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Foreign Policy 2019 02 Spring

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FOREIGNPOLICY.COM 49

The era of untrammeled U.S. military If they did so—or even if they merely superiority is over. If the United States convinced their neighbors that they delays implementing a new approach, could and then used that fear to suborn it risks losing a war to China or Russia— them—they could unravel U.S. alliances or backing down in a crisis because it fears and shift in their favor the balances of it would—with devastating consequences power in Europe and Asia. If China did for America’s interests. so in the Western Pacific, it could dom- inate the world’s largest and most eco- The U.S. Defense Department’s 2018 nomically dynamic region. If Russia National Defense Strategy initiated a did so, it could fracture NATO and open needed course correction to address this Eastern Europe to Russian dominance. challenge. As then-Defense Secretary James Mattis put it in January that year, great- Beijing and Moscow must therefore power competition—not terrorism—is now not be given such an opening, which the Pentagon’s priority. But while the is why Washington must focus not on strategy’s summary provides a clear vision, abstract metrics of its military supe- it leaves much to be fleshed out. What riority—such as how many carriers it should this shift toward great-power puts to sea or how much it spends in competition entail for the U.S. military? comparison to other countries—but on its and its allies’ clear ability to defeat major aggression in specific, plausible scenarios against a vulnerable ally or established partner such as Taiwan. In other words, the United States must prepare to fight and achieve its political aims in a war with a great power. Doing so will not be easy. The last time the United States prepared for such a conflict was in the 1980s, and the last time it fought one was in the 1940s. But that’s all the more reason why Washington must immediately start readying itself if it wants to deter another great-power battle now. To answer, we must first understand the current geopolit- THE U.S. MILITARY WILL NEED TO UNDERGO ical landscape. As ever, the foremost concern of the United States is to maintain adequate levels of military power; with- dramatic change to prepare for possible out it, there would be nothing to protect Washington from attacks from China or Russia. For a gen- the worst forms of coercion and every incentive for ambi- eration, the Pentagon operated on what tious opponents to exploit the ensuing leverage. Largely for might be called the Desert Storm model, that reason, the United States has an enduring interest in under which the United States exploited open access to the world’s key regions—primarily Asia and the enormous technical advantages it Europe—to ensure their latent power is not turned against had developed starting in the 1970s to it. The United States does so by maintaining favorable bal- build a military capable of dominating ances of power in these regions through a network of alli- any opponent in the 1990s and 2000s, a ances. These partnerships are not ends in themselves but time when it lacked a peer competitor. rather the way the United States makes sure that no state dominates these critical areas. This approach was exemplified by the Persian Gulf War of 1990-1991. After Russia and especially China are the only countries that Iraq seized Kuwait late in the summer could plausibly take over and hold the territory of Wash- of 1990, the United States first deployed ington’s allies and partners in the face of U.S. resistance. forces to protect Saudi Arabia. Over the ensuing six months, Washington assem- 50 SPRING 2019

U.S. Military Infrastructure Around the World Base Lily pad Unconfirmed lily pad A lily pad is a small military installation that is worth less than $10 million or that covers less than 10 acres of land. SOURCE: DAVID VINE, LIST OF U.S. MILITARY BASES ABROAD, 2018. NOTE: POINTS ON MAP DO NOT REPRESENT EXACT GEOGRAPHIC LOCATIONS. MAP DOES NOT INCLUDE THE U.S. FUNDED HOST NATION BASES THAT HAVE NO KNOWN FACILITIES SPECIFICALLY DESIGNATED FOR U.S. USE. LILY PAD FIGURE EXCLUDES ADDITIONAL LIKELY LILY PADS IN AFGHANISTAN AND OTHER WAR ZONES. NOT SHOWN: ANTARCTICA LILY PAD. bled a broad coalition and built an iron that of the United States and incapable because they have spent the last 10 to mountain of aircraft, tanks, warships, of striking accurately beyond territory it 20 years specifically figuring out how ammunition, and every other expres- owned or occupied. Meanwhile, the des- to undermine it. Victory, as the old say- sion of military might. Once the United ert provided an optimal environment for ing goes, is never final, and it breeds its States was good and ready, it launched a U.S. surveillance and precision strikes, own frustration. Today that takes the withering air campaign that pummeled and Baghdad had no nuclear weapons form of two militaries that, while dif- the Iraqi military and quickly estab- to deter Washington from launching ferent, pose serious and intensifying lished total dominance of Kuwaiti and such a pulverizing assault. threats to U.S. allies