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Entries from March 1, 2016 - March 31, 2016

12:08PM

Making It Hardest For The Most Resilient Among Us

HUMANITY HAS TRANSFORMED THE NATURE OF LIVING OVER THE PAST CENTURY, ROUGHLY DOUBLING LIFE EXPECTANCY AT BIRTH AND THUS SHIFTING THE MEAN AGE RADICALLY UPWARD. This changes the structure of all societies, albeit at uneven paces. Globally, the worker-to-elder-dependent ratio was 12:1 in 1950, dropping only to 9:1 in the year 2000. But with globalization's profound expansion over the last 25 years, we're looking at a ratio of just 4:1 in 2050 (per the UN). That's an amazing burden shift that will be accommodated by people working later in life, technology and productivity advances, and — most crucially — the proper harnessing of youth as future labor. The big problem? Most of those youth are located in the emerging South, where a 10:1 ratio will still exist in 2050, whereas the advanced West will be looking at an untenable 2:1 ratio.

This is why I have advocated, throughout my career, for the West's open borders and active recruitment of immigrants from younger parts of the world. It is the only realistic solution — necessary even as it's insufficient (people will have to work longer and productivity will need to advance). Right now, Westerners seems to be dazzled by the imagery of robots running all and there being no work to be done, but this is a queer illusion that encourages inward-looking perspectives on the future, the classic example being Japan. The zero-sum mindset is also unrealistically greedy — as in, we have ours, so tough on you.

And yes, this generational divide, so well encapsulated in a North-South divide, dovetails quite negatively with the unequal social and environmental burdens generated by climate change, which likewise pits the "old" poles against" young" Middle Earth.

Simply put, we are eating our seed corn.

On this disturbing global trend comes a great editorial in the EconomistSome highlights, with commentary:

Roughly a quarter of the world’s people—some 1.8 billion—have turned 15 but not yet reached 30. In many ways, they are the luckiest group of young adults ever to have existed. They are richer than any previous generation, and live in a world without smallpox or Mao Zedong. They are the best-educated generation ever . . . they are also more intelligent than their elders. If they are female or gay, they enjoy greater freedom in more countries than their predecessors would have thought possible. And they can look forward to improvements in technology that will, say, enable many of them to live well past 100.

Another theme of my work over the years: when America stood up and took on the responsibility of running the world after WWII, it didn't simply replicate the global orders imposed sequentially by Europe's colonial powers over the centuries. Instead, it fundamentally reshaped it to enable global economic integration on an unprecedented scale — and based on our own model of states uniting. This is the primary reason why global standards of living have skyrocketed over the past half century.

But this creates class and generational consciousness on a global scale:

Just as, for the first time in history, the world’s youngsters form a common culture, so they also share the same youthful grievances. Around the world, young people gripe that it is too hard to find a job and a place to live, and that the path to adulthood has grown longer and more complicated.

The primary culprit? "Policies favouring the old over the young."

Last hired, first fired is the most obvious one:

In most regions they are at least twice as likely as their elders to be unemployed. The early years of any career are the worst time to be idle, because these are when the work habits of a lifetime become ingrained. Those unemployed in their 20s typically still feel the “scarring” effects of lower income, as well as unhappiness, in their 50s.

This is very bad news for a planet experiencing rapid demographic aging, the scariest and most self-destructive expression being the tendency of the old to want to "keep out" the foreign or "scary" young. This is a great deal of the emotion behind America's current passion for such slogans as "make our country great again!" It is simply nostalgia for the way things were.

But it denies us sufficient access to the most important resource on the planet — namely, youthful ambition and drive and creativity:

Young people are often footloose. With the whole world to explore and nothing to tie them down, they move around more often than their elders. This makes them more productive, especially if they migrate from a poor country to a rich one. By one estimate, global GDP would double if people could move about freely. That is politically impossible—indeed, the mood in rich countries is turning against immigration. But it is striking that so many governments discourage not only cross-border migration but also the domestic sort … A UN study found that 80% of countries had policies to reduce rural-urban migration, although much of human progress has come from people putting down their hoes and finding better jobs in the big smoke.

The aging of the North is making it brittle, self-centered, and selfish in spirit, and this is being increasingly reflected in government policies, in large part because, on average, 3 out of 5 elders regularly vote while only 1 out of 5 youth do.

The old have always subsidised their juniors. Within families, they still do. But many governments favour the old: an ever greater share of public spending goes on pensions and health care for them. This is partly the natural result of societies ageing, but it is also because the elderly ensure that policies work in their favour. By one calculation, the net flow of resources (public plus private) is now from young to old in at least five countries, including Germany and Hungary. This is unprecedented and unjust—the old are much richer.

This is where the newspaper nails the long-term danger:

That is a cruel waste of talent . . . Rich, ageing societies will find that, unless the youth of today can get a foot on the career ladder, tomorrow’s pensioners will struggle. What is more, oppressing youngsters is dangerous. Countries with lots of jobless, disaffected young men tend to be more violent and unstable . . .

