Tag Archives: scenario

Strategic Intelligence Assessment for Syria (6) – Scenario 2: No Syrian in Geneva

Featured

Posted on by
1

Scenario 2: No Syrian in Geneva

Geneva, conference, Syria peace conference The diplomatic talks fail and the international conference in Geneva does not take place or is a face-saving sham (see “Scenario 1: Peace in Geneva?” and its sub scenarios for what could result from a true international conference).

Considering the current forces on the ground and their balance, we would face a lengthening conflict (probably over years rather than months) with rising prospects of regional and global involvement and chaos. The scope and depth of regional and global spill over would increase with the duration of the Syrian civil war, and, in turn, fuel it.

The spill over and contagion would most probably take four shapes (not mutually exclusive). First, we would face any action ranging from covert operations to war-like actions to war between states (all probably escalating towards wars). This aspect, in its less intense forms, is actually already operating, although the states involved are very cautious not to cross the line (in terms of official statement and language) that would force them into war, as shows, for example, the two Israeli raids on Syria and the way they are reported (among others, see the US apology for confirming Israeli strikes - Jerusalem Post 19 May 2013) . The political part of this spill over is being continually enacted, reminding us of Von Clausewitz famous “War is the mere continuation of politics by other means.” Second, we would face a similar range of actions but between states and actors dubbed “non-state actors,” yet vying for state power). Those two forms of contagion are usually imagined or expected as occurring within the Middle East, lately enlarged to the Middle East and North Africa (MENA). This is however too narrow a view, as Russia reminded us on 17 May 2013 when it sent “at least 12 warships to patrol waters near its naval base in Tartous, Syria.” (Times of Israel, 17 May 2013) to underline the importance of its interest in Syria and in the region, as underlined, for example by Eldar (AlMonitor, 19 May 2013). The American debate over the type, value and wisdom of an American involvement in Syria is another obvious example of the way the Syrian conflict spills over beyond the region.

Third, countries welcoming Syrian refugees (1,52 million people on 20 May 2013 – UNHCR - see detailed map below) will face a risk of destabilization stemming from the massive influx of people in countries that were not prepared for them, and were already sometimes facing difficult situations. Furthermore, refugees may be linked to fighting units and carry on activities linked to the Syrian war in the host country, thus heightening the risk of seeing those countries dragged into the conflict. Those factors and resulting tensions are already at work, notably in Lebanon (e.g. Euronews 18 May 2013), Jordan (e.g. C. Phillips, The World Today, Volume 68, Number 8/9), Turkey (e.g. Ibid., Krohn, The Atlantic, 17 May 2013).

Syrian refugees, Syrian civil war

A fourth, more unconventional, form of contagion must also be considered. As the crisis lengthens in Europe, European individuals attracted to Salafi-jihadi would increasingly travel to and from Syria (see ICSR Insight, April 2013), heightening not only the direct threat of terrorism within Europe (Europol TE-SAT 2013: 7, 20, 24) and possibly in the U.S. and Canada but also the spread of Salafi-jihadi cells. Considering the crisis and the “fragilising” policies of austerity and “externalization” – i.e. privatization of the state – (especially those concerning the legitimate monopoly of violence), actions by Salafi-jihadi cells could heighten the risk of polarization, for example by favouring further the rise and strengthening of already spreading right-wing extremist movements. Crisis-related unrest could be a favourable environment for violent actions from Salafi-jihadi cells, that would then feed into a more generalized political turmoil. The spread of Salafi-jihadi ideology in countries hit not only by the crisis but also by a lack of hope and vision as well as by denial – whatever the hardship and dangers faced by citizens – is not to discard. In this light, the novel vision promoted by the new Pope Francois 1st, warning against “the cult of money and the dictatorship of an economy which is faceless and lacking any truly human goal” (Squires, The Telegraph, 16 May 2013) might be considered as a potential counterweight.

Similar heightened risks would exist for any country where nationals have found their way to fight in Syria, as for example, Tunisia (Sgrena, IPS, 6 April 2013), and increase with the fragility of the domestic political situation.

Until a real peace takes hold in Syria (and this is thus true too for scenarios 1.1.2. and 1.2.2., see previous post), it will be most necessary to use all anticipatory intelligence or strategic foresight and warning means, foreign policy instruments, and, ultimately, military intervention (which may also be seen as a de facto spill over of the conflict), to try preventing further spill over of the Syrian civil war, assuming this is still possible.

In scenarios 1 and 2, the efficiency of the support provided to the National Coalition for Syrian Revolutionary and Opposition Forces will need to be intensely monitored, and aid – lethal and non lethal, official and covert – will have to be steered according to results and potential consequences. In scenario 1, this specific aid, as well as all support (see state of play, part I, II, III) given to specific parties should disappear once a peace agreement is signed. In scenario 2, all aid will need to be monitored in the framework of the types of involvement chosen by the various international actors.

Estimating Likelihood for Scenario 2

What could enhance the likelihood to see such a scenario happening? Events happening currently in the MENA region – and beyond – as well as on the Syrian battlefield must also be read with this dimension in mind. The potential spoilers below must be seen as related  and most of the time feeding into each other.

  • It is finally impossible to find a solution that would be acceptable to all permanent members of the UN Security Council.
  • Crucial international actors seek to extract too many advantages from other nations – related or unrelated to the region – and diplomatic talks fail.
  • Events surrounding the Syrian issue, be it on the battlefield or internationally, finally derail the diplomatic talks by prompting the withdrawal of too many important (because of their involvement with and in Syria or because of their power) international actors. For example, the 15 May 2013 UN General Assembly adoption of the text “condemning violence in Syria, demanding that all sides end hostilities” was judged by both China and Russia as unhelpful, but it may also be read, as underlined by Nashashibi (AlArabyia, 20 May 2013) as an effort to stress the importance of a peaceful solution to the conflict, of “effective representative interlocutors for a political transition,” and thus of the necessity of an international conference. It is also possible that the terror attack in the Turkish town of Reyhanli is part of an effort to derail diplomatic talks (e.g. Seibert, DW, 14 May 2013).
  • It is impossible to bring the regime of Bashar al-Assad to the negotiation table. Similarly, if it were impossible to find a person to represent the regime of Bashar al-Assad that would be acceptable to all parties, then, the international conference could not take place, or, if it were still happening, it would most probably only be a sham, i.e. all parties would not be represented or those accepting to sit at the negotiation table would not be representative of what is happening on the ground.
  • A major surprise occurs that would change the international outlook on Syria and the war.The diplomatic talks could be terminated.

Evolutions for Scenario 2

Scenario 2 should lead either to Scenario 1 or to Scenario 3 (A real Victory in Syria, forthcoming). The main challenge we are facing here, as analysts, is to determine when one or the other will become likely or more likely. The timeline will depend upon what happens under the fog of war, knowing that the thicker the fog, the heightened the possibility for surprise. We shall thus have to constantly monitor the war situation, and, accordingly, revise – and improve –  all possible scenarios. For example, a potential break up of Syria would then also have to be included as sub-scenario (for Scenario 1 and Scenario 3).

