Beyond the End of Globalisation – From the Brexit to U.S. President Trump

The world has entered a period where uncertainty rules and where surprises abound.

Focusing on 2016, the two major surprises usually singled out are the Brexit or the vote leading to the exit of the U.K. from the European Union, then the election of U.S. President Trump against favourite Democratic candidate Hillary Clinton. Even though a short-term focus could let us believe that the turmoil only or mainly hits “the West”, political and geopolitical surprises and uncertainties have multiplied worldwide, starting at least with the shock of the financial crisis in 2007 and 2008 and responses to it (see end note for some major instances*).

What is thus happening? How are we to tackle the uncertainty? Are these surprises related or discrete independent events that it would be wrong to link or try to understand together?

We shall start here with the 2016 surprises and related ongoing uncertainty, i.e. the Brexit and the U.S. Trump Presidency, and focus more particularly on the contradictions and questions that arise when we compare the two phenomena. We shall seek a framework for and elements of understanding, which can then be used in the development of scenarios for the future.

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Militarizing the Great Resource Roads – 1 – Russia

There are (Russian) missiles on the roads. In this new series, we are going to focus on the militarization of the Russian Northern Sea Route and along segments of the Chinese New Silk Road and envision the political, military, industrial and business consequences for Russia, China, and their partners, notably through the installation of Russian missiles. We shall also evaluate the geopolitical consequences of the militarization of these “great roads”, which connect Asian powers and Russia to resources and markets. We shall more particularly point out the way assets are therefore protected in the framework of the potentially tense geopolitical environment brought about by climate change and resource depletion. Over the last few years, Russia, China, and other Asian countries, have installed …

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Evaluating Likelihoods for Libya’s Future – Scenario 1

Having detailed the various potential scenarios for Libya’s future over the next three to five years, we shall now evaluate the likelihood of the scenarios thanks notably to their indicators. We shall use the methodology developed by The Red (Team) Analysis Society, building upon Heuer (“Assessing Probability of a Scenario”, in Psychology of Intelligence Analysis, pp.156-157) and the capability given by indicators. This methodology allows us to obtain an estimated likelihood, which is considered not only as good enough for the purpose of anticipation through scenarios but also as remaining usable by analysts. Bayesian Networks (BN), using Pearl’s work (1985), would provide us with even more accurate estimates, but the use of BN for analysts, furthermore in the framework of issues which analysis is mainly qualitative, remains so far too heavy and time-consuming.

In this article, we shall determine the likelihood of the primary scenarios for a peaceful solution between the main Libyan actors (excluding Salafist groups), which we started to detail in “Scenarios for the Future of Libya – Scenarios 1: Towards Peace? (1).”

Organizing the Scenarios & Indicators

In order to mathematically deduce the likelihood of this scenario and its sub-scenarios, we organized the sub-scenarios in such a way as to correctly account for scenarios not detailed in our posts previously because they were not necessary in terms of narrative and understanding of the future of Libya – they were implicit (see graph below).

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With the main scenarios now organized, we compiled all their indicators from their corresponding articles and selected the indicators that were absolutely necessary for that scenario to occur. There were two reasons for this approach: first, we wanted to be as accurate as possible with determining the likelihood; indicators like the creation of a Joint Arab Force would be far less significant than the Islamists’ view of General Haftar affecting their willingness to participate in peace talks. Although these ‘lesser’ indicators do indeed contribute to strategic foresight and warnings for Libya’s future, and will provide us, in terms of monitoring with indications regarding the evolution towards a scenario or another, they are not absolutely necessary for that specific scenario or sub-scenario to occur*. Second, only having ‘primary indicators’ allows us to more easily monitor their reality on the ground for assessing the likelihood, and thus let us update their likelihood between posts to maintain the accuracy of the final likelihoods at the conclusion of this series. Monitoring for warning once the likelihood of all the scenarios is established would however use also ‘secondary indicators’.

To ensure the reliability of the mathematical process, each scenario’s group of indicators is mirrored in its counterpart or opposite scenario, but the way each indicator is phrased is inversed to match that scenario’s likelihood of occurring.

For example, indicator 6 of scenario 1.3 [Peace Negotiations, Without an External Mediator, Lead to a Signed Peace Treaty] is “Do the Libyan actors agree on the role of Islam in the unity government?” Since the Islamists advocate for the use of Sharia, and the nationalists do not, their agreement on the role of Islam in a new government is necessary for this scenario to occur. However, in scenario 1.4 [Peace Negotiations, Without an External Mediator, Fail], indicator 6 states “Do the Libyan actors disagree on the role of Islam in the unity government?,” since this disagreement on the role of Islam would prevent a signed peace treaty.

After organizing the scenarios, selecting and grouping their primary indicators, we began to compare the ideal indication for each indicator to see the scenario occurring with the reality of the indication on the ground to determine the likelihood for each (for more on indicators and indications, see Helene Lavoix, “Evaluating Scenarios and Indicators for the Syrian War”, 10 March 2014, RTAS).

Evaluating the Indicators

*The likelihood of each indicator is based on the current reality on the ground, which may warrant a change of likelihood as we progress through each scenario in the forthcoming posts.

The following scenario and its indicators will show how we determined the numerical likelihood based on current realities. We use the following table for our likelihood levels:

Scenario: Libyan Actors Agree to Participate in Peace Talks Mediated by External Actors

Are Libyan actors willing to attend and participate in peace talks mediated by external actors? 50% (Improbable). Currently, there are major factions that are either refusing or delaying to participate in peace talks facilitated by UN actors or individual states (such as Algeria). The Steadfastness Front has refused to join such negotiations, and has opposed the UN-backed Government of National Accord (GNA) (Toaido and Fitzgerald, European Council on Foreign Relations). Meanwhile, General Haftar turned down Algerian-led peace talks between himself and the GNA (Middle East Monitor, January 3, 2017) and refuses to meet with UN Special Representative Martin Kobler (Fishman, The Washington Institute, January 19, 2017). However, other actors have already shown their willingness to participate in UN-led peace talks, as exhibited by those who have supported and joined the GNA. Furthermore, a group of members of the Council of Representatives (COR) have engaged in dialogue with Algerian mediators and a UN delegation regarding a peace agreement (Libya Herald, January 26, 2017; Libya Herald, January 17, 2017), although other COR members are still resistant to peace talks. Considering these realities, we gave this indicator a 50% likelihood to see the necessary indication happen, which rates as improbable.

Do the identities of the external mediator(s) have a minimal effect on the willingness of Libyan actors to participate? 30% (Improbable). The former UN envoy to Libya, Bernardino Leon, accepted a job in the United Arab Emirates (UAE) while mediating peace talks between the General National Congress and Council of Representatives (Al Jazeera, November 5, 2015). Because the UAE openly backed the COR, supporters of the GNC were enraged, which likely deepened mistrust of the United Nations. More recently, the plane carrying UN Special Representative to Libya Martin Kobler was denied permission to land as he was flying to Tobruk to speak with members of the COR – a government whose members are increasingly opposed to Kobler (Prentis, Libya Herald, January 18, 2017). Even Grand Mufti Sheikh Sadiq Al-Gharyani has expressed disapproval for UNSMIL and Kobler, saying, “The UNSMIL is cooperating with Satan, it has neglected the victory of Libyan people over ISIS, therefore, it’s time to call for replacing it” (The Libya Observer, December 7, 2016). Such distrust and disapproval of UN mediators has certainly had an effect on the willingness of Libyan actors to be actively involved in peace talks, thus we gave this indicator a 30% likelihood.

Do views on General Haftar have a minimal effect on the willingness of Haftar opposition forces to participate? 15% (Highly Unlikely). Considering the Islamists’ overwhelming opposition to Haftar and Misrata’s serious concern of a Haftar dictatorship (Saleh, Financial Times, January 25, 2017), we gave this indicator a 15% likelihood.

