THE EFFECTS OF THE WORLD DEFENSE INDUSTRY AND US MILITARY AID TO ISRAEL ON THE ISRAELI DEFENSE INDUSTRY: A DIFFERENTIATED PRODUCTS MODEL

This paper models the interactions between the defense industry market structure and the defense needs of Israel, the USA and Western Europe, which produce several heterogeneous defense goods. The model specifies that the defense industries of the US and Europe are ‘large’ while that of Israel is ‘small’. The US military aid to Israel is also an integral part of the model. The results show that net defense costs of Israel are minimal when the number of its defense firms is one. The model predicts that an increase in US military aid reduces Israel’s government expenditure, its defense industry’s profits and its net defense costs.     

Horizontal Inequalities and Sons of the Soil Conflict in China

Why are large population movements conflict-prone in some regions while they remain peacefully integrated elsewhere? I argue that clashes between ethnically distinct indigenous populations and migrants – i.e. ‘Sons of the Soil (SoS) conflict’ – erupt when there are large socio-economic and political horizontal inequalities between ‘dominant migrants’ and locals. A comparative case study of two Chinese minority regions based on ethnographic fieldwork and population data provides a vivid illustration of the mechanisms linking migration to SoS conflict. With fewer HIs between migrants and locals, Inner Mongolia avoided many of the violent clashes that were commonplace in Qinghai, a province fraught with disparities.     

MODELLING THE RELATIONSHIP BETWEEN DEFENSE SPENDING AND ECONOMIC GROWTH FOR THE FIJI ISLANDS

The goal of this paper is to examine the nexus between GDP and military expenditure. We model this relationship within a multivariate framework by including exports in the model. We use the recently developed bounds testing approach to cointegration and find that there is a long run relationship among the variables when GDP is the endogenous variable. Normalizing on GDP and using four different estimators, we find that in the long run both military expenditure and exports have a positive impact on GDP. Finally, using the Granger causality test, we find that there is evidence for military expenditure Granger causing exports and exports Granger causing GDP, implying that military expenditure indirectly Granger causes GDP in the short run. In the long run, we find that both military expenditure and exports Granger cause GDP for Fiji. Our findings are consistent with the Keynesian school of thought, leading us to derive some policy implications.     

Combating Islamist radicalisation in South Africa

Is radical Islamism spreading in South Africa? The answer has to be an emphatic ‘yes’. When discussing issues of radicalisation in Africa, commentators often examine the case of Somalia's al-Shabaab or al-Qaeda's North African franchise, al-Qaeda in the Islamic Maghreb (AQIM). Very little attention is paid to radicalisation amongst South Africa's Muslim population. Yet, there is growing evidence that South Africa has come to play an important role in global jihadi networks, from the provision of safehouses and identity documents to the movement of funds and the existence of paramilitary camps for local and foreign jihadis. This paper aims to briefly examine radicalisation and its attendant sources in the country, as well as seeking ways to combat it utilising lessons learned from other countries. ‘Institutional socialisation’ by means of the sources of radicalisation, as well as the concept of what could be termed ‘the democratisation of jihad’ are discussed. The author also proposes ways to combat radicalisation in South Africa utilising lessons learned from other countries, concluding that issues of radicalisation and deradicalisation have to be dealt with on the part of both government and the South African Muslim community.     

Budget allocation,national security,military intelligence,and human capital: a dynamic model

This study develops a dynamic model that integrates military intelligence into the defense capability of the country and the optimal allocation of its government budget. We assert that the effectiveness of the country’s military intelligence is contingent on the quality of its human capital, which, in turn, implies a long-term positive relationship between the government’s various civilian expenditures and its capacity to achieve a cost-effective intelligence and, hence, military capability. This relationship is developed within a multiple-period arms race model between two rivals. Using this model and stylized data for the Israeli–Syrian arms race, we show that an appropriate budget shift from defense to civilian expenditures during the initial periods of the planning horizon will gradually (over a decade, say) increase the quality of human capital in the country and, thus, the effectiveness of its intelligence, which, in turn, will increase the country’s future security and welfare.     