Scenario 2 could also, theoretically, lead to a Scenario 4, the invasion and annexation of Syria by an external power. However, considering the current international norms and settings, such a scenario is most unlikely and may be put aside. Should those norms change, or should the current international tension and crises bring about severe upheavals, then the likelihood of scenario 4 would have to be revised and the scenario developed. We may note an unintended side-effect stemming from the international ban on war for conquest. If it improved greatly peace and stability, it also tends to remove an incentive on domestic actors to stop civil war: the warring factions do not risk to see an external actor use the fragility brought about by civil war to annex their territory, thus they can continue fighting.

Scenario 3: A Real Victory in Syria

To be continued….

———-

Detailed bibliography and  primary sources forthcoming.

Strategic Intelligence Assessment for Syria (5) – Scenario 1: Peace in Geneva?

Featured

Posted on by
1

(Updated 22 May 2013) Now that we know and understand better the actors present on the Syrian battlefield, we may start outlining scenarios regarding first plausible futures for Syria and prospects for peace over the short to medium term, and second the regional implications of those scenarios, as the regional and even global geostrategic dimensions of the war in Syria are becoming clearer everyday.

Scenario 1: Negotiating Peace for Syria in Geneva

Syria, Syrian civil war, Syrian talks The diplomatic talks promoting a negotiated settlement of the Syrian civil war are successful and negotiations start.

Sub-scenario 1.1.: All but the Jihadis

The actors brought around the table are the NC and the Supreme Joint Military Command Council (SMC), the regime of Bashar al-Assad represented by a face-saving person for the regime and a person that would be acceptable to all other parties (assuming such a person exist), the Supreme Kurdish Council (SKC) and the Salafi-Nationalist groups.

Sub-scenario 1.1.1.: A fragile Syrian external peace

An external peace can be brokered. We would have a very fragile peace including all actors except those fighting for a global Jihad. Considering the current level of escalation and the intentions of the most extremist factions, if we want to increase the likelihood to see a real positive peace – corresponding to many Western countries’ declared foreign policy vision, upholding the rule of law and human rights – last, then we need to make sure that the following elements are included: a strong presence and support of the international community (despite the public deficit challenge mentioned above), a properly devised strategic plan and real actions rather than unrealistic pledges that are inherently escalating when what must be stopped is also the “people”s war” efficient policy of the extremist factions.

Timing would also be of the essence once the peace is brokered, as speed and real efficiency are crucial. Notably, and considering the heightened sensitivity of a people having had to go through a civil war, as well as the religious environment, corruption and various dysfunctions within the peace-building intervening system, should be avoided.

It would thus be crucial to start working towards a proper plan to construct the peace as soon as possible, using all bilateral and multilateral cooperation channels. To make sure the peace-building process is properly implemented, actionable early warning and monitoring systems should be planned and constructed from the start.

The next five to ten years would remain a very delicate period with heightened risks of re-escalation towards war.

Sub-scenario 1.1.2.: Back to civil war – Jihadis’ advantage?

The negotiations fail and Syria falls again into civil war, but with changed conditions: the failure will have a price for each actor involved, according to the reasons for and conditions surrounding the failure. The global-jihadi groups would most probably benefit most.

Sub-scenario 1.2.: All but the Salafis

The actors brought around the table are the NC and the SMC, the regime of Bashar al-Assad represented by a face-saving person for the regime and a person that would be acceptable to all other parties (assuming such a person exist) and the SKC.

The Salafi-Nationalist groups (all or most of them), even those having linked to the SMC, would refuse to participate in the negotiations.

Sub-scenario 1.2.1.: An unlikely very fragile external peace

The negotiations succeed. The external peace that is brokered is even more fragile. The prospects for successfully implementing it would be greatly reduced. All the risks already present in the previous sub-scenario (1.1.1) would be heightened. With a level of power (resources, troops and actions) constant compared with sub-scenario 1.1.1., the likelihood of success would be inversely proportional to the policy and actions of the Salafi-Nationalist groups, ranging from only refusing to participate in the negotiations and settlement to actively denouncing and fighting them. To increase the likelihood of success, the level of power applied would have to be proportionally enhanced and the length of time during which this power would be necessary would have to be increased. In other words, more troops and more civilian personal, as well as more resources would have to be dedicated to Syria for longer.

Sub-scenario 1.2.2.: Back to civil war – Salafis’ advantage?

The negotiations fail and Syria is dragged again into civil war.

Scenario similar to 1.1.2 but with a very strong advantage for the Salafi groups, be they nationalist or jihadi.

Estimating Likelihood for Scenario 1

What could enhance the likelihood to see such a scenario happening?  What are the supporting facts increasing the plausibility of scenario 1?

  • The civil war in Syria drags on, with specific evolution and dynamics over the winter 2012/2013 favouring diplomatic talks between international powers (see end of last post);
  • Fear by external actors to see further use and spread of chemical weapons,
  • Heightened fear by external actors to see the Syrian conflict spilling over further, which was bound to happen considering its regional and global dimension, supported notably by the Al Qaeda nexus April statements, by the declarations of  Hassan Nasrallah, leader of the Lebanese Hezbollah acknowledging his group fights besides the regime of Bashar al-Assad (Black and Roberts, The Guardian, 30 April 2013), by the 3 and 5 May Israeli attacks on Syria (e.g. interesting analysis by Ben Caspit, 5 May 2013, AlMonitor), then by the 11 May 2013 terror attack on the Turkish town of Reyhanli, (Daloglu, 12 May 2013 AlMonitor), the latter linking too to the refugees issue and its destabilizing dimension for neighbouring countries.
  • Difficulty to implement rapidly, efficiently and with a high likelihood of success any other solution. Lack of clear support in the domestic constituencies of potentially intervening countries, notably in the U.S., for those solutions, and possible polarisation of opinions, considering multiple diasporas and humanitarian disaster.
  • Cost of intervention for intervening countries, considering the widespread problem of public deficits and the solutions usually chosen to face this challenge (reduction of public expenses and privatization of the state).
  • Leading to Foreign Minister Sergei Lavrov and Secretary of State John Kerry announcement that Russia and The U.S. had agreed “to work towards convening an international conference to find a political solution to the conflict in Syria,” and thus to the continuation of diplomatic work in this direction (BBC, 7 May 2013), as well as to the ongoing diplomatic exchanges between concerned partied.
  • Increased violence and multiplication of attacks - to a point - would not be an indication that talks will finally fail to bring about peace negotiations, nor that peace negotiations are breaking down, as actors will seek the strongest bargaining position possible at the negotiation table and this position is obtained through fighting. Renewed battles should be seen as (a dramatic) part of the overall negotiation process.
  • Which Syrian actors must participate? Considering the diversity of actors on the ground, this point is particularly delicate, crucial and will most probably lead to many discussions, declarations, bargains and twists, as the two declarations below let us expect.
    • Moaz Al-Khatib, ex-President of the National Coalition for Syrian Revolutionary and Opposition Forces (NC) suggested “We refuse any radical thinking but this does not mean we can exclude them, they are Syrians and they have the right to speak up, and we need to enter into a dialogue with them. They are Syrians and for me a Syrian is worth more than the whole world” (Phil Sands, The National, May 9, 2013). It is most likely that an official participation by Salafi-Jihadi groups will be rejected by international powers as well as by part of the NC factions, however covert dialogue could take place between Syrian some actors. The question could also be asked for Salafi-Nationalist groups.
    • The surprising declaration by “Abdul Qader Saleh, commander of the Al-Tawhid Brigade,” member of the Syrian Liberation Front to “the Turkish news agency Cihan” accusing Israel to have destroyed weapons that were about to be seized by “the rebellion” and not arms that were about to reach the Hezbollah, thus to side with Iran and the Hezbollah to support Assad (Ynet, 13 May 2013) could signal an early hardening of the SLF (which had been suggested as possible by Lund, 2013: 27). This declaration might in turn prepare the ground for refusing the potential negotiations or for building a stronger bargaining position.

