The document discusses security issues and threats faced by London Heathrow Airport. It outlines how Heathrow is a prime terrorist target as a major international transport hub vital to the UK economy. Several past terrorist plots targeting Heathrow are described, including IRA mortar attacks in 1994 and an attempted bombing of an El Al flight in 1986. The liquid bomb plot of 2006 had the biggest impact, nearly causing mass casualties on transatlantic flights and significantly increasing security procedures like banning liquids. Maintaining strong security at Heathrow involves cooperation between airport authorities, police, intelligence agencies, and technological improvements to counter the ongoing threat of terrorism.
3. CONTENTS
HEATHROW : THE ETERNAL TARGET
BY : JOHN PALSER
RESILIENCE : BACK TO THE PAST
BY : LUIGI CASTELLANI
ENERGY RESILIENCE
RUSSIA, UKRAINE, AND THE PROSPECT OF ANOTHER GAS WAR
BY : WARREN DYM
BOOK REVIEW
CYBERSECURITY AND CYBERWAR: WHAT EVERYONE NEEDS TO KNOW
“WHAT DOESN’T KILL YOU”
CYBER RESILIENCE AND THREAT
BY : MARIKA N. JOSEPHIDES
JAPAN RESPONDS TO MULTIPLE SECURITY CHALLENGES
BY : STEPHEN BLANK
CYBER RESILIENCE : THE NEVER-ENDING STRUGGLE
BY : DAN SOLOMON
SIRS : AN INTRODUCTION
3
4
5
9
13
17
23
28
34
Images in this publication are not original to SIRS Consultancy Ltd.
4. SIRS Consultancy Ltd is a UK-based company, created in early 2011, which focuses primarily on the research
and analysis of current intelligence, security, geopolitical and resilience issues. Since its establishment, SIRS
has created and maintained a proven track record of providing accurate and timely insights concerning
current and emerging security matters. During its initial year of operation, SIRS was the first company to
create and publish as comprehensive report, titled ‘National Security Risks: Immediate Challenges Before
Summer 2012’, which focused on the whole range of security threats and resilience issues that Britain faced
prior to the 2012 Olympic and Paralympic Games. The Parliamentary launch of this major report, in
conjunction with cross-party political entities such as the All-Party Parliamentary Group on Specialist Security
and the House of Commons Home Affairs Committee, allowed SIRS to forge its initial links with the UK
political community, which still continue. Furthermore, several recommendations made in this report were
included on the British Army’s intranet as training material.
SIRS was able to further capitalise on the success of its first major project by producing ‘Summer 2012
Threats: The Final 10 Weeks’ in May 2012. This focused on and explored the security and threat picture faced
by Britain during the last two months before the 2012 Olympic Games, and served to provide an update and
expand upon the conclusions of ‘National Security Threats: Immediate Challenges Before Summer 2012’.
Furthermore, ‘Summer 2012 Threats: The Final 10 Weeks’ generated significant interest in SIRS as a
company, and resulted in SIRS staff being interviewed by mainstream media outlets including BBC News
Channel, Sky News, BBC Radio London, BBC Radio Five Live and ABC Radio Australia. SIRS’ increasing
relationship with media outlets has provided the company with significant and valuable experience in media
liaison, and in supplying the media with concise and relevant analyses of current security and intelligence
issues.
Aside from its larger projects, SIRS Consultancy personnel have also written or contributed to articles on
numerous relevant issues. These have included concerns as diverse as Islamist terrorism in the Maghreb and
Sahel regions of Africa, cyber security, emergency response communications, ‘lone wolf’ terrorism and also
the prospects for future peace and stability in Afghanistan. Furthermore, SIRS has also carried out extensive
research to support projects by external clients. These projects have focussed on matters including the threat
posed by al-Shabaab, piracy in the Indian Ocean, Mediterranean maritime security, and the size of the
European Union’s state and private sector intelligence communities. As a result of the range of different
projects that SIRS has worked on during the three years, the company’s personnel are highly flexible and
adaptable in their approach to their work, and are able to work alone or in groups on projects of any size.
Throughout 2012, SIRS Consultancy published the initial version of ‘Monitor’ magazine. As with the
re-launched ‘Monitor’, this magazine featured articles covering as diverse a range of relevant security and
intelligence matters as possible. Contributors to the original ‘Monitor’ came from a wide variety of
professional backgrounds including private sector security analysis, academia, the military and law enforce-
ment. ‘Monitor’s’ scope in terms of content was global, with individual sections examining security or
intelligence issues affecting particular countries, regions or continents, with other sections looking at more
universal matters such as the technology of security, physical security, and lessons that can be learned from
effective or ineffective responses to major incidents, such as terrorist attacks or ‘active shooter’ situations. Our
aim is for the re-launched ‘Monitor’ magazine to be just as broad, if not broader, in the scope of its outlook
and content.
The original ‘Monitor’ ended its run in October 2012. This was due to significant staff changes as SIRS
Consultancy, together with the emergence of new, large scale company projects which otherwise occupied
the majority of SIRS’ personnel. Also, SIRS staff have, since the end of ‘Monitor’s’ original run, been working
on their own independent projects concerning current security and intelligence issues, and furthermore have
used the interim period to undergo relevant training in areas such as advanced intelligence analysis, source
evaluation and the use of open-source research tools. These new skills will allow SIRS Consultancy’s staff to
widen their professional remit and improve the level of service that the company can provide to clients. SIRS
as a company is therefore more capable than ever.
SIRS : AN INTRODUCTION
4
7. Heathrow:The EternalTarget
BYjohn palser
Had the plot succeeded, the levels of international
criticism which would have been levelled at the UK can
only be imagined. Conversely, public confidence in flying
from Heathrow would also have been irreparably
damaged.
More than 9/11, the liquid bomb plot has continued to
shape Heathrow’s security capability and significant
technologicaladditions.Withintheairport,aprimeexam-
ple is “the Aurora Facial Imaging Recognition system, the
most advanced to be used in a UK airport and approved
for use at Heathrow following an 18-month trial by BAA
and the UK Border Agency” (‘Evening Standard’, 20 July
2011). Externally, “Cambridge UK design house Plextek
has had its advanced Blighter radar technology adopted
by BAA to enhance perimeter security. The complete
airport perimeter surveillance solution includes
long-range day and night cameras and a network of high
definition cameras, capable of quickly identifying and
tracking intruders detected by the Blighter radar” (‘Busi-
ness Weekly’, 30 May 2012). With regards to Heathrow
Airport’s overall security strategy, most of the required
key aspects of security are fulfilled: Passport control and
passenger screening prior to entering the departure area
are highly stringent; the presence of both armed and
unarmed police is a reassurance to passengers as much
as it is a deterrent to would be terrorists; the security
equipment currently in use is of leading quality and a
result of significant investment; and perimeter security is
able to identify potential launch sites for missile attacks.
Indeed, not since the three-day debacle of IRA bombard-
ments in 1994 has a successful attack been perpetrated
at Heathrow. However, that is not to say that terrorism
has been nullified as a danger.