TERRORISM AND DETERRENCE POLICY WITH TRANSNATIONAL SUPPORT 1

This study provides an explanation of terrorism by examining interactions between the terrorist group with a minority as a potential pool of recruits and the government supported by a majority. A hawkish deterrence policy makes it more risky for terrorists to launch attacks, but heightens the anti‐government feeling of the terrorist group. In addition, the payoff for the government depends not only on the payoff loss associated with the level of terrorism, but also on the political payoff from the action itself of adopting a hawk policy due to its politicians’ vested interests. We first show that whether the deterrence policy should be ‘hawk to ‘dove is closely dependent on the relationships among the risk associated with terrorism, the anti‐government feeling of the terrorist group, and the political payoff for the government. This study then introduces transnational support enhancing the capability of a terrorist group to intensify its activity and shows that the emergence of transnational support may cause the government to reform its deterrence policy from ‘dove’ toward ‘hawk,’ with terrorism intensified in the society.     

Using the Feder-Ram and Military Keynesian Models to Examine the Link Between Defence Spending and Economic Growth in Sri Lanka

This study uses the Feder-Ram model in conjunction with the military Keynesian model to examine the nexus between defence spending and economic growth in Sri Lanka. We find that the Keynesian aggregate demand model is better suited to analyse the link than the Feder-Ram model for the case of Sri Lanka. Based upon our results we expect a higher economic growth rate in Sri Lanka if more public resources are diverted from the defence to civilian sectors of the economy, now that the war between the government and separatist guerrillas has come to an end. However, recent post war events cast doubt upon whether a diversion of sources from military to non-military spending will actually occur. We conclude that the sanguine predictions of our economic analysis are entirely dependent upon the political decisions of the Sri Lankan government for their realization.     

Budget allocation under uncertainty and the costs of war and insecurity

This study presents a framework and models for the analysis of government budget allocation into defense and civilian expenditures in situations of uncertainty about the incidence of war. The models display the intricate relationships between security levels, subjective probabilities of the occurrence of war, and potential war damages. We show that poor countries tend to perceive greater probabilities of war than their richer rivals, and that the psychological burden of insecurity is larger when the country’s wealth is larger and when its preference for security is higher. We apply our models to the Israeli–Syrian arms race and show that the higher rate of growth of Israel’s gross domestic product relative to that of Syria is expected to lead to an increase in Syria’s perception of the likelihood of war and to a decrease in Israel’s perception of such a likelihood. We also show that if Syria’s regime becomes ideologically more extreme, the monetary cost of maintaining Israel’s security at the level that it enjoyed prior to the change will be very high, whereas the monetary cost of maintaining Israel’s welfare will be moderate.     

Predators and Peace: Explaining the Failure of the Pakistani Conflict Settlement Process in 2013-4

ABSTRACT

Did US drone strikes cause the unravelling of the Pakistani conflict settlement process between the government and the TTP in 2013-14? In answering this question, we present strong, fieldwork-based evidence that the effects of leadership decapitation, civilian casualties, and loss of legitimacy and credibility as a negotiation partner by both the government and the TTP interacted in the context of specific social, political and cultural characteristics of a tribal society. We find that drone strikes ‘produced’ some of these factors, but not all, which allows us to conclude with four concrete policy recommendations for rethinking the use of drones.     

The Wretched of the Empire: Politics,Ideology and Counterinsurgency in Rhodesia, 1965–80

This article examines the vital importance of political ideology in formulating effective counterinsurgency, by examining the case of Rhodesia between 1965 and 1980. During this period, the Rhodesian Front (RF) Government of Ian Smith adopted a radical right-wing ‘world-struggle ideology’ to justify settler resistance to African decolonisation. The RF's ideology, based on settler-status anxiety, upheld a conspiratorial interpretation of modern politics that emphasised virulent forms of Anglophobia, anti-communism, anti-internationalism and anti-liberalism. The Smith Government portrayed African nationalism not as an indigenous political phenomenon, but as an external instrument of world communism and Western appeasement. After 1972, when Rhodesia faced a protracted insurgency, many of the principles of RF ideology were applied to counterinsurgency warfare with disastrous results. Because the Rhodesian Government viewed African guerrilla warfare as unrelated to domestic politics, Rhodesian counterinsurgency lacked a realistic political dimension. The dictates of settler ideology blinded the Rhodesian Government to the vital need to win ‘hearts and minds’ by applying timely principles of political pacification and reform to its counterinsurgency effort. Instead a Rhodesian counterinsurgency campaign of maximum force was pursued. Such a campaign proved counter-productive accelerating strategic deterioration and leading ultimately to the political victory of the African guerrilla cause in 1980.     

