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311. Aligning U.S.-Israeli Cooperation on Technology Issues and China

Author:
Jonathan Schanzer, Shira Efron, Martijn Rasser, and Alice Hickson
Publication Date:
03-2022
Content Type:
Special Report
Institution:
Center for a New American Security (CNAS)
Abstract:
The United States and Israel have a long history of working together as close allies. Theirs is a relationship based on common values and security interests. In recent years, the alliance’s highlights have included close cooperation on counterterrorism and intelligence, as well as deepening economic ties, technological cooperation, and mutual knowledge transfer. The United States continues to provide Israel with significant security assistance based on a memorandum of understanding signed by both countries in 2016, which commits the United States to provide Israel with at least $3.8 billion per year in aid. The relationship is further strengthened by deep personal connections at the government and business levels as well as through collaboration between the two countries’ technology sectors. In recent years, however, the United States and Israel have differed regarding their threat perceptions and approaches to China. Whereas Israel sees China primarily as an economic partner and is increasing its ties with the country, the consensus view in Washington increasingly sees China as a global strategic rival—militarily, economically, and technologically—even while the Joe Biden administration preserves space for cooperation with Beijing in areas of common interest. In recent years, U.S. and Israeli officials have had public and private disagreements over several Chinese investments in Israeli infrastructure and technology. Although Chinese investments in Israel have declined since their peak in 2018, and even though these disagreements have yet to be aired publicly by the Biden administration and the Naftali Bennett–Yair Lapid government, this issue is likely to remain high on the agenda. The most critical challenges in the bilateral relationship are technology protection and collaborative innovation. Chinese investment in Israeli technology companies, including those that develop dual-use technologies, remains largely unregulated. Although Israel does not export defense technology to China and has placed stringent regulation on the export of dual-use technologies, the line between civilian and dual use is increasingly blurred, and Israel has yet to fully adapt to this reality. Washington, for its part, has not been entirely clear about how it expects American companies and allies to limit their roles. The United States has been slow to offer alternatives to allies such as Israel for forgoing cooperation with China and has yet to develop a collaborative technological innovation framework that builds on the cumulative strengths of the United States and its allies, benefits all, and helps to tip the balance in the technological competition with Beijing. To address the multidimensional challenge presented by China, the United States must enhance collaboration with its allies, including Israel, its closest partner in the Middle East. Fortunately, when the United States and Israel have had differing perspectives in the past, they have successfully engaged in deep bilateral consultations to work through these differences. These efforts have not always resulted in complete alignment, but they have significantly reduced disagreements and allowed for greater cooperation. This paper represents the most comprehensive public analysis to date of the challenges facing U.S.-Israeli cooperation on issues related to technology and China. It proposes an approach for the United States and Israel to align their policies and bridge differences by focusing on three central areas.
Topic:
International Cooperation, Science and Technology, Bilateral Relations, and Alliance
Political Geography:
China, Middle East, Israel, North America, and United States of America

312. Following the Crypto: Using Blockchain Analysis to Assess the Strengths and Vulnerabilities of North Korean Hackers

Author:
Jason Bartlett
Publication Date:
02-2022
Content Type:
Special Report
Institution:
Center for a New American Security (CNAS)
Abstract:
Under heavy and sustained pressure from decades of economic sanctions, North Korea has rapidly expanded its illicit activity within the cyber domain. In particular, Pyongyang has demonstrated an increasing interest in using evolving financial platforms, such as cryptocurrency and blockchain technology, to compensate for the fiscal losses related to economic sanctions on more traditional forms of commercial activity. Since 2014, the Pyongyang-led cybercrime organization known as the Lazarus Group has transformed from a rogue team of hackers to a masterful army of cybercriminals and foreign affiliates, capable of compromising major national financial networks and stealing hundreds of millions of dollars’ worth of virtual assets. The international community and national governments often incorrectly correlate North Korea’s lack of access to modern computer hardware within its borders to its ability to successfully execute software-reliant cyberattacks. While Beijing and Moscow captivate the attention of most democratic governments concerned about pending cyber intrusions, Pyongyang continues to defy miscalculated expectations by successfully employing myriad sophisticated cyberattacks that target new and developing financial technology. North Korea will likely continue to adapt its cybercrime tactics targeting cryptocurrency to circumvent obstacles presented by economic sanctions on more traditional forms of financial activity and commerce. This report provides in-depth analysis of North Korea’s demonstrated ability to exploit financial technologies, in particular cryptocurrencies and blockchain technology, to procure funds for its illicit nuclear and ballistic weapons development programs. This research was supported through blockchain analysis conducted in partnership with TRM Labs, a leading blockchain intelligence firm that seeks to monitor, investigate, and mitigate crypto fraud and financial crime. Through analyzing three case studies of major North Korean hacks, this report outlines key strengths and vulnerabilities in the Lazarus Group’s campaigns to infiltrate cryptocurrency exchanges and steal, launder, and liquidate funds. The report also provides a snapshot of key policy oversights within the regulatory environment in the crypto space of central stakeholders and countries, such as China, the United States, and South Korea. Lastly, this study offers a prospective look into the future of North Korea–led crypto hacks and provides a series of policy recommendations to strengthen cyber resilience against these efforts.
Topic:
Science and Technology, Sanctions, Cybersecurity, and Blockchain
Political Geography:
Asia and North Korea