There continues to be an assumption that a terrorist’s
main aim is to get on board a flight and then launch an
attack. However, there is very little to stop a suicide
bomberfromdetonatingadeviceanywhereintheairport
prior to being searched at passport control. Within a
group like Al-Qaeda’s modus operandi, this would fit
perfectly with their stated aims (no-warning attack, killing
innocent civilians, hitting an infrastructure target).
This concept is not an alien one either, as was demon-
strated in 2011 when “a Chechen militant detonated
explosives in the international arrivals hall at Domodedo-
vo Airport, 26 miles from Moscow city centre. 35 people
died,includingatleast8foreignersand180wereinjured”
(‘Metro’, 25 January 2011).
This attack made front page news around the world, with
strong coverage assured by the choice of target and the
fact that civilians of many nationalities lost their lives. With
Heathrow’s status as one of the busiest airports in the
world, a carbon-copy attack would produce exactly the
same result. Even the armed police presence would not
guard against this sort of attack. This links into the idea of
pre-emptive intelligence, with plots being shut down well
beforethezerohour.However,thereisagaintheassump-
tion that an attack on Heathrow will always be attempted
by the sort of terrorist cells involved in the 2006 plot. In
fact,itwouldseemthattherewouldbemoretofearfrom
a ‘lone wolf’ attack on a target such as Heathrow. This
leads into a major issue lacking from Heathrow’s security:
profiling.
The use of profiling, whether on the streets to reduce
crime or in an airport to prevent terrorism, is a concept
that is mired in controversy. Some minorities see it as a
form of stereotyping. Others see it simply as an anathe-
ma to the idea of civil liberties and of the individual being
innocent until proven guilty. However, when used in the
right way, profiling could represent a positive addition to
the security apparatus at Heathrow. Terrorists may be
able to use ingenuity to design devices that are easier to
conceal and smuggle onto planes but they cannot mask
basic human behaviour with guile. The Israeli national
carrierEl-Alisaperfectexample.Theiruseofprofilinghas
been a major success in countering terrorism. Some have
criticised the fact that “its screening process is so
time-consuming that passengers are required to arrive
three hours before all flights and that passengers can be
interrogated separately by three different screeners”
(‘ABC News’, 1 October 2001), but one look at the
airline's safety record demonstrates that it is largely a
precision tool. With this in mind, it is heartening to see
that future improvements in technology at Heathrow will
include an element of profiling: “a three-channel passen-
ger screening system will categorise people according to
risk,thenseparatetheminto'enhanced','normal'andthe
least risky, 'known traveller'. The new technology would
rapidly screen passengers, depending on the channel
theygothrough,tocoveradvancedX-ray,shoescanning,
full-body screening, liquid detection and electronic
sniffing for traces of explosives”
(‘Daily Mail’, 5 September 2011).
7
13. Thestand-offendedon20Januarywhen,aftermediation
by the EU, Gazprom and Naftogaz signed a new
purchase agreement, and gas flowed through Ukraine
once again. But such a crisis may happen again.
On 21 November, 2013, Ukrainian President Viktor
Yanukovych, under pressure from Russian President
Vladimir Putin, decided against signing a free-trade
agreement with the EU. Putin had pressured Yanukovych
in part by threatening higher gas prices and limited
supplies. The Ukrainian people took to the streets in
numbers not seen since the Orange Revolution of 2004,
amajorprotestagainsttheelectionofViktorYanukovych.
The gas stoppage of 2009 should serve as a stark
reminder of what Russia is capable of, and suggest
policies and practices to help mitigate the effects of
another potential gas stoppage.
On 1 January 2009 the Russian state gas company,
withdrawing20%oftheEuropeanUnion’s(EU)supply.
Gazprom was embroiled in a pricing dispute with
Naftogaz of Ukraine, which provides the largest gas
transit route to the Balkans, Central Europe, and West-
ern Europe.
80% of Russian gas exports to the EU passed through
Ukraine at the time of the January 2009 disruption. By 2
January,Bulgaria,Hungary,Poland,RomaniaandSlovakia
had already experienced shortages. By 7 January all
Russian gas exports to the EU had stopped. Nations
scrambled to enact emergency plans as temperatures
dropped. The hardest hit region was South-Eastern
Europe, where gas dependency on Gazprom could
amount to 100%, and where the global economic down-
turn had undermined an already vulnerable energy
sector. Some 700,000 apartments in Sarajevo, for exam-
ple, lost heating, as suburban consumers turned to alter-
native fuels like wood, or found refuge with relatives and
friends elsewhere.
In Bulgaria, Greece, Moldova, Serbia and other regional
nations,storedgas,fueloil,hydroelectricpower,liquefied
natural gas (LNG), or emergency help from across
borders all lessened the severity of the shortfall from
Russia.
Critical factors included water level and tempera-
ture—that it remained above freezing helped to avoid a
humanitarian disaster, and freed water for for hydroelec-
tric power—availability and cost of wood for household
heating, availability and cost of fuel oil for utilities that
could switch from gas, transport infrastructure for the
distributionoffueloil,reverseflowcapabilityfortheredis-
tribution of gas supplies and energy agreements with
neighbouringcountries. Meanwhile, Central andWestern
European nations like Belgium, Germany and Italy, which
have more diverse natural gas supplies, including LNG
terminals, substantial domestic gas production and
storage, and better overall energy resilience, adjusted
easily to the Ukraine incident.
EnergyResilience:
Russia,Ukraine, and theProspect ofanother GasWar
BY WARREN DYM
A Continuing Threat
It is important to stress that Europe is not on the whole
dependent on Russian gas. Two nations—Germany and
Italy—together account for about 50% of the EU’s
dependency.
Europe has achieved remarkable energy diversification
since the 1980s. The share of Russian gas imports within
the EU’s overall gas consumption has declined from 30%
in the early 1990s to 25% today, although the share of
European imports more broadly (including non-EU
nations) is higher. Advanced economies like Germany
procure natural gas from Algeria, Nigeria, Norway and
the Middle East, and can expect LNG from the United
States in the near future, and possibly domestic produc-
tion from shale. The share of total energy that imported
gas provides (alongside domestic gas, coal, nuclear,
hydropower, and renewables) may be relatively small for
these countries, and may serve industry more than
households.
Nevertheless, Putin’s ability to use gas as a political
bargaining chip in Russia’s near-abroad has improved
since 2009. In December 2011, Gazprom acquired the
remaining stake in Belarus’s gas transport company,
Beltransgaz, which the Russian company did not already
own.
13
16. EnergyResilience :
Russia,Ukraine,andtheProspectofanotherGasWar
BYWARRENDYM
According to the Energy Act (and largely in line with IEA
membership prerequisites) all suppliers of energy within
thecountryarerequiredtomaintainasupplystandardfor
30 days in the event of major weather events or supply
disruptions.