The great challenge of the North's rapid demographic aging is resisting the general political crabbiness that comes with growing old, which eventually turns us all into cranky, get-the-hell-off-my-lawn types.

I don't know about you, but I don't dream of a future of gated communities populated mostly by the elderly who receive "personal care" from robots. That sounds more like the North turning itself into a giant nursing home.

Social resilience is a renewable resource, but it gets renewed generation by generation. We are not promoting that dynamic today in the West/North, and it will come back to haunt us.

 

3:56PM

The Internet of Things: Resistance Is Futile, But Resilience Is Fruitful

 

CONTINUING LAST FRIDAY'S THEME OF WHO'S-SPYING-ON-YOU, A DISTURBING ARTICLE FROM CBS NEWS HIGHLIGHTS HOW YOUR SMART PHONE CAN BE USED AGAINST YOU IN A VARIETY OF CRIMINAL/NEFARIOUS WAYS. What this reminds us is that, per the security expert cited in the story, we're all basically carrying around a mini personal computer in our pockets all day long, and that can be as disastrously hacked as any desk or laptop. Indeed, it can be far worse because of the camera, video, and recording capacities that we tend to view primarily as standard technologies kluged together in one unit, when they're all – to varying degrees –accessible to hackers via the software.

Some highlights from the piece:

Popular apps on your smartphone can be convenient and fun, but some also carry malicious software known as malware, which gives hackers easy access to your personal information.

A security firm found that between 75 and 80 percent of the top free apps on Android phones or iPhones were breached. The number jumps as high as 97 percent among the top paid apps on those devices.

Two caveats can be offered.

  1. There is the argument that mobile devices are more secure than personal computers and servers, because they're less open (a countering argument being that PCs and servers are targeted far more because that's where the good stuff is – i.e., the data).
  2. Many experts will also draw a distinction between Android phones and iPhones in terms of architecture and hence security.

With my limited technical knowledge, I'll buy both.  But here's the thing, with the blossoming Internet of Things, the number of devices grows fantastically, and the security features built into all those devices tends to be less comprehensive and robust, primarily because these devices are designed for consumers versus enterprises, meaning ease of use and access are paramount. Thus, as we rapidly build out the Internet of Things, we create sort of a wild-west frontier that surrounds all the critical infrastructure upon which these devices depend, allowing for a radical expansion of attack vectors by criminal and malicious actors.

That's certainly not an argument against pursuing the Internet of Things, but it does say that we need to build it out with more care and vision regarding the resilience of the critical infrastructure being increasingly exposed. In effect, our critical infrastructures are going to be subjected to an evolutionary leap of sorts, so we either adapt them in turn (keeping pace), or we suffer new and worse vulnerabilities.

Back to the story and quoted "cybersecurity expert Gary Miliefsky, whose company SnoopWall tracks malware."

Milifesky said when you download an app, you also give permission for it to access other parts of your phone, like an alarm clock app that can also track phone calls.

"You think an alarm clock needs all those permissions? Access to the Internet over wifi, your call information, calls you've made, call history, your device ID? This to me is not a safe alarm clock," Miliefsky said.

And there's the weather and flashlight apps that he says exploit legitimate banking apps to capture information, as he showed us in a demonstration of what could happen when someone takes a photo of a check to send to their bank.

"The flashlight app spies on the camera and noticed the check and grabbed a copy of it. Shipped it off to a server somewhere far away," Miliefsky said.

Last year the group FireEye discovered 11 malware apps being used on iPhones that gathered users' sensitive information and send it to a remote server, including text messages, Skype calls, contacts and photos Apple fought back by removing the apps and putting stricter security measures in place.

"They get at your GPS, your contacts list...to build a profile on you," Miliefsky said.

Some apps are simply collecting information for advertising purposes. In 2014, the Federal Trade Commission settled a lawsuit with a company over its popular Brightest Flashlight app, alleging it transmitted consumers' personal information to third parties without telling them.

But Miliefsky said he's found another flashlight app that can do much more troubling things.

"This one turns on your microphone in the background, listens in on you, and sends an encrypted tunnel to a server we discovered in Beijing," Miliefsky described.

That certainly gets your attention, yes?

Whether or not we buy into the darker, more geo-political aspects, it's clear that we're all being subjected to a game-changing degree of personal transparency, and that, in political terms, the question of who's watching the watchers is just starting to be explored.

Now, a lot of people will respond to these developments by attempting to reduce their exposure, just like a lot of enterprises have attempted over the years. But that approach typically comes with too big a price in terms of lost efficiency, convenience, and sheer opportunity. Building more firewalls as the Internet of Things comes into being is not the answer.

In short, while resistance is futile when it comes to the Internet of Things (and the Borg, of course), resilience becomes the new prime directive for individuals, families, enterprises, communities, governments, and nations.