313. When the Chips Are Down: Gaming the Global Semiconductor Competition

Author:
Becca Wasser, Martijn Rasser, and Hannah Kelley
Publication Date:
01-2022
Content Type:
Special Report
Institution:
Center for a New American Security (CNAS)
Abstract:
The United States is in a strategic competition with a well-resourced and capable opponent. China seeks a global role that is broadly at odds with the strategic interests and values of America and fellow democracies. Technology, a key enabler of political, economic, and military power, is at the center of this competition. Within this competition, semiconductors loom large. Chips are a driving force for breakthroughs in a range of critical technology areas, from AI to synthetic biology to quantum computing. Semiconductors are essential to the military systems used by the United States and its allies and partners to defend themselves and their interests. At a fundamental level, the day-to-day functioning of modern society hinges on dependable access to chips; critical infrastructure, transportation networks, and digital communication cannot function without them. Semiconductor supply chains form an intricate global web, with several countries and companies serving as important nodes. Some of these nodes have such outsized importance that any disruption would have significant and detrimental cascading effects for U.S. national and economic security. Taiwan is the central node in the semiconductor supply chain. Home to the Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chip foundry, more than half of the world’s outsourced semiconductor manufacturing and nearly all leading-edge manufacturing capacity is in Taiwan. Secure access to the output of Taiwan’s semiconductor industry is therefore a strategic necessity. Yet, while policymakers understand the critical importance of Taiwan’s semiconductor industry, the myriad of factors and nuances essential to developing policies and plans that protect its integrity, mitigate risk, and reduce second-order consequences are insufficiently studied.
Topic:
Science and Technology, Strategic Competition, Industry, and Semiconductors
Political Geography:
China, Taiwan, Asia, North America, and United States of America

314. May 2022 Issue

Author:
Gary A. Ackerman, Zachary Kallenborn, Philipp C. Bleek, Paul Cruickshank, Audrey Kurth Cronin, and Jaime Yassif
Publication Date:
05-2022
Content Type:
Journal Article
Journal:
CTC Sentinel
Institution:
The Combating Terrorism Center at West Point
Abstract:
With more than a million Americans dead from COVID-19 and the pandemic associated directly or indirectly with around 15 million deaths globally by the end of 2021 according to World Health Organization estimates, it is essential to reassess the global biological threat landscape, including the possibility that bioterrorists or other bad actors might seek to exploit advances in biotechnology to engineer a future pandemic. In a joint effort, the Combating Terrorism Center and the Department of Chemistry and Life Science at West Point have assembled some of the best and brightest thinkers in the counterterrorism, policy, and scientific communities around the world for their perspectives and analysis on the evolution of the biological threat picture. The result is a two-volume set of special issues, with the second volume being published this month. In the feature article, Gary Ackerman, Zachary Kallenborn, and Philipp Bleek present a bioterrorism classification schema to evaluate the pandemic’s impact on bioterrorism. They assess that “when it comes to bioterrorism, the pandemic probably has not moved the needle much. Although COVID-19 might encourage apocalyptic cults, some radical environmentalists, some extreme right-wing groups, and some Islamist extremist groups toward biological weapons, most other terrorist groups are more likely to be discouraged. The pandemic has bolstered some terrorists’ bio-related capabilities but in at most modest ways. At the same time, lessons from the COVID-19 experience may both help reduce the consequences of a future attack and heighten perceptions of bioterrorism risk.” Our interview is with Shmuel Shapira, who served as Director General of the Israel Institute for Biological Research between 2013 and 2021. Audrey Kurth Cronin argues that “the most significant new risks of [biological] attacks come largely from insider threats by knowledgeable scientists with questionable motives, proxy actors backed by adversarial states, or even those experimenting with new biotechnologies irresponsibly.” She writes that “the old threats of bioterrorism remain, but they are joined by new ones that are falling between the seams of biology and other disciplines, especially engineering, data science, and computer science, and especially at the intersection between molecular biology and artificial intelligence.” Jaime Yassif argues it is vital to “take action to safeguard the life sciences to prevent biotechnology catastrophe, in addition to bolstering law enforcement and intelligence capabilities to more effectively anticipate and prevent bioterrorism and other biological threats.” She writes: “In biosecurity, there is no single solution or intervention that can eliminate all risk. That is why a layered defense is needed, in which multiple interventions in aggregate add up to substantial risk reduction.”
Topic:
Science and Technology, Counter-terrorism, COVID-19, Biotechnology, and Bioterrorism
Political Geography:
Middle East, Israel, Palestine, and Global Focus

