Taleb’s Black Swans: The End of Foresight?

Since Nassim Nicholas Taleb published his bestseller The Black Swan: the impact of the highly improbable back in 2007, “Black Swans” and “Black Swans events” have become part of everyday language. They are used as a catchphrase to mean two different things. First, as was the case in the Brookings interesting interactive “briefing book” Big Bets and Black Swans: Foreign Policy Challenges for President Obama’s Second Term, “black swans” represent high impact, low probability events, what is also known as wild cards.[i] Second, “black swans” refer to events that could absolutely not be predicted, as, for example for the Economist in ”The prediction games: Our winners and losers from last year’s edition”. Unfortunately, in this case, the label “black swans” excuses foresight …

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The Red (team) Analysis Weekly No83, 17 January 2013

Towards a multiplication of increasingly fragile states? This is what could mean the report on the state of infrastructures in the U.S. (and probably other so called rich countries?). It is a crucial weak signal that could trump all others: imagine weak, increasingly fragile “rich countries” on the backdrop of all the other tensions and threats…

Click on image to read on Paper.li or scroll down to access current issue below.

horizon scanning, weak signal, national security

End of Year Predictions: the 2013 Yield

Open sources predictions for 2013 published on the web related to conventional and unconventional national security and as foreword a few methodological posts on predictions and forecasts.

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Trial by Fire for Foresight: The 2012 Predictions of The Economist

The Economist shows the lead in a courageous yet hardly ever done exercise: going back to our own foresight and assess, in the light of the present, what was right and what was wrong. It provides us with an example of how such lessons learned could be endeavoured, underlines questions that should be asked and key challenges for anticipation, and exemplifies how biases can derail foresight.

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Towards a New Paradigm?

Assessing if we are about to see a paradigm shift is twice crucial. First, and foremost, as human beings living within societies, if such a change happens, then we need to be ready for the upheavals that precede and accompany such deep revolutions, as stakes, both ideological and material, are at work to try blocking change. We also need to understand what is happening to take the right decisions in our lives, hopefully with the right timing, to mitigate adverse impacts and favour positive ones.

Belief systems: pradigm, systemic norms, religion and ideology, and models of socio-political organisationSecond, in terms of strategic foresight and warning analysis, the deepest layers of ideas organizing societies and their interactions are fundamental frameworks, within which any understanding must be located. If changes are in the making, then they will forcibly alter the future, while the present is most probably already being affected, giving rise to a feeling of unpredictability. Actually, it is not so much that there is a novel unpredictability settling in, but that the lenses through which the world is analysed and then acted upon are inadequate.

Paradigm: Modernity

Paradigms are encompassing thought patterns and related sets of practices, which “for a time provide model problems and solutions” (Kuhn, viii). The contemporary use of the word comes from Kuhn’s The Structure of Scientific Revolutions (.pdf version), and thus hard science. We use here its application to history (and social science). From a European (and Western) point of view, for example, we would thus have the Middle Age, Modernity, something new still unnamed. Through the process of modernization, Modernity has reached most of the globe with varying timing, success, depth of impact and finally versions, and is thus a paradigm that is relevant globally.

Modernity is defined by sociologist Anthony Giddens as

“associated with

(1) a certain set of attitudes towards the world, the idea of the world as an open transformation by human intervention;

(2) a complex of economic institutions, especially industrial production and a market economy;

(3) a certain range of political institutions, including the nation-state and mass democracy.

Largely as a result of these characteristics, modernity is vastly more dynamic than any previous type of social order. It is a society – more technically, a complex of institutions – which unlike any preceding cultures lives in the future rather than the past” Conversations with Anthony Giddens: Making Sense of Modernity 1998, p.94.

This is what a large part of the world has known for the last centuries, to the least for the main part of the twentieth century, and which may be about to disappear (Lavoix, 2005: 20).

Some examples of previous paradigm changes are, in Europe, the shift from pre-modern to modern time (the end of the Middle–age and the Renaissance), a similar shift taking place in the whole of Eurasia, as shown by Lieberman’s work, the Meiji Transformation in Japan, Iconoclasm in the May Fourth Era in China, to borrow Yü-sheng Lin’s title.