 

 

3:56PM

How Climate Change Truly Tests Human Resilience Is By Pitting Middle Earth Against the Poles

YES, IT IS COMPLETELY UNFAIR THAT THE INDUSTRIAL NORTH, WHICH IS MOST RESPONSIBLE FOR GLOBAL WARMING, WILL RECEIVE MOST OF ITS BENEFITS, WHILE THE SOUTH, EAGER NOW TO ACHIEVE SIMILAR LEVELS OF ECONOMIC DEVELOPMENT, WILL BE MOST HAMPERED BY CLIMATE CHANGE. And yes, this disparity will cause a great deal of political-military tension between that equatorially-centric band and the rest of humanity. We see an early version of this already in the migratory flows from central and north Africa, across the Mediterranean, into Europe. You may think it's all about civil strife in Libya and Syria, and there's plenty of that, but the consistent, long-term pressure of bodies heading north is more about climate-change-fueled desertification than anything else, reflecting the fact that it's growing harder to live in those regions.

A big part of why it's harder for humans to live in those central regions of the globe is that climate change is slowly draining them of resources, something we've noted for years in the poleward and upward (in elevation) movement of plants and animals, a dynamic that has recently been studied in a comprehensive manner (as described in a recent Newsweek posting):

As the planet warms, plants, trees, fish and other natural resources are on the move, shifting toward the poles, in the direction of higher elevations and deeper into the seas, states a paper published February 24 in the journal Nature Climate Change. This natural capital has economic value, especially in developing countries where it accounts for a large share of resources. The team of researchers led by Eli Fenichel, an assistant professor at the Yale School of Forestry & Environmental Studies, say that where the fish migrate, money will follow, but that it’s not as simple as this.

The findings suggest that it’s not enough for policymakers to look for biophysical changes, such as the increase of fish in one place and the decrease in another, to see how wealth is shifting in response to climate change, but that they should also take “inclusive wealth” into consideration. Inclusive wealth is an economic framework that accounts for the sum of traditional, human and natural capital, in an effort to measure a country’s ability to sustain human well-being. Wealth that is stable or which increases over time indicates overall sustainability. The framework can be applied to track the broader impacts of climate change on local and global sustainability: When natural capital shifts due to climate change—either toward the poles or toward the mountains—its value changes in response to new pricing that takes into account these social considerations in addition to the biophysical change alone.

The study, worth reading, employs scenarios to illustrate climate change's winners and losers, positing two fishing communities in the north (winner) and south (loser). The point was to examine the socio-economic changes in human behavior that arise from this pronounced resource shift:

“People are mostly focused on the physical reallocation of these assets, but I don’t think we’ve really started thinking enough about how climate change can reallocate wealth and influence the prices of those assets,” says Fenichel. The study uses fish as an example, but natural capital can include plants, trees, and other assets valuable to humans.

“We don’t know how this will unfold, but we do know there will be price effects. It’s just Economics 101—prices reflect quantity and scarcity and natural capital is hard for people to move,” Fenichel says. “It’s as inevitable as the movement of these fish species.”

“To be clear, the ‘gainers’ here are clearly better off,” he says. “They’re just not more better off than the losers are worse off. The losers are losing much more than the gainers are gaining. And when that happens, it’s not an efficient reallocation of wealth.”

The study's primary author then takes a stab at analogizing the resulting political-military tension:

It’s sort of like taking a piece of birthday cake from one child and giving it to another child who already has cake, according to Fenichel. One child undoubtedly stands to benefit more. “But the kid who got the second piece of cake is going to be a lot less happier than the kid who lost their only piece of cake will be upset.”

That analysis reminds me of the Western academics who examined China's gender imbalance and immediately went to positing Chinese military aggression so as to burn off the excess males. Not only was it bad political-military analysis (modern warfare is no longer ground-troop centric, as it was in the past, so just loading up the military with extra bodies accomplishes nothing), it simply ignored the realities of modern life, which says males seeking spouses don't simply sit put, accepting their fate, but rather tend to do whatever it takes to find mates. With modern travel networks, this includes the "unthinkable" of going abroad and marrying non-Chinese, like we've long seen in other Asian societies suffering over-concentrations of males in various geographic pockets or age cohorts.

And guess what, the same thing will happen (as we're already seeing in Europe) with climate change. The people of Middle Earth won't simply tough it out forever. Instead, they'll head north and south . . . to where there's growing amounts of arable land freed up by climate change.

The good news is, an older North (and developed South) should logically welcome this influx of fertile youth, because that's how we'll keep our own populations from aging too rapidly in coming decades. Yes, there will be politicians who call for "walls." There are plenty of them in North America and Europe now, and frankly, Russia's renewed interest in the Middle East is largely driven by that fear of an influx of radicalized Muslims. But, rest assured, they're coming. Nature will drive them and the rest of us will simply have to accommodate them in one of the greatest political experiments in human history.