Scenario 2: No Syrian in Geneva

The diplomatic talks fail … to be continued.

——

Detailed bibliography and  primary sources forthcoming.

Scenarios: Improving the Impact of Foresight Thanks to Biases

Featured

Posted on by
1

Alternative worlds NICForeseeing the future, whatever the name given to the endeavour*, faces two major tasks. First, we have the analysis, the process according to which the foresight, forecast, or, more broadly, anticipation will be obtained. Second, the result must be delivered to and understood by those who need it because they will act on it, to the least integrate the new knowledge received in the decisions they will take**. A huge challenge runs across both those tasks: overcoming the various natural and constructed biases that limit human understanding.

Much thought is usually given to analytical methodologies, which may be seen as nothing else than ways to overcome biases. Analysts commit themselves to many years of study, and force themselves to struggle against those biases, including through their own research and reflections. Managers look for ways to support them through training and constitution of best teams. Teachers and research institutions contribute to this generalised effort, as with, for example, the recent ongoing experiment funded by the Intelligence Advanced Research Projects Activity (IARPA), the “Good Judgement project“. Those enterprises are necessary, even crucial, if we want to improve our foresight, as underlined, for example, by political scientist and forecaster Jay Ulfelder.

We tend, unfortunately, to devote fewer efforts to deal with biases related to the second part of our work, the delivery of the anticipation to and its understanding by the recipients or customers.

This is certainly no easy task, as, there, we must deal with an “other” or worse with others. We have no power on their willingness to make an effort to overcome biases, assuming they accept being also prey to biases.

Results may also be obtained through the use of participatory methodologies, such as, for example, scenarios-building, where classical or analytical ways to mitigate biases are sought. This approach, despite its virtue, is limited because of the often busy agenda of decision-makers, or plainly impossible because of the sheer numbers of recipients. In those cases, only remains the final product that must, alone, reach the customer, be read, viewed or listened to, and understood. The strategy regarding biases, thus, must change. Rather than only focusing on struggling against biases, we may as well accept them and, even better, use them to our advantage.

The biases detailed in Heuer’s masterwork Psychology of Intelligence Analysis show us that fictionalized scenario narratives*** are perfect products to take advantage of some of those usual human cognitive traits to achieve our objectives, even more so if they are adequately combined with visual tools.

Playing with the “vividness criterion”

Crisis in ZefraFictionalized narratives obviously directly use this bias that Heuer describes as follows: “Information that is vivid, concrete, and personal has a greater impact on our thinking than pallid, abstract information that may actually have substantially greater value as evidence.” Heuer, p.116, knowing that, according to Nisbett & Ross, vivid information is information that is concrete, imagery-provoking, and emotionally rich (1980).

Among many, one interesting example is the narrative written by Karl Schroeder for the Directorate of Land Strategic Concepts of National Defense Canada in 2005, Crisis in Zefra. The four fictionalized scenarios of Global Trends 2030, use fiction characters and real or fictional organizations that will be familiar to their main readers, U.S. policy-makers, and a type of narrative as well as a design format that will similarly correspond to something very concrete and real for their clients.

Below are two examples of short fictionalized pieces, created out of material generated during a workshop, and aiming at making real threats related to algorithms.

Black out scenario, fictional narrative, algorithm based threat, threat scenario, futures, foresight scenario, fictional narrative, algorithm based threat, threat scenario, futures, foresight, intelligence, spy,

Emphasizing “consistency”

Any good narrative will pay attention to consistency and thus will use the human “oversensitivity to the consistency (absence of contradiction) of evidence and insufficient sensitivity to the reliability of evidence.” (Heuer, pp.120-122)

Using our flawed perception of cause and effect

As Heuer describes throughout chapter 11, generally, story-telling and thus story coherence is usually wrongly favoured over scientific method and scientific findings/research. Meanwhile we display a need for causal explanations, that is indeed best served by this story-telling. Thus a fictionalized scenario narrative built upon a proper scientific model will allow us transforming scientific research into a product that can be attractive to and believed by customers.

This is what led me, among other motivations, and once the model built for the scenarios on the future of the nation-state, to develop the Chronicles of Everstate in a serialized way, rather than to adopt a more classical and shorter form.

Tweaking the “availability rule”

This rule refers to one of the components that leads us to reach flawed estimates for probabilities. Heuer, using work by Tversky and Kahneman (1973), underlines that “’Availability’ refers to imaginability or retrievability from memory. Psychologists have shown that two cues people use unconsciously in judging the probability of an event are the ease with which they can imagine relevant instances of the event and the number or frequency of such events that they can easily remember.” (Heuer p. 147).

Thus, an interesting narrative – when it is read – will most probably influence the ease with which people can imagine, by themselves, future instances of similar events. We could also wonder if becoming aware of the scenario narrative would affect, though memories, perception of occurrence of such events.

Heuer (p.149), indeed, underlines that the participation to scenario-building exercises impacts estimations of probabilities for participants. Here we suggest that people reading scenarios – or more broadly being exposed to products derived from those scenarios such as films, theatre pieces, games, etc. would similarly be affected.

Using our weakness in assessing probabilities

As judgments concerning the probability of a scenario are influenced by amount and nature of detail in the scenario in a way that is unrelated to the actual likelihood of the scenario (Heuer pp. 156-157), then narrating a scenario or part of it with details will impact the ability of the customer to believe in its plausibility. This should prove extremely useful in convincing recipients to pay attention to potentially least possible futures, in struggling against prejudice and more generally against all organizational and belief-based biases.

Fictionalized narratives are thus a very useful type of products for the delivery of foresight, that we should permanently keep in mind, be it to deliver the result of more or less long scenarios-building processes, as with The Millenium Project 2020 Global Energy Scenarios, or the Global Trends 2030 of the NIC, or in the case of short exercises as shown above for potential algorithms-related threats. Could it also be used for other methodologies, such as  Forecasting?

Comments, ideas and suggestions are welcome!

*The label used signals various assumptions, methodologies, processes, aims and groups of practitioners.

** Even doing nothing is an action.

*** Scenarios are one of the end products of the process known as scenario-building as, for example, presented by Glenn and The Futures Groups and as used here to assess the future of the nation-state. A practical way to write them has been presented with the post “Constructing a foresight scenario’s narrative with Ego Networks.”

—–

Glenn, Jerome C. and The Futures Group International, “Scenarios,” The Millennium Project: Futures Research Methodology, Version 3.0, Ed. Jerome C. Glenn and Theodore J. 2009, Ch 19.

Heuer, Richards J. Jr., Psychology of Intelligence Analysis, Center for the Study of Intelligence, Central Intelligence Agency, 1999.

Ulfelder, Jay, Forecasting Round-Up No. 3, Dart-Throwing Chimp, 6 Dec 2012.

Kahn, Herman, and Weiner, Anthony J. The Year 2000: A Framework for Speculation on the Next Thirty-Three Years. New York, NY: The Macmillan Co., 1967.