Are the armed coalitions facing a prolonged stalemate? 20% (Highly Unlikely). Based on the estimates of military strength and territorial control (see indicator below), we gave this indicator a 20% likelihood.

Are the armed coalitions relatively equal in terms of military strength and territorial control? 20% (Highly Unlikely). Although Misrata forces solidified their presence in central Libya by liberating Sirte from the Islamic State, Haftar’s forces control more territory and recently made significant gains in Benghazi against Salafist groups (Critical Threats, January 2017; BBC News, January 25, 2017). Furthermore, all the Misrata brigades under the command of the Misrata Military Council have joined the forces of the Government of National Accord (The Libya Observer, January 30, 2017), leaving the General National Congress and its coalition significantly weakened. As a result, we gave this indicator a 20% likelihood.

Have Libyan actors failed to secure military backing from external actors? 45% (Improbable). General Haftar and his nationalist allies have recently made gains in finding external actors who are increasingly stepping up their military support. Egypt has reportedly been caught sending arms to Libya in violation of the UN arms embargo (Saied, Al-Monitor, January 23, 2017), although it denies this accusation, and the UAE is speculated to soon deploy fighter jets in support of Haftar (Libyan Express, February 7, 2017). Russia, meanwhile, has made public shows of support for General Haftar and his forces (Daou, France24, January 25, 2017; Libya Prospect, December 1, 2016), including flying wounded nationalist fighters to Russia for medical treatment (Markey, Reuters, February 1, 2017). Considering much of this has not yet transitioned to concrete military backing, and considering that the other actors have not secured support from external actors, we gave this indicator a 45% likelihood.

Are external actors applying a sufficient amount of pressure or incentives on Libyan actors that encourages them to participate in peace talks? 75% (Highly Likely). External actors have incrementally increasing their pressure on Libyan actors to participate in dialogue and reach an agreement. Last year, the European Union imposed sanctions on Libyan politicians that were considered to be obstructing the Government of National Accord (BBC News, April 1, 2016). More recently, the EU suggested that it might lessen the sanctions against these Libyan leaders in order to facilitate a dialogue (ANSAmed, February 7, 2017). The European Union has also agreed to give the Government of National Accord a 215 million dollar package and funding for the Libyan coast guard in order to stem the migrant flows from Libya (BBC News, February 3, 2017). Such an action puts pressure on the GNC and COR, as evidenced by the COR’s condemnation of the deal (GeopoliticsAlert, February 8, 2017). Considering these realities, we gave this indicator a 25% likelihood.

Determining Likelihood

After calculating the likelihood of each indicator, we organized each numerical value in tiers with independent indicators standing alone and dependent indicators linked together according to dependency. Using scenario 1.3 again as an example, the likelihood of indicator 5 [Are the armed coalitions facing a prolonged stalemate?] occurring is dependent on the likelihood of indicator 4 [Are the armed coalitions relatively equal in regards to military strength and territorial control?].

We then took the first of each pair of opposed scenarios and multiplied the numerical likelihoods of each indicator to find the likelihood of that scenario. In our first scenario where Libyan actors agree to participate in peace talks mediated by external actors, the product of the indicators’ likelihood was .00030375 – a less than 1% likelihood for that scenario. After finding the product of the first scenario, considering probabilities’ rules, we subtracted it from 1 to get the likelihood for its counterpart (1-x[sc 1 likelihood]=sc 2 likelihood). Thus, the likelihood of Libyan actors deciding to not participate in peace talks brokered by external actors is .99969625, or 99.96%.

To determine the likelihood of their sub-scenarios, we followed the same process for each pair of scenarios and, because trees of scenarios obey to the rules of probability for dependent events, multiplied the product of each sub-scenario to their parent scenarios.

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After evaluating the main sub-scenarios, as well as their primary indicators, we thus assess that Scenario 1 Towards Peace would be highly unlikely – less than 20%, considering current situation.

In our next post, we shall begin to determine the likelihood of the various 2.x scenarios.

*In terms of graph and network representing the future of Libya, they would be antecede the variables used for this specific scenario by more than two steps and/or be on adjacent paths.

Bibliography

Feature Photo: Row of Libyan flags in Tripoli by Ben Sutherland, [CC BY 2.0], via Flickr

“Algeria continues Libya peace efforts with visit of pro-LNA HoR group,” Libya Herald, January 17, 2017

“Anger at UN chief negotiator in Libya’s new job in UAE,” Al-Jazeera, November 5, 2015

Ben Fishman, “Shifting International Support for Libya’s Unity Government,” The Washington Institute, January 19, 2017

“EU may reduce sanctions to foster Libyan peace,” ANSAmed, February 7, 2017

Fighting Forces in Libya: January 2017 map, Critical Threats, American Enterprise Institute

“Grand Mufti calls for UNSMIL replacement; praises victory over ISIS,” The Libya Observer, December 7, 2016

“Haftar and Russia agreement…Where it goes?” Libya Prospect, December 1, 2016

“Haftar refuses peace talks with UN-backed government,” Middle East Monitor, January 3, 2017

J. Pearl, “Bayesian Networks: A Model of Self-Activated Memory for Evidential Reasoning,” (UCLA Technical Report CSD-850017), Proceedings of the 7th Conference of the Cognitive Science Society, University of California, Irvine, CA, 1985, pp. 329-334.

Jamie Prentis, “UNSMIL’s Martin Kobler refused clearance for Tobruk landing,” Libya Herald, January 18, 2017

“Libya And Italy Sign Migration Deal,” Geopolitics Alert, February 8, 2017

“Libyan Islamists lose Benghazi district to Haftar’s forces,” BBC News, January 25, 2017

“Libyan politicians hit by EU sanctions over new government,” BBC News, April 1, 2016

Marc Daou, “By supporting Marshal Haftar, Russia marks its territory in Libya,” France24, January 25, 2017

Mattia Toaldo and Mary Fitzgerald, “A Quick Guide to Libya’s Main Players,” European Council on Foreign Relations, June 15, 2016

“Migrant crisis: EU leaders agree plan to stop Libya influx,” BBC News, February 3, 2017

“Misrata brigades join Libyan National Army,” The Libya Observer, January 30, 2017

Mohamed Saied, “Egypt goes against international current with Libya support,” Al-Monitor, January 23, 2017

Patrick Markey, “Eastern Libya forces fly wounded to Russia in growing cooperation,” Reuters, February 1, 2017

“UAE on verge of sending Mirage 2000s to support Haftar’s looming war on western Libya,” Libyan Express, February 7, 2017

“UNSMIL team in Tobruk for talks with HoR,” Libya Herald, January 26, 2017

Geopolitics, Uncertainties and Business (6) : The Psychological Impact of the Islamic State Terrorist Attacks

This article is the second of a two-parts of a series seeking to identify the impacts of the current and most probably forthcoming terrorist attacks by the Islamic State and other jihadist groups, and focuses on major socio-psychological consequences. It follows a first article, which started outlining a framework for impact assessment out of our current understanding of the economic consequences of terrorism, which notably pointed out the need to use mapping as methodology if the complex and cascading characters of these impacts are to be properly assessed. The larger aim of the series is notably to understand if businesses should or not neglect these aggressions and related geopolitical uncertainties, while finding out ways to foresee these risks so as to best design answers (see Helene Lavoix, “Businesses and Geopolitics: Caught up in the Whirlwinds? (1)”, The Red (Team) Analysis Society, 17 Oct 2016)

To find out which could be the psychological impacts of the ongoing string of terrorist attacks, we

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The Chinese New Silk Road in East Africa

The Popular Republic of China (PRC) is building a naval base in Djibouti, which should be completed during 2017, alongside the already existing French and American military naval bases (“China’s base in Djibouti means more than an attribute of “global power”, Sputnik, 7/12/2016). This move is a crucial global development for China, for East Africa as well as for many other actors, which operations will be impacted, as we shall explain and detail further in this article.