Allocating the U.S. Department of Defense Budget: Revisiting the ‘Incremental/Fair Share Model’

Abstract

This article examines the ‘incremental/fair share model’ that was proposed by Alex Mintz in 1988 concerning the budget allocation of the U.S. Department of Defense. Although Mintz was unable to confirm the correctness of his model, this study demonstrated it to be statistically significant. In the statistical analyses, I used the two-stage least squares method and Durbin’s h-test to better scrutinize the model’s adequacy. Few previous studies have addressed the allocation of the U.S. defence budget; consequently, the incremental/fair-share model should constitute a starting point for further research on the U.S. defence budget allocation.     

Guns and butter? Military expenditure and health spending on the eve of the Arab Spring

We examine the validity of the guns-versus-butter hypothesis in the pre-Arab Spring era. Using panel data from 1995 to 2011 – the eve of the Arab uprisings – we find no evidence that increased security needs as measured by the number of domestic terrorist attacks are complemented by increased military spending or more importantly ‘crowd out’ government expenditure on key public goods such as health care. This suggests that both expenditure decisions were determined by other considerations at the government level.     

Guns for Butter? Empirical Evidence from China

Abstract

This study examines the causal nexus between defence spending and education expenditure in China using the bootstrap Granger full-sample causality test and sub-sample rolling window estimation. The full-sample result indicates that there is no causality between defence spending and education expenditure. By adopting a time-varying rolling window approach to revisit the dynamic causal relationships, this article identifies a negative unidirectional causality running from education expenditure to defence spending. The finding suggests that it is the education expenditure crowds out defence spending in China rather than reverse. No causality is demonstrated from defence spending to education expenditure, indicating that an increase in military spending will not crowd out expenditure on education. The results could be partly explained by that the education expenditure in China is below the requirement of corresponding economic growth, urging for more financial budget. Whereas the findings support a negative trade-off between defence and education expenditures, they refute the theory of ‘guns for butter’.     

Russia’s strategy for influence through public diplomacy and active measures: the Swedish case

Russia, as many contemporary states, takes public diplomacy seriously. Since the inception of its English language TV network Russia Today in 2005 (now ‘RT’), the Russian government has broadened its operations to include Sputnik news websites in several languages and social media activities. Moscow, however, has also been accused of engaging in covert influence activities – behaviour historically referred to as ‘active measures’ in the Soviet KGB lexicon on political warfare. In this paper, we provide empirical evidence on how Russia since 2014 has moved towards a preference for active measures towards Sweden, a small country in a geopolitically important European region. We analyse the blurring of boundaries between public diplomacy and active measures; document phenomena such as forgeries, disinformation, military threats and agents of influence and define Russian foreign policy strategy. In summary, we conclude that the overarching goal of Russian policy towards Sweden and the wider Baltic Sea is to preserve the geostrategic status quo, which is identified with a security order minimising NATO presence in the region.     

Obligation to prevent (O2P): Proposal for enhanced community approach to genocide prevention in Africa

As empathetic as distant nations may feel about an ongoing or looming catastrophe in a particular region of Africa, they are too far removed from the horror to grasp its gravity and impact. Geographical proximity to the atrocity, and the likelihood of its spreading to their neighbourhoods, make the communities and neighbouring countries in the imploding region the best and most effective first responders to a crisis in their own backyard. A response from ‘communal’ or ‘regional’ groups is, therefore, the most practical measure for preventing human rights violations in Africa from descending into an actual genocide or an intractable genocidal condition. A community approach to preventing genocide and other human rights abuses should serve as the foundation for a new concept of ‘moral pan-Africanism’ on the African continent in the 21^st century. This article makes an argument for this genocide prevention model and new moral concept.     

