2013 Predictions’ Yield (2)

predictions, forecast, foresight, future, windTo follow up on last week’s list of 2013 predictions, here is the yield for the first week of 2013, which should end the series for this year.

Nations prepare for cyber war, David Goldman @CNNMoneyTech, January 7, 2013.

2013: Lucky or unlucky for the world economy? Anastasiya Kostomarova, Business RT, 4 Jan 2013.

Analysis – Doom scenario far-fetched but euro gloom to deepen, Alan Wheatley, Reuters, Jan 7, 2013 (note: not exactly presented as a 2013 prediction, but not very far from it either, and interesting anyway).

2013 Outlook & Forecast, Kiron Sarkar, The Big Picture, January 5th, 2013.

Back To The Future, Zero Hedge, Jan 7 2013.

The 96 Charts That Have To Be Seen To Believed For 2013, Zero Hedge,  01/02/2013 and  corresponding original EYE ON THE MARKET, OUTLOOK 2013, Michael Cembalest, JPMorgan Asset Management’s Chairman of Market and Investment Strategy, J.P. Morgan Private Bank (pdf).

2013, Bruce Krasting, Zero Hedge, 12/29/2012.

10 National Security Threats in 2013, By Lamont Colucci, USNews World Report, January 3, 2013.

A Better Year: 2013 Forecast for Asian Economies, Anthony Fensom, The Diplomat, 3 January, 2013.

10 ASEAN Trends to Watch for in 2013, Prashanth Parameswaran, The Diplomat, January 4, 2013.

2013 Predictions: A Strengthening Economy, John Lounsbury and Steven Hansen, Global Economic Intersection, Dec 30, 2012.

Raising the curtain on 2013, FT writers, FT, December 30, 2012.

2013: Crunch time for the global economy, Joseph E. Stiglitz. World Economic Forum, Jan 2nd 2013.

Global Risks 2013 report, World Economic Forum, 8th January 2013 (forthcoming).

2013 the year ahead and 2013: the experts’ view series, The Guardian, notably:

Ten trends for 2013, ECFR & Nicholas Walton, The European Council on Foreign Relations, 1 Jan 2013.

End of Year Predictions: the 2013 Yield

Predictions and Warning

End of year predictions

As last year, in this section, we shall gather open sources predictions for the New Year, published on the web and interesting for conventional and unconventional national security. As a foreword, we shall start with a few methodological posts, which have been recently published on predictions and forecasts, and that are worth reading. We shall then move to links to 2013 predictions.

On Forecasting and Predicting

Forecasting Round-Up No. 1, No. 2, No. 3, Jay Ulfelder, Dart-Throwing Chimp,  10 Sept, 30 Nov, 6 Dec 2012.

On “Prediction Accuracy”, Josh Calder, World Future Society Blogs, December 11, 2012.

Year-end lists are hazardous to your health, Scott Smith, Quartz, December 24, 2012.

2013 Predictions and Forecasts

The Economist, The World in 2013, with a twitter feed: @EconWorldin

New framework: 2013 and beyond – What will appear and disappear in our lives, Ross Dawson, December 17, 2012.

VMware’s Chief Technology Office series of predictions – Among them:

Global development podcast: hopes and fears for 2013, Presented by John Vidal and produced by Vivienne Perry, The Guardian – guardian.co.uk, Wednesday 19 December 2012.

Council on Foreign Relations

Coup Forecasts for 2013, Jay Ulfelder, Dart-Throwing Chimp, 21 December 2012.

High food prices could be here to stay: Crops lead the field for commodities, Javier Blas in London and Gregory Meyer in New York, Financial Times, 21 December 2012.

The 10 Most Important Economic Questions For 2013 – Business Insider, Dec. 26, 2012.

2013: The strategic agenda, from the Newspaper, , 23rd December, 2012, Dawn.com.

World Economic Situation and Prospects 2013, DESA, UN, 18 December 2012.

IMF’s Lagarde sees advanced economies up 1.6 percent in 2013, Reuters, Dec 16, 2012.

Energy in 2013: What’s next for oil, gas, renewables? David J. Unger, The Christian Science Monitor, December 23, 2012.

Foresight Africa: Top Priorities for the Continent in 2013, Julius Agbor et al. Brookings Institution, January 2013.

Predicting 2013 – Opportunities and Threats, written by wikistrat analysts, special to the Diplomatic Courier, 26 December 2012.

Predictions for 2013 – The Washington Post, 26 December 2012.

10 Conflicts to Watch in 2013, Louise Arbour, Foreign Policy, Dec 27, 2012.

Strategic Foresight & Warning Analysis

(Update 4 – 22 January 2013) – see below for list of posts in this section.

Strategic Foresight and Warning (SF&W) is at once process and analysis.

