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1. The trade routes vital to Australia’s economic security

Author:
David Uren
Publication Date:
03-2024
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
Arecurrent theme in Australia’s defence strategy has been our reliance on and need to defend Australia’s trade routes in a globalised world. The vulnerability of Australia’s limited stockpiles of critical goods and its concentrated sources of supply have driven military capability and planning for decades and remain a justification for strategic investments. The 2023 Defence Strategic Review argued that the danger of any power threatening to invade the Australian continent was remote, but that an adversary could implement military coercion at a distance with threats against our trade and supply routes. With limited resources and finite defence capability, yet vast interests at sea, it’s important that Australian security and economic planning is trained on the most critical pain points in our sea lines of communication. Strategy and planning must derive from up-to-date and accurate data about what we trade, via which routes, and to and from which specific locations. We also need to understand the factors that contribute to our resilience. They include the depth of supply options, the availability of alternative routes and the sheer strength in numbers which our shipping enjoys when it enters the mighty flow of commerce through the waters of our Asian trading partners. This report explores our trading routes in peace-time. Any conflict would bring sharper focus on what shipping and what trade is truly necessary and on what can be done to secure it. However, the strengths and vulnerabilities of our linkages to the world are evident now and are the focus of this report. Concerns have been sharpened by the assaults by Houthi militias on commercial shipping through the Bab al-Mandab Strait at the entrance to the Red Sea and the Suez Canal, disrupting the 12% of global trade that passes through those waters.2 In addition, drought has slashed the capacity of the Panama Canal, which in normal seasons handles a further 5% of world trade. Surprisingly, the course and operation (who is moving what) of Australia’s trade routes has received extraordinarily little analysis. The last significant public paper on the topic was conducted by the Bureau of Transport and Regional Economics (now the Bureau of Infrastructure and Transport Research Economics, BITRE) in 2007 and was based on data from 2001 to 2004. The profile of Australia’s trade has changed radically since then. This report makes five key policy recommendations and the first of these is that the government fund BITRE to update its 2007 study of trade routes so that Defence can make assessments of how best to secure Australia’s trade routes. A dangerous combination of complacency and tolerance could be born of a view that conflicts are in faraway locations. The reality is that few saw either of the current wars as imminent when they started, and we mustn’t make the same mistake in our region. A central finding in this report is that the greatest risk to the security of our trade routes lies relatively close to home, in the narrow channels through the Indonesian archipelago through which more than half Australia’s maritime trade must pass. Another strong conclusion is that trade has a surprising resilience in the face of conflict: it is important to understand the sources of that strength and develop plans to maximise it.
Topic:
Foreign Policy, Defense Policy, National Security, Trade, and Economic Security
Political Geography:
Australia

2. Australia’s 2024 Independent Intelligence Review: opportunities and challenges: Views from The Strategist

Author:
Chris Taylor
Publication Date:
04-2024
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
Australia has a recent history of intelligence community reform via independent intelligence reviews (IIRs) commissioned by government on a regular basis since 2004. The latest IIR is being undertaken by Dr Heather Smith and Mr Richard Maude. In the lead-up to the announcement of the 2024 IIR, and afterwards, ASPI’s The Strategist has served as a valuable forum for canvassing publicly the most significant issues and challenges to be addressed by the reviewers. This report draws together a selection of articles featured in The Strategist over the past year, with direct relevance to the review and its terms of reference. The articles cover topics from the broad to the specific but include: the review itself, including its scope and purpose the key capability challenge facing Australian intelligence—its future workforce the ‘how’ of intelligence now and into the future; more particularly, new tools such as intelligence diplomacy and offensive cyber operations the purposes for intelligence – from addressing global, existential risks to informing effective net assessment of Australia’s strategic circumstances. In the lead-up to the expected public release of the IIR’s findings later this year, this compilation provides valuable background to the review and to the fundamental challenges and opportunities facing Australian intelligence in the decade ahead.
Topic:
Foreign Policy, Defense Policy, Intelligence, and National Security
Political Geography:
Australia and Australia/Pacific

3. AUKUS Pillar 2 critical pathways: a road map to enabling international collaboration

Author:
George Henneke and Roland Stephens
Publication Date:
05-2024
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
The AUKUS trilateral partnership presents Australia with an unprecedented opportunity to achieve national-security goals that have eluded it for decades. It could offer access to cutting-edge technologies. It can further integrate Australian, US and UK military forces, allowing more unified action to maintain deterrence against national and transnational actors who threaten the global rules-based order. Perhaps most importantly, AUKUS—in particular its Pillar.2 objectives—is an opportunity for Australia to pursue the long-sought industrial capacity necessary to defend its borders and its interests across a range of probable conflict scenarios.
Topic:
Defense Policy, National Security, Partnerships, Emerging Technology, Collaboration, and AUKUS
Political Geography:
Australia and Australia/Pacific