Tversky, Amos and Daniel Kahneman, “Availability: A Heuristic for Judging Frequency and Probability,” Cognitive Psychology, 5 (1973), pp. 207-232.

Durance, Philippe and Michel Godet, “Scenario building: Uses and abuses“, Technological Forecasting and Social Change », Volume 77, Issue 9, November 2010, Pages 1488–1492, doi:10.1016/j.techfore.2010.06.007

A Beautiful Timeline Visualisation: TimelineJS by VéritéCo

Posted on by
3

Last week, as I was looking for good websites and twitter users to follow the students’ movement in Quebec, its support by and links to the other worldwide opposition movements, and to try to assess how it could evolve, I found this really useful, informative and beautiful website displaying a timeline of the events done by Xavier K. Richard, @xkr.

Today, I found that this timeline, or rather the incredible tool to make such a timeline, TimelineJS, created by VéritéCo, is a free web-based application. I could not resist the temptation to try it, continuing on the series of timelines created for “the Tragic Events that strike Everstate.” It is truly very easy to use (just use the Google spreadsheet template provided on the website, and enter your data instead of those given as example), then follow the directions given on the TimelineJS website and, finally, embed it on your website. You can include videos and photographs, and, compared with the two others that were previously tried, you can create as many timelines as you want, which is a great advantage.

Here is the result:

2012-2013 EVT – Restoring Growth (Panglossy)

Posted on by
2

Last weeks’ summary: In 2012 EVT, Everstate (the ideal-type corresponding to our very real countries created to foresee the future of governance and of the modern nation-state) knows a rising dissatisfaction of its population. Alarmed by the rising difficulties and widespread discontent, the governing authorities decide to do something when new elections start. Dependent upon programmes created to face efficiently past challenges, prisoners of entrenched political groupings, comforted in their vision by the BRICS’ success and renewed optimism, the major parties campaign to come back to the order ante. As a result, habits and the existing system, once the new national representatives are elected and the new government starts ruling, are even more entrenched, almost ossified. Meanwhile, the polarisation and rise of a new opposition that took place during the election is temporarily frozen by the last hope created by the newly elected government.

(The reader can click on each picture to see a larger version in a new tab - a navigating map of posts is available to ease reading).

The new government, thus, decides that it must restore an efficient economy, which is the only solution to come back to a balanced and propitious situation. Its main criteria and aim for this is to re-establish growth and more particularly the growth of the GDP, as the available models of socio-political order dictate.

With growth, the dissatisfaction of citizens will disappear as they will find jobs again and the capability to enjoy the consumer society to which they are used. Meanwhile, all elite groups will be satisfied as they will continue enjoying their status and privileges. Hence the tension will decrease and peace will come back.

Growth will imply wealth and as wealth increases again, debts will not mean deleveraging but, on the contrary, leverage. With the rise of GDP, the ratio debt-GDP will automatically diminish, which will satisfy the financial markets, while the cost of the debt will be much less burdensome. Thus, with growth, the crisis will be solved. Of course, for a short while, public spending will have to be harnessed, but nothing that could deter growth. This will be the opportunity to introduce more efficiency and rationalisation in state’s management, which will only be favourable on the longer term.

Now the vision is laid down, Everstate’s government, with its international counterparts, only has to implement it through sets of policies. Repeating as mantra that growth must be obtained is notably insufficient, especially as the legitimacy of political authorities, and not only of the previous government, is questioned as a result of the ongoing crisis. Trust must be restored, investment and innovation boosted, consumption re-established.*

To achieve this, Everstate’s government decides first to give a boost to minimum wages, which will restore consumption and restart the engine. Furthermore, it will immediately implement “growth mainstreaming” throughout all policies.** Although Everstatans, in general, have a high education level and a large part of the population holds university degrees (see the power of Novstate), education and training are singled out as some of the structural long-term policies that need emphasis to be able to improve Everstate’s competitiveness and thus growth.***

Then, Everstate spearheads the creation of a new international meeting group for the resilience of the financial system, linked to the G-20, and involving the major financial private institutions. The new financial meeting group must bring back trust to markets and allow for a return to a proper flow of liquidity. It is expected that the need for and extent of regulation of financial markets will be intensely debated.

Finally, Everstate participates in an International Special fund for Sustainable Innovation and Green Energy (ISSIGE) that will help polities harnessing the ecological evolution and the increasing complexity of resources, and transform those into opportunities. A specific instrument will be organised around the Regional Union and should “fund pan-Regional infrastructure projects.”**** High level civil servants and famous Everstatans of universities, the classical media and the private sector join their colleagues in this high level new fund, built as a network as networks are more efficient than top down organisations, to determine its strategy and policies, identify projects that need funding, etc.

What are the impacts of those policies on the level of satisfaction of citizens? Will Everstate’s new government succeed, not only in bringing back growth, but also, thanks to the growth restored, in overcoming the main challenges and difficulties its predecessor faced? To know it, we need to re-run the model used for 2012 EVT, while including what happened in 2012 EVT and the Panglossy conditions and decisions, i.e. a level of tension that is high enough to have created polarisation, loss of legitimacy, protests, rise of a non-classical political movement, even if non violent and frozen for the moment.

To be continued…

——————

References

* For a good summary of a specific, mainstream, approach to policies leading to growth, Tyler Durden, “The Keynesian Emperor, Undressed, ” Zerohedge, 05/21/2012. Contrast with a critical view, the excellent video of Prof Keen’s interview, as recommended by @Greentak: Megan Ashcroft, “In Conversation with: Steve Keen,” The Renegade Economist, 16 October 2011.

Interestingly as of 21 May, although now so many agree on the need for a “growth compact” or “growth pact,” we find few concrete policies and practical explanations regarding the how this will be done. Read, for example among many other, The Financial Times Editorial, “A pact for growth is vital for Europe,” FT, May 4, 2012; Martin Lowy, “The Soon-To-Be-Born European Growth Compact,” Seeking Alpha, May 1, 2012; Shai Ahmed, “‘Sexy’ Europe Growth Compact Inevitable; Greece to Stay: Pro,” CNBC, 17 May 2012; The Telegraph, “ECB chief Mario Draghi calls for euro ‘growth compact’,” The Telegraph, 25 April 2012; Debating Europe, “Will a “growth compact” go far enough?” 14 May 2012; Tyler Durden, “Overnight Sentiment: A Summit Here, A Summit There, A Promise Of Growth And QE Everywhere,” Zerohedge, 05/21/2012; Paola Subacchi and Stephen Pickford, “Broken Forever? Addressing Europe’s Multiple Crises,” Chatham House Briefing Paper, March 2012. Peter Spiegel, “Diplomats back EU ‘project bonds’ plan,” FT, May 21, 2012.