By SF&W analysis we mean all methodologies and related issues allowing for the development of an understanding grounded in reality that will generate best anticipatory products, useful to decision-makers and policy-makers for carrying out their mission.

The larger SF&W analytical method can be seen as following the following steps, with use of various methodologies and related challenges for each step:

Strategic Foresight and Warning analytical methodology, foresight analysis, scenariosAn example of what is involved in step 1 is given here with the bibliography and links on the one hand, with the Red (team) Analysis Weekly on the other. A more detailed discussion of step 1 and 6 can be found in the section scan & monitor.

The second (Creating the model I & II) and third (Determining criteria; Variables, values and consistency in dynamic networks and finally Using ego networks in foresight analysis) steps of the foresight part of the method will be developed with the use of The Chronicles of Everstate as example.

Part of the content of steps 2 and 3 may move from one to the other step. If fully dynamic networks with precise timeline and Bayesian networks were constructed, then the first part of step 3 (identify values, timeline and probabilities) would be included in step 2. Here it is part of step 3.

The monitoring part of step 6 is done for various issues through The Sigils, as well as through The Weekly. These real life indications allow checking the validity of the scenario, and updating the model used for each issue, as done, for example, in the section on end of year predictions. They also allow identifying new emerging issues ( the feedback on step 1).

List of posts

Creating a Foresight or Warning Model: Mapping a Dynamic Network (I)

Map, graph or network as model:

Once an initial question is defined – in our case, what will be the future of the modern nation-state for the next twenty years – most strategic foresight and warning methods start with building a model that will describe and explain the issue or question at hand. In other words, we construct our underlying model for understanding. As Epstein underlines, making explicit models is nothing else than explicating the hidden model we, as human beings, are using when thinking. Furthermore, in terms of analysis and more specifically intelligence analysis, making the model explicit will help first identifying various unconscious biases, thus allowing minimising them. It will then help defining areas of uncertain understanding, which can then be marked for further research.

What is a map, graph or network?

Most futures or foresight methods start looking for variables (also called factors or drivers) that are part of their model. A variable is a symbol or symbolic name that stands for a value that may vary. Some methodologies then link those variables. The link between two variables represents an influence (A influence B), most often causality. For example, in a model on demographics, one might have as variables birth rate and total population, and a link from birth rate to total population.

Whatever the question at hand, the construction of the model must be grounded in science, i.e. accumulated knowledge and understanding. Brainstorming sessions are crucial but should not dispense with using what others have understood beforehand, even if debates exist. Ideally the model should also be regularly updated to consider new findings.

One may see such maps, for example, in the British foresight product, Dimensions of Uncertainty done by the Foresight department of the Government Office for Science (2010?), notably Annex A.

Actually, maps are nothing else than graphs or networks – in our case directed graphs - and thus will benefit from the long scientific history that is attached to them, from Graph Theory, as graphs started being studied in mathematics with Euler in 1735 to the more recent Network Science. The development of the field has seen the emergence of new tools, such as network visualization software that greatly facilitate working with and on networks. Gephi, open source software, has been used here for the development of the underlying model, considering both its ease, its flexibility and yet its power.

The map and its use

Once the model is built, it is used to develop the scenarios that will constitute the history of Everstate, notably thanks to ego networks as will be explained in a few weeks. It will also give the indicators that are necessary for warning. Were capabilities available, it could be a step towards developing proper simulations that could then be mixed with the narratives.

The map itself, if it is seen as a whole by neophytes, may appear as complicated and difficult to use. It is however not so. It is just a tool and as all tools it demands understanding and training. Computers or mobile phones are far from being simple and yet they are now almost universally used. Once mastered, working with networks greatly facilitates the task of the analyst. It can be used as reference and give support to analytical conclusion, as statistics, trends or indications do. It is indeed one of the purposes of the Chronicles of Everstate to show how simple using a map for strategic foresight and warning is.

In terms of analytical management, a map is an investment. Indeed, once a graph has been properly built for a specific issue, it will most likely remain valid for a large period of time, especially if it is regularly updated with scientific findings. It can thus be used again each time the issue it covers comes into play. For example, if one wanted to do some foresight and warning on pandemics, the future of nuclear energy, of weapons of massive destruction (WMD), or cybersecurity, then at one stage or another the dynamics linked to state and government would have to be introduced and thus the map constructed here for the future of the state could and should be used again.

Constructing the initial model

The core ideal-type model

Rather than attempting to build from scratch the overall graph in all its complexity, it is easier to start building a minimalist core ideal-type model. This core graph will allow understanding the fundamental dynamics at work and then will be used as basis for developing the full model.

In the case of the future of the nation-state, I have started from Weber’s ideal-type, which gives the following graph.