Djibouti is a small nation, strategically located at the tip of the “Horn of Africa” on the Bab el-Mandeb Strait between the Red Sea and the Gulf of Aden. Location DjiboutiThus, it commands access to the Red Sea, the Sea of Arabia, the Indian Ocean and the Suez Canal, hence to the Mediterranean Sea. In other terms, it commands one of the most vital naval arteries in the world (Robert M. Shelala II, “Maritime Security in the Middle East and North Africa: a strategic assessment”, CSIS, 2014).

Furthermore, since the reconstruction of the railway that connects Djibouti to Addis Ababa, financed by a Chinese bank and achieved by a Chinese company, the  economically booming Ethiopia has access to the port, which attracts ships from the eastern coast of Africa. This favours numerous Ethiopia projects of transportation infrastructures’ development that extend to Cameroon through land transport infrastructures.

However, pointing out the crucial importance of Djibouti as outlined above is not enough to fully understand the scope and strategic meaning of the Chinese base.

To completely grasp the significance of this Chinese move, we must see it through the current Chinese lenses, notably incorporating the specific Chinese understanding and use of space as developed in the new “One Belt One Road” (OBOR) also called the “New Silk Road” (NSR) initiative. The NSR is a new expression of the Chinese philosophical and strategic thought, grounded in an understanding of the spatial dimension as something that may not only be used in order to support and spread Chinese influence and power, but also to allow the Middle Kingdom to  “aspirate” or “suction” what it needs from the “outside” to the “inside”  (Quynh Delaunay, Naissance de la Chine moderne, L’Empire du Milieu dans la globalisation, 2014). That is why we qualify spaces as being “useful”, while “useful spaces” are also related to other “useful spaces”.

A faster road for trade

As a result, Djibouti, from a Chinese perspective, is not only meaningful  as an access to Africa and a strategic position on the Bab el-Mandeb Strait, but also because it is “useful” at the scale of the African ambitions of the New Silk Road, a strategy devised by China in a time of worldwide competition for resources (Michael Klare, The Race for What’s Left, 2012). However, using the lenses of the paradoxical logic of strategy, we must also wonder if this Chinese strategy may not also become counter productive, because of the reliance it creates between China and a very unstable and fragile region, as we shall see in the last part.

A suction process to China: The New Silk Road integrates Djibouti

Djibouti attracts Chinese interest because it is not only a way in the transportation network of the Horn of Africa, but also and most probably foremost because, as a port, it is a complement to the maritime “use of space” as defined by the NSR (Deng Yaqing, “A shared path”, The Beijing Review, July 10, 2014).

The Chinese base integrates Djibouti to the NSR strategy. The latter became official in 2013 in Astana, the capital of Kazakhstan, when the Chinese President Xi Jinping launched the OBOR or NSR initiative (Michelle Witte, “Xi Jinping calls for regional cooperation via new Silk Road”, The Astana Times, 11 September 2013). This Chinese strategy is aimed at creating a planetary-wide “attraction system”, necessary to channel the mineral, energy, and food resources needed by China in order to keep developing itself while ensuring the social cohesion of its 1.400 billion strong population (Jean-Michel Valantin, “China and the New Silk Road, from oil wells to the Moon … and beyond!”, The Red Team Analysis Society, July 6, 2015.

nazarbayev xi jinping 2013

The Chinese NSR is implemented throughout Central Asia, Europe and Africa through a very specific use of space, grounded in the philosophy explained above: the different spaces where the NSR is created and located are segments of the same OBOR, upon which other segments are built (“Belt and Road Nations account for 26 per cent of China’s trade”, The Beijing Review, April 29, 2015).

In the same time, building this base, while constructing the rail link to Addis Abeba is a way for China to support the development of Djibouti and of Ethiopia, and thus to help these countries becoming sustainable, hence “sustainable useful spaces” for China: i.e. spaces that will allow China continuing using them as nodes to provide resources from the external areas towards inner China (Valantin, “China and the New Silk Road, The Pakistani Strategy”, The Red (Team) Analysis Strategy, May 18, 2015).

Djibouti, a node to construct a new segment of the New Silk Road

Djibouti, as seen, is located where the Red Sea, the Gulf of Aden, and through it the Arabian Sea and Indian Ocean, on the South, and the Suez Canal and the Mediterranean Sea, on the North, connect.

As such, this naval base defines a new segment of the OBOR through the connection it offers with the Pakistani port of Gwadar, largely renovated by China, on the opposite side of the Arabian Sea (“Pakistani PM welcomes first large Chinese shipment to Gwadar port”, Reuters, 13 November 2016). The maritime line between the two ports allows ships to sail along the coast of Oman and Yemen.

Gwadar is notably crucial to the Chinese because it is connected by sea with all the ports on Gwadar portthe south-west coast of China and because it should also allow China to partly escape the bottleneck of the Malacca Strait. Indeed, it must be remembered that the port of Gwadar is currently being connected to the Chinese Xinjiang region, through the construction of an immense north-south highway across Pakistan (“Gwadar port integral to China maritime expansion”, The Express Tribune, February 17, 2013).

In other words, building a naval base in Djibouti and rebuilding the railway that connects the port with Addis Ababa in the hinterland of Ethiopia is a way to integrate the Ethiopian market to the maritime and terrestrial Africano-Asian transport infrastructure that goes from Eastern Africa and from the Horn of Africa to the economic zones of the South China coast and to the developing Xinjiang region.

Protecting sea-lanes: International status but also ensuring the security of the Chinese supplies system

To this space strategy are aggregated other and more “classical” naval functions for the new base in Djibouti, such as the defence against pirates, coming from Yemen, Somalia, Eritrea, Sudan and Egypt (Jean-Michel Valantin, “Surviving the Gulf of Aden: a new strategic paradigm for the future of the region?”, The Red (Team) Analysis Society, November 11, 2013).

Participating in the international effort against piracy in the Red Sea and the Gulf of Aden is a way to confirm the status of China as an international power. This participation is also necessary, at a very practical level, in order to protect this segment of the NSR against the disruption that is being wrought by piracy (Valantin, “Somali Piracy: a model for tomorrow’s life in the Anthropocene?”, The Red (Team) Analysis Society, October 28, 2013), as well as by the international power games in the region, as “played” by Saudi Arabia, the U.A.E., Iran, the U.S., the Islamic State, and Al Qaeda for example in Yemen and Somalia (e.g. Hélène Lavoix, “At war against a global Islamic State – The fall into extreme Sunni Shi’ite tensions”, The Red (Team) Analysis Society, 1 February 2016).

Thus, Djibouti appears as a particularly “useful space”, from the Chinese NSR perspective, because it is a strategic place to use in order to protect from the pirates and from ongoing war operations the ships and convoys, which are sailing to and from China, especially the oil tankers coming from the Arabian port of Jeddah. In the same time, it allows Chinese transportation and energy companies to have access to South Sudan and to its oil production (James Burgess, “War-torn South Sudan to resume oil production in July”, Oil Price.com, May 26, 2016).

Connecting the East African dots

This “spatial usefulness” of Djibouti is magnified by analogous Chinese moves in Africa, for example much further south in the port of Maputo, Mozambique. In April 2016, The China Harbour Engineering Company has started planning to invest more than 1 billion dollars in a new port in the Maputo province, on the coast of the Mozambique capital.