and established Iraqi airspace. The subsequent ground partners in Eastern Europe and the invasion rapidly expelled the Iraqis The world took note of the awesome Western Pacific. from Kuwait, after which the United power of the U.S. military. Until today, States quickly ended the war on its pre- no other country has dared to assault a The core of both countries’ challenge ferred terms. U.S. ally. The point was only magnified to the U.S. military lies in what are com- by the prowess the United States showed monly called anti-access/area denial The Gulf War operation was a stun- in its wars against Serbia, the Taliban in (A2/AD) systems: in more colloquial ning success—but the victory was owed Afghanistan, and Iraq in 2003. terms, a wide variety of missiles, air in great part to the fact that the nature of defenses, and electronic capabilities the conflict was perfectly suited to the The problem today, however, is the that could destroy or neutralize U.S. United States’ advantages. Iraq had a for- approach that worked so well against and allied bases, surface vessels, ground midable military, but it was well behind these so-called rogue state adversaries forces, satellites, and key logistics will fail against China or Russia. That is FOREIGNPOLICY.COM 51

Threat Level 10s of missiles 100s of missiles 1,000s of missiles U.S. military bases China South Japan Korea South Japan Korea China Kadena Air Base Kadena Air Base 1& 15 Taiwan Andersen 1& 15 Taiwan Andersen Chinese and Russian theories of victory. DF Air Force Base DF Air Force Base The U.S. military must shift from 1996-1 -1 0 500 1,000 2003 -1 -1 0 500 1,000 one that surges to battlefields well Kilometers Kilometers after the enemy has moved to one that can delay, degrade, and ideally deny South /DH-10) & IRBM South an adversary’s attempt to establish a Korea Korea fait accompli from the very beginning Japan 21C & DH-10Japan of hostilities and then defeat its inva- -6 ( /DH-10) sion. This will require a military that, China China instead of methodically establishing overwhelming dominance in an active Kadena H- 6 (w 1& 15 Kadena w theater before pushing the enemy back, Air Base DF Air Base H can immediately blunt the enemy’s attacks and then defeat its strategy even 1& 15 Taiwan21C & DH-10 Andersen 2017 Taiwan Andersen without such dominance. DF Air Force Base Air Force Base In doing so, the United States must 2010 DF- DF- demonstrate that its fight is reason- able and proportionate, leaving the 0 500 1,000 0 500 1,000 terrible burden of major escalation on Kilometers Kilometers the opponent. Once their invasion has been blunted and then stopped, Bei- China's Growing Power jing or Moscow will be forced to choose whether to escalate the war in ways that An estimate of the expanding reach and capacity of Beijing’s strengthen U.S. resolve and bring oth- conventionally armed ballistic cruise missiles. ers to its side—or settle for a real, albeit limited, defeat. \"THE U.S. CHINA MILITARY SCORECARD: FORCES, GEOGRAPHY, AND THE EVOLVING BALANCE OF POWER, 1996 2017,\" RAND CORP. Since the end of the Cold War, the nodes within their reach. Both China Such an approach involves an attacker Pentagon’s force planning construct— and Russia have also developed rap- seizing territory before the defender the guidelines that determine how idly deployable and fearsomely armed and its patron can react sufficiently many and what kinds of forces it conventional forces that can exploit and then making sure that the coun- needs—has focused on the ability to the openings that their A2/AD systems terattack needed to eject it would be fight two simultaneous wars against could create. so risky, costly, and aggressive that the so-called rogue states. This standard United States would balk at mounting has produced a force emphasizing the Despite these advances, both China it—not least because its allies might see deployment of large numbers of troops and Russia still know that, for now, it as unjustified and refuse to support it. optimized for beating the likes of Iraq, they would be defeated if their attacks Such a war plan, if skillfully carried out Iran, and North Korea—exactly the triggered a full response by the United in the Baltics or Taiwan, could check- kind of force to which China and Rus- States. The key for them is to attack and mate the United States. sia have adapted. fight in a way that Washington restrains itself enough for them to secure their TO SUSTAIN WHAT MATTIS CALLS Wash- In the near term, then, the Pentagon gains. This means ensuring that the war ington’s constellation of alliances and will need to make its existing forces more is fought on limited terms such that the partnerships, the U.S. armed forces lethal, for instance by equipping U.S. United States will not see fit to bring need to adapt to deal with a potential aircraft and ships with more long-range to bear its full weight. Focused attacks great-power threat. This will require missiles designed to sink enemy invasion designed to pick off vulnerable mem- making significant changes in the way ships. In the longer term, the military bers of Washington’s alliance network the U.S. military is sized, shaped, pos- will need to go further, using artificial are the ideal offensive strategy in the tured, employed, and developed—a intelligence and autonomous systems in nuclear age, in which no one can coun- change from a Desert Storm model to ways that can repel intense attacks by a tenance the consequences of total war. one designed to defeat contemporary China exploiting the same technologies. The most pointed form of such a lim- But the U.S. military, even supplied ited war strategy is the fait accompli. 52 SPRING 2019