Companiesareexpectedtodrawfromstorage,domestic
sources, or reach across borders. Slovakia’s national gas
supply company, Slovenský Plynárenský Priemysel (SPP),
which translates as ‘Slovak Gas Industry’, penned agree-
ments with E.ON Ruhrgas of Germany and GDF Suez of
France in order to diversify its import portfolio. Special
regional centres are charged with announcing energy
emergencies and managing the response. Transmission,
distributionandstoragecompaniesarerequiredtofollow
the centres’ directives. They include specific restrictions
or cut-offs to different end users according to severity
level ratings (i.e., household heating is a top priority).
Otherwise, Slovakia’s utilities did not have a widespread
ability to switch from gas to fuel oil, as in Bulgaria.
Today, Slovakia depends on Russia for 63% of its natural
gas, amounting to 20% of its overall energy portfolio, but
the energy resilience of this EU and IEA member is
relatively sound.
Policy Recommendations
Today, Slovakia depends on Russia for 63% of its natural
gas, amounting to 20% of its overall energy portfolio, but
the energy resilience of this EU and IEA member is
relatively sound.
The gas war between Russia and Ukraine in 2009 could
have been much worse. Temperatures could have plum-
metedfurther,thestoppagecouldhavebeenplannedfor
a non-holiday period (when demand would have been
higher), and it could have lasted longer than 19 days. All
European nations, but especially Eastern European ones
from the Baltic to the Balkans, should study the events of
2009 in order to develop better emergency plans. This
brief overview would suggest the following
policy recommendations:
(continued on next page)
switching from gas, but logistics and infrastructure prob-
lems prevented distribution across the country. So while
Russian gas accounts for 13.6% of Bulgaria’s total energy
consumption today, overall dependency on Russia is
much higher when one factors in oil. Bulgaria still lacks an
LNG terminal on the Black Sea coast, but it is boosting
domestic gas production and, like Serbia, expecting
Russia’s South Stream.
Similarly, Russian energy giants enjoy overwhelming
control over Serbia’s oil and gas industry and infrastruc-
ture. Here too limited stocks of fuel oil proved impossible
to distribute to utilities swiftly in January 2009, due to
infrastructure and logistics challenges. But unlike Bulgar-
ia, Serbia possesses no adequate domestic UGS.
Belgrade district added a new boiler to serve that critical
city, but the emergency import of 25,000 tons of fuel oil
from Bosnia proved more decisive. The Serbian Govern-
ment also arranged electricity imports from Hungary’s
Magyar Olaj (MOL) and Germany’s E.ON.
Such cross-border arrangements and additional reverse
flow capabilities will prove critical for Serbia looking
ahead and the national ‘Security of Supply Statement’
calls for a host of new interconnections. Otherwise, there
was no official discussion of overdependence on Russia
forgasandoilafterthecrisisin2009,andSerbia’sNation-
al Anti-Monopoly Commission claimed that the issue fell
beyond its mandate. The national (or rather, Russian) plan
for Serbia remains, like Bulgaria, to wait for the South
Stream pipeline.
Serbia’s relative complacency in energy security planning
after the 2009 crisis stands in marked contrast to the
Slovak Republic. In line with EU requirements toward
liberalisation Slovakia ‘unbundled’ its import, transmis-
sion, and distribution industries in 2006, so that one
company cannotcontrolenergyflows fromproductionto
end users. Nevertheless, natural gas accounted for 27%
of Slovakia’s total energy consumption in 2009, and the
bulk came from Russia in accordance with a 20-year
contract with Gazprom; and Slovakia was a transit nation
for some 20% of the EU’s total natural gas, much of it
from Ukraine. Therefore, after the crisis Slovakia invested
heavily in infrastructure to improve the movement of gas
from storage to consumers, and beefed up reverse flow
capability from the Czech Republic.
16
17. EnergyResilience :
Russia,Ukraine,andtheProspectofanotherGasWar
BYWARRENDYM
and distribution plan.
-
tion and distribution plan.
fuel oil, gasoil, or coal, depending on what is most
available.
to emissions restrictions.
nationsshouldinvestininterconnectionsandreverseflow
capabilities to improve the strategic movement of
supplies during emergencies.
energy security.
priority to vulnerable households are essential.
BOOK REVIEW:
Cybersecurity and Cyberwar: What Everyone Needs to Know
byP.W. Singer andAllanFriedman,OxfordUniversityPress,2014
The truly comprehensive scope of this excellent book
with regard to current and emerging cyber security
issues, puts a complete breakdown of its contents
beyond the reach of this review.
This in itself demonstrates the extent to which this book
represents an in-depth attempt to understand as
completely as possible the present cyber threat picture,
and the measures which have been and could be utilised
to ensure cyber security. The wide-ranging approach
taken by the authors of this work allows them to discuss
cyber security issues from the perspective of states,
sub-state groups, the business community, and also how
these interact with each other in cyberspace. Aside from
the highly informative content of this book, and the
authors’ excellent use of evidence to support arguments
and introduce different perspectives, the book itself is
writteninawaythatengagesthereader,andmakeswhat
some may view as a ‘dry’ subject genuinely interesting.
The first main section of Cybersecurity and Cyberwar:
What Everyone Needs to Know, titled ‘How It All Works’,
itverywell-structuredandeasilyaccessible.Containingas
it does an explanation of how the Internet functions at a
basic level, this section provides all those who use the
Internet,butwhomaynotunderstanditsstructure,witha
solid introduction that is vital to comprehending much of
what follows later in the book. Highlights from this first
section are many and varied.
When explaining how the Internet operates, it puts
forward a simple yet concise and informative guide to
17
18. BOOK REVIEW:
Cybersecurity and Cyberwar: What Everyone Needs to Know
byP.W. Singer andAllanFriedman,OxfordUniversityPress,2014
how its Domain Name System functions. This section also
introduces the reader to major issues such as Internet
governance, the authentication of individuals’ identity
online and, crucially, the main threats that exist in cyber-
space. The cyber security issues raised in this first section
of the book include Advanced Persistent Threats, which
are rapidly becoming a major concern within cyber
security circles. The Wikileaks ‘Cablegate’ case is also
well-covered with regard to the role that unauthorised
disclosures can play in undermining cyber, organisational
and national security. The book’s first section emphasises
that the human factor is often overlooked with regard to
cybersecurity.Thisapproachstrengthensthevalueofthe
book as a guide to cyber security as it recognises that
cyber security as a concept rests as much on individuals
as on the technology at their disposal.
The second section of the book, ‘Why It Matters’, contin-
ues the authors’ excellent use of examples to introduce
and explain the main issues surrounding cyber security.
For instance, Singer and Friedman highlight the fact that
different nation states have varying beliefs regarding
what constitutes cyber security, and the need for a free
flow of information via the Internet. The book points out
that whilst politicians in the United States argue that
access to international online news sources and social
networks is a human right, countries such as China and
Russia view the same free flow of information as an
attempt to undermine the stability of the state, rather
than a basic human right.
By using this simple but powerful example, Singer and
Friedman clearly demonstrate the inherent difficulty in
defining cyber security as a concept at the international
level, as different states can have conflicting beliefs
regarding exactly what constitutes a cyber threat. This
section of the book also tackles the vital issue of attribu-
tion with regard to cyber attacks and how hackers can
remotely take control of computers and then use these
machines to carry out cyber attacks.