This operation is related to a South African-Swaziland project of railway linking Maputo to the mining zones in South Africa, through Swaziland, and is boosting building and renovation of transport infrastructures with Tanzania, Zambia and Botswana (“China’s CHEC involved in investment of US 1 Billion Dollars in the new port of Maputo”, Macau Hub, April 25th, 2016). The South African-Swaziland project could be used to transport coal to Maputo, and to export it to China and to India (“Bots SA coal, transport war”, The Patriot on Sunday, 10 August 2015).

location eastern africa

Thus, the Chinese Djibouti naval base, located on the north-eastern part of the continent becomes a space that opens different segments of the New Silk Road between South Asia and the Horn of Africa. In the same time, the Chinese interest in Maputo signals the Chinese interest in the southern part of East Africa and the preparation for the creation of the NSR segment necessary to connect China with resources it needs in south-east Africa (Shannon Tiezzi, “China’s “Maritime Silk Road”: don’t forget Africa”, The Diplomat, January 29, 2015).

These East Africa-China connections create a practical transport system between the Chinese hinterland and the port-cities of the Chinese south coast and the African resources, which are necessary for the economic, industrial, consumerist and urban growth of China ,for example South African ore and fish from Mozambican fisheries (Craig Simon, The Devouring Dragon, 2013). The same dynamic will most probably facilitate inter-state exchanges by land and by sea within East Africa, which will attract even more resources and products to these harbour zones, and thus literally “plug” the different Eastern African areas with natural resources, or knowing economic growth, in the Chinese economic and resource needs (Dambisa Moyo, Winner take all, China’s race for resources and what it means for us, 2012).

These so-far two East Africa segments of the OBOR is an international infrastructure through which China projects its “power of need”, i.e. the immense and permanent need for different kinds of resources and products necessary to answer to the basic and developing needs of a giant country with 1.4 billion people going through a triple cycle of economic growth, consumerism, and very rapid urbanization (Loretta Napoleoni, Maonomics, 2011).

This means that the OBOR “initiative” is not mainly aimed at expanding a “Chinese hegemon” in the world, but to acquire the means, on an intercontinental scale, to make China sustainable, because the Middle Kingdom does not have the means to support this phase of its development by itself (Giovanni Arrighi, Adam Smith in Beijing, 2007).

Africa, the “Chinese power of need” and the  planetary crisis

However, these “East African New Silk Road segments” must also be analysed through the perspective of the paradoxical logic of strategy (Edward Luttwak, Strategy, the logic of war and peace, 2002). Indeed, developing a project, be it political, commercial, military, or of any other nature, creates the emergence of situations that are driven by a paradoxical logic:  the implementation of a given project attracts opposing forces, which threaten the very project that created or attracted them with failure (Luttwak, ibid). Understanding this attraction of the opposites and the necessity to use them in order to attain success is the very essence of the strategic approach, as we already saw in the case of the Russian Arctic (Jean-Michel Valantin, “Strategic thinking into the Russian Arctic: turning threats into opportunities, part 1 and 2”, The Red (Team) Analysis Society, January 9, 2017).

In the case of the connection of the Chinese NSR with the ports of Djibouti and Maputo, the paradoxical logic of strategy is effective through the installation of the “Chinese power of need” in two regions that are alarmingly hammered by climate change, as well as by the combination of the climatic evolution with volatile political situations.

In the case of Djibouti, the whole Horn of Africa is under a growing stress because of the combination of the effects of climate change on temperatures and precipitations with the human overuse of water as well as with multiple conflicts, as in neighbouring Somalia and Yemen (Peter Woodward, Crisis in the Horn of Africa, politics, piracy and the threat of terror, 2013). Over the coming years, the disruptive effects of climate change are going to keep building up and hammering the fragile and vulnerable Ethiopian, Eritrean, North and – South Sudanese, and Kenyan societies and economies, while the large hinterland of Djibouti is afflicted by international and civil wars (Serge Michailof, Africanistan, 2015 and François Guiziou, “Les ports de la façade est africaine : dynamiques d’intégrations et d’exclusions”, ISEMAR, Mars 2010).

In the case of Mozambique, the Chinese quest for resources is reaching the African south coast of the Western Indian Ocean, where a mammoth climato-biological crisis may well be currently unfolding. A recent study shows that an alarming loss of more than 30% of the phytoplankton in the Western Indian Ocean took place over the last 16 years (Koll Roxy and al., “A reduction in marine primary productivity driven by rapid warming over the tropical Indian Ocean », 19 January 2016).

Lynx Helicopter Hovers Over Suspected Pirates MOD

This loss most certainly stems from the accelerated warming of the surface water, where the phytoplankton lives: the warming is blocking the mixing of the surface water with deeper and cooler subsurface waters, where the nutrients of the plankton – nitrates, phosphates and silicates – are located and where they remain blocked, thus depriving the plankton from its nutrients (K. S. Rajgopal, “Western Indian Ocean phytoplankton hit by warming”, The Hindu, 29 December 2015).

The problem is that plankton is the foundation of the whole ocean food chain (Callum Roberts, The Ocean of life, the fate of Man and the Sea, 2012). For example, researchers have unveiled that there is a massive decline in the shoals of fish near the Kenyan and Somali coasts. These declines are not solely the results of overfishing, but of the combination of this practice with the loss of plankton (David Michel and Russel Sticklor, “Plenty of fish in the sea? Food security in the Indian Ocean”, The Diplomat, 24 August 2012).

This negative trend is very likely to continue in the foreseeable future, because of the warming of the ocean resulting from climate change. It is highly likely to alter the whole Indian Ocean, hence transforming the biologically rich ocean into an “ecological desert” (Amantha Perera, “Warmer Indian Ocean could be “ecological desert” scientists warn”, Reuters, 19 January 2016).

This means that the decline of marine life stemming from anthropogenic climate change is a direct threat to the food security of the whole western Indian Ocean ecosystems, thus to the lives of the populations of Eastern African societies – i.e South Africa, Mozambique, Tanzania, Kenya, Somalia, Ethiopia, as well as archipelagos, as Comoros, Maldives, Seychelles, Madagascar, Mauritius, Mayotte – and to their economies (Johan Groeneveld, “The Western Indian Ocean as a source of food”, in WIO Regional state of coast report, UNEP, 1 May 2015). This is most likely to happen despite the rapid development of fish farming, which induces its own cascade of issues (Michel and Sticklor, ibid).

The plankton and sea food crisis is particularly worrisome given the profound economic and social inequalities known by the region, and by the political, confessional and military tensions that arise, for example in Kenya and Somalia (Hélène Lavoix, “At War against the Islamic State – A Global Theatre of War“, & “At War against a Global Islamic State – Facing a Strategic Trap in Somalia?“, The Red Team Analysis Society, 23 Nov & 14 Dec 2015).

Hence, a giant biodiversity and geophysical crisis is unfolding on such a scale that it concerns numerous countries and dozens of millions of people at the same time, while merging with political and strategic current crises.

Then, the Chinese strategy of identification of and connection to “useful spaces” leading to the creation of segments of the OBOR in East Africa begs a question: are these spaces going to be really useful to help China answering its needs? In effect, the massive investments, which underlay these connections, will need time to produce a valuable return. This time to profitability may create vulnerabilities for China, because the need to find and import food ties the “Middle Kingdom” to the climate and biological crisis and the tangled geopolitics of what is becoming a very dangerous environment.

In other words, we may wonder if China will have the necessary time to reap the benefits of these infrastructures built-in order to literally suction the resources needed for its own development or if it settles itself in a dependency on a region that could go through a massive environmental-social-political destabilization during the coming years. China does so through what appears to be a very efficient strategy, but which finally could turn against its creator. The African opportunities, which have attracted the creation of these segments of the “One Belt, One Road” could turn into dangers for the growth of China, should China not take also the adequate measures to ensure the ecological sustainability of these regions, assuming this is possible.