4. Deterrence, escalation and strategic stability: rebuilding Australia’s muscle memory

Author:
Bec Shrimpton
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
To build an effective deterrence strategy, Australia needs urgently to improve its skills and understanding of deterrence, and raise the topic’s profile in our public and policy discussions. Despite having previously been a global thought leader on nuclear weapons and deterrence half a century ago, Australia today doesn’t have a strong grasp of the basics of modern deterrence. Knowledge of and literacy in deterrence are vital for adapting and applying such concepts to meet today’s extraordinarily complex, multidomain and multidimensional requirements. A lack of understanding of deterrence can critically undermine the ability to get strategy and policy right. The implications for Australia’s national interests are urgent and serious. The limited debate in Australia about what good deterrence strategy looks like and its key components can’t be advanced without better understanding of key terms and ideas that are fundamental to deterrence theory and practice. There are, of course, obvious limits to what Australia can achieve alone. Our ability to integrate and combine our military capabilities with those of the US and other critical partners is fundamental to our ability to achieve our security objectives, but some of our partners are working more closely together on building deterrence strategies. We have some catching up to do. This report explains what deterrence is and why it matters. It looks at Australian deterrence policy in practice and at deterrence efforts by some of our partners and allies and it highlights a number of gaps in Australia’s strategic and deterrence planning. The report makes a series of policy recommendations for government, and especially for the Department of Defence, to rebuild Australia’s position as a thought leader on deterrence.
Topic:
Defense Policy, National Security, Deterrence, Strategic Stability, and Escalation
Political Geography:
Australia and Australia/Pacific

5. Nobody wins unless everybody wins: The Coles review into the sustainment of Australia’s Collins-class submarines

Author:
Andrew Davies
Publication Date:
05-2024
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
In 2003, Australia became the proud owner of the last of six new-build Collins-class submarines. Less than a decade later, the fleet was in a poor state of repair, and at times only one or two of the boats were available to the Royal Australian Navy. This account by Andrew Davies explains how the situation was remediated by bringing in a team of highly experienced naval professionals to take an uncompromising look at the arrangements in place to manage a vital national defence asset. Despite a public perception that the submarines were inherently defective, the problems were in fact almost entirely due to dysfunctional and often rancorous organisational dynamics between the key players. In the space of just a few years, and with remarkably little required in the way of additional funding, the situation took a dramatic turn for the better. As with earlier ASPI case studies on defence projects, Nobody wins unless everybody wins is designed to help those in Defence, industry and parliament and other interested observers to better understand the complexities of the business, all with the aim of improving how Australia equips and sustains its defence force.
Topic:
Defense Policy, Economics, National Security, Armed Forces, Defense Industry, and Submarines
Political Geography:
Australia and Australia/Pacific