Although the authors of this book often focus primarily
on technology, they never lose sight of how cyber securi-
ty concerns could damage relations between states, For
example, with regard to the issue of attribution,
Singer and Friedman argue that mutual suspicions
concerning cyber security have increasingly “poisoned”
US-Chinese relations. The authors then concede that,
since many in the US assume that the Chinese state has a
high level of control over its citizens, then it is logical to
argue that most “insidious activities” launched using
computers based in China were carried out with at least
some knowledge on the part of the Chinese
Government. However, it is then pointed out that this
viewpoint, especially prevalent in the US, may persuade
potentialhackerstoremotelycaptureandusecomputers
in China in order to avoid detection, although it is further
argued that this in itself may allow the Chinese
Government to attempt to deny any cyber attacks that it
hasitselfcarriedout. Thefactthatthisexampleisgivenin
a single paragraph demonstrates the ability of the
authors of this work to concisely analyse a given issue in
suchawaythatgivesthereaderagoodunderstandingof
what is at stake.
‘Why It Matters’ also contains a solid introduction to the
issue of ‘hacktivism’ as a concept, together with an over-
view of who carries it out and why. The section includes a
comprehensive yet concise analysis of ‘Anonymous’,
including how it emerged, its modus operandi and what
its motivations are. Whilst many assessments of hacktiv-
ism focus purely on its repercussions in cyberspace,
Singer and Friedman also explore how such activity can
lead to confrontation and potentially even fatalities in the
non-cyber world. The authors cite a 2011 US Army War
College report which recounts how Los Zetas, a drug
cartelcomposedofformerMexicanArmypersonnel,was
targeted by Anonymous after its kidnapping of one of
the latter’s members. Following a statement by Anony-
mous that it would post confidential information regard-
ing Los Zetas online if its member was not released, the
cartel hired experts to help it ‘reverse hack’ Anonymous,
uncover personal details of some of its members, and
threaten them with assassination.
In citing this example, the authors of this book are
addressing the potential real-world impact of hacktivism,
something not always done by writers on cyber security,
especially when examining interaction between sub-state
actors.
18
19. BOOK REVIEW:
Cybersecurity and Cyberwar: What Everyone Needs to Know
byP.W. Singer andAllanFriedman,OxfordUniversityPress,2014
This middle section of Cybersecurity and Cyberwar:
What Everyone Needs to Know includes a straightfor-
ward yet informative introduction to the various types of
cybercrime, which is both clear and easily understand-
able. Even for those of us who consider ourselves to be
‘cyber-savvy’, such a guide to potential online crimes
should be and is most welcome. Cyber espionage is also
covered in this section, with the example of ‘Operation
Shady RAT’, which successfully penetrated 72 major
targets across the globe, being used to demonstrate
boththescaleofcyberespionageandtherangeofactors
that might be targeted.
Theauthorsofthebookalsoadoptamorebalancedview
of the potential threat posed by cyber terrorism than
some sections of the media. Singer and Friedman argue
that whilst the threat of cyber terrorism in genuine, it
perhaps poses less of a challenge than the media has
previously reported. However, the authors do provide a
detailed overview of how terrorist organisations use the
Internet, especially with regard to spreading propaganda
and recruiting new members. Also, the fact that a Taliban
propaganda website was hosted by a server based in the
US is used to demonstrate the ease with which terrorist
groups are able to use the Internet because of its “virtual
anonymity”.
Aside from specific cyber threats, the book’s authors also
discuss the Internet in relation to issues of foreign policy
and human rights, and especially the need to balance
security with the online freedom of expression. Singer
and Friedman excellently demonstrate, using appropri-
ate evidence, that online freedoms are shaped at a coun-
try level by national cultures and histories, and not simply
by the type of government, i.e. democratic or authoritari-
an, that a nation state might have. One example that is
used is the fact that whilst the UK and Thailand are both
monarchies, it is illegal in the latter to defame the
monarch.
This book correctly points out that such differences can
present obstacles to the creation of international
definitions of what level of free speech is permissible
online.
Furthermore, this section also contains an informative
overview of the Tor network, and the potential problems
posed by it, especially with regard to criminal activity,
such as the ‘Silk Road’ black market website.
Crucially, the grey area of ‘patriotic hackers’ is also
covered by this section of the book. An analysis of this
emerging element of the cyber security landscape is
most welcome as it demonstrates that individuals,
non-state groups and national governments interact
within the cyber realm. Singer and Friedman use the
example of the ‘Estonian Cyberwar’ of 2007, during
which members of Nashi, a pro-Putin Russian youth
movement, carried out cyber attacks against Estonia
following the relocation of a Russian war memorial in
Tallin. It is vital that this facet of the cyber security
landscape is better understood, as the use of patriotic
hackerscanallowgovernmentstocarryoutcyber attacks
against rival states whilst being able to credibly deny that
such an operation was officially sanctioned, thus compli-
cating any potential response by the target state.
The authors of this book also consider other recent and
emerging cyber threats such as the Stuxnet computer
worm and its successors, together with the ethical issues
that the use of such weapons raises, how these weapons
function and what damage they can cause. When consid-
ering Stuxnet and similar cyber weapons, the greatest
service that this book provides is to clearly and accurately
argue that such weapons represent a ‘game changer’
with regard to cyber security. The issue of how military
alliancessuchasNATO,originallycreatedtofightconven-
tional, i.e. non-cyber wars, and which relies upon the
concept of collective security, should react when one of
its members is targeted by a cyber attack is also consid-
ered. A balanced assessment of this issue by those
concerned is essential if NATO is to remain relevant, and
this book can therefore only help to spur on such an
appraisal.
ThiscentralsectionofCybersecurityandCyberwar:What
Everyone Needs to Know also contains a very interesting
overview of US Cyber Command and of the Chinese
approach to cyber warfare.
19
20. BOOK REVIEW:
Cybersecurity and Cyberwar: What Everyone Needs to Know
byP.W. Singer andAllanFriedman,OxfordUniversityPress,2014
This overview concludes with the proposal that the two
sides are fairly evenly matched, having both similar capa-
bilities and similar vulnerabilities. The connected issue of
how states can deter cyber attacks on each other when
attributing the origin of cyber attacks to a particular state
or other actor is still problematic is also considered.
As already noted, one of the main strengths of this book
is the evidence used by its authors to support their
conclusions. When examining whether cyber warfare
favours the weak or the strong, Singer and Friedman
note that in 2009, US troops in Iraq discovered that insur-
gents had used a cheap, commercially-available comput-
er programme called ‘Skygrabber’ to hack into US
surveillance drones and monitor their movements.
This example, which clearly demonstrates the potentially
‘levelling’ effect that cyber attacks can have during a
conflict between two otherwise asymmetrically-matched
opponents, has been well chosen by the book’s authors.
Despite the reality of cyber threats, Singer and Friedman
do an excellent job in maintaining a balanced outlook
whilst also making the reader aware of genuine concerns.