** See the example of “Gender mainstreaming,” as explained in Wikipedia.

*** Tyler Durden, “The Keynesian Emperor, Undressed, ” Zerohedge, 05/21/2012.

**** Adapted from Peter Spiegel, “Diplomats back EU ‘project bonds’ plan,” FT, May 21, 2012.

2018 – 2023 EVT – From Grievances to Political Mobilisation (Mamominarch)

Posted on by
2

Last weeks’ summary: In 2012 EVT, Everstate (the ideal-type corresponding to our very real countries created to foresee the future of governance and of the modern nation-state) knows a rising dissatisfaction of its population. To face the various difficulties and widespread discontent, in a first scenario, Everstate’s governing bodies implement the Mamominarch programme of drastic reduction of state spending over five years through devolution, privatisation and outsourcing. By 2018 EVT, the result is involution, with a fragilised governance including and implying the rise of lawlessness domestically, an abandoned mastery over international security, an inefficient economy and, as consequence, a rising insecurity for most Everstatans. The first set of tragic events - a tornadoes outbreak followed by a heat wave – that hits the West of Everstate soon becomes a complex catastrophe with dramatic direct and indirect impacts.

(The reader can click on each picture to see a larger version in a new tab – a navigating map of posts is available to ease reading).

Faced with destruction and a difficult and very slow reconstruction, Westerners are definitely dissatisfied with the way their political authorities, entrusted with the mission to ensure their security, have dealt with the complex catastrophe that befell them. Many are forced to leave as their survival is threatened and start moving towards other areas. However, they nevertheless expect recognition of their hardship, help and solidarity when they arrive somewhere else.

Yet, nothing is organised nationally. The way they are greeted varies greatly according to areas and even towns. In some cities, local authorities engineer emergency support for newcomers in the name of national solidarity, while everything is done to help them find temporary shelter and work. In others, only family network, when they exist, are active, and the refugees are not only ignored, but also rejected as they are seen as swelling the mass of the poor, homeless and unemployed, as potential criminals, as people lowering wages when they end up taking any job to survive. In those areas, as the refugees remind inhabitants of a selfishness they do not want to confront and of problems they want to deny, rejection hardens quickly.

All Everstatans, finally, feel unjustly treated, one way or another, which only feeds grievances. Those multiply as central political authorities do not acknowledge problems, give no recognition, and do nothing in a timely way. The victims are not supported in those areas where they are best welcomed and those who help them are left to their own device and funding, while the central administrative machine and policies continue as if nothing had happened, sometimes thus enhancing difficulties. Elsewhere fear is not assuaged, its roots are not dealt with. Notably, no one wants to face the fact that the refugees have become a disturbing symbol of a dysfunctional and outdated model of socio-political organisation, when so much hope had been invested in the Mamominarch system.

Over the summer, oil prices surge, with some spikes even reaching 200$ a barrel, as a result of renewed international tensions in the Middle East. This trend intensifies the overall situation in Everstate, as for most Everstatans, save the richest and best connected, life becomes increasingly difficult. Indeed, whatever the efforts the people have previously made, the result of their actions to improve or to the least stabilise their life is reduced to naught by the severe disturbance implied by the energy price. As, furthermore, the food produced in Everstate has become suspect – and sometimes rightly so – because of the industrial disasters, many Everstatans feel that they are left with only two bad choices: either starve because they cannot afford imported food, or kill themselves with polluted food.

The legitimacy of the Mamominarch system is now overtly questioned, and all remember that the governing bodies that decided to convene the Mamominarch commission were already facing similar problems, which only contributes to further de-legitimize the system.

The rising tension spreads throughout the whole country. If all have grievances, those accumulated complaints tend to coalesce and join along different fault lines according to areas and groups, because there is not anymore one national situation but many, notably as a result of the devolution  (spatial variations) and of the privatizations (end of the concept and practice of public good). With time, events and a large variety of responses, the conditions have grown to be very diverse.

External observers are surprised when, building on the tension existing in 2012 EVT, then on those that simmered over the past five years of Mamominarch system, and triggered by the recent events, a Movement for the Independence of the Trueland, a region covering the South-East of Everstate (notably the mouth of the river and the seaside), is created and rapidly takes off. The usual inflow of money that used to bring wealth, and, during the last years, release, to the country with tourism is abruptly halted by the complex catastrophe, as tourists fear coming to Everstate. The inhabitants of the seaside area being relatively richer were thought as much calmer and less likely to mobilise politically. But this is without considering the sudden relative deprivation they feel, which is, furthermore, from their point of view, none of their making.  Other small areas, sometimes only cities, follow suit and also start voicing their desire for local independence and direct membership to the Regional Union.

Yet, not all citizens of those areas share the same views, and those who are dissatisfied with the two main political parties, spearheaded by Occupy Everstate, respond by creating a Movement for the Renewal of Everstate, which is soon joined by large parts of the Westerners, by the refugees and many in those towns that put solidarity first. The CEO of Evernet, as reported by international media, decides to join the movement she sees as prefiguring the future. She offers the technical support of Evernet, providing even funding and sometimes directly hardware to the Renewers, as they are soon called, when those cannot afford anymore access to social networks considering the degraded overall situation.

Meanwhile, Novstate and its friends companies make sure they remain officially neutral, offering their services to all, while they continue promoting the system that made their fortune.

Many of those joining the new Movements did not belong, previously, to any political party. They had even often abstained during previous elections. Yet, the two main parties, the conservative and the social-democrat, with still their headquarters in the capital, start losing sympathisers. The classical elite groups remain faithful to the two traditional parties, which have created the Mamominarch system, and start worrying about the evolution of the situation. First, the Western quagmire has marred the international ideological standing of the Mamominarch system, which seriously limits the opportunities offered to the elite.

Then, those new Movements imply a loss of power for the two parties that constitute the usual political framework of the elite, indeed the way its members think and live. The elite groups initially try to dismiss the new Movements because they do not enter the familiar right/left, conservative/social-democrat way to think and thus, certainly, do not correspond to anything serious… yet the political mobilisation is there, as well as the grievances and the tension and altogether they completely deny everything the elite has ever believed in and stood for. The new Movements have not even tried to include them.

The Renewers then pick up on a report according to which a terrorist group has infiltrated a Novcybio laboratory in its home country a few weeks ago, stolen some deadly pathogens and manipulated others, mixing them with some of the genes experimented. Considering the existence of Novcybio Everstate, the news goes viral through social networks, among Renewers initially.

To be continued…

2018 – 2023 EVT – Complex Catastrophes (Mamominarch)

Posted on by
2

Last weeks’ summary: In 2012 EVT, Everstate (the ideal-type corresponding to our very real countries created to foresee the future of governance and of the modern nation-state) knows a rising dissatisfaction of its population. To face the various difficulties and widespread discontent, in a first scenario, Everstate’s governing bodies implement as policies the conclusions of the Mamominarch Commission: a programme of drastic reduction of state spending over five years through devolution, privatisation and outsourcing. By 2018 EVT,  the result is involution, with a fragilised governance including and implying the rise of lawlessness domestically, an abandoned mastery over international security, an inefficient economy and, as consequence, a rising insecurity for most Everstatans. A series of tragic events then strike Everstate.

(The reader can click on each picture to see a larger version in a new tab – a navigating map of posts is available to ease reading).

The tornadoes outbreak that hits the Western part of Everstate in May, as well as the other tragic events of the year, results of global pressures accumulated over the years, including in terms of ecological setting.*

Two of those tornadoes  are deadly. They are rated EF5 on the Enhanced Fujita Scale and have a very long track reaching almost 70km.