6. The cost of Defence: ASPI Defence budget brief 2024-2025

Author:
Bec Shrimpton
Publication Date:
06-2024
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
Australia needs to spend more on defence—and it needs to do so immediately. The strategic imperative has been firmly established in the government’s own major defence documents. The Albanese government and the Coalition opposition agree that we are in the gravest geopolitical period in generations and this is only going to intensify. But as the Australian Strategic Policy Institute’s latest Cost of Defence report finds, the rhetorical urgency is not being matched by action in the form of defence investment. The May budget is the latest demonstration of this mismatch, lacking spending for swift increases in capabilities that the Australian Defence Force would need if our region were to deteriorate quickly. In particular, this year’s budget priorities are not directed towards strengthening the Australian Defence Force’s ability to fight in the next decade. This is not doom-mongering; the government has acknowledged that the warning time before any conflict, which had long been set at 10 years, has shrunk to effectively zero time. We have war in Ukraine and the Middle East, aggression and increasingly dangerous and unprofessional behaviour from China causing instability and confrontation in the South China Sea and across the Taiwan Strait, erosions of the rule of law and revisionist agendas from authoritarians. Instability is heightened by foreign interference, economic coercion and artificial intelligence-enabled dangers such as cyber attacks and disinformation. If war were to break out at any time in the next 10 years, our military would essentially fight with the force it has today. Based on current resourcing, nothing significant will change over the decade. Most of the major new capabilities in the government’s defence investment blueprint are two decades away from being fully fielded. That blueprint does contain some shorter-term enhancements, but these will not be fielded until the 2030s. The welcome $5.7 billion in new defence spending over the four-year forward estimates period is devoted to just three priorities: the AUKUS submarines, the next fleet of surface warships and investment in long-range strike, targeting and autonomous systems. But two thirds of this funding doesn’t arrive until 2027-28. The relatively impressive longer term plan leaves us vulnerable in the immediate period ahead. More money immediately is not a silver bullet, and ambition must be balanced with how much Defence can actually spend each year. But the nation’s security requires a two-pronged strategy of enhancing our existing force to meet threats within the decade while investing in long term capabilities. Other countries are furiously pursuing new capabilities that can be put into action quickly—such as creating masses of small drones and prototyping and developing new technologies. We talk about technology and asymmetric advantage—playing to your strengths and finding effective means to exploit an opponent’s weaknesses–yet we lack a credible pathway to bring them into operation to bolster the force we have today. Over the longer term, the picture starts gradually to improve. The $50 billion in additional spending over the next decade is an important commitment, even if far away. The plan for a complete recapitalisation of the surface combatant fleet will eventually give us the biggest and most capable navy Australia has had since World War Two. But, so far, we are failing to grasp the opportunity to link our traditional large platforms such as submarines and warships to more modern developments in warfare—drones and various small uncrewed and smart capabilities. AI, robotics, electronic warfare and space capabilities remain aspirational, without any pathway for inclusion and integration into a truly focused force capable of meaningful deterrence and warfighting. That is why it is so important to realise AUKUS Pillar II, which is dealing with these capabilities. It’s easy to criticise; harder to do. All governments are grappling with tight budgets amid competing demands and the unremitting expectations of voters and taxpayers. As a nation, we need to accept the need for higher defence spending. Hoping that conflict won’t come is not a viable strategy. If we are prepared for war, we have a better chance of deterring and hence averting it. Europe is living that lesson now, having put all hope in the judgment that global trade and economic entanglement would bring security. Now it is clear that military investment is imperative to deter war or best prepare nations for it. The government has a vital responsibility to speak plainly to the nation about the geopolitical risks and the possibility of conflict. We need to grasp the challenge that is in front of us today, not in three or five years’ time. Otherwise, we risk delivering on Macarthur’s famous two word warning: “The history of failure in war can almost always be summed up in two words: “Too late.” Too late in comprehending the deadly enemy. Too late in realizing the mortal danger. Too late in preparedness. Too late in uniting all possible forces for resistance.” Why take the risk of only acting after a crisis and saying better late than never? The world in turmoil demands we act in real time to both deter crises and be best prepared for them.
Topic:
Defense Policy, Economics, National Security, Armed Forces, Budget, and Defense Industry
Political Geography:
Australia and Australia/Pacific

7. Negotiating technical standards for artificial intelligence

Author:
Bart Hogeveen, Arindrajit Basu, Isha Suri, and Baani Grewal
Publication Date:
06-2024
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
The Australian Strategic Policy Institute (ASPI) is delighted to share its latest report – the result of a multi-year project on Artificial Intelligence (AI), technical standards and diplomacy - that conducts a deep-dive into the important, yet often opaque and complicated world of technical standards. At the heart of how AI technologies are developed, deployed and used in a responsible manner sit a suite of technical standards: rules, guidelines and characteristics that ensure the safety, security and interoperability of a product. The report authors highlight that the Indo-Pacific, including Australia and India, are largely playing catch-up in AI standards initiatives. The United States and China are leading the pack, followed by European nations thanks to their size, scope and resources of their national standardisation communities as well as their domestic AI sectors. Not being strongly represented in the world of AI governance and technical standards is a strategic risk for Indo-Pacific nations. For a region that’s banking on the opportunities of a digital and technology-enabled economy and has large swathes of its population in at-risk jobs, it’s a matter of national and economic security that Indo-Pacific stakeholders are active and have a big say in how AI technologies will operate and be used. Being part of the conversations and negotiations is everything, and as such, governments in the Indo-Pacific - including Australia and India - should invest more in whole-of-nation techdiplomacy capabilities. Authored by analysts at ASPI and India’s Centre for Internet and Society, this new report ‘Negotiating technical standards for artificial intelligence: A techdiplomacy playbook for policymakers and technologists in the Indo-Pacific' - and accompanying website (https://www.techdiplomacy.aspi.org.au/) - explains the current state of play in global AI governance, looks at the role of technical standards, outlines how agreements on technical standards are negotiated and created, and describes who are the biggest ‘movers and shakers’. The authors note that there are currently no representatives from Southeast Asia (except Singapore), Australia, NZ or the Pacific Islands on the UN Secretary-General Advisory Body on AI – a body that’s tasked to come up with suggestions on how to govern AI in a representative and inclusive manner with an eye to achieving the UN Sustainable Development Goals. The capacity of the Indo-Pacific to engage in critical technology standards has historically been lower in comparison to other regions. However, given the rapid and global impact of AI and the crucial role of technical standards, the report authors argue that dialogue and greater collaboration between policymakers, technologists and civil society has never been more important. It is hoped this playbook will help key stakeholders - governments, industry, civil society and academia - step through the different aspects of negotiating technical standards for AI, while also encouraging the Indo-Pacific region to step up and get more involved.
Topic:
National Security, Science and Technology, Cybersecurity, Artificial Intelligence, Emerging Technology, and Standards
Political Geography:
Australia, Asia-Pacific, and Indo-Pacific

