The Dark Side of Extended Deterrence: Thinking through the State Sponsorship of Terrorism

States employ extended deterrence to shield third parties from aggression. The concept is traditionally applied to interstate relations, collective security arrangements, and strategic considerations. The protective relationship that exists between a state sponsor of terrorism and its non-state militant proxy is rarely considered. This article will introduce and explore the sponsor–proxy relationship in the context of extended deterrence, and relate it to Iran’s support and sponsorship of political violence, militancy, and terrorism in Europe. The article reviews the rationale states have for sponsoring terrorism, and illustrates the promises and pitfalls associated with extending deterrence to non-state militants.     

Deterring the Undeterrable: Coercion,Denial, and Delegitimization in Counterterrorism

This article argues that deterrence theory can be applied to counterterrorism. Doing so requires broadening the traditional concept of deterrence by punishment, expanding deterrence by denial to include defense, mitigation, and strategic hindrance, and developing deterrence by delegitimization to influence the political, ideological, and religious rationales informing terrorist behavior. In practice, deterring terrorism requires tailoring threats against state and individual facilitators, diffusing the intended consequences of terrorism, and manipulating terrorist self–restraints. When these and other deterrent leverages are applied simultaneously against various actors and processes involved in terrorism, coercion can be achieved.     

The impact of inventory information distortion due to customer order cancellations

In this paper we study the impact of cancellations of customer orders on an inventory system. We develop a periodic review (s, S) inventory model with Poisson demands, deterministic demand leadtimes and supply leadtimes. When no set up cost is present for replenishment, the behavior of the system cost can be studied analytically. For the case with a fixed set up cost, we derive the operating characteristics of the model via an embedded Markov chain analysis. Based on this, we formulate the total cost function and suggest a two‐phase approach to optimization. Our model can be used to compute cancellation fees and to evaluate the impacts of various conditions of cancellation. We find that cancellations, as major sources of inventory information distortion, increase total system costs, and the magnitude of the cost impact depends on the probability of cancellation and the expected cancellation time. Other relevant lessons and insights are also discussed. © 1999 John Wiley & Sons, Inc. Naval Research Logistics 46: 213–231, 1999     

Imperial nostalgia,the liberal lie,and the perils of postmodern counterinsurgency

Since 9/11, counterinsurgency is back in fashion; the ‘war on terror’ has even been branded a ‘global counterinsurgency’. However the context within which counterinsurgency originally arose is critical to understanding the prospects for its present success; the radically changed environment in which it is currently being conducted casts into considerable doubt the validity of the doctrine's application by many national militaries currently ‘rediscovering’ this school of military thought today. Above all, classical counterinsurgency was a profoundly imperial, state-centric phenomenon; consequently it only rarely faced the thorny issue of sovereignty and legitimacy which bedevils and may doom these same efforts today.     

The Race that wasn't

ABSTRACT

Graham Farmelo's new book on the early British nuclear weapon program assembles a fascinating cast of characters in a gripping narrative. It particularly succeeds at illustrating the importance of “atomic energy” imagery in the United Kingdom well before the discovery of fission, and provides nuanced insights into Churchill's handling of issues relating to the atomic bomb and scientific expertise. However, in arguing that the British had a “lead” on the manufacture of atomic bombs that was “lost” to the United States during the early Manhattan Project, the book overstates its case, and in the process misunderstands what it took to make the bomb.     

Inventory financing under Risk-Adjusted-Return-On-Capital criterion

Risk-Adjusted-Return-On-Capital (RAROC) is a loan-pricing criterion under which a bank sets the loan term such that a certain rate of return is achieved on the regulatory capital required by the Basel regulation. Some banks calculate the amount of regulatory capital for each loan under the standardized approach (“standardized banks,” the regulatory capital is proportional to the loan amount), and others under the internal rating-based (IRB) approach (“IRB banks,” the regulatory capital is related to the Value-at-Risk of the loan). This article examines the impact of the RAROC criterion on the bank's loan-pricing decision and the retailer's inventory decision. We find that among the loan terms that satisfy the bank's RAROC criterion, the one that benefits the retailer the most requires the bank to specify an inventory advance rate in addition to the interest rate. Under this loan term, the retailer's inventory level is more sensitive to his asset level when facing an IRB bank compared to a standardized bank. An IRB (standardized) loan leads to higher profit and inventory level for retailers with high (low) asset. For retailers with medium asset, an IRB loan results in a higher retailer profit but a lower consumer welfare. Calibrated numerical study reveals that the benefit of choosing standardized banks (relative to IRB banks) can be as high as 30% for industries with severe capital constraints, volatile demands, and low profit margins, highlighting the importance for retailers to carefully choose the type of banks to borrow from. When the interest rate is capped by regulation, retailers borrowing from a standardized bank are more likely to be influenced by the interest rate cap than those borrowing from an IRB bank. Under strong empire-building incentives (the bank will offer loan terms to maximize the size of the loan), retailers with medium initial asset level shift their preference from IRB banks to standardized banks.     

Improvise,adapt and fail to overcome? Capacity building,culture and exogenous change in Sierra Leone

Military capacity building (MCB) is as problematic as it is ubiquitous, with the British experience in Sierra Leone providing a rare example of ostensible success. This article critiques the dominant conceptualisation of MCB as purely a principal–agent (PA) problem, using military change scholarship to examine the impact of wartime British intervention on the Sierra Leonean armed forces. Here, indigenous military change was both externally driven and fundamentally adaptive in nature, allowing MCB to bypass some of the difficulties predicted by PA models. However, this adaptive approach nonetheless failed to reconcile Western military values with prevailing Sierra Leonean culture, complicating post-war stabilisation efforts.     

Defence expenditures and economic growth: The externality effect

In a series of articles published in the Fall 1990 issue of Defence Economics Alexander (1990), Atesoglu and Mueller (1990) and Huang and Mintz (1990) have all specified and empirically estimated defence‐growth models based on a neoclassical production function. We now isolate the externality component in our model, re‐estimate its coefficients using data on the U.S. economy 1952–88 and compare specifications and results with Atesoglu and Mueller (1990) and Alexander (1990).     

Managing Withdrawal: Afghanistan as the Forgotten Example in Attempting Conflict Resolution and State Reconstruction

Perhaps surprisingly, given the availability of new Russian memoir material, some excellent individual monographs, and a large variety of declassified documents, a full operational–political account of the Soviet Union's withdrawal strategy from Afghanistan has yet to be written. This article, utilising openly published yet neglected sources, attempts to fill that gap. The final fate of the Najibullah regime, and the contradictory effect of the National Reconciliation Policy in Afghanistan itself, suggests four key lessons for international forces today as disengagement from both Iraq and Afghanistan again becomes a pressing issue, and as questions around re-creating stability within a failed state scenario again occupy the international community.