This approach to understanding politics, which, obviously must include the population, a variable so often forgotten, would have helped understanding the 2011 uprisings in North Africa and the Middle East as well as the more recent protests in Europe and the Americas. We may only assume, with hindsight, that, had it been applied to classical F&W countries’ analysis, the likelihood to have been able to foresee the events would have been greatly heightened.

Including dynamics

As the graph shows, s0 (“step 0”) and s1 (“step 1”) have been added to variables, so as to include a dynamic dimension. Indeed as the model was being constructed, tested and revised, it appeared that using uniquely broad static conceptual variables was inadequate. The system constituted by the polity evolves; each action has consequences; the aggregation of all actions, reactions and consequences, as well as creativity, lead to evolution and change…. Read more next post.

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Image: The Seven Bridges of Königsberg, by Bogdan Giuşcă (Public domain (PD), based on the image, GFDL or CC-BY-SA-3.0, via Wikimedia Commons

Creating Everstate

Everstate is an imaginary state in our contemporary world of the beginning of the 21st century created to identify and imagine various futures. It will be used to represent all states and each state. Everstate is thus an ideal-type state and a shorthand for the model that was constructed to represent the dynamics and processes underlying the evolution of a state, as political form, a dynamic map or network, as will be explained in detail this week in a second and third post.

However, even if we work with an ideal-type, events do not unfold in a vacuum but are dependent and constrained by a host of specific factors, most notably geography, the ecological milieu and history.

Thus to make our foresight at once realistic, replicable, as well as adaptable to specific, existing countries, some criteria need to be initially identified and then specified, i.e. we shall give them values for Everstate. For example, if geography is selected as a criteria, then you may give as value: land in the tropical belt in South Asia, or land in Northern America, then determine if your country is small or large, etc. Those initial characteristics will also influence what happens. To identify which criteria we need, we shall use a “revisited influence analysis“ that will be posted on 4 December. Then, we shall explain how to attribute values for each criterion, in the specific case of dynamic networks, on 18 December, as well as post those selected criteria and their values.

We shall then explain how we shall proceed with the map to construct the narrative through use of ego networks, and apply it immediately to articulate how those values set the stage for Everstate.  For the New Year – posting on Monday 2 January as an exception, we shall thus start really telling the story of Everstate, while, in the meantime, showing how to do it.

You can imagine changing those criteria to see if the stories change, to get potential futures that are closer to those countries that interest you or apply real criteria to identify plausible futures for real countries.

The Chronicles of Everstate: foreseeing the future of the modern nation-state

As riots and protests have been progressively, and in an accelerating way, occurring in many countries, starting with France in 2005, as public deficits have become structural and entrenched, made more acute by the financial and economic crisis triggered in 2007 by the sub-primes, it became increasingly clear that something was happening at the very heart of our societies. The political systems in which we live are under stress and changes are in the making.

The end of the modern nation-state?

by photographer Yiannis Biliris C.C. 3.0

Those very real events reflect a concern that has been underlined and debated in social sciences, notably international relations theory and political science for a long while, and most often expressed as the impending demise of the modern nation-state and related system. Already in 1977, Hedley Bull in his masterful The Anarchical Society was, among other, testing various hypotheses related to possible future evolutions of political systems. Meanwhile, most foresight products underline the end of the modern nation-state without investigating it. Furthermore, the strength or fragility of the state generates a lot of interest as a growing fragility could lead to civil war, state collapse and generalized warfare. The state is this political entity that is so difficult to define precisely and universally, and yet that we immediately recognize when we deal with it or when it is not there anymore. It is Hobbes’ Leviathan, and, without it, “the life of man [is] solitary, poor, nasty, brutish, and short.”

The type of state that is prevalent nowadays is described as modern (the modern state), centralized and rational. It is linked to the nation (the nation-state). The 1648 Treaty of Westphalia marks the birth of the modern state system.

As we, human beings, all live under one form or another of state, as it is the guarantor of security writ large, from the protection of foreign enemies to domestic peace to the foundation for material and immaterial security, as fragile states could mean strife and death, we are all primarily concerned by its potential disappearance or by foreseen changes in its form. We must be able to envision its plausible futures.

The question is absolutely crucial because from the answer will depend how we shall deal with all other issues facing us, from climate change to geopolitics through food and energy security among others.

The Chronicles of Everstate: foreseeing the future(s) of the modern nation-state

As Strategic Foresight and Warning (SF&W) is the best analytical method to envision changes and imagine possible futures, it was high time to apply SF&W to this debated and complex issue:

What will be the future of the modern nation-state this ideal-type form of polity into which most of us live nowadays, for the next twenty years?

Developing a specific foresight analytical methodology and an adequate product

The overall project evolved relatively slowly as I also wanted to use the future of the state as a case study to develop and test a foresight methodology that would be built on existing tools and overcome some existing methodological difficulties. This method had to be specifically adapted to national security issues and to incorporate science findings. Meanwhile, I also had to find a way to make it as simple of use as possible, yet without simplifying it to the point that it would lead to erroneous results. Finally, the methodology had to be testable and replicable.