Hundreds of power transmission towers are taken down, and, as a result, electricity outage occurs in a large part of Everstate’s West.** The scope of civilian disaster is huge. So much of the population is hit. To the fatalities, casualties and people unaccounted for, must be added people finding themselves overnight without shelter. Furthermore, as all communications are severed, evaluation and first emergency is terribly difficult. The tornadoes also hit two industrial sites in this recently industrialised part of Everstate. A corner of the dam of a reservoir containing liquid waste collapses, releasing toxic muds. First, the wave of mud reaches a nearby small town, miraculously spared by the tornadoes and then spills inexorably to reach the Everstatan main river.***

Not far from there, one of the storages of an agrochemical company is ground to pieces. Highly toxic levels of pesticides are released in the air.****

Panic presides to the outbreak and to the first days. Then comes the extreme difficulty of dealing with “complex catastrophes.” In the words of Paul N. Stockton, the assistant Secretary of Defense for Homeland Defense and Americas’ Security Affairs,

“Complex catastrophes differ from normal disasters in two ways. First, the scale of destruction is vastly greater… Second,… complex catastrophes may create cascading, region-wide failures of critical infrastructure, starting with the disruption of the commercial electric power grid….This loss of power could create cascading effects on communications and other critical infrastructure. From a public safety perspective, the most immediate concern might be the impact on municipal water systems, ..  Transportation infrastructure could be degraded as well; gas and diesel fuel pumps, for example, depend on electric power to function. While many hospitals and other facilities critical to disaster response efforts have backup diesel-powered generators, we anticipate few will have sufficient fuel on hand to offset power outage lasting weeks to months, and that companies responsible for resupplying them could face a radical mismatch between supply and demand.” in Stockton, ”Ten Years After 9/11: Challenges for the Decade to Come,” Homeland Security Affairs, Volume 7, The 9/11 Essays (September 2011).*****


Locally, as the Western areas have never known any natural catastrophe, are not located in a seismic zone, and are not considered as sensitive defense-wise, no preparedness for any natural or even man-made emergency exists.

Novstate, which is contracted for the management of crisis and emergency response nationally, should have had at least the beginning of an emergency plan ready, and should start implementing it. However, it is without counting with a few crucial factors. First, the electricity outage considerably slows and delays all communications, evaluations, transport and logistics, while rapidly increasing hazards to the population as hospitals, notably, will soon run out of fuel for their backup diesel-powered generators. Second, Novstate has not planned for any type of such multi-risk emergencies spreading on large areas, both urban and rural. It has mainly focused on terrorist attacks in the major Everstatan cities. Finally, the involvement of many different companies responsible for so many types of infrastructures, including hospitals, and in charge of various outsourced services creates a highly complex picture of independent intervening actors that have to be identified, organised, and put to work on an emergency, solidarity and not for-profit basis. Furthermore, Novstate’s mandate includes no specific authority to act in such a way. Meanwhile, the political authorities who do have this legitimacy have now to do with a reduced Everstatan central administrative staff, soon overwhelmed by a catastrophe of a type and scale never envisioned.

Finally, after 4 days, prompted by international calls from his counterparts and from the Regional Union, Everstate’s Prime Minister finally asks for international help. Meanwhile, thousands of Everstatans lost their lives; the Everstatan main river has become severely polluted, toxic mud spreading towards the agricultural South and the touristic mouth of the river. The toxic dust has spread with the very strong winds and the full extent of damages will only be discovered with time, but have created health hazards for human beings, biodiversity and most probably impacted soil and water.

Again, the initial absence of overall coordination runs contrary to the efficiency of the assistance, and the Regional Union, incorporating in the lead team Everstatan regional civil servants to respect Everstate’s sovereignty and the Novstate executive responsible for emergencies, has to firmly take over.

Thanks to international help, the crisis is finally contained, but it takes a few months before such services as electricity, which were previously taken for granted, are fully reestablished. Worse damages such as epidemics are avoided. Yet, the terrible environmental impacts are there.  Furthermore, the drought that follows dries up the river helping spread the toxic mud changed in dust over even larger areas of the country.

The Everstatan quagmire has highlighted the high difficulty of complex catastrophes’  management and intervention, notably in a context of privatised infrastructures and outsourcing. It is reviewed and criticised internationally by multiple instances. As a result, Everstate’s model begins to be seriously questioned, which has indirect negative effects on the export of services, as the Everstatan Mamominarch-type of knowledge and skills is now considered as inadequate. Yet, Novstate manages to turn the tragedy to its advantage, and can now sell its unique expertise.

The overall direct and indirect cost of the tornadoes outbreak is very high. Security has definitely not been ensured and, seeing the slow rate of reconstruction, the absence of hope of much help considering the already overall difficult situation of Everstate before the tornadoes, Western refugees start moving towards other areas.

To be continued…

——-

* According to Munich-Re, “A sequence of devastating earthquakes and a large number of weather-related catastrophes made 2011 the costliest year ever in terms of natural catastrophe losses….With some 820 loss-relevant events, the figures for 2011 were in line with the average of the last ten years. 90% of the recorded natural catastrophes were weather-related – however, nearly two-thirds of economic losses and about half the insured losses stemmed from geophysical events, principally from the large earthquakes. Normally, it is the weather-related natural catastrophes that are the dominant loss drivers.” Munich-Re, “Review of Natural Catastrophes in 2011,” 4 January 2012. Download pdf.

** The video was published on Nov 17, 2011 by AssociatedPress and posted on YouTube: “A tornado ravaged three neighborhoods in the outskirts of the Bolivian city of Cochabamba, damaging dozens of private homes and warehouses but was not responsible for any deaths. (Nov. 17).” For a recent example of a very destructive tornadoes outbreak, see the U.S. 2011 Super Outbreak, which occurred from April 25 to 28, 2011.

*** Inspiration for this part comes from the Ajka alumina plant accident in Hungary (4 October 2010) – The video on YouTube ”VÖRÖSISZAP” – “RED SLUDGE” was uploaded by  on Oct 14, 2010.

**** The idea came from the sadly famous Bophal disaster in India (2–3 December 1984). Watch “Seconds From Disaster – Bhopal nightmare [Full Episode 45:05],” National Geographic Channel.

***** Stockton also emphasises that local authorities would need to ask for (in the case of the U.S., federal) help.

“Responding to those requests in a timely manner could create complex challenges for the department [of defense] in sourcing the requested capabilities, transporting them, and then providing for their reception, staging, onward movement, and integration in a severely disrupted environment.”

2013 – 2018 EVT – Tragic events

Gallery

Posted on by
a view of timeline with Tiki-Toki (equal space 2)

This gallery contains 9 photos.

The tragic events that strike Everstate are instances of the various conditions presiding to Everstate’s destiny, considering what has been done, or not, globally, regionally and within Everstate. The same set of events will be used to stress test each … Continue reading →

2013 – 2018 EVT – A Current Account Surplus? Think again! (Mamominarch)

Posted on by
2

Last weeks’ summary: In 2012 EVT, Everstate (the ideal-type corresponding to our very real countries created to foresee the future of governance and of the modern nation-state) knows a rising dissatisfaction of its population. To face the various difficulties and widespread discontent, in a first scenario, Everstate’s governing bodies have transformed the conclusions of the Mamominarch Commission into policies. They have thus started implementing the programme of drastic reduction of public expenses through privatization and outsourcing, transfer of responsibilities to local administrations and increased reliance on The Regional Union, accompanied by a temporary increase in income and consumption taxes. The first months of reforms have been successful and the situation appears to improve.