They stress that weaker states and non-state groups
mostlikelydonothavetheresourcesneededtocarryout
significant cyber attacks. However, they do concede that
malware can be developed and deployed by a small
group of experts, from the sub-state group level down to
the level of the individual. They conclude that in this new
“cyber arms race” multiple experts will more often than
not be needed in order to successfully carry out cyber
attacks, and that the idea of cyber attacks being carried
out by a “single teenaged hacker in his parents’ base-
ment” is often far from the truth.
The third and final main section of the book, ‘What Can
We Do?’ arguably takes a much wider look at cyber secu-
rity. However, this does not mean that the section lacks
the insight, accuracy or engaging style of the two previ-
ous chapters. The first main point that this section makes
is that different types of resilience are needed in order to
combat cyber security threats. Whereas cyber resilience
planning to meet traditional threats, such as extreme
weather events, relies primarily on redundancy capabili-
ties which can be engaged in the event that parts of a
network are rendered inoperable, security against
malicious cyber threats has to consider attackers who
know what parts of a network to target, potentially
including back-up systems. Furthermore, Singer and
Friedman again correctly stress the human factor in cyber
security and resilience, and how such efforts often hinge
ontheknowledge,professionalismanddiligenceofthose
individuals charged with implementing them.
The use by the authors of this book of non-cyber exam-
ples to engage with the reader and explain how cyber
securityeffortscouldbeimplementedisprominentinthis
chapter. For instance, Singer and Friedman use the work
of the US Center for Disease Control to explain how
computer viruses and malware may be combated in the
cyber world. Also, the authors use the example of how
maritime piracy was successfully confronted by nation
states during the so-called “Golden Age of Piracy”. They
argue that maritime piracy was successfully countered
through confronting the established markets, havens and
criminalstructuresthatallowedittoflourishandgenerate
a profit for its perpetrators.
Singer and Friedman propose that there are modern
cyber equivalents of these factors, such as online black
market trading websites and companies that tolerate
malware, allow cyber crime to flourish in a similar manner
to maritime piracy during its “Golden Age”. It is
proposed that if such havens were removed, then
committing criminal or malicious acts in cyberspace
would become more difficult. By using the “Golden Age
of Piracy” as a metaphor with which to engage with the
reader, Singer and Friedman have chosen well, as this is a
subject that has long been prevalent in popular culture.
Aside from the role of organisations such as the Interna-
tional Telecommunications Union, this final section of the
book also points out that, despite claims that due to its
transnational nature, the Internet is beyond the reach of
national governments, the systems that form the Internet
are located within nation states. This is a vital point, as it
demonstrates, contrary to what some believe, that
governments are still able to significantly influence the
operation of the Internet through the laws of individual
nation states.
20
21. BOOK REVIEW:
Cybersecurity and Cyberwar: What Everyone Needs to Know
byP.W. Singer andAllanFriedman,OxfordUniversityPress,2014
To borrow a phrase from the text, “...there is no non-sov-
ereign, ‘free’ part of cyberspace”. This final chapter of
the book also offers an interesting perspective on cyber
securityexercises.Theauthorsarguethat,despitemutual
suspicion, joint US-Chinese cyber security exercises have
the potential to reduce tensions between the two coun-
tries regarding activity in cyberspace. This viewpoint
does not seem to have been widely reported or
discussed in the media, meaning that this concept may
be fresh and new to many readers.
In short, this book is a genuine must-read for anyone
interested in cyber security issues, regardless of their
background or level of expertise. Singer and Friedman
present a lucid, concise and highly informative break-
down of current cyber security matters and their implica-
tions at the global, state, corporate and individual levels.
Aside from the highly informative arguments and
evidence featured in this book, the style in which it is
written allows it to appeal to both experts and newcom-
ers to the subject of cyber security. We can say no more
than this book is essential reading in the modern world.
21
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22.
23. Who turned out the lights?
14 August, 2003: a major failure of the electrical grid led
to what became known as the 'Northeast Blackout',
during which most of the North-Eastern United States
(US) and Canada were plunged into darkness. Over fifty
million people were left without power. Airports,
railroads, oil refineries and factories had to close. Also,
utilities such as gas and water did not have the pressure
capacity to provide any services, resulting in inoperative
petrol stations and putting the water supply at risk of
contamination.Furthermore,wheregeneratorsranoutof
fuel, cellular communications were disrupted or taken
down entirely. There was mass panic as well as reports of
looting and violence, and emergency services could not
respond in the face of such demand - that's if the calls got
through. The Anderson Economic Group places the total
economic loss for the United States at a mid-point
estimate of $6.4 billion.
The entire ordeal lasted barely two days.
Two weeks later, the same thing happened in London,
albeit on a much smaller scale. A failure in the National
Griddisrupted60%oftheLondonUndergroundnetwork
at the peak of the rush-hour. 1,800 trains and 250,000
“WHATDOESN’T KILLYOU”
CyberResilience andThreat
BY Marika N. Josephides
people were affected. This power failure lasted around
forty minutes. Both of these cases prompted extensive
inquiries and investigations. Theclose timing of the black-
outs understandably raised questions of possible
malicious intent, and the prospect that they had been
terrorist attacks was not ruled out. It was eventually
determined that in both cases the fault lay in a mixture of
human error and faulty equipment. One of the trigger
culprits in the Northeast Blackout, as the media enjoyed
pointing out at the time, was an intrepid tree. Whatever
the reasons for the blackouts, the results of the relevant
factors would lead anyone to ponder on the fragility of
modern civilisation and the interconnectedness of its
critical infrastructure. What prompted the Northeast and
London blackouts were innocent mistakes.
The Cyber Threat Picture Today
Innocent mistakes such as the above examples, however,
do not preclude the possibility that malicious cyber-at-
tacks by state and sub-state actors could achieve the
same results. A blackout of sustained duration - even if it
were restricted to one branch of infrastructure - could
assist or supplement a military or physical attack.
TorontoduringtheNortheastBlackoutof2003.Source: Camerafiend;obtainedviaWikipedia.
23
24. Over ten years on from the Northeast and London black-
outs of 2003, we have seen this concept of a combined
strike implemented during Operation 'Orchard', carried
out in 2007. During this operation, Syria's sophisticated
air defence system was blinded, allowing the Israeli Air
Force to execute an attack on a nascent undeclared
nuclear reactor site. The cyber element was integral to
the operation as a whole. This is an illustration of former
Director of the CIA (2009-2011) and US Secretary of
Defence (2011-2013) Leon Panetta's much quoted
"cyber Pearl Harbor" scenario. Similarly, the oft-chroni-
cled Stuxnet worm which took down yet another nuclear
site in Natanz, Iran, put Advanced Persistent Threats
(APTs) firmly on the cyber security map.
This is not to say that malicious cyber activity has to be
military in nature. It has recently been revealed that
Finland's Ministry of Foreign Affairs (MFA) experienced
cyber infiltration into systems with external connections.