with the best technology, can’t expect ditions for potential battle. FOR THE UNITED STATES TO FOCUS its mil- to succeed against major powers unless Second, a resilient and lethal blunt itary on readying for great-power it rethinks its posture. The model of the conflict, it needs to use it far less for last generation was a surge-based force layer of U.S. and allied forces should secondary missions. Over the last gen- that, when needed to eject an opponent be present in or near vulnerable allies eration and especially since 9/11, the from allied territory, would gradually or partners to delay, degrade, or deny operations tempo of the U.S. military and securely flow from the United States enemy advances, thus frustrating has risen markedly. Not only have U.S. to a small number of fixed hub bases the fait accompli. Their task will be forces been continuously committed that were essentially immune to enemy to buy time and space for surge layer in the Middle East, Central Asia, and attack and then launch an overwhelm- reinforcements coming from farther Africa, but even many of those units ing assault from there. Improvements away that are trained to arrive, pick that are not directly engaged in those in military technology have now made up their gear, integrate with friendly wars have been constantly participating these logistic tracks and bases vulnera- forces already in the field, and get in operations such as ship cruises and ble to enemy attack at every step. quickly to the fight. Key forces that exercises designed to deter adversaries cannot quickly be deployed, such as and assure allies. These factors have sig- The new force needs to fight from air defense units and armored vehi- nificantly eroded the force’s readiness the immediate outset of hostilities to cles, would be based close to the poten- for a high-end conflict. blunt the enemy’s attack and, together tial fields of battle, while more flexible with arriving follow-on forces, deny the force elements—such as infantry and This must change. Beijing’s or fait accompli. To make this strategy tactical aircraft—would be trained to Moscow’s calculations of whether to work will require a force posture that arrive and engage the enemy before it attack or precipitate crises over Wash- is much more lethal, agile, and ready. To can seal the fait accompli. ington’s allies are going to be based get there, the U.S. military must make its bases and operating locations more Russia's Missile Range SS-21 “Tochka” defensible and resilient as well as more geographically dispersed. NATO allies Norway EstoniaSSSS--NN--2276 \"“SSitzrzolbeirle\"” SS-26L“itIhsukaannidaeLra”tvia Nor can these efforts be confined SSC-8 Kinzhal to U.S. bases. The entire apparatus of the U.S. military—including its logis- Kh-101 / Kh-102 Denmark tics network and communications systems—must shift from assuming Poland invulnerability to expecting to be under consistent attack or disruption while United Kingdom Netherlands 500 km still performing effectively. No longer 1,000 can U.S. forces rely on exquisite systems Belgium Germany operating with little margin for failure. Luxembourg Czech Realizing these goals will also neces- Rep. sitate a new approach to the way the armed forces are employed. The Slovakia National Defense Strategy provides an effective model, one that seeks to France Hungary orient U.S. and allied forces toward Romania denying China or Russia the ability to SS-N-30A “Kalibr” “Satan” Slovenia 1,500 rapidly seize territory and then harden SS-18 Croatia its gains in a fait accompli. The model SS-27 “SicMoklnteenBe”gro Bulgaria 2,000 calls, first, for small contingents of U.S. Italy 11,000 km forces to work closer toward potential Portugal SS-N-21 “Sampson” SS-N-23 “Skiff” Kh-55 SS-19 “Stiletto\" RS-24 Yars Turkey front lines alongside local partners in Spain Albania SS-N-32 “Bulava” a so-called contact layer to build rela- Greece tionships, deny adversaries the ability 16,000 km to manipulate information, and set con- 6,500 km 11,000 km SS-N-18 “Stingray” SS-25 “Sickle” SOURCE: MISSILE DEFENSE PROJECT, 11,000 km 10,500 km \"MISSILES OF RUSSIA,\" MISSILE THREAT, 2,500 CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES, JUNE 14, 2018. 10,000 km 8,300 km