(The reader can click on each picture to see a larger version in a new tab – a navigating map of posts is available to ease reading – research note at the bottom of the post).

trade exports s3

Everstate’s capacity to reimburse its debt should also come from a positive current account, fed, in part, by a positive trade balance, aggregating results in trade of services and trade of goods.

Trade balance (1)

Initially, the well-educated population and the disappearance of many positions of civil servants leads to an abundance of expert personnel. Through Novstate and its friends companies, benefiting from the positive perception the reforms undertaken in Everstate generate, the export of services skyrockets.

However, with time, it is becoming increasingly difficult to send children to school. The provinces have now to manage the education system alone or with the private sector, and the latter sees no immediate interest in funding primary or high schools.  Private schooling becomes the norm, and  weights heavily on the budget of the less well-off.

If the best-known universities find some funding with the new inflow of capital, this is restricted to specific branches, namely finance, economics, some areas of politics, war strategy and tactics thanks to Novstate, IT and some technologies of direct interest to the companies having invested in Everstate. As a result, research greatly suffers. To compensate the absence of public funding, universities triple their fees and only the most fortunate families can now send their children to universities. Scholarships almost disappear. The banks are not interested anymore in lending to students as the benefits are too small and as students, most often, have no guarantor. Local administrations send reports on this dreadful evolution to Everstate’s national representatives and to the central government, but the latter can only try to compensate through its yearly orientation paper, which has close to no effect as it is not assorted of any possibility of action. Hence, the number of well-educated and internationally competitive Everstatans rapidly dwindles.  Furthermore, those who could receive graduate and post-graduate education are trained exclusively in those approaches at one with the Mamominarch system. Hence, as time goes by, if ever the Mamominarch system is not proving to be the ideal solution expected, will they still be considered as adequate?

After the first months of euphoria and hope following the implementation of the Mamominarch policies, the educated youth finds itself in the same conundrum as previously, but with even less prospects. If new qualified jobs are created by the foreign and domestic companies investing in Everstate and by the new outsourcing contracts, those are given in priority to ex civil servants and to foreigners. As a result, already by the second half of 2013 EVT, except in the IT sector focused on online shopping and electronic payments, most young graduates and post graduates find themselves still unemployed or under-employed, taking whatever jobs they find in tourism or industry. At the beginning of the period, those with the best academic records, and who can afford it, try to migrate, but, considering the still uncertain global situation, few succeed. By 2018 EVT, the relative position of the Everstatan educative system is such that, added to the failure of their elders to escape, hardly any smart young Everstatan still tries migrating.

Overall, the export of services cannot grow anymore.

As far as the export (and import) of goods is concerned, those depends not only on human skills and workforce but also on available resources. Now, as seen, with the exception of the tourism industry, Everstate has to face domestic shortage or sharp increase in prices  (stemming among other causes of a relative decline in supply) for the resources it used to transform and to include in the goods it exports.

Furthermore, many of those resources – classical and new – needed by Everstatan producers  are not located on Everstatan territory. For example, for many high-tech companies, rare earth elements are a crucial industrial component.* However, those rare earth deposits are not present everywhere and in the same quantity, China being, currently, the lead producer.

This new condition regarding resources, as explained previously, should imply increasing tasks in governing, which, themselves, demand new resources and income for the ruler and its staff (including the need for new staff).   This, in turn, would mean further and new state spending, at least until the system is stabilised. However, as supplementary state expenditures are ruled out by the Mamominarch system, then the search for new resources and income cannot even be thought and thus novel strategies of extraction of resources can even less be identified. Thus, the increasing tasks of governing can be neither planned nor carried out. Worse still, the dismantling of so many services of the state makes it impossible to monitor, record and analyse what is happening.

As, worldwide, so many industries are competing for the same resources, national policies and negotiations are more than helpful, they are necessary. However, in Everstate, businesses cannot anymore benefit from such support and each company with supply problems must fend for itself. Each is now alone to find solutions, or it must turn to the Regional Union or to International institutions or try to find other private allies, which, in a world of hardened competition, may be hazardous. Meanwhile, other companies from other countries do benefit from their government’s support. Everstatans businesses thus find themselves at a competitive disadvantage. Indeed, relatively quickly, the young Everstatan industries dealing with those materials involving rare earth elements, for example, lose to competition. Either they go bankrupt or, when their technology is interesting, they are bought by foreign companies, which then re-localise according to their own priorities. By 2018 EVT, no Everstatan industry involving rare earth elements remain.

The situation regarding energy is similar, however with even worse consequences… to be continued.

————

* Among others, for interesting estimates on the whole rare earth element market, see the analyses made by the South African company frontier Rare Earth, as well as their sources. For an example of use,  see articles on the electric car and corresponding batteries (although the importance and scarcity of Lithium for Lithium-ion batteries is disputed) e.g. David Biello, “New Energy-Dense Battery Could Enable Long-Distance Electric Cars: Material changes enable a new battery to store more electricity–and could boost the driving range of electric vehicles,” Scientific American, February 27, 2012; Shane McGlaun, “Science Researchers Create Fluoride Battery, Look to Replace Lithium-ion Technology,” Daily Tech (Blog), October 24, 2011.

——-

Further research

As underlined in the previous post, ideally, with more resources, notably a team of researchers and adequate computing facilities, the values attributed to variables should be quantified, when the variables are about quantities.  Notably, it would be very interesting, assuming we were able to enter specific times for each link, to test the variation of those time periods according to changes in quantities, and vice versa. It is indeed possible – or even likely – that thresholds and tipping points may occur according to such variations. More broadly, such hypotheses could also be tested on qualitative variables, methodology to be defined.

2012-2013 EVT – Implementing the Mamominarch conclusions

Posted on by
2

Last weeks’ summary: In 2012 EVT, Everstate (the ideal-type corresponding to our very real countries created to foresee the future of governance and of the modern nation-state) knows a rising dissatisfaction of its population. To face the various difficulties and widespread discontent, Everstate’s governing authorities decide to follow the conclusions of the Mamominarch Commission that recommend to drastically reduce state expenditures.

(The reader can click on each picture to see a larger version in a new tab – a navigating map of posts is available to ease reading – methodological or research note at the bottom of the post).

The Mamominarch conclusions become policy

All governing bodies thus adopt the conclusions of the Mamominarch Commission. New laws are enacted when needed, which is easily done as the major parties seating in Parliament were part of the Commission. The constitution is even changed to incorporate the new ideals and objectives. As top-level civil servants were also either part of the Commission or represented, legislation can be executed without any major impediment. Indeed, a mix of career and organisation related incentives*, as well as normative material and ideological stakes greatly facilitate execution at all levels.

As the major elite groups, including the lenders, were also present, no elite-prompted hidden opposition exists; liquidity and the various resources mastered by the elite, including the traditional mass media, are largely made available. International and Regional support by those organisations that were included in the Commission is strongly emphasised through various diplomatic gains and prestige attention. A few more  Everstatan officials and political figures obtain high level positions in various international fora.

Papers, articles, interviews and books from the various experts, famous people, and academics having been part of the Mamominarch Commission soon reinforce mass media support. “The Mamominarch break-through: reinventing true happiness” written by Novstate’s CEO and founder becomes an international best-seller, while Hollywood starts the production of the next blockbuster on the life-story of the successful businessman.**

As the new measures are heralded as the new type of governance adapted to the reality of Everstate and allowing for a happy future, in line with the worldview and its beliefs, citizens find back meaning and hope and accept the new laws and policies, although with some worries regarding the efforts they will have to consent. A few remain skeptics but their voices are muted by the majority and by the normative deluge of support to the new system. The unions hope that renewed growth will stop unemployment.