315. Cybersecurity and Human Rights in the Western Balkans: Mapping Governance and Actors – Case Study Serbia

Author:
Maja Bjelos and Marija Pavlovic
Publication Date:
10-2022
Content Type:
Special Report
Institution:
Belgrade Centre for Security Policy (BCSP)
Abstract:
Despite a solid legal framework, Serbia’s fight against cyber attacks and crime progresses slowly due to the chronic lack of qualified staff, as well as the politicized priorities of the competent institutions. This is one of the conclusions of the latest publication on the cybersecurity context in Serbia. Official statistics indicate an increasing trend in the number of cyber attacks and cybercrime cases in Serbia. About 26 million significant cyber attacks on information and communication technology (ICT) systems occurred in 2020 – the most common of which involved attempted intrusions into ICT systems and unauthorized data collection. Serbian citizens also witnessed massive violations of their right to privacy and personal data during the pandemic, as well as an increase in the number of attacks against human rights defenders and political dissidents in the digital and physical space. In late 2021, the idea of using biometric surveillance to counter terrorism and organized crime was reintroduced. However, due to the rapid backsliding of democracy and the rule of law, citizens fear that the new face recognition technologies will be directed against them, rather than against criminals and potential terrorists. Since the beginning of 2022, there have been several attempts to commit internet fraud and steal the identities and data of users of the Raiffeisen Bank and the Post of Serbia. In the most recent incident, a hacker attacked the country’s cadastre and shared electronic reports about bombs planted in various public and private institutions, causing widespread concern in society and temporarily disabling the day-to-day work of the institutions affected. Threats to journalists via social networks have also become more frequent. Cyber attacks are now a part of daily life in Serbia, and threats posed by the internet and social networks are likely to intensify and become more complicated in the future. It is therefore important for state authorities to be prepared to respond to any challenge, risk, or threat quickly and effectively, while respecting human rights and the rule of law. The Belgrade Centre for Security Policy addresses the topic of cybercrime from the perspective of human rights and the rule of law. In this context, the centre conducted a baseline analysis and 22 interviews with governmental and non-governmental stakeholders in Serbia, from mid-January to end March 2022, to assess the level of legal and institutional development of the competent authorities in the area of information and cyber security, as well as the challenges facing cybersecurity and human rights in the country. This publication is part of the larger report that focuses on mapping cybersecurity-related human rights opportunities and challenges, and represents an area that is under-explored in the region. There are six chapters in total, one for each economy in the Western Balkans. Each begins with essential conceptual background information regarding the cybersecurity and human rights contexts of each economy. They then each explore four core thematic issues: cybersecurity and the right to privacy, cybersecurity and freedom of expression, cybersecurity and freedom of peaceful assembly (and, where relevant, freedom of association), and cybersecurity and anti-discrimination. Finally, they present ways forward, with concrete recommendations for stakeholders. The study as a whole aims to offer recommendations for the inclusion of human rights standards in cybersecurity governance and for better implementation of cybersecurity norms within the human rights frameworks of the Western Balkans region.
Topic:
Security, Human Rights, Science and Technology, and Cybersecurity
Political Geography:
Europe and Serbia

316. Digital Technology Adoption and Indonesia’s MSMEs during the COVID-19 Pandemic

Author:
Teguh Yudo Wicaksono and Andre Simangunsong
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The coronavirus disease (COVID-19) pandemic has hit micro, small, and medium-sized enterprises (MSMEs) hard. The estimated economic impact of COVID-19 could exceed the fiscal stimulus package as a percentage of gross domestic product (GDP). Digital technologies have helped them to better navigate the situation. Yet Only 13% of MSMEs adopt the internet for marketing and delivering their products and services. This paper discusses Indonesia’s MSMEs during the COVID-19 pandemic and the digital transformation they pursue. We also discuss policy responses and government support to help MSMEs navigate the worst public crisis in our lifetime.
Topic:
Science and Technology, Pandemic, COVID-19, and Digitalization
Political Geography:
Indonesia and Oceania

