offering price to ride on a monopoly state and wipe out competition to later dominate the market and its pricing.

Huawei had started out focused on the Chinese domestic market which allowed it a perfect petridish of consumer and  business playground to be accentuated on economies of scale and size of the Chinese domestic market.

Huawei has also been a pioneer in the 3G and the 4G technologies. Its commitment to innovation and research is clear from the fact that in 2015, Huawei remained the top patent applicant for the second year, with 3,898 applications.

Huawei invested over US$15 billion in 2018. In the next five years, the invest is planned at US$100 billion. Huawei is one of the world’s largest patent holders. We have been granted 87,805 patents and 11,152 core technology patents were granted by the United States.

5G : Are you being watched or is it the New World Order ? 

This issue has also to be evaluated at a perspective of political and power play of technological control. The 5G technologies limits are still being evaluated as the scope of the connectivity are still being assessed as this could be the blood of the next generation technology superhighway which would be holding very sensitive information. It’s being dubbed as dual use technology which will have commercial and security applications.

The whole issue started in October 2012, when Mike Rogers, Chairman of the Permanent Select Committee on Intelligence presented a report to the congress about the “Investigative Report on the U.S. National Security Issues Posed by Chinese Telecommunications Companies Huawei and ZTE” which led to questions around the Chinese mobile phones being used by US defense contractors.
The ownership structure of Huawei also did not help the cause as it being an employee-owned company also raised red flags on questions of its relations to the Chinese government.

Beijing passed laws on counter espionage (2014) and a National Intelligence (2017) respectively. This legislation allows the Communist Party to compel Chinese companies to turn over information and open their systems to the country’s intelligence and security apparatus.

It would be interesting to watch out the new political alignment which emerges post Brexit with the Chinese govt. It could also test the UK-US relations in that scenario and can might have a bearing too post US presidential elections this year.

The countries who are going to appoint companies of non-state origin need to work on establishing control points in software and hardware setup and make a clear demarcation in role identifying of the companies the core or the non-core parts setup of the 5G technology.

The risks cannot be eliminated in today scenario and we need to think of mitigation and process control measures from the perspective of hardware and software connect points.
The third-party audit supervision proposal of Huawei brings strong line of transparency and such a thing should be relevantly made the industry standard in terms of transparency.

America's wireless companies are investing an estimated $275 billion into building 5G networks. This will create three million new jobs and  add $500 billion to the economy. In fact, it’s estimated that one out of every 100 Americans will benefit from a new 5G job. The world is looking towards the likes of Ericsson and Nokia to present a competitive front to Huawei, but companies are finding it difficult to match the continuous focus on R&D investment by the Chinese tech giant.

I leave the readers to decide and evaluate if we are witnessing a matter of security concerns or are we witnessing a regional polarization, or the case of commercial interests mixed with political influencing at play or are we seeing a rise of a IOT enabled surveillance system which could be the ‘eye’ of Earth.


Sources and Bibliography
Investigative Report on the U.S. National Security Issues :

https://intelligence.house.gov/news/documentsingle.aspx?DocumentID=96


Thermal Power Storage and Future : Energy Storage Series 3

  This is Series 3 where we look into companies which could shape future in thermal energy storage and crystal ball gazing of the sector per...