on an assessment of how a war would mind the remark about ordinary critics, likely unfold—and especially whether their theory of victory would pan out— who, striving for balance, search for truth not on the mere presence of U.S. ships. Moreover, assuring allies is not an end in the middle, between the extremes of in itself—deterrence of attack is the proper aim. Allies should be sufficiently right and wrong. Certain threats are sim- assured to prevent defeatism or buck- ling, but too much reassurance encour- ply more consequential than others and ages free riding, which Washington can no longer afford to ignore. thus demand more attention. As a result, much of the U.S. military is A clarity in priority means hard not as ready as it should be to fight Rus- sia over the Baltics or China over Taiwan. A clarity in priority choices but does not mean ignoring To rectify this problem, Air Force and means hard choices Navy pilots should spend more time at but does not mean other threats to America’s interests, high-end exercises and training schools ignoring other threats and less time in air patrols over the Mid- to America’s interests, including terrorists, North Korea, and dle East, and Army units should practice including terrorists. fighting Russians and spend less time on Iran. It does, however, mean right-sizing counterinsurgency operations. Exercises It does, however, with European allies should focus more mean right-sizing the U.S. approach to these threats. The on honing their ability to defend NATO the U.S. approach than political symbolism. to these threats. United States cannot afford to transform The final piece of U.S. defense strat- Higher-end allies farther from poten- recalcitrant Middle Eastern societies or egy that needs to change is the relation- tial battlefields, such as Australia and ship with allies and partners. Unlike Germany, should work on contributing, pursue an eliminationist vision of coun- in the post-Cold War era, the United both through their forces and basing, to States needs its allies to help blunt defeating Chinese or Russian aggression terterrorism—but it does not need to. Russian or Chinese invasions but also against nearby allies. Partners such as respond to crises and manage sec- France, Italy, and Spain with established It needs to defend itself from a North ondary threats around the world. U.S. interests in places such as North Africa forces are simply not large enough to should allocate more forces to handling Korean nuclear attack and help South do all this themselves—and, given the secondary threats there. necessity for the Pentagon to focus on Korea defend itself from invasion by competing with Beijing and Moscow, THE STRATEGY OUTLINED IN THIS ESSAY is the U.S. military’s future focus must an ambitious one. But it is feasible at Pyongyang. But it does not need to be be on quality rather than size. current spending levels—if the Penta- gon and Congress make the hard choices able to invade and occupy the North. Washington should encourage dif- needed. A serious strategy in challenging ferent allies to focus on different roles, times should provide clarity on what is The United States needs to relentlessly depending on their military situation more important and what is less so and and development level. Front-line allies thus what to do and buy and what not pursue terrorists who can directly and partners such as Japan, Poland, to. Strategies that promiscuously enu- Taiwan, and the Baltic states should merate threats, and call for equivalent threaten it and its allies, but it does concentrate on their ability to blunt Chi- vigilance between great powers that can nese or Russian attacks on their terri- change the world and rogue states and not need to strike at every extremist tory and to restrict Beijing’s or Moscow’s terrorists that cannot, will diffuse and ability to maneuver through adjoining squander Washington’s scarce attention with a taste for violence or remake the airspace and waterways by building and resources. Such strategies call to their own A2/AD capabilities. societies in which they live. The United States needs to check Iran’s aspirations for regional hegemony but not over- throw the Islamic Republic. Moreover, the United States does not need F-22s to attack terrorist havens nor whole bri- gade combat teams to advise Middle Eastern militaries; cheaper drones and tailored advise-and-assist units will do. To quote Carl von Clausewitz’s immortal line, “Nothing is more import- ant … than finding the right standpoint for seeing and judging events, and then adhering to it.” The United States has found the right standpoint with the National Defense Strategy. Now it is a matter of realizing it. Q ELBRIDGE COLBY (@ElbridgeColby) is the director of the defense program at the Center for a New American Security. He served as the deputy assistant sec- retary of defense for strategy and force development in 2017-2018. 54 SPRING 2019



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reviews What if Israel Threw a Eurovision Party and Nobody Came? A glitz and glam song competition turns political. By Joshua Mitnick represented Switzerland. Israel made its Eurovision debut in 1973; although not technically European, it was able to join because the Israel Broadcasting Author- ity was already a member of the Euro- pean Broadcasting Union. Since then, the contest has held a special place in the Israeli imagination, and Israel has won four times. Israel secured the right to stage this year’s edition after its representative, Netta Barzilai, took first place last year. Tel Aviv, the host city, is gearing up for a huge influx of fans and has explored set- ting up campsites and leasing a cruise ship to accommodate hotel overflow.