317. Estimating Japan’s Return on Investment from an Ambitious Program to Incentivize New Antibiotics

Author:
Rachel Silverman and Adrian Towse
Publication Date:
12-2022
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
Anti-microbial drugs form the backbone of modern medicine. Yet their lifespan is naturally limited; over time, use of these drugs selects for mutations that survive exposure those same drugs, driving “anti-microbial resistance,” or AMR. Already, drug-resistant infections kill an estimated 23,210 Japanese citizens every year. In the absence of sufficient research and development (R&D) investment for new antimicrobials, deaths from drug-resistant infections could increase dramatically in the coming decade. To address this growing crisis and solve market failures that prevent the development of new antibiotics, the government of Japan is considering a new program that would provide minimum guaranteed revenue to the successful developers of new antibiotics. In this note, we present the results of a modelling exercise to estimate the likely return on investment (ROI) from such a program, assuming it is paired with complementary and proportionate efforts from Japan’s G7 partners. The results are necessarily imprecise due to several uncertain parameters, but nevertheless provide evidence of a very high expected ROI that is robust to different inputs and assumptions.
Topic:
Health, Science and Technology, Health Care Policy, and Medicine
Political Geography:
Japan and Asia

318. Estimating the UK's Return on Investment from an Ambitious Program to Incentivize New Antibiotics

Author:
Rachel Silverman and Adrian Towse
Publication Date:
12-2022
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
Anti-microbial drugs form the backbone of modern medicine. Yet their lifespan is naturally limited; over time, use of these drugs selects for mutations that survive exposure those same drugs, driving “anti-microbial resistance,” or AMR. Already, drug-resistant infections kill an estimated 7,600 citizens of the United Kingdom (UK) every year. In the absence of sufficient research and development (R&D) investment for new antimicrobials, deaths from drug-resistant infections could increase dramatically in the coming decade. To address this growing crisis and solve market failures that prevent the development of new antibiotics, the UK has set up “subscription models” for purchasing antibiotics; this has been applied to two drugs thus far, and the model is under consideration for a broader rollout. In this note, we present the results of a modelling exercise to estimate the likely return on investment (ROI) from an expanded program to incentivize new antibiotics, assuming it is paired with complementary and proportionate efforts from the UK’s G7 partners. The results are necessarily imprecise due to several uncertain parameters, but nevertheless provide evidence of a very high expected ROI that is robust to different inputs and assumptions.
Topic:
Health, Science and Technology, Health Care Policy, and Medicine
Political Geography:
United Kingdom and Europe

319. Estimating the EU's Return on Investment from an Ambitious Program to Incentivize New Antibiotics

Author:
Rachel Silverman and Adrian Towse
Publication Date:
12-2022
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
Anti-microbial drugs form the backbone of modern medicine. Yet their lifespan is naturally limited; over time, use of these drugs selects for mutations that survive exposure those same drugs, driving “anti-microbial resistance”, or AMR. Already, drug-resistant infections kill an estimated 33,000 citizens of the European Union (EU) every year. In the absence of sufficient research and development (R&D) investment for new antimicrobials, deaths from drug-resistant infections could increase dramatically in the coming decade. To address this growing crisis and solve market failures that prevent the development of new antibiotics, the EU is considering incentive programs that would help provide predictable and value-based compensation to the successful developers of new antibiotics. In this note, we present the results of a modelling exercise to estimate the likely return on investment (ROI) from such a program, assuming it is paired with complementary and proportionate efforts from the EU’s G7 partners. The results are necessarily imprecise due to several uncertain parameters, but nevertheless provide evidence of a very high expected ROI that is robust to different inputs and assumptions.
Topic:
Regional Cooperation, Science and Technology, European Union, and Medicine
Political Geography:
Europe

320. Estimating Canada’s Return on Investment from an Ambitious Program to Incentivize New Antibiotics

Author:
Rachel Silverman and Adrian Towse
Publication Date:
12-2022
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
Anti-microbial drugs form the backbone of modern medicine. Yet their lifespan is naturally limited; over time, use of these drugs selects for mutations that survive exposure those same drugs, driving “anti-microbial resistance,” or AMR. Already, drug-resistant infections kill an estimated 5,400 Canadian citizens every year. In the absence of sufficient research and development (R&D) investment for new antimicrobials, deaths from drug-resistant infections could increase dramatically in the coming decade. To address this growing crisis and solve market failures that prevent the development of new antibiotics, the Government of Canada is considering a new program that would provide minimum guaranteed revenue to the successful developers of new antibiotics. In this note, we present the results of a modelling exercise to estimate the likely return on investment (ROI) from such a program, assuming it is paired with complementary and proportionate efforts from Canada’s G7 partners. The results are necessarily imprecise due to several uncertain parameters, but nevertheless provide evidence of a very high expected ROI that is robust to different inputs and assumptions.
Topic:
Health, Science and Technology, Investment, and Medicine
Political Geography:
Canada and North America