Signals of paradigm shift: Crisis

paradigm crisis, ideological stakesAccording to Kuhn, the paradigm switch itself is relatively sudden and unstructured. Before it happens, a crisis occurs, that is “brought about by the accumulation of anomalies under the previous paradigm.”  (Curd and Cover, 218). In science this means debates. In historical life, this is most likely to mean struggles and conflicts, while problems cannot find solutions anymore.

In our tentative application of Kuhn’s theory to history, we may either have the old and the new paradigms cohabitating with struggles between the two (and their “proponents”), or the old inefficient paradigm trying to survive attacks by those who see and understand it is not adequate anymore. The crisis would continue until a new efficient paradigm emerges and the shift (the complete adoption of the new paradigm) takes place. Upheavals are most likely to continue for a while as related human institutions are created and work at stabilising the situation.

As pointed out by Ertman in the case of the search for new adequate models of socio-political organisations, ideological and material stakes in the old paradigm, and in all institutions and layers of beliefs that are derived from the paradigm, block the full emergence of the new paradigm or the search for new solutions. The dynamics that are most likely to be at work have been presented in the Chronicles of Everstate, in a fictionalized way to ease understanding: Ideological Stakes in an Outdated Worldview and Material Stakes in an Outdated Worldview.

A paradigmatic crisis is probably progressive, with peaks but also accumulation of tension. Consciousness of the needed change probably occurs only slowly. When sufficient awareness has dawned, which, for us, may be now, then the emergence of the new paradigm, the shift itself, may not be far away; yet efforts at understanding and adapting are more than ever necessary, while the struggle to maintain the old paradigm and its advantages continues unabated and is even likely to strengthen.

The multiple crises (the environmental cliff to use the words of Jeremy Grantham, the sovereign debt crisis, the financial crisis, the global economic crisis, global water insecurity, resources depletion or insufficiency, international tensions, etc.) through which we are currently living could actually be much more than “just” the juxtaposition of unrelated crises. They could signal that we are in the midst of a paradigm crisis.

Leaving Modernity?

The shock of the heliocentric systemWe would thus be living close to a paradigm shift, which would see us leaving modernity. Such a transition would mean that our perceptions, world-views, understanding but also consequent sets of practices, change. They need to do so as they do not provide anymore for solutions, as shifts are demanded by the incapacity of the previous paradigm to help human societies making sense of the world and thus surviving. This does not imply that all previous beliefs and practices disappear, but that they may be perceived, used, interpreted otherwise, although some will also totally vanish.

Considering the huge potential impact a paradigm crisis and a shift would have, it is necessary to try monitoring if it is really happening and what is happening, to fully include the possibility of this paradigmatic change in our analyses and to be on the look out for elements of the new paradigm.

Using Giddens initial definition, we should be ready to see disappearing or considerably changing:

  1. The idea of the world as an open transformation by human intervention. For example, this questions the whole geo-engineering approach to climate change: Is geo-engineering an ultra modern approach, grounded fully in modernity and thus bound to disappear or is it, on the contrary, part of a new paradigm, besides human augmentation (the singularity approach), where the very definition of the living and its creation changes?
  2. A complex of economic institutions, especially industrial production and a market economy: Could approaches such as “do less be more” as suggested by Chris Thomson & Mike Jackson (p.20) as micro-level answer to the paradigm crisis, focusing on values and quality rather than quantity be part of the solution? Will the institutions of the Washington Consensus disappear? Will the liberal order leave place to something else that can handle the crisis?
  3. A certain range of political institutions, including the nation-state and mass democracy: Trying to make sense of the crisis in the domain of political authority and to foresee what could happen is the focus of the Chronicles of Everstate.