It has been confirmed that no sensitive internal data was
compromised, but some diplomatic communications
may have been extracted. The attack was an APT that
had been in the relevant system for up to four years, and
there is no lack of skill in MFA cyber security. This
highlights the nature of cyber-espionage in general -
stealthy, often undetectable, and impossible when it
comes to attribution. It is sufficient that only a small
vulnerability in the system is exploited.
Yet another cyber security threat is exemplified by the
theft of £1.3 million from Barclays Bank in April 2013. In
this successful case of cyber theft, all it took was a small,
organised criminal network to send a man into a London
branch of Barclays under the pretence of being an IT
contractor. He attached a 'keyboard video mouse' switch
with a 3G router to one of the computers. The criminal
organisation could then remotely transfer funds to bank
accounts at their leisure. Fortunately, the group was
rounded up and the funds were restored. And of course,
one cannot speak of cases of cyber theft without men-
tioning the huge breach of the Sony PlayStation Network
in 2011, in which about 100 million user accounts were
compromised, causing concern regarding identity fraud,
which one cannot trace. The possible expenses to Sony
from the data theft were estimated at $171 million, but
no money was actually stolen in the breach. The informa-
tion heist was perpetrated by a 19-year-old hacker living
in his parents' house, and was done 'for the lulz'.
“WHATDOESN’TKILLYOU”
Cyber ResilienceandThreat
BY MARIKAN.JOSEPHIDES
All of the above cases, and many more far too numerous
to outline here, underscore the scope of the cyber threat
inawidevarietyofsectors,byanynumberofactors,from
a large number of attack vectors and for numerous
reasons.
Though cyberspace and all its stakeholders are global, it
is helpful to examine the issue further from the perspec-
tive of a developed country with a cyber strategy of its
own – the United Kingdom (UK). This way we can come
to an assessment of mitigation, prevention and policy
against a worse-case scenario in a country that publicly
aims to be as prepared as possible.
The Internet alone accounts for 6% of UK GDP. This does
not include transactions that are facilitated by or are a
by-product of the Internet through advertising. The Inter-
net has enabled 21% of GDP growth across developed
countries during the period 2005-2010. If the Internet
were a consolidated 'sector' it would dwarf both utilities
and agriculture.
Critical infrastructure and related processes are almost
entirely managed by forms of SCADA ('Supervisory
Control and Data Acquisition') technology. They are
controlled remotely by computers and communications
networks. These processes include oil and gas pipelines,
water distribution, the electrical grid and railway opera-
tions and signalling. A 2011 report by McAfee, an Ameri-
can-based computer security software company, found
that nearly two-thirds of critical infrastructure companies,
publicandprivate,statedthattheyregularlyfindmalware
with the potential to sabotage their systems.
Evidently, attacks that aim to cause levels of disruption
comparable to the Northeast Blackout - be it with a Deni-
al-of-Service (DOS) or an APT attack, or something else-
are not beyond the pale of attacker ambition or
possibility. Cyber resilience has therefore become a
priority.
Bouncing Back: Cyber Resilience
The World Economic Forum defines cyber resilience as
"the ability of systems and organisations to withstand
cyber events, measured by the combination of mean
time to failure and mean time of recovery." This breaks
down to two factors: prevention and mitigation. If this
seems like a defensive reactive concept, it is.
24
25. It evokes past US Secretary of Defence (under Gerald
Ford 1975-1977 and George W. Bush 2001-2006) Donald
Rumsfeld's 'unknown unknowns' - but the blurring of
online boundaries makes it so. The interconnectivity
between individuals, organisations and the state inher-
ently increases the risk of unpredictable shocks to the
entire system, and this is exacerbated by the advent of
cloud computing. Prevention and mitigation with a clear
emphasis on the human element would therefore be a
realistic and effective focus.
This is the policy approach taken by the UK. The National
Security Strategy places "hostile attacks upon UK cyber-
space by other states and large scale cyber crime" as a
Tier One threat - putting it at the highest priority level -
stressing "risk and resilience" in the face of "new systems
of influence." It is consonant with the UK Cyber Security
Strategy (UKCSS), the second objective of which is to
make the UK "more resilient to cyber attack and better
able to protect our interests in cyberspace." It makes the
point that all networked systems are potentially vulnera-
ble and that these vulnerabilities can appear anywhere
withintheinformationlifecycle.Theappropriateresponse
is thus determined to be one utilising risk-based
measures.
UKCSS adopts a holistic approach that aims to establish
compliance norms, support and coordinate with
businesseslargeorsmallinrelationtoboththepublicand
the private sector, and inform the public as to how to stay
safe online. The UK Government put in place a £650
million, four-year National Cyber Security Programme
(NCSP) in order to facilitate this. The Office of Cyber
Security and the UK Cyber Security Operations Centre
(CSOC) were opened to improve detection of cyber
security threats. The most capital-intensive initiative of
the NCSP was funding to the UK intelligence community
in aggregate, constituting £157 million of NCSP money -
see breakdown (see Figure 1). The Centre for the Protec-
tion of National Infrastructure (CPNI) intensified its
approach and coordination against threats from cyber-
space. The National Cyber Crime Unit (NCCU) was also
conceived to operate as part of the National Crime
Agency(NCA).Itistooearlytocommentonthisdevelop-
mentasthelatterorganisationissonew,buttheNCCUis
intended to provide a co-ordinated national response to
cybercrime.
“WHATDOESN’TKILLYOU”
Cyber ResilienceandThreat
BY MARIKAN.JOSEPHIDES
This could also be seen as a shift of intent as well as
capability - the NCA has executive powers, which include
the power of arrest.
To reiterate, huge emphasis has been put on public-pri-
vate partnerships and industry-led standards. The
Department of Business, Innovation and Skills is one of
the major Government leads in the UKCSS. This is due to
thevulnerabilityofbusinesses,forwhichtheprofitmotive
sometimes interferes with choices in cyber security. Small
andmediumenterprisesinparticulararevulnerableinthis
respect. In 2012, 60% of those surveyed had suffered a
malware attack. A 2012 PricewaterhouseCoopers survey
found that 93% of large corporations and 76% of small
businesses had experienced a cyber security breach that
year. And of course, the UK’s system of quasi-privatisa-
tion means that large sections of the critical national
infrastructure belong to private businesses.
The cynical may declare that most of this strategy
amounts to a grandiose awareness campaign. Our rebut-
tal would be that the global and mostly asymmetric
nature of the threat means that absolute prevention is
impossible, and in a situation where the entire chain is
only as strong as its weakest link, widespread awareness
and action is absolutely necessary. Government Commu-
nications Headquarters (GCHQ), the UK's provider of
signals intelligence and information assurance, estimates
that on balance, 80% of attacks are preventable by
"simple best practice." This could be something as
simple as remembering to log out, updating anti-virus
software, or confirming the identity of a contractor, which
would, incidentally, have prevented the Barclays theft of
April 2013.