Analytically, this situation exemplifies the crucial need to always integrate the new parameters emerging from the environmental, social and political impacts of climate change, as we continuously exemplify at the Red (Team) Analysis Society, in order to truly understand the present, how it is likely to unfold in the future and thus to devise a successful strategy across all time horizon.

About the author: Jean-Michel Valantin (PhD Paris) is the Director of Environment and Security Analysis at The Red (Team) Analysis Society. He is specialised in strategic studies and defence sociology with a focus on environmental geostrategy.

Featured image: COSCO Africa vor Cuxhaven, 11 August 2012 By Bernhard Fuchs (Flickr: Cosco Africa) [CC BY 2.0 ], via Wikimedia Commons.

Scenarios for the Future of Libya – Sc 4.2 An Islamic State Victory

This article focuses on the second of the scenarios depicting a Salafist victory, where the Islamic State (IS) becomes the dominant force on the battlefield, defeats the other actors, and establishes the caliphate. In our previous scenario we detailed the scenario of an Al-Qaida victory where Al-Qaida groups in Libya dominate the battlefield and gradually implement Sharia through a grassroots strategy. Note: Considering the future names of potential factions that would result from a new split between the unity government, we shall use the label nationalist for those that supported the nationalist-dominated Council of Representatives (COR) and any future anti-Islamist factions; Islamist to note those that supported the General National Congress (GNC) and any future pro-political Islamic movements; and Salafist …

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The Impact of the Islamic State Terrorist Attacks – Geopolitics, Uncertainties and Business (5)

Since the Islamic State declared a Khilafah on 29 June 2014, it carried out, worldwide, 6 attacks or series of attacks in 2014, which killed 2 and wounded 12 people, 23 in 2015, which killed 1020 and wounded more than 2171, 36 in 2016, which killed more than 1455 and wounded more than 3505 and so far 3 in 2017, which killed more than 109 and wounded more than 169 people, assuming all attacks are known and referenced as such (Wikipedia “List of terrorist incidents linked to ISIL“). As a whole, we thus faced 68 attacks, during which more than 2586 people lost their lives and more than 5857 were injured. Prospects for the near future look no less grim as reminded …

The remaining part of this article is for our members and those who purchased special access plans. Make sure you get real analysis and not opinion, or, worse, fake news. Log in and access this article.

Strategic Thinking in the Russian Arctic: When Threats Become Opportunities (2)

This article is the second part of our series focusing on the current development of the Russian Arctic region, while explaining and demonstrating the importance of using strategic thinking for governments as well as for business actors to understand current dynamical changes and to develop adequate strategies to face related geopolitical uncertainty.

In the first part, we established that the paradoxical logic of strategy turns threats into opportunities, while constraints become drivers and systems of challenges are transmuted into powerful attractors.

Here, continuing using strategic thinking, we shall see first how the implementation of the Arctic Russian strategy triggers different kinds of resistance: i.e. Clausewitz’s “friction”. The way this friction is absorbed, or not, by the implementation process determines the future degree of success of the strategy.

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Then, we shall explain how the Russian authorities are redefining the Russian national interest in a time of climate change – an evolution that is here to last – thanks to the understanding of the paradoxical logic of strategy as developed in part 1 and of the dialectics between the implementation of the Russian strategic project and the friction it triggers.

A strategic imperative: thinking friction

As Edward Luttwak (Strategy, the Logic of War and Peace, 2002), following Carl von Clausewitz (On War, 1832), points out, there is strategy when will is applied against a resisting and reacting object, as during a war. Hence, the strategic nature of the Arctic endeavour is also revealed by the way the adverse, resisting and reacting Arctic extreme environment triggers different levels of “friction” through the building of the infrastructures End less Franz Joseph Land for energy extraction, as well as for transport, and shipping on the Northern Sea Route and from the Siberian coast to Central Asia. This friction comes from the systems of difficulties inherent to the region, which always threaten the material organisation and implementation of the Arctic development. As a result the different operations constituting the development of the Arctic are forced to be able to absorb a very high level of friction to avoid disruption.

For example, in the Yamalo-nenets province, the Siberian heat wave of the 2016 summer melted dead carcasses of reindeer, infected with the dangerous, and potentially deadly Anthrax bacteria. More than forty people were infected, and, sadly, a 12 years old child passed away, while 2300 reindeer also died, triggering a major health alert and sanitary response. This alert was particularly important, because an epidemic in the north of Siberia would be both dangerous for the people and the animals and disruptive for the Russian Arctic strategy through the disorganisation of the workforce used to build the infrastructures necessary for the creation of the Yamal LNG plant, and for the related railways and ports (Rebecca Joseph, “”Zombie” Anthrax not only deadly disease that could re-emerge as Siberia permafrost thaws”, Global News, August 16, 2016).

The violent storms, which interact with the multiplication of icebergs coming from the melting and breaking of the ice cap, are another major driver of friction, at sea this time. This is the case, for example, for the vastly expensive Prirazlomonoye offshore oil rig in the glacial Pechora Sea (Michael Klare, The Race for What’s Left, 2012). TafeleisbergHowever, the Russian scientists and engineers have found two categories of answers to this challenge. First, they have studied ways to divert the icebergs by towing them. Second, they have invented floating barriers able to protect the infrastructures (Atle Staalesen, “Rosneft Moves 1 Million Ton Big Iceberg”, The Independent Barents Observer, October 11, 2016).

Furthermore, the friction known by the Prirazlomonoye operation is not only environmental, but also political: in 2013, during a media campaign aimed at raising international awareness about the industrial development of the Arctic, Greenpeace activists attempted, without authorisation, to climb on the rig in order to protest against the industrial exploitation of the pristine Arctic environment (“Freed Greenpeace Arctic detainees home from Russia”, BBC News, 27 December, 2013).  Activists were arrested and detained in Murmansk for three months by the Russian authorities, after having been condemned for piracy (Ibid.).

Since then, Rosneft has emphasised that the rig has not only been designed to be protected from the “friction” imposed by its extreme environment, but also to protect this very environment (“The Prirazlomonoya rig details – part 1″, Marine Technology news, December 27, 2013; Gazprom, “Environmental and occupational safety of Arctic shelf development“). This is done through the invention of a system of absorption of the industrial Igor Sechin wastes on the platform, which are recycled and reused in the industrial process in order to avoid any spill in the fragile ecosystem. This system is also much more cost-effective, because the wastes do not have to be shipped on shore. As a result, the Prirazlomonoye platform is the first Russian “zero emission” oilrig. (Trude Pettersen, “Prirazlomnoya “zero emission” system launched”, The Independent Barents Observer, April 12, 2016).

As such, “friction” becomes a driver for innovation and thus a support for marketing the new Russian energy technology, when, at long last, ecological issues have become a real international concern as well as an economic imperative (Charles Emmerson, A Future History of the Arctic, 2010).

Thus, this new generation of Russian oil rigs not only overcomes the environmental and political friction it triggers with an extreme and fragile environment, but is also a political and media tool to reinforce the legitimacy of the Russian Arctic strategy on the international scene, in a period of evolving tensions between Russia, the European Union and the United States. Advertising the technological response to industrial-environmental friction is strategically used to ease some of the geopolitical and commercial frictions triggered by the international political situation while supporting the marketing of the Russian innovative technology.

Understanding the strategic nature of the Russian Arctic development and how it absorbs the friction engendered by the contact between its operations and an extreme environment leads us to the third level of strategic understanding: the nature of the political and economic project that is being implemented and its time-scale.