Forty-two countries will be sending acts. Eurovision acts over the years, including As Press-Barnatan points out, Europe But tensions have been mounting Israel’s Netta Barzilai, top right, whose victory and Israel share many points of affin- in 2018 brought the contest to Tel Aviv. ity. A free trade agreement with the since Israel began planning the event European Union signed more than two last year. The European Broadcasting ital. Supporters of a pro-Palestinian decades ago has turned the bloc into Isra- Union has pressed Israel for a commit- campaign calling for boycott, divest- el’s biggest trading partner. Many Israe- ment not to block entry to Eurovision ment, and sanctions against Israel have lis hold EU passports, thanks to their delegations for political reasons—a fear called on entertainers to stay away. parents’ or grandparents’ European ori- based on the tendency of Israeli bor- gins. Israeli basketball and soccer teams der officials to interrogate and some- “There’s a lot of politics in the com- compete in pan-European tournaments. times turn back visitors who have been petition. It’s a fascinating focal point for outspoken in their support for the Pal- ties between Israel and Europe and Israel But the EU has remained an outspo- estinians. A bid to hold the festivities and the EU,” said Galia Press-Barnatan, ken proponent of a two-state solution, in Jerusalem raised the possibility a professor of international relations at even as the United States has become that Israel’s government would use the Hebrew University of Jerusalem. less vocal on the issue and Israeli Prime the show as a platform to highlight its “The relations have never been better, Minister Benjamin Netanyahu’s gov- claim to the city as its undivided cap- but some things have never been worse.” ernment has grown decidedly hostile to the idea. The EU has also insisted that products made in West Bank set- tlements for sale in Europe be labeled “Israeli settlement” rather than “made in Israel” so that they don’t benefit from the free trade agreement and so that European consumers know what they’re buying. Under a joint research program, the EU has allocated some $150 million in research and development grants for projects with Israeli universities but has also angered Israeli politicians by stip- ulating that the funds must be spent inside the country’s pre-1967 borders. These and other measures prompted Netanyahu to accuse the EU late last Illustration by JUSTIN METZ

reviews year of taking a “hypocritical and hos- “We care what much more subjective than determin- tile” stance toward Israel. For seven everyone thinks years now, disagreements over policy about us—which ing who won a 100-meter dash. Victory toward the Palestinians have prevented is something you the convening of what’s supposed to be don’t see as much in the Eurovision contest is decided by an annual bilateral diplomatic sum- when there’s a war mit on Israel’s relations with the EU. in Gaza.” a combination of jury and telephone “Europe and Israel are certainly con- ducting a policy of distancing from Israelis across the political spectrum voting from participating countries. each other,” said Oded Eran, a former have reasons to feel good about the Israeli ambassador to the EU and a event taking place in Israel, Press-Bar- In 2017, Russia pulled out of that senior research fellow at the Institute natan said. “If you are a right-wing for National Security Studies at Tel nationalist, this is a way to make a point year’s contest, which was to be held Aviv University. that the [boycott movement] has lost and how successful you are. If you are in Kiev, when its representative was But there seems little chance that a liberal cosmopolitan Israeli, this is a Israelis will distance themselves from way to embrace the world.” denied entry by the Ukrainian author- Eurovision. When Barzilai’s feminist anthem “Toy” clinched first place last Eurovision Executive Supervisor Jon ities. This year, Iceland’s representative, year, thousands of Israeli fans cele- Ola Sand said in an interview with the brated in the pre-dawn hours with a Israeli newspaper Haaretz that he didn’t the band Hatari, has vowed to protest ROBERT MARQUARDT/GETTY IMAGES/FRANCISCO LEONG/AFP/GETTY IMAGES/PEDRO FIÚZA/NURPHOTO VIA GETTY IMAGES/TOM BUIST/DAILY MIRROR/MIRRORPIX/GETTY IMAGES; THIS PAGE: MUSA AL SHAER/AFP/GETTY IMAGES dip in the fountain at Tel Aviv’s Rabin want anything to get in the way of the Square. On her return, Barzilai received entertainment. “As an organization, Israeli policies while at the