Before to close, I would like to quote Richard Tarnas, as he wrote a beautiful description of what a paradigm crisis and shift entailed, in the past:

“Yet it would be a deep misjudgment to perceive the emergence of the Renaissance as all light and splendor, for it arrived in the wake of a series of unmitigated disasters and thrived in the midst of continuous upheaval. Beginning in the mid-fourteenth century, the black plague swept through Europe and destroyed a third of the continent’s population, fatally undermining the balance of economic and cultural elements that had sustained the high medieval civilization. Many believed that the wrath of God had come upon the world. The Hundred Years’ War between England and France was an interminable ruinous conflict, while Italy was ravaged by repeated invasions and internecine struggles. Pirates, bandits and mercenaries were ubiquitous. Religious strife grew to international proportions. Severe economic depression was nearly universal for decades. The universities were sclerotic. New diseases entered Europe through its ports and took their toll. Black magic and devil worship flourished, as did group flagellation, the dance of death in cemeteries the black mass, the Inquisition, tortures and burnings at the stake. Ecclesiastical conspiracies were routine, and included such events as a papally backed assassination in front of the Florentine cathedral altar at High Mass on Easter Sunday. Murder, rape, and pillage were often daily realities, famine and pestilence annual perils. The Turkish hordes threatened to overwhelm Europe at any moment. Apocalyptic expectations abounded. And the Church itself, the West’s fundamental cultural institution, seemed to many the very center of decadent corruption, its structure and purpose devoid of spiritual integrity. It was against this backdrop of massive cultural decay, violence, and death that the “rebirth” of the Renaissance took place.” The Passion of the Western Mind, (Pimlico, 1996 [1991]), p.225.

———

Curd, Martin and Cover, J.A., “Commentary on Kuhn’s Structure of Scientific Revolution” in Philosophy of Science: The Central Issues, ed. Curd and Cover, (New York : W.W. Norton & Company, 1998).

Ertman, Thomas. Birth of the Leviathan : Building States and Regimes in Medieval and Early Modern Europe. Cambridge, UK ; New York: Cambridge University Press, 1997.

Giddens, Anthony  and Christopher Pierson, Conversations with Anthony Giddens: Making Sense of Modernity, (Stanford University Press, 1998).

Grantham, Jeremy, “Be persuasive. Be brave. Be arrested (if necessary),” Nature 491, 303, 15 November 201, doi:10.1038/491303a.

Jackson, Mike, “Global Change of Paradigm,” Shaping Tomorrow, 20 June 2012.

Kuhn, Thomas S., The Structure of Scientific Revolutions, International Encyclopedia of Unified Science, Volume 2, Number 2, (Chicago: The University of Chicago, 1970 [1962]).

Lavoix, Helene, Indicateurs et méthodologies de prévision des crises et conflits: Evaluation, (Paris : AFD, December 2005).

Lieberman, Victor, B. “Local Integration and Eurasian Analogies: Structuring Southeast Asian History, c.1350-c.1830;” Modern Asian Studies 27, 3 (1993), pp 475 -572

Lieberman, Victor, B., Strange Parallels, Southeast Asia in Global Context, c.800-1830 Vol.1 Integration on the Mainland (Cambridge: Cambridge University Press, 2003).

Lin Yü-Sheng, The Crisis of Chinese Consciousness: Radical Antitraditionalism in the May Fourth Era, (Wisconsin: The University of Wisconsin press, 1979).

Tarnas, Richard, The Passion of the Western Mind: Understanding the Ideas That Have Shaped Our World View, (London: Pimlico, 1996 [1991]).

Thomson, Chris,  & Jackson,Mike  New Purpose, May 2012, Shaping Tomorrow.

Pattern – Higher Global Temperatures, Earlier Impacts and the Shale Fuels Bounty

We most probably need to get ready for a 2C temperature rise and its harsh impact on the world relatively rapidly as a temperature rise of 6C – and above – by the end of the century is increasingly probable. Indeed, interests and current challenges and tensions are most likely to favour shale fuels’ production and policies and adversely affect “green efforts”. Other ecological adverse impacts on global security issues such as water and biodiversity may be enhanced and must be monitored. Citizens’ mobilization on those issues may evolve as trade-offs will be done, and as impacts will be felt.

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Pattern – Towards Polarization in the Western World?

The pattern that has been emerging over at least the beginning of the second decade of the twenty-first century is a rising polarization within Western society – or societies. In this article, we identified and analysed the trend through the related signal – the 14 November 2012 strikes. We evaluated the evolution toward polarization as likely. We then assessed that we shall likely see more demonstrations and protests in the near future, which will probably expand in terms of participation, geographical scope and content of demands. Dismissal – easily interpreted as despise – absence of satisfying answer and feeling of unfairness will most likely enhance tension, opening the door to violence under various forms.