As a result, the Occupy Everstate movement loses many of its sympathisers. Furthermore, as the Mamominarch system means less state, the part of the movement that tends to embrace anarchism is satisfied. The presence of Evernet’s CEO within the Commission quells some of the fears regarding over-regulation of the Internet and online networking. Occupy Everstate tends thus to lose even more active supporters and apparently recedes. Its most active members can do nothing else than going back home. Yet, the links between them, notably through social networking are not severed.

Remains now to engineer the reforms and notably the delicate short-term transition.

Implementing the Mamominarch policies 

state and ruler expenditures s3

The variable upon which the Mamominarch Commission plays is “ruler and state spending” (see below methodological and research note).

The drastic reduction of expenses will reduce the deficit, stop borrowing and thus stabilise the interests, notably those paid abroad as a large amount of the debt is held overseas. However, the existing debt must also be reimbursed. This should be made possible overtime and as quickly as possible, notably with a positive current account.

First, Everstate must organise a temporary increase of resources extracted to meet the existing expenses, waiting for those to disappear or be significantly reduced. It must do so without impacting either the lenders’ nexus or the elite groups. However, as the overall situation has not yet changed (see 2012 EVT: Budget Deficit and Liquidity), the only way, as recommended by the Commission, is to sensibly increase taxes on personal income and on consumption, the latter being favoured as it is said to be less felt by citizens. To underline the temporary character of the effort a special contribution is created, “the salvation tax,” which will affect all tax payers incrementally and progressively and is perceived on all incomes (rate between 8% and 12%), will be paid as soon as 2013 EVT. Meanwhile a new tax on consumption of 3% on top of the existing ones, “the anti-debt tax” is applied immediately. Those taxes will be suppressed in five years.

The drastic reduction of public expenses is planned over a five-year period. All public services related to infrastructure will be decentralised and sold to the private sector within the next six to twelve months. All heath care related activities, and the whole pensions and retirement sector will similarly be privatized over the next two years. By 2017, aiming at  reducing the central civil service by 50%, whole sections of ministries will be priced and then sold, if the mission of the unit is seen as economically viable and better externalised, or transferred to a local administration. Services will then be paid either by the state or local administration through contracts following the outsourcing method, or directly by people, according to cases. Within the central state administration, the management of outsourcing is reinforced on an interagency or interministerial basis, while exchanges with The Regional Union for analysis and direction are increased. The education and university systems are considerably privatised and localised; Everstate, working hand in hand with the Regional Union, will keep only a mission of orientation and accreditation.***

With cuts equally divided in 5 steps, one per year, the foreign and diplomatic services, defense, intelligence and police budget are further reduced. Most operations of cooperation and aid will be the responsibilities of volunteer organisations and private firms within the year. Only the bare minimum of diplomatic presence will be kept, while analysis increasingly will rely on both private contractors and The Regional Union. The army will be further reduced across all functions, with a staggering increase in the use of private contractors, mainly operated by Novstate. The new cyber-division that was about to be created is contracted to a Novstate’s friend company. Police forces become localised and use of outsourcing through private security companies must become the norm. Novstate offers a centralised access to information and communication, besides operating many local police posts.

Within a year, state expenditures are already strongly reduced, but not sufficiently. As hoped, Everstate is upheld as model for having so efficiently and swiftly solved the problems that plague so many countries. The debt has been reduced through the flow of money generated by the privatizations. Income, notably taxes, is still insufficient to pay for  expenses, but the deficit is on its way to be reduced.

The success and the favourable environment attracts foreign capital, notably new banks, insurances and financial institutions developing new products, as well as foreign companies taking over some of the state services of Everstate, when those are not provided by Novstate and its friends companies. They mainly settle in Everstate’s capital. Foreign capital is also very active in allowing for the privatization of Everstate’s state infrastructure. CEOs, who think it would be more interesting for them to produce part of their goods in the Western provinces of Everstate, start building factories and hire local people. Meanwhile, medium to high-end tourism, notably in the snowy and mountainous North and on the coastal areas, is flourishing. Interestingly, the seaside area also attracts internet companies specialised in online shopping and electronic payments.

Unemployment, by mid-2013 EVT seems to be stabilised, even if it is not reduced. However, the brutal change of system has introduced a rampant fear, yet compounded by hope, in Everstatans as they see their income reduced and have to adapt to the new healthcare, pension system and to the whole new now privatized services. The answer to fear is a new harshness and selfishness in social relationships as each compete to try to earn more.

After those years of worry and stagnation, a real boom is starting to appear possible for Everstate, and its growth rate, although still low, is above those of its neighbours.

To be continued…

* See for an example of the way those incentives can interact, Nolan, Janne E., and MacEachin, Douglas, with Kristine Tockman, Discourse, Dissent and Strategic Surprise Formulating U.S. Security Policy in an Age of Uncertainty. Washington, D.C.: Georgetown University, Institute for the Study of Diplomacy, 2007; Chester A. Crocker, “Thirteen Reflections on Strategic Surprise,” Georgetown University, 2007.

** For dynamics between national security issues and apparatus and the movie industry, see Jean-Michel Valantin, Hollywood, the Pentagon and Washington. Anthem Press, 2005.

*** Some countries within the OECD are currently downsizing their civil service sector and  using privatization, with noticeable variations according to countries, see, for a study on the EU members, Forward Planning and International Affairs Bureau (B2), General, Directorate for Public Administration and the Civil Service, “Administration and the Civil Service in the EU 27 Member States: 27 country profiles” Republique Francaise, MINISTÈRE DU BUDGET, DES COMPTES PUBLICS ET DE LA FONCTION PUBLIQUE, 2008. With the 2010-2011 renewal of the crisis, downsizing in the public sector has increased, as for example, in the UK; government statistics on civil service employment since 1902. However, compared with the scenario used here, those changes have been or are  implanted over longer periods of time. For example, in Austria “The number of federal administration employees has fallen from 300,000 in 1985 to 133,000 at present” (2008). Further research on variations in the speed of the reforms and their impact would need to be undertaken.

——-

Methodological and research note

Working backward with ego networks

The method remains to use ego networks as previously. However, the model has been created in a forward manner, using existing work on state-building that takes as assumption an increase in needs and resources. Here the decisions taken in the scenario answer to a slightly different logic, as underlined in the previous post: they do not consider needs or state-building, but only a reduction of expenses.
We shall thus, in terms of ego network, sometimes have to work backwards, following the arrows from target to source to identify the value the source node could have, given the value attributed to the target node (this may also be seen as a variation on the method known as backcasting.)

Further research

Ideally, with more resources, notably a team of researchers, the values attributed to variables should be quantified, when the variables are about quantities. This will become even more obvious with the next posts.  Notably, it would be very interesting, assuming we were able to enter specific times for each link, to test the variation of those time periods according to changes in quantities, and vice versa. It is indeed possible – or even likely – that thresholds and tipping points may occur according to such variations. More broadly, such hypothesis could also be tested on qualitative variables, methodology to be defined.