On the world stage, the UK ratified the 2001 Budapest
Convention on Cybercrime in 2011, the same year that
the Strategy was consolidated. Questions were raised
regarding the practical usefulness of this initiative, the
argument being that it would be ineffective without the
involvement of Russia and China, from where a dispro-
portionate number of attacks originate.
25
26. Figure 1-NationalCyberSecurityProgrammeExpenditure
Breakdown2012.Source:CabinetOffice,www.gov.uk
Practical Solutions: Prevent and Mitigate
We shall turn next to the further ways through which the
cyber threat can be managed. A totally secure chain all
down the line of stakeholders cannot be guaranteed, for
the aforementioned reasons, but it can be helped by
various measures. Businesses can and should implement
contingency and response plans to mitigate the effect of
attacks, especially in sensitive industries. Law firms, for
example, are in possession of valuable information that is
of particular interest to hackers, such as client data and
intellectual property material. Yet only 35% of surveyed
law firms had cyber response plans in place, and only 9%
have produced cost estimates relating to cyber attacks,
as opposed to 26% of businesses in other sectors,
according to a Hildebrandt Institute survey of 2013. This
indicates a more general theme in how businesses gener-
allyrelatetocyberissues.Apartfromtheaforementioned
profit motive considerations, there is also the unfortunate
fact that sometimes functionality and security are a
trade-off. Cyber issues can also seem obscure to people
who are not 'computer literate’, and this is equated with
irrelevance by the human ego. Additionally, internal secu-
rity and confidentiality breaches not related to cyber
matters have been a more traditional concern,
particularly in law firms.
There is no lack of structural and institutional prevention
andmitigationmeasuresbusinessescantake,ifresources
allow it (which is often the issue which halts these initia-
tives at their inception in conference rooms).
“WHATDOESN’TKILLYOU”
Cyber ResilienceandThreat
BY MARIKAN.JOSEPHIDES
IT security audits can be performed; specialised employ-
ee training can be conducted; security liability insurance
can be purchased; and of course response plans no
matter how rudimentary are better than no plan, even if
they simply establish a team that can be contacted or
assembleachainofcommandtodealwiththesematters.
Deloitte recommends a 'graceful degradation' approach
against DOS attacks, which are the most common type.
'Graceful degradation' is a method of pre-emptive
planning, using a pre-defined set of responses that allow
systems to continue operating sub-optimally. Essentially
this just means that the firm in question, having
established 'configurations' of system failure, would
know how to continue working while these configura-
tions are compromised, from the detection of the vector,
up until recovery.
Market-Wide Exercises (MWEs) are also a viable route,
pertinent to industries considered part of the critical
national infrastructure. MWEs are stress tests involving a
wide range of relevant parties. A major MWE, named
'Operation Waking Shark II' - a sequel to 2011’s ‘Waking
Shark’tookplaceintheLondonfinancialsector(obviously
a hugely desirable target) on 12 November 2013. It was
co-ordinated by the Bank of England, the Treasury, and
the Financial Conduct Authority. As well as GCHQ, the
CPNI, and the CSOC, employees across 87 firms were
involved. These included banks, exchanges, hedge
funds, brokers, and asset managers.
Reports on the exercise’s conclusions have not yet been
released at the time of writing, but Waking Shark 2011,
set against the backdrop of the London Olympic and
Paralympic Games, successfully highlighted vulnerabili-
ties to be improved upon, largely concerning co-ordina-
tion among services, particularly (worryingly) CHAPS
(Clearing House Automated Payment System) transac-
tions, the latter of which facilitate same-day transfers and
are used all around the UK for business and personal
purposes, as well as in mortgage advances. Firms were
promisingly effective at maintaining the provision of
services. While such tests are valuable in finding where
the weak spots are, criticism has been levelled at their
infrequency and lack of focus on accidental breaches and
fraud. Of course, they are also lacking in the element of
surprise. Additionally, a more sophisticated, subversive
attack will evade immediate detection, and may not even
be correctly identified until significant damage is done.
26
27. We have already discussed the importance of the human
element in cyber security. All it can take is somebody
forgetting to log out. For this, all that can be done is to
advise people to exercise caution, a lack of which - to
reiterate - leads to 80% of attacks, as posited by GCHQ.
Unfortunatelycommonsenseisnotsocommon.Another
suggestion is the implementation of biometric authenti-
cation; this is a burgeoning field.
The Bottom Line : So What?
Defence Secretary Philip Hammond confirmed in
September2013thattheUKwas"developingafullspec-
trum cyber capability, including a strike capability." This
move confounded the world - what purpose would this
announcement serve? China, Israel, Russia and the US
had all kept quiet about their cyber activity (at least
officially) despite said activity being obvious. At best, the
UK was losing its claim to the 'moral high ground'.
At worst, it is tempting fate - 'for the lulz' hackers have
been motivated to action by much less. (For example:
when the CEO of HBGary Federal, a computer security
firm, threatened that he could unmask hacktivist collec-
tive Anonymous, they completely destroyed the compa-
ny’s data, accessed and published sensitive e-mails, and
defaced the company's website) Alternatively, it could
just be a politically expedient move to emphasise the
importance of cyber initiatives.
Inanycase,concernhasbeenexpressedelsewhereinthe
UK Government. Director of GCHQ Ian Lobban's assess-
mentisthatthethreatismostprominentlyfromstateand
state-affiliated actors who have improved the speed at
which they can proceed from reconnaissance to activity.
Theramificationsonthemilitaryfromtheentwinementof
military capability and the defence industry are also an
issue, and it is at industry level that technological advanc-
es are compromised. On this front, more stringent
measures in manufacturing and supply chain manage-
ment could be used, such as better vetting of personnel.
In the final analysis, there may be too much worrying
going on. Experts think it extremely unlikely that the
whole Internet and major systems would or could all be
taken out at once, due to the decentralised way these
networks operate.
“WHATDOESN’TKILLYOU”
Cyber ResilienceandThreat
BY MARIKAN.JOSEPHIDES
To a certain extent the threat may have an element of the
self-fulfilling prophecy, and we may not be facing a
scenario worthy of a blockbuster action film. But the
convergenceofourphysicalandvirtualworldsmakes this
acauseofconcern-aDOSattackonahospital,forexam-
ple, could cost lives. Losing control of our online identity
is akin to losing control of our lives. And a 'proxy server'
war will most definitely contribute to international
tensions offline.
AwesomeFace/EpicSmileyisaubiquitousmeme,often usedto
conveyeitherdisapproval, orthat one hasacted
'forthe lulz.'(Source:TheInternet-Inattributable)
In many ways, the response to the cyber threat -
mitigation and prevention - is analogous to dealing with
'traditional' forms of terrorism in this age of uncertainty.
Indeed, the Irish Republican Army message addressed to
the Thatcher Government after the Brighton Bombing in
1984 is entirely relevant to the subject of our discussion:
"Remember we only have to be lucky once. You have to
be lucky always."
27
28. Due to the inglorious legacy of the lost generation (the
lost opportunities in economics after 1990 where Japan’s
economy stagnated and its governments became
progressively weaker) Japan now confronts multiple and
possibly increasingly difficult security challenges. After
1990 Japan experienced underperforming governments,
its economy stagnated, and the linkage between weak
governments and economic performance is not coinci-
dental.