The structure of the defense industry and the security needs of the country: a differentiated products model

This paper models the interactions between the defense needs of the USA and Western Europe, which produce several heterogeneous defense goods, and the defense industry market structure. The results show that net defense costs of the USA and Europe are lower when the number of defense firms in each arms‐producing country is small and when the world prices of the defense goods are high. The model predicts that the increase in world prices will crowd‐out countries in the developing world from the market for modern weapon systems and may force them to develop and use ‘cheap and dirty’ weapon systems.     

The terrorists of today are the heroes of tomorrow: the anti-British and anti-American insurgencies in Iraqi history

The anti-British rebellion of 1920 has become one of the most important foundational myths of Iraqi nationalism. It has been the subject of poetry, theatre, film and folklore and continues to be commemorated and evoked as a symbol of the Iraqi nation state and of Iraqi pride and independence. This popular reading of events ignores the realities of the rebellion: that it was a mid-Euphrates, rather than a national, affair and that the motivations, to begin with at least, were far more personal and economic than national. Nevertheless, the rebellion's memory has acquired a hallowed place in Iraqi nationalist discourse. This article will focus on two points: first, to place the rebellion of 1920 in its correct historical context; second, it will be argued that today's anti-American insurgency will make the same historiographical journey from being a tumultuous and localised event that had no shortage of detractors to becoming a defining symbol of Iraqi nationalism. As will be shown, there is already much evidence to suggest that the process has already begun. The foreign troop presence cannot remain indefinitely and when, sooner or later, Coalition forces withdraw we may well see the development of a narrative that credits the ‘resistance’ for gaining Iraqi independence; in other words, the ‘resistance’ today may well become the foundational nationalist myth of the new Iraq.     

Reopen a joint school of military government and administration?

Today there are many calls for other elements of the government to do more to ‘do their part’, assist the military to restore order and stability and ‘win the peace’ in Iraq and Afghanistan, and prepare for similar roles in future conflicts. The authors here instead briefly review the history of US armed forces’ involvement in military governance operations from the Mexican War through World War II, and recommend the re-establishment of a School of Military Government similar to that created during the latter conflict.     

Myopic Government and Strategic Rebels: Exchange and Escalation of Violence

This study presents a model in which the innate inability of a government to fully comprehend the ramifications of its actions, herein referred to as the myopia of the government, leads to underinvestment in counterinsurgency measures and examines the nature of exchange of violence between the government and rebels. While the idea that voters’ or a government’s myopia leads to myopic policies is well established in the related literature, surprisingly, it has never been incorporated into conflict studies. As far as we are aware, this is the first ever study that analyzes the effects of a government’s myopia on the exchange and eventual escalation of violence when the rebels are in their trying stages and shows situations in which the two-sided violence could be either strategic substitutes or complements. The results suggest that in case of a foresighted government, the acts of two-sided violence are strategic complements. When the government is myopic, however, the rebels’ use of violence is a strategic substitute for the government’s violence. The trade-off, according to the model, lies in exchanging higher levels of violence for lower chances of revolt.     

China's Global Equity Oil Investments: Economic and Geopolitical Influences

In this article, we construct and analyze an original database of overseas Chinese equity oil investments (EOI) in order to assess the relative importance of economic and geopolitical factors in determining the type of countries that are most likely to receive those investments. We find that China's national oil companies (NOCs) choose to make considerable investments in certain oil rich countries while ignoring others. We develop and examine ‘economic opportunity’ and ‘geopolitical relevance’ explanations of Chinese EOI. The economic explanation assumes that Chinese oil companies operate autonomously despite the fact that they are state owned, and that they seek international experience in countries offering less competition but more risk. The geopolitical explanation suggests that Chinese equity oil investments are developed and coordinated by the central government as part of a geopolitical strategy that is designed to bypass the so-called ‘Malacca Dilemma’ and deepen security ties with oil-rich states through the conduct of oil diplomacy. We argue that Chinese EOI tends to reflect both corporate interests and government priorities, and that it generates more liabilities rather than benefits for China.