competition, a hero’s welcome and reprised her sig- we have a promise to our participating nature chicken dance for Netanyahu. broadcasters to keep the shows free of and boycott efforts have been mounted politics,” he said. As with the Olympics, “We care what everyone thinks about however, politics are inevitable when- in several other participant countries. us—which is something you don’t see ever countries compete. And picking as much when there’s a war in Gaza, the winner of a pop music contest is But none of the broadcasters has when dozens of Palestinians are get- ting killed,” said Eran Singer, an Arab pulled out, underscoring just how dif- affairs analyst with Israeli public radio and a Eurovision devotee. ficult it is for Palestinians and their sup- porters to get Europe to use its leverage to force a change in Israeli policies. For one thing, resolving the Israeli-Pales- tinian conflict has taken a back seat to more urgent issues, such as Brexit. What’s more, European states are far from united on Israel: While some countries have led the campaign to label exports from Jewish settlements, others are considering following the U.S. lead on moving their embassies to Jerusalem. “Europe is deeply divided on the Israeli-Palestinian issue. … Therefore you can’t get a unanimity for tougher measures,” Eran said. “One has to admit there is fatigue regarding this protracted conflict, and there’s disappointment with the Palestinian Authority and the rift with Hamas.” With anti-Semitic violence and xeno- phobic sentiment rising across the con- tinent, the symbolism of, say, a boycott of Israel would expose European gov- ernments to intense criticism. That’s one more reason Europe’s delegations are expected to show up in Tel Aviv in May. Q JOSHUA MITNICK (@joshmitnick) is a jour- nalist based in Tel Aviv. Activists in Bethlehem, along Israel’s separation barrier between Jerusalem and the West Bank, call for a boycott of Eurovision on March 22.

PA IMAGES VIA GETTY IMAGES Odette Sansom served as a courier spy in Britain’s Special Operations Executive during World War II. Arms and the Woman A group of new books explores women’s experience in war. By Teresa Fazio British government, Rose writes, was ini- tially concerned about allowing women into the Special Operations Executive (SOE), a secret agency formed in 1940 to foment insurgency in land captured by Nazi Germany. Nicknamed the “Minis- try of Ungentlemanly Warfare” by Win- ston Churchill, the SOE did not send female agents overseas until 1942. As Rose writes, “Putting women in the line of fire was obscene, the brass said: War is fought by men for the sake of women and children. … The Edwardians who ran the war … believed female recruits would deliver a new weapon into Hitler’s hands: rape.” Such arguments, as Rose recounts them, echo contemporary U.S. officials’ concerns about putting women in combat. As recently as 2016, Owen

reviews West, who is now the assistant secre- D-Day Girls: War Flower is a series of scene sketches detailing the tary of defense for special operations The Spies Who chaotic childhood that drove King into the U.S. Army, her and low-intensity conflict, along with gruesome deployment as a mechanic assigned to collect his father, Bing West, a former assistant Armed the human remains from bombed-out vehicles, and her return secretary of defense for international Resistance, as a pregnant veteran. Her advice to fellow female soldiers security affairs, argued that changing a Sabotaged is blunt: “Keep tampons in your grenade pouch for bul- “band of brothers” to a “band of co-eds” the Nazis, and let wounds” and “Do not fucking die.” Women in combat would soften the units’ ferocity. Helped Win must take pains to hide their vulnerability from their male World War II comrades, King writes: “Don’t ask for help from the hajjis British officials’ initial fears weren’t or the infantrymen or the Cav scouts; they all like fucking entirely unfounded. Agents captured SARAH ROSE, CROWN, with women.” in Nazi-controlled territory risked tor- 400 PP., $28, ture and death. But that applied to APRIL 2019 In Iraq, King finds respite from her abusive first marriage male agents as well as female ones. in another fellow soldier, Cpt. James Haislop. But in narrating And rather than being a liability, the Code Name: their relationship, she shows how women’s war experiences women of the SOE—typically French- Lise: The True frequently differ in yet another manner: When the affair born Englishwomen—enjoyed certain Story of the results in King becoming pregnant, she