In 2011 the Fukushima earthquake and related nuclear
meltdowngeneratedaprofoundinternalshockandcrisis.
Meanwhile the spectacular rise of China brought a major
rival into being and the United States’ (US) power
declined due to profligate economic policies and an
unprecedented level of strategic incompetence from US
governments. Thus Japan did not escape the global
economic crisis which has existed since 2008 and also
faces profound demographic challenges as its birth rate
remains far under the population level of 2.1 children per
family that is the established replacement rate while
Japan is also not welcoming to immigrants who could fill
the gap.
This set of socio-political-economic challenges has only
encouragedbothNorthKoreaandChina,ifnotRussia,to
attempt to take advantage of Japan’s perceived decline
and/or weakness, the former through claims to the East
China Sea and what appears to be a constant game of
sabre-rattling and psychological warfare involving the
threat of force while North Korea’s increased missile
capability and nuclear arsenal clearly represent threats to
Japan.
Meanwhile Russia regularly sends aircraft into Japanese
airspace even as it negotiates normalisation and other
accordswithJapan.Toanoutsideobserveritseemsclear,
therefore, that to address these internal and external
issues Japan needs to generate a robust invigorated
government that could tackle both its economic malaise
and the multiplying military threats to its security. From a
national security standpoint both the domestic reforms
and Prime Minister Shinzo Abe’s foreign and defence
policies are inseparable parts of a single programme of
action. Geoeconomics and geostrategy march hand in
hand in Abe’s programme.
Japan Responds toMultiple SecurityChallenges
BYSTEPHEN BLANK
TheAbeGovernment,bywinningadecisiveParliamenta-
ryelectionin2013,canalreadyprovidestrongandsteady
government until 2016. Moreover, Abe has promise such
leadershipandactedvigorouslytoregeneratetheecono-
my. He has already increased government spending and
the money supply. Increased government spending also
means a substantial rise in defence spending to augment
Japan’sownmilitarycapabilities.ButnowAbemustenact
genuine structural reform and thus confront the
entrenched lobbies who benefit from the status quo but,
by so doing, inhibit Japan’s growth and comprehensive
national power. Indeed, not all observers are convinced
that he is dong so or will do so, in which case they expect
his reforms to enjoy only limited success.
But economic reform is not confined to Japan. Japan
must diversify its exports lest it become too dependent
ontheChinesemarket. Japanreceivedarealshockwhen
China, during the period 2010-2011, started restricting
the sale of crucial “rare earth” minerals that are vital to
Japan. However, by going abroad in response to China’s
artificial increase of prices, Japan successfully elicited
other countries’ production of rare earths to the point
where prices have declined 60% since 2011. Essentially
the market broke the Chinese monopoly. Likewise,
during his travels, Abe is accompanied by large business
delegations to promote exports of nuclear reactors,
other infrastructural items, and arms.
Abe’s expansionary currency policy lowers the Yen’s price
abroad leading to more exports.
PRIME MINISTER SHINZO ABE
(IMAGE SOURCE : WIKIMEDIA COMMONS)
28
29. In a concurrent example the Abe Government has made
clear its intention to revise the Japanese Constitution.
While this initiative would include revisions of Article 9 on
Japan’s army being used only for self-defence instead of
the collective defence that the Japanese Government
prefers, such significant reforms are by no means only
confined to the defence sector. Meanwhile, within that
sector, Abe has also enacted legislation creating a
Japanese equivalent to the US National Security Council.
The revived nationalism inherent within Abe’s
programme will probably help him create a domestic
consensus but it also creates significantly more tension
with South Korea (ROK) and precludes effective military
cooperation with the ROK because to Seoul it appears
thatJapanstillcannotadmititshistory. Thisalsoaddsfuel
to the fire in China as it provides Beijing and domestic
Chinese nationalist elements with both the means of
inciting hostility towards against Japan and a way to
pressure the Chinese Government to add nationalist
emotionalism to the already substantial geostrategic
rivalry with Japan.
Foreign Policy Challenges
Because domestic reform and the reduction of external
security threats are linked, it is quite possible that the test
of Abe’s success will come not just in the success of his
economic reforms, but also in foreign and defence policy,
where his government has been equally active and vigor-
ous. Japan, like other Northeast and Southeast Asian
states confronts what is arguably a deteriorating security
situation.
Many but by no means all of the forces responsible for
this trend pertain to the rise of a seemingly increasingly
belligerent China. As Dr. Corey Wallace, Professor of
International Politics at the University of Auckland has
recently written, “Strengthening economic cooperation
and interdependence between nations in Northeast Asia
from the late 1990s seems to have had little impact upon
the persistence of diplomatic and security tensions in the
region.”
But we cannot forget about the North Korean threat.
Whether or not North Korea plans another major weap-
ons test, its missile and nuclear programmes continue
apace and nothing to date has stopped them.
JapanRespondstoMultiple Security Challenges
BYSTEPHENBLANK
TheAbeGovernment,bywinningadecisiveParliamenta-
ryelectionin2013,canalreadyprovidestrongandsteady
government until 2016. Moreover, Abe has promise such
leadershipandactedvigorouslytoregeneratetheecono-
my. He has already increased government spending and
the money supply. Increased government spending also
means a substantial rise in defence spending to augment
Japan’sownmilitarycapabilities.ButnowAbemustenact
genuine structural reform and thus confront the
entrenched lobbies who benefit from the status quo but,
by so doing, inhibit Japan’s growth and comprehensive
national power. Indeed, not all observers are convinced
that he is dong so or will do so, in which case they expect
his reforms to enjoy only limited success.
Moreover, the domestic situation in North Korea is clearly
quite unstable given the execution of Kim Jong Un’s
uncleandformermentorJangSongThaekon12Decem-
ber 2013 and the subsequent purge of his associates
amid allegations of his attempting to mount a coup
against his nephew. These allegations are unprecedent-
ed in that they publicly reveal dissent and division at the
most senior levels of the Government of North Korea
(DPRK) that can only add to the pervasive sense of
unease and instability inherent in dealing with the DPRK.
Adding to Japanese concerns is the fact, according to
Wallace, that Japanese officials discern a lack of serious-
ness among their negotiating partners in stopping the
expansion of North Korea’s nuclear and missile
programmes that threaten Japan. These officials also
believe that China is enabling and not restricting North
Korea. As tensions with South Korea over rival histories
and nationalisms frustrate bilateral cooperation between
them and trilateral cooperation with the US, Japanese
officials evidently perceive China as being unable or
unwilling to restrain North Korea.
Atthesametime,theChinesethreatismulti-dimensional,
being both military and economic, as the rare earths
episode and the continuing crises in both the East China
and South China Seas indicate. Thus China presents an
extraordinarily difficult series of challenges to Japan.
Additionally, Japanese officials increasingly fear not just
the obvious rise in Chinese capabilities and the
threatening rhetoric of the People’s Liberation Army,
29