Developing the Russian Arctic: an emerging “Russian grand strategy for a warming world”

The combination of the warming of the Arctic and of the Russian political, industrial, military, infrastructural, and commercial projection of power in order to develop this region has a multitude of national and international consequences, notably through the multiplication of Chinese investments, and the signature of high-level technical, commercial and energy partnerships with India, Japan, South Korea, Vietnam, Thailand, and Singapore (Atle Staalesen, “Japanese, French credits for Yamal LNG”, The Independent Barents Observer, 02 December, 2016).

The international impacts of the Russian Arctic project unfold at the international level, in the political, industrial and business spheres and interact with each other. For example, the Chinese shipping convoys of the COSCO Company or of South Korea have led the Indian government to sign investment deals in the Arctic with the Russian government (Atle Staalesen, “A Role for India in Russian Arctic”, The Independent Barents Observer, October 18, 2016 and  President of Russia, Russian- Indian Talks). A similar phenomenon is at work with Japan (Wrenn Yennie Lindgre, “Energising Russia’s Asia Pivot: Japan-Russia Relations, Post Fukushima, Post-Ukraine“, Norwegian Institute of International Affairs, 4/2015).

Arctic Circle

The immense Russian Arctic endeavour projects its influence on the whole of Asia and Europe, while turning Russia into a power base in the age of global warming. Our analytical strategic approach makes us understand that, through its Arctic project, Russia installs itself as an essential driver of the Asian development and growth (Jean-Michel Valantin, “The Warming Russian Arctic: Where Russian and Asian Business and Strategies Converge?“, The Red (Team) Analysis Society,  November 23, 2016). In other terms, the integral nature of the Russian Arctic development makes it a “grand strategy”, allowing its supporters to wield geopolitical influence. Russia works at becoming one of the great world powers by using the current planetary crisis as a power and economic basis.

For those political, industrial, financial and other business actors (Anne Ackerley, “Long term thinking in a low return world”, Black Rock, October 17, 2016), which are looking for new, sustainable and long-lasting “success frontiers” in a world of growing uncertainties, this is an essential point to understand. This is all the more important that these rising uncertainties are generated and intensified by the rapidly shifting state of international political and economic current conditions and by their interactions with the changing planetary conditions (Jean-Michel Valantin, “Planetary Security, or the Subversion of Collapse”, The Red (Team) Analysis Society, October 26, 2015).

So, the Russian Arctic is becoming a region where these extreme changes and risks are being strategically turned into conditions for industrial and business success for Russian actors. Furthermore, this is also highly likely to be true for Russia’s partners, as these are going to partake not only in the costs but also in the benefits of the medium and long-term effects of this grand strategy. In fact, industrial and business success is now the very glue of the Russian strategy for a long-lasting success in terms of national interest, which integrates political, strategic, economic and business interests in a common grand strategy (Jude Clemente, “Russia’s Oil Production Won’t Falter“, Forbes, June 29, 2016).

This can be seen, for example, in the case of the Yamal LNG plant, developed by the Russian Novatek, Rosneft and Gazprom, French Total and the Chinese CNPC and Silk Road Fund. These industrial actors are all confronted with the friction triggered by the specific conditions of the Arctic. The frozen ground – the permafrost – is rock solid in winter but melts during summer. The technological answer to face these changing conditions, in normal Arctic weather, i.e. not considering climate change, is the installation of the plant on metal poles, which will partly sink in the melting permafrost during summer, thus allowing for maintaining the stability of the structure (Anne Feitz, “Dans le grand nord Russe, le projet gazier géant de Total sort de terre”, Les Echos, 22/05/16).

However, climate change must now be considered. The Novatek company, in charge of the implementation of the project, has thus willingly launched itself into a race against time: its executive officers are perfectly aware that the warming of the region will warm the permafrost too much and that the infrastructures will not be able to maintain their integrity, while the rising of the sea level will put the flat peninsula under water and the industrial operation will not be technically sustainable anymore. Thus, in order to prevent these emerging risks, the industrial operations will have to be operational before the new impacts of climate change develop. Meanwhile, in order to see the operations remain sustainable, executives will certainly have to engage in important adaptation measures (Atle Staalsen, “Climate change could jeopardize Yamal gas development, Government fears”, The Independent Barents Observer, September 15, 2016).

Arctic year long anom HR

In other words, the Yamal project is a part of the Arctic – i.e. territorial – Russian strategy, which is also now a climate change-based strategy. Hence, the gas operation must be implemented and its benefits must be reaped before the next phase of the climate destabilization. Time – and not any time – becomes a crucial element. Indeed, this project is developed according to a time frame which is dependent upon the very conditions of the project: before the moment when the friction due to climate change will make it unsustainable. This anticipation supports the Russian power of attraction because it turns the current degree of climate change into an opportunity for the Russian industry and for Russia, as well as for their numerous Asian and European partners.

Here again, a strategic analysis points out how the Russian authorities identify and use the current phase of climate change as an industrial window of opportunity and how they behave accordingly, in order to make this project profitable for its national and international investors.

However, the Arctic – as well as the entire Human-Earth system – is still highly likely to evolve quickly. In other words, the success of tomorrow must remain sustainable, while its original conditions are highly likely to keep changing.

For example, the way the accelerating melting of the Arctic polar pack ice is going to create more and more icebergs could generate such a new potential danger, which would need to be analysed in-depth through scenario analysis. These icebergs, through their sheer number, would be highly likely to threaten the security of the offshore drilling operations, as well as of the shipping convoys using the Northern Sea Route. This would imply that, for example, a LNG ship leaving the Yamal peninsula for China, Japan or India could be slowed, and the energy supply chain of entire countries could be under pressure. This would paradoxically turn the success of the Russian Arctic development into a new risk for Russia and for its partners.

To prevent such a type of dangers, as well as the related uncertainties, it is necessary to think strategically, thus to recognise how the friction created by an endeavour can turn a success into a failure, or, more precisely, into a system of cascading failures. To achieve this kind of thinking, it is of paramount importance not to deny reality, but on the contrary, to fully accept it.

That is why, for example in answer to the risk evoked above of multiplying icebergs, the Russian Gazprom and Rosneft, as well as Chinese and South Koreans, are building new generations of nuclear icebreakers, which will be able to protect the shipping convoys of the “friction” induced by changing sea conditions (Atle Staalesen, “Aiming for Year Round Sailing on Northern Sea Route”, The Independent Barents Observer, December 14, 2015, RT, “Russia Floats Out Arktika Icebreaker, set to be world’s largest”, 16 June, 2016, Atle Staalesen, “COSCO Sends 5 Vessels Through Northern Sea Route”, The Independent Barents Observer, October 10, 2016, and Jean-Michel Valantin, “Arctic China (1) – The Dragon and the Vikings”, The Red (Team) Analysis Society, 24 May, 2014).

As we have seen, the strategic analysis of the Russian Arctic development is a thinking that is absolutely necessary to be able by integrating it within the proper methodology to produce diagnostics that integrate the new dynamics enforced on government and business actors by the current planetary crisis.

These methodological tools allow us to anticipate major uncertainties, which are currently happening through the combination of historically powerful environmental, political and economic factors, and which have a very high potential of disruption for governments as well as for business. As a result, the best possible adaptation to survive and even to thrive may follow.

About the author: Jean-Michel Valantin (PhD Paris) is the Director of Environment and Security Analysis at The Red (Team) Analysis Society. He is specialised in strategic studies and defence sociology with a focus on environmental geostrategy.

Featured image: “During a staged naval performance to mark Navy Day.” President of Russia Trip to Severomorsk. Navy Day celebrations – July 27, 2014 Severomorsk.  Kremlin website.

