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Over at SWJ Blog.

Cartel v. Cartel: Mexico’s Criminal Insurgency

The government’s strategy, essentially a ‘war of attrition’ is failing. The result of heavy-handed military action is the increasing ‘fractilization’ of the conflict, higher levels of violence, and increasing discontent by the general public and elites. Though the war has largely vanished from the mainstream American press after last summer’s panic over the prospect of Mexico as a ‘failed state,’ the violence continues and risks of cross-border spillover remain.

A good piece.

I am still sticking with my thought experiment on Mexico, which is looking increasingly plausible.

Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable by Mark Gilbert

Inside Cyber Warfare: Mapping the Cyber Underworld by Jeffrey Carr

Received courtesy review copies of two books that will serve to “stretch” my knowledge base and increase my cognitive map.

Mark Gilbert is a financial columnist and bureau chief for Bloomberg News in London and he has written a hard hitting deconstruction of the great credit collapse and crisis bail-out of 2008-2009. Gilbert is telling a story of breathtaking risk assumption, regulatory capture, academic hubris, central bankers as naked emperors and unrepentant banksters who have learned nothing and forgotten nothing from the crisis. My personal background in credit issues is rooted solidly in the dustily agrarian economic history of the 19th century and the painful transition from yeoman “book debt” to gold standard dollars, so I look forward to broadening my understanding of modern financial systems from reading Complicit.

I will probably review Complicit in a cross-blog conjunction with Lexington Green, who also has a copy in his possession.

Jeffrey Carr is the CEO of GreyLogic and a researcher, presenter and consultant on issues related to cybersecurity, hacking, cyberterrorism and asymmetric conflicts in virtual domains. Carr offers a cohesive and compact look at the major problems and players in the uncertain crossroads of national security and cyberspace. Non-geeks (like myself) will appreciate Carr’s focus in Inside Cyber Warfare on the connection to the worlds of intelligence, law enforcement, international law and military operations and doctrine. As an added bonus, the foreword is by Lewis Shepherd, another blogfriend and the former Senior Technology Officer of the DIA.

Originally, I had wanted to review Inside Cyber Warfare before last Christmas, so now that I have the book, I will move it to the top of my titanic reading pile.

The news trickling out of Haiti is apocalyptic. The president of Haiti is homeless. Hundreds of thousands may be dead. The Haitian state, rickety and corrupt at the best of times, has collapsed along with the government buildings. Gangs of machete-wielding looters rule the capital city as supplies of food and clean water run dangerously low. The magnitude of the disaster may exceed the capacity of even the U.S. to respond unilaterally.

A humanitarian crisis of epic proportions is brewing and anything short of a speedy and massive response in the next 48 hours and a restoration of order in Haiti will inevitably draw comparisons between Haiti and New Orleans under Bush.

John Hagel is in a small category of thinkers who manage to routinely be thinking ahead of the curve ( he calls his blog, where he features longer but more infrequent posts than is typical,  Edge Perspectives). I want to draw attention to the core conclusion of his latest:

Challenging Mindsets: From Reverse Innovation to Innovation Blowback

Innovation blowback

Five years ago, John Seely Brown and I wrote an article for the McKinsey Quarterly entitled “Innovation Blowback: Disruptive Management Practices from Asia.” In that article, we described a series of innovations emerging in Asia that were much more fundamental than isolated product or service innovations. We drew attention to a different form of innovation – institutional innovation. In arenas as diverse as motorcycles, apparel, turbine engines and consumer electronics, we detected a much more disruptive form of innovation.

In these very diverse industries, we saw entrepreneurs re-thinking institutional arrangements across very large numbers of enterprises, offering all participants an opportunity to learn faster and innovate more effectively by working together. While Western companies were lured into various forms of financial leverage, these entrepreneurs were developing sophisticated approaches to capability leverage in scalable business networks that could generate not just one product innovation, but an accelerating stream of product and service innovations.

…. Institutional innovation is different – it defines new ways of working together, ways that can scale much more effectively across large numbers of very diverse enterprises. It provides ways to flexibly reconfigure capability while at the same time building long-term trust based relationships that help participants to learn faster. That’s a key breakthrough – arrangements that support scalable trust building, flexibility and learning at the same time. Yet this breakthrough is occurring largely under the radar of most Western executives, prisoners of mindsets that prevent them from seeing these radical changes.

Read the whole thing here.

Hagel is describing a mindset that is decentralized and adaptive with a minimum of barriers to entry that block participation or information flow. One that should be very familiar to readers who are aware of John Boyd’s OODA Loop, the stochastic/stigmergic innovation model of John Robb’s Open Source Warfare, Don Vandergriff’s Adaptive Leadership methodology and so on. It’s a vital paradigm to grasp in order to navigate and thrive in the 21st century.

Western executives (think CEO) may be having difficulty grasping the changes that Hagel describes because they run counter to cultural trends emerging among this generation of transnational elites ( not just big business). Increasingly, formerly quasi-meritocratic and democratic Western elites in their late thirties to early sixties are quietly embracing oligarchic social stratification and use political or institutional power to “lock in” the comparative advantages they currently enjoy by crafting double standards through opaque, unaccountable authorities issuing complex and contradictory regulations, special exemptions and insulating ( isolating) themselves socially and physically from the rest of society. It’s a careerism on steroids reminiscient of the corrupt nomenklatura of the late Soviet period.

As the elite cream off resources and access for themselves they are increasingly cutting off the middle-class from the tools of social mobility and legal equality through policies that drive up barriers to entry and participation in the system. Such a worldview is inherently zero-sum and cannot be expected to notice or value non-zero sum innovations.

In all probability, as an emergent class of rentiers, they fear such innovations when they recognize them. If allowed to solidify their position into a permanent, transnational, governing class, they will take Western society in a terminal downward spiral.

There’s an academic-Left kook element of no small size among international law NGO activists. These folks see themselves as a secular, international relations, Ulema, able to issue press release “fatwas” that are supposedly binding but in reality, have no legal basis in anything except their own imaginations.

Naturally, such an unserious intellectual position eventually leads them into bizarre and frivolous wastes of time.

Can Video Games Turn You Into a War Criminal?

….According to a new study by two Swiss human rights groups, TRIAL and Pro Juventute, many combat-heavy games actively encourage players to kill injured soldiers, attack civilians and destroy churches and mosques. As satisfying as these actions might be for players, they flagrantly violate real-life criminal and humanitarian law.

The organizations reached this guilty verdict with the help of three attorneys, who watched gamers blast their way through 19 titles, including recent hits like “Call of Duty 4,” “Army of Two” and “Metal Gear Solid 4.” Each time a player flouted the Geneva Convention or another international treaty, the legal team took note.

Their final report reads like Radovan Karadzic’s rap sheet. “Call of Duty 4,” a first-person shooter set in Russia and the Middle East, is accused of allowing gamers to “attack civilian buildings with no limits in order to get rid of all the enemies present in the town who are on roof tops … Under [International Humanitarian Law], the fact that combatants/fighters are present in a town does not make the entire town a military objective.”

Cluelessness is a closed system.