Furthermore, as foresight and warning does exist only in as much as it is delivered, I had to identify who were the customers or clients for the final product, and imagine the best form the product needed to take for those customers. With time, it became increasingly obvious that those clients and users were the contemporary rulers, i.e. the nation and the citizens as well as the civil servants working for the state apparatus that supports the ruler, as explained in detail in concept and philosophy behind Red (team) Analysis.

In terms of method on the one hand, and product delivery, on the other, I soon faced a few major challenges: if the method itself was relatively simple, it could look otherwise if not explained properly, and thus lead to adverse reactions and rejection. Meanwhile, the product itself, the scenarios, stories or narratives, as they evolved, became soon too long to be conveyed through a conventional medium, apart from a book, which would mean a very long delay before publication. Last but not least, events started unfolding at an accelerated pace showing the pertinence of the foresight experiment, but also putting a supplementary time pressure on the whole project.

The Chronicles of Everstate, as will be published here, are an answer to those various concerns. Regularly, every two weeks, Red (team) Analysis will now post a new part of the Chronicles of Everstate, the fictional state created to imagine and tell the story of potential futures for our – very real – states or countries. The new post will be displayed on the home page, then will be accessible, as all posts through the menu (some categories of the menu are currently empty but will be populated with posts as times goes by).

The first post will explain precisely the rationale behind the Chronicles of Everstate, why Everstate, and how to use the concept. As it will be relatively short, the next post will be published the week after. It will open a series of posts that are methodological in focus, dwelling more in-depth into technical intricacies, somehow the nuts and bolts of the methodology, always using the future(s) of the state as example. Then, we shall finally start telling the Chronicles of Everstate; all other posts being at the same time a didactic practical application of the methodology and the development of the various scenarios for the future. In the course of the story, each scenario will be stress-tested against the same set of pressures and events.

Blog post, active reading and struggling against the persistence of beliefs

The regular publication under blog post format and thus the possibility for users and readers to interact is a specific feature that I wished to introduce in the project. Indeed, as human beings we are all prey to many cognitive biases, and it is one of the many challenges of SF&W to try to mitigate them. Among those biases, the persistence of beliefs and erroneous information may be one of SF&W’s chief enemies (Anderson, Pepper & Ross, 1980). Anderson, Pepper & Ross suggest two ways to overcome this persistence of beliefs: “Would such perseverance effects be eliminated or attenuated, for example, if subjects could be led, after debriefing, to consider explicitly the explanations that might be offered to support a contention in opposition to their initial beliefs? Alternatively, could subjects be “innoculated” against perseverance effects if they had been asked, at the outset of the study, to list all of the possible reasons they could imagine that might have produced either a positive or a negative relationship between the two variables being studied (cf. Slovic & Fischhoff, 1977)?

Building upon those two ideas, it is crucial to include within the foresight product itself an element that create and prompt active reflection. Futurists, when they develop future scenarios for businesses underline the necessity to engage decision-makers during the analytical process, through brainstorming for example, for the same reason.

However, with strategic foresight and warning for national security, it is hardly possible to use the same device. Policy-makers have tight agendas and little time available for participating in analytical processes. Furthermore, models, as we shall see soon, are too complex to allow for such an approach. To try doing it would be similar to ask users to learn programming and then participate in software development before to use a word processor. Finally, addressing also citizens forbids small groups brainstorming at analytic level for the sake of speed, cost and efficiency. Meanwhile, the fact that most people never interact, including over the world wide web, had to be considered

Something else had to be imagined, which is experimented here: to give clients – fundamentally readers – the possibility to interact directly with the product itself – but at their will and without letting the project depend upon those interactions – through:

  • comments;
  • active reading made possible by the way the method works and the narrative is developed (as will be seen with the next posts);
  • the format of accumulated blog posts that will allow, with time, navigating at will among various parts of the stories and thus develop other scenarios, according to the specific needs of users.

Finally, the blog posts/website format also aims at preserving the experimental, flexible and evolving character of the Chronicles of Everstate that has become one of the features of the project and could very well be a necessary characteristic of a Strategic Foresight and Warning analysis adapted to our contemporary world.

Welcome to the Chronicles of Everstate!

References

Anderson, Craig A., Mark R. Lepper, and Lee Ross. “Perseverance of Social Theories: The Role of Explanation in the Persistence of Discredited Information.” Journal of Personality and Social Psychology 1980, Vol. 39, No.6, 1037-1049.

Bull, Hedley, The Anarchical Society: A Study of Order in World Politics. London: MacMillan, 1977.

Gross, Leo (January 1948), “The Peace of Westphalia“, The American Journal of International Law 42/1 (1): 20–41, doi:10.2307/2193560.