Season’s Greetings 2016-2017

Red (Team) Analysis, Red (Team) Analysis Society, Scenario Analysis, Scenario building, strategy, warning, geopolitical risk, geopolitical uncertainty, uncertainties, Christmas, Season's Greetings

(The card is about geopolitics and related trends, and more or less organised around the permanent members of the security council).

We wish you all a wonderful Christmas – across religions as it would be so much nicer if we were all celebrating each others Holy Days – and a happy and fulfilling New Year – across calendars as this also would multiply the possibility to send best wishes across the world, to say nothing of enhancing our awareness of the relativity of time.

With all our thanks for your trust,

The Team.

Strategic Thinking in the Russian Arctic: When Threats Become Opportunities (1)

This series of two articles focuses on the current development of the Russian Arctic region, while explaining and demonstrating the importance of using strategic thinking for governments as well as for business actors. Indeed, the international dynamics of geopolitical and environmental changes, including their interactions, are becoming so rapid and powerful that political and business actors have to integrate them, in order to be, or to remain, successful. In this first part, using strategic thinking, we shall notably establish how threats can be – and are – turned into opportunities, while constraints become drivers and systems of challenges are transmuted into powerful attractors. This approach dramatically alters the way actors could and should handle issues and uncertainties so far perceived as mainly negative.

For that purpose, we shall study the current development of the warming Russian Arctic through the perspective of strategic thinking, i.e. by using the tools devised to understand the way strategic choices are implemented in the geopolitical arena, the opposition they meet and how the related counter-actions make them evolve (Edward Luttwak, Strategy, the Logic of War and Peace, 2002).

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Understanding what is at stake with the current massive industrial, military, infrastructural, and commercial development of the warming Russian Arctic is a particularly good example of the crucial importance of strategic thinking. In effect, nowadays, our world is changing very rapidly, because of the permanent interactions between the domestic and international political, economic, social and technological situations and planetary climate change, while furthermore natural resources are overused (Jean-Michel Valantin, “The Planetary crisis Rules, part 1 and 2”, The Red (Team) Analysis Society, January 25 and February 25, 2016).

Red (Team) Analysis Society, strategic foresight, strategy, Russian Arctic, paradoxical logic
Circum-Arctic Resource Appraisal: Estimates of Undiscovered Oil and Gas North of the Arctic Circle – USGS [Public domain], via Wikimedia Commons

This change can appear as unexpected if one does not use an efficient methodology to anticipate the coming changes (Helene Lavoix, “Business and Geopolitics, Caught up in the Whirlwinds?”, The Red (Team) Analysis Society, November 23, 2016). Strategic thinking allows us to understand the consequences of these new combinations to anticipate, adapt and, most importantly, to do so successfully.

Strategic thinking allows us to understand how and why the Russian political, military, industry and business authorities are turning the current and rapid warming of the Arctic ocean and land into a massive strategic opportunity for themselves and for their Asian and European industrial, financial and business partners (Jean-Michel Valantin, “The Warming Russian Arctic: Where the Russian Asian Business and Strategies Converge?fifty years of victory at North Pole, Red (Team) Analysis Society, strategic foresight, strategy, Russian Arctic, paradoxical logic”, The Red (Team) Analysis Society, 21 November 2016). With these partners, the Russians are transforming Northern Siberia and the Arctic Ocean into an immense attractor for international trade as well as for energy companies, despite and thanks to the massive risks emerging from the current planetary geophysical destabilization (Jean-Michel Valantin, “The Russian Arctic Oil: a New Economic and Strategic Paradigm?”, The Red Team Analysis Society, October 12, 2016).

Given the sheer scale and complexity of this massive endeavour, it is necessary to use strategic thinking to understand what it means for governments, as well as for businesses, to be able to anticipate how the uncertainties, risks and opportunities related to the development of the Russian Arctic, are getting combined on the short and the middle term by the Russian political and business authorities, in order to achieve success. This understanding is necessary for, among others, energy, trade, shipping and trade industries and companies that are attracted by the new Russian Arctic potential, which emerges from the industrial and commercial transformation of what used to be an extreme and deeply hostile environment but is today profoundly altered by climate change, if these actors are to successfully operate.

This first part focuses on identifying and using the paradoxical logic necessary to assess strategic situations, thus  building upon the interactions between the main levels of strategic thinking.

Thinking strategically: turning climate change into an opportunity

First of all, to understand the Russian Arctic development from a strategic point of view, we have to realise that this development is literally immersed in the paradoxical logic of strategy. Indeed, developing a project, be it political, commercial, military, or of any other nature, creates the emergence of situations that are driven by a paradoxical logic: the implementation of a given project attracts opposing forces, which can even use violence, or difficulties, which threaten the very project that created them with failure (Luttwak, ibid). Understanding this attraction of the opposites and the necessity to use them in order to attain success is the very essence of the strategic approach.

In the case of the development of the Russian Arctic, this paradoxical logic is revealed by the fact that an immense industrial and commercial project is implemented because of, and despite, its particularly adverse environmental and economic context.

To be precise, the whole Arctic region is deeply destabilised by its rapid warming stemming from anthropogenic climate change, which is triggered by the global emissions of greenhouse gas resulting from the use of coal, oil and gas. Climate change is currently warming the whole planet and, in particular, the NASA Arctic temperature change 1981-2007, Red (Team) Analysis Society, strategic foresight, strategy, Russian Arctic, paradoxical logicArctic (Charles Emmerson, A Future History of the Arctic, 2010). The warming of that region, one of the coldest on Earth, involves the melting and breaking of the ice pack. The excess of accumulated heat in the atmosphere warms the ocean and the land during the summer months. Thus, it drives a disruption of the winter ice pack and weather patterns, hence the emergence of geophysical conditions in this region, so far unknown by humans (Joe Romm, “Arctic Death Spiral Update: What Happens in the Arctic Affects Every Where Else”, Think Progress, May 3, 2016). However, what must be very clearly understood is that this warming does not turn the Arctic into a “less” extreme region. On the contrary, it adds a new diversity and complexity to the environment and accelerates the evolution of its geophysical conditions.

Nonetheless, the current warming makes now possible to reach and exploit the enormous oil and gas reserves of the region, because of the relative retreat of the ice. Thus, the fact that the whole Arctic region could have reserves of almost 90 billion barrels of crude and a staggering 1669 trillion cubic feet of natural gas (Energy Information Agency « Russia », July 28, 2015), comes to mean that the development of the warming Arctic could add new and major reserves to the existing Russian diminishing ones. Because of the relative, but accelerating, retreat of the ice, it also opens up a new passage between the Bering Strait and Norway, along the Siberian coast: the “Northern Sea Route”.

In strategic terms, this creates a paradoxical situation, because the Russian Arctic industrial project is in fact defined by the interactions of the very Russian Arctic industrial project with extreme and changing environmental conditions, which are both at the origin of the project, while putting it under extreme pressure (Valantin, The Warming Arctic: a hyper strategic crisis, January 20, 2014).

Thinking strategically: turning economic constraints into a strategic driver

In terms of adversity, from the point of view of Russia, the geophysical change of the Arctic is combined with the fact that, since 2014, the U.S. and the European Union have imposed economic sanctions upon Russia, because of the incorporation of Crimea in the Russian federation and of the tensions in Ukraine (see our series, Hélène Lavoix, Crisis and War in UkraineThe Red (Team) Analysis Society). The sanctions also forbid technically advanced Western oil companies to develop industrial partnerships with Russian companies (Colin Chilcoat, “Is Russia the King of the Arctic by Default?”, OilPrice.com, Oct 22, 2015 and Andy Tully, “Western Sanctions Halt Exxon’s Drilling in Russia’ Arctic”, Russia Insider, 19 September, 2014) .