Subsequent  and current dynamics and events have proven our estimate was correct. We do not see an end to this trend in the near future (Oct 2017).

Analysis

As a consequence of the responses given by governments to the financial institutions and sovereign debt crisis, austerity policies, protests have spread throughout the Western world since March 2011. On 14 November 2012 a Europe-wide strike was organised and saw millions of demonstrators taking to the streets with variations according to countries. The demonstration shows a rising coordination across countries and mobilization of citizens. It is however still mainly peaceful despite sporadic violence.

#14N: millions join largest European strike ever, Jerome Roos, Reflections on a Revolution ROAR: Street battles break out and large parts of Europe are paralyzed as millions of workers walk off their jobs in the biggest coordinated EU…

The general demonstration occurred as the Euro zone was not yet considered as being in recession. However, as now recession is official and expected to last, then the causes for the mobilization remain, letting us expect more protests to come.

Euro zone seen sinking into recession as Germany struggles, Robin Emmot,  BRUSSELS, Nov 15 (Reuters): French economy seen stagnating; Germany to grow just 0.2 pct; The euro zone likely slipped in…

If peaceful protests are, however, considered as useless, notably by the conservative and liberal financial establishment, then it is most likely that demands will not be heard, and worse, that peaceful demonstrations will be dismissed. It may be seen as the real response to the demonstration, actually a hardened position. As recession may also increase the fear of diminishing profits, then a softening posture is unlikely. Furthermore, one may also imagine that a continuing recession added to failed efforts by demonstrators to bring about change would be an opportunity to actually increase profits – and power – on the short and medium term by breaking any opposition, thus by changing the second half of the 20th century related balance of power. This would also imply a tendency towards a harsher position.

Big Europe Strikes Have Little Effect, Wall Street Journal: General strikes and sporadic violence against government austerity programs racked Spain, Portugal and Greece, but they appeared unlikely…

Featured image: Madrid Demonstration on 14 November 2012 from #14N: millions join largest European strike ever by Jerome Roos.

#Anonymous and #OpVendetta on #5Nov 2012

As described previously, Anonymous undertook a political mobilization to protest on 5th November 2012, notably against current austerity policies and destruction of public service. Here is what happened yesterday evening, as a result, in a few pictures, tweets and charts.

Re-enacting V for Vendetta final scene in London

In London, the protest started on Trafalgar Square and walked until Parliament Square, as planned.

 

 

Here is a sample of a video of the London march as they are slowly released on Youtube:

Estimates of participation vary from hundreds to thousands.

According to RT’s article “‘Remember, Remember’: Anonymous marks November 5 with hacks, protests” as well as to a participant around two hundreds people gathered at Trafalgar Square:

 

However, some underline this figure as an underestimation, using the picture of the march to Parliament above.

Occupy, for itself, gives the following figures:

 

By comparison, the protest organised in Washington DC, for example, was much less successful, according to recorded livestream (by USTREAM), which, considering the specific day chosen – typically linked to English history – and different circumstances in the two countries, may not be surprising.

#OpVendetta and Analytics

Meanwhile, what happened on social networks, or more specifically on twitter?

The number of tweets, using Kred and the related analytics by PeopleBrowsr (the analytics are, by the way, extremely useful, easy to use and beautifully displayed) skyrocketed. Using as simple query #OpVendetta, you have the results below, counting 27660 Tweets for November 2012 and 21033 Retweets, most of them on 5 November 2012, with a rather positive sentiment. The location of the tweets is also interesting, with a strong participation in the UK and the US (see also the US share according to States), in Commonwealth countries and in Europe.

Was it a success and what to expect next?

I would assess that the operation was successful as it succeeded in moving from hacktivism mainly to a political protest in the real world, when it is so difficult to mobilise people. It also got coverage outside the cyber security world, notably on RT, according to the latter editorial line.

Is it enough to obtain the changes that were demanded, certainly not. However, history teaches us that political mobilization takes time and that obtaining political change is even harder. Thus, considering the overall grim outlook, my assessment is that the movement must be followed and is most likely to grow and to play an increasingly important part on the political scene.

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