8. A national strategic warning intelligence capability for Australia

Author:
Chris Taylor
Publication Date:
07-2024
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
Australia’s strategic warning time has collapsed—in response to profound geopolitical shifts. As the ADF is adapting to the hard implications of this change, so must the national intelligence community (NIC). Australian Government decision-makers need time and insight to identify and prioritise threats (and opportunities) and devise effective responses. Strategic warning intelligence enables and empowers them to do so. But it must be done in a way that keeps up with the rapid pace of geopolitical and technological change, and a widening array of non-traditional strategic threats, and in a fashion best suited to Australia’s circumstances. To meet this need the NIC should develop a discrete, institutional strategic warning intelligence function—an Australian Centre for Strategic Warning (ACSW). This would recognise the distinct skills, analytical focus and interface with decision-making entailed—and the vital national interests at stake. In implementing an ACSW, much can be learned from our own and other intelligence communities’ ongoing efforts to adapt to threats other than invasion—notably terrorism and pandemics. This will be especially pertinent in its application to grey-zone threats such as economic coercion. Done right, an ACSW would be an important addition to the suite of Australia’s statecraft tools.
Topic:
Foreign Policy, Intelligence, National Security, and Armed Forces
Political Geography:
Australia

9. North of 26 degrees south and the security of Australia: views from The Strategist, Volume 9

Author:
John Coyne and Henry Campbell
Publication Date:
06-2024
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
The Northern Australia Strategic Policy Centre’s latest report, North of 26 degrees south and the security of Australia: views from The Strategist, Volume 9, contains articles published in ASPI’s The Strategist over the last six months. Expanding on previous volumes, this edition introduces thematic chapters focused on a range of subjects relevant to northern Australia. These include; 1. Defence in the North, 2. Developing Northern Australia, 3. Northern Australia and the Indo-Pacific 4. Critical Minerals, Energy, and Commodities, 5. Space, Food Security and Climate Trends As in previous editions, Volume 9 contains a range of expert opinions across these varied topics. Volume 9 also features a foreword by the Hon. Eva Lawler, Chief Minister of the Northern Territory. Chief Minister Lawler calls readers attention to the relevance of northern Australia in light of the National Defence Strategy and updated Integrated Investment Program as well as Australia’s economic ambitions, stating “the strategies in this volume can inform our efforts to unlock northern Australia’s full potential and build a stronger, more resilient nation.” The 36 articles discuss practical policy solutions for decision makers facilitating development, prosperity and security of northern Australia. These policy solutions tackle both the challenges and opportunities present in the north, and reflect the potential of the north to increasingly contribute to Australia’s national security and economic prosperity.
Topic:
Defense Policy, Climate Change, National Security, Food Security, Space, Defense Industry, and Minerals
Political Geography:
Australia, Asia-Pacific, and Indo-Pacific

10. The ‘official’ histories of Australian and British intelligence: lessons learned and next steps

Author:
Chris Taylor
Publication Date:
08-2024
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
Unclassified, official histories of ‘secret’ intelligence organisations, for public readership, seem a contradiction in terms. These ‘official’ works are commissioned by the agencies in question and directly informed by those agencies’ own records, thus distinguishing them from other, outsider historical accounts. But while such official intelligence histories are relatively new, sometimes controversial, and often challenging for historians and agencies alike, the experiences of the Australian and British intelligence communities suggest they’re a promising development for scholarship, maintaining public trust and informed public discourse, and more effective functioning of national security agencies. Furthermore, these histories remain an ongoing project for Australia’s National Intelligence Community (NIC).
Topic:
Foreign Policy, Defense Policy, Intelligence, and National Security
Political Geography:
Britain, Australia, and Australia/Pacific