These sanctions combine with the simultaneous dramatic plummeting of oil prices, which results in diminishing the vital Russian oil and gas revenues (Jean-Michel Valantin, “Oil Flood (2)- Oil and Politics in a (Real) Multipolar World”, The Red (Team) Analysis Society, January 12, 2015). This blend of economic adversities is impacting the Russian economic growth, when the Russian political and economic authorities decide, against these environmental and economic odds, to develop the Russian Arctic.

In other terms, one can identify, thanks to and through the use of the paradoxical logic of strategy, that the economic and political pressure exerted on Russia is, in fact, a key driver of the Russian decision to reinforce and accelerate the development of Northern Siberia and Prirazlomnoye tanker, Red (Team) Analysis Society, strategic foresight, strategy, Russian Arctic, paradoxical logicof the Arctic Ocean (Irina Slav, “Why Arctic Oil is Crucial for Russia’s Future”, OilPrice.com, September 2, 2016). By doing so, the Russian authorities may find another way to reinforce the security, power and economic attractiveness of their country. Thus appears the fully strategic nature of the Arctic project, i.e. a project decided and supported by a (geo)political will that is exerted “against a living and reactive force” (Clausewitz, On War, 1832). In our case, it means that the Russian political will is exerted to bolster its Arctic project despite, and against, the adverse political and economic forces of the sanction regime and of the “natural” difficulties inherent to a changing and extreme Arctic… as well as because of them.

In terms of strategic foresight and warning, including monitoring, this means that we have here identified crucial indicators, and how they are dynamically related, which will allow for a better anticipation and thus navigation of uncertainty.

The result of the paradoxical strengthening of this political will by the opposing forces that it encounters takes the form of a geopolitical project defined by one of the most extreme and destabilised regions of the planet’s industrial development, notably through the offshore oil and gas platforms, the opening of the Northern Sea Route along the Siberian coast, from the Asian side of the Bering Strait to Norway, and through the building of maritime infrastructures, and of the giant the LNG Yamal project (Thomas Nilsen, “Arctic Russia Warms 2.5 Times Faster Than the Rest of the Globe”, The Independent Barents Observer, November 29, 2015, Atle Staalesen, “No Pause in Arctic Exploration – Igor Sechin”, The Independent Barents Observer, July 18, 2016, Atle Staalesen, “Moscow invites Beijing to take part in Arctic sea route project”, RT, 7 December, 2015), “Aiming for Year Round Sailing on Northern Sea Route”, The Independent Barents Observer, December 14, 2015). To these must be added the new north-south railroads network that connects the various Northern Sea Route vs Southern Sea Routeindustrial projects to the railroads networks of Russia and of Central Asia, and thus to Europe and China (“Russian Railways to Complete Latitudinal Railway project to the Arctic”, Think Rail Ways, November 19, 2015, Atle Staalesen, “Grand Railway Deal for Yamal”, The Independent Barents Observer, October 20, 2016). In the same dynamic the Russian military Navy has been put in charge of the surveillance and monitoring of the whole region and its projects, and installs bases all around the Siberian coast as well as on the islands of the Russian Arctic Ocean.

As the paradoxical logic of strategy let us expect, the environmental and economic constraints outlined previously have driven the Russian authorities to facilitate the emergence of industrial and human resources’ innovations, through the recruitment of young Russian engineers in the energy sector. Those are tasked to compensate the brutal loss of western technological know-how since 2014 and the start of the sanctions regime. Those engineers are encouraged to be innovative and thus to reduce quickly the gap between the technological needs of the Russian companies and their capabilities in the Arctic (Irina Slav, ibid). Thus, the new potential for the energy exploitation of Northern and maritime Siberia, which emerges, is so attractive that, despite the sanctions regime, some western companies, such as Total and BP, have continued or reactivated their partnerships with their Russian counterparts (Jean-Michel Valantin, The Warming Russian Arctic: Where Russian and Asian Business Converge?”, The Red (Team) Analysis Society, 21 November, 2016).

Thinking strategically: turning a system of constraints into power (of attraction)

Once again, the Russian political and business authorities have been able to harness the “power of attraction” of Northern Siberia, literally reinforced by the very pressure that are exerted upon them.

In other terms, analysing these dynamics in strategic terms leads us to realise that Russia is projecting a staggering amount of political, economic, industrial, military and business power in Northern Siberia and upon the Arctic Ocean. This projection of power reaches such a scale, because it is aimed at creating what we call the “Russian arctic power of attraction”, which is felt throughout Central, South and Eastern Asia.

This attraction is expressed, for example, by the multibillion dollars Chinese investments in the Yamal peninsula and in the Arkhangelsk port, or by the sales of Siberian LNG to Japan, or by the use of the Siberian ports and railroads by South Korean Tor icebreaker, Red (Team) Analysis Society, strategic foresight, strategy, Russian Arctic, paradoxical logicshipping and industry companies to export industrial machines in Kazakhstan (Jack Farchy, “Chinese Lend $12 Bn for Gas Plant in Russian Arctic”, Financial Times, April 29, 2016, (Atle Staalesen, “Grand Railway Deal for Yamal”, The Independent Barents Observer, October 20, 2016, (“First Chemical reactors shipped to Kazakhstan from South Korea”, The Astana Times, 26 July 2016).

This strategy is grounded in the political, economic and strategic history of Russia, which has built the bulk of its industrial base between the end of World War I and the 1930s, during the immensely violent period of the Soviet A battery of Katyusha during the 1941-1945 Great Patriotic War, Red (Team) Analysis Society, strategic foresight, strategy, Russian Arctic, paradoxical logicrevolution and of the installation of Stalinism (Moshe Lewin, The Soviet Century, 2005). Then, during the savage German onslaught of 1941, Russia moved its western industrial capability to the Ural and Siberia, where it was reassembled, before overwhelming the Wehrmacht and the Nazi military industry with its sheer production capability and strategic sense (Adam Tooze, The Wages of Destruction, 2006).

Then, came the long years of reconstruction. Finally, during the 1990s, the end of the Soviet Union saw the terribly destructive economic crisis that ravaged entire sectors (Stephen Kotkin, Armageddon Averted – The Soviet Collapse 1970-2000, 2008) of the Russian industry, before the beginning of the 2000s witnessed the starting of the Russian industrial rebuilding.

The current Russian Arctic endeavour seems to be a new phase in the industrial development of Russia, led by a strategy that is aimed at renewing the status of Russia as an international economic power at the time of climate change, which combines itself with the energetic needs of Asia and the tensions with Europe and the U.S. (Anna Andriovana, Elena Mazneva, “Japan makes Arctic gas Move with $400 million Yamal LNG Loan”, Bloomberg, September 2, 2016).

This capability to implement a project despite the fact that it attracts and trigger opposite political and environmental forces is the very essence of the paradoxical logic of strategy.

Continuing building upon and using strategic thinking, we shall turn to the inner workings of the Russian Arctic development with the next article. We shall notably see how the latter’s different aspects, mainly the industrial operations and the changing environment, are interacting, creating a certain level of “friction”, an essential dimension of strategy. This level of friction is a crucial element for the successful dynamics of this mammoth project. Then, we shall study how the Russian authorities identify and use the current phase of climate change as an industrial window of opportunity and how they behave accordingly, in order to make this project profitable for domestic and international investors.

About the author: Jean-Michel Valantin (PhD Paris) is the Director of Environment and Security Analysis at The Red (Team) Analysis Society. He is specialised in strategic studies and defence sociology with a focus on environmental geostrategy.

Featured image: МЛСП «Приразломная» на карте российской Арктики, 2014 by By Krichevsky (Own work) [CC BY-SA 4.0 (http://creativecommons.org/licenses/by-sa/4.0)], via Wikimedia Commons

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