is sent back to a base advantages their male peers did not. Woman Who in Germany and takes a voluntary discharge. Meanwhile, the They often posed as refugee widows or Became WWII’s Army fires Haislop and jails him for drug abuse and frater- schoolgirls bicycling about the country- Most Highly nization. Their fate marks a vast gulf from one of the D-Day side, which allowed them to draw far Decorated Spy Girls, Mary Herbert, who at the age of 40 intentionally con- less suspicion than a solitary man might ceived a child while undercover in Poitiers, France, with her while delivering messages or operat- LARRY LOFTIS, agent partner (and later husband) Claude de Baissac. Their ing covert radio transmitters. Female GALLERY BOOKS, infant daughter threw Germans and French neighbors alike agents—trained in parachuting, hand- off Herbert’s trail; no one suspected that a frail new mother to-hand combat, the use of pistols, and 384 PP., $27, would risk working for the Resistance. This unexpected blend demolitions—also recruited and mobi- JANUARY 2019 of motherhood and spycraft gave Herbert an advantage. But lized operatives in preparation for the the story also underscores how spies have a wider range of Allies’ eventual D-Day invasion. War Flower: feminine roles available to them than ground troops do. My Life What separates these books from pre- All three of these books also offer a new dimension to pre- vious spy stories of the same period is After Iraq viously written histories of the long-term consequences of the way these authors take pains to show war on mental health and relationships. Herbert’s “immedi- that the women’s identities as wives, sis- BROOKE KING, ters, daughters, and mothers were insep- POTOMAC BOOKS, arable from their wartime activities. As 280 PP., $28.95, D-Day Girls recounts, Andrée Borrel, a former Parisian shopgirl who came to MARCH 2019 England after helping downed pilots escape occupied France, regularly visited her sister while working undercover in Paris for the SOE and made lovers of two male agents in consecutive years. In a similar vein, Code Name: Lise shows how a spy named Odette Sansom struggled with boredom in her duties as a house- wife and stay-at-home mother before deciding to answer Britain’s call to duty. Skip ahead about 70 years, and some of the tensions remain similar. In War Flower, a memoir by the Iraq War vet- eran Brooke King, the author toggles between a brutal deployment and fam- ily obligations.

female service members are more likely to see their relationships end. In addition to losing their marriages, women often find that men discount their combat experience. When a preg- nant King’s family finally coaxes her into visiting a California Veterans Affairs hos- pital, a male doctor points to men suf- fering from traumatic brain and spinal injuries and tells King to, in her words, “think long and hard before lying about combat.” The doctor’s blithe assump- tion that King must be lying about the shrapnel in her shin came after her 2006 deployment, during which she and other women saw combat on con- voys, at checkpoints, and while attached to infantry units on patrols, even though the U.S. Congress had not yet opened combat arms jobs to them. As for Sansom, although she was ate postwar years were anxious ones,” Rose writes. She calls LEFT: A female U.S. eventually awarded the George Cross Sansom “shell-shocked,” while Loftis references a “nervous soldier searches an condition” noted in Sansom’s personnel file; both would Iraqi woman outside and membership in the Order of the today be diagnosed as severe post-traumatic stress disorder. her home in Baghdad And King’s gory post-deployment nightmares ratchet up her on March 21, 2004. British Empire, that did not prevent stress while parenting twin toddlers during her volatile sec- ABOVE: U.S. Army ond marriage to Haislop. Her memoir is laced with stories Sgt. Michelle two former French Resistance members of drug and alcohol abuse and the long shadows of combat Porter reunites trauma she and her loved ones experienced. with her 2-year- from claiming that she lied about her old daughter in Fort In the 1940s, women and their relationships had it no eas- Knox, Kentucky, torture and slept her way to freedom. ier: Sansom became romantically involved with fellow SOE on Nov. 20, 2013, agent Peter Churchill while undercover in France. She mar- after a nine-month Although Sansom’s colleagues at the ried Churchill after they returned to the United Kingdom. deployment in Though the 1950 movie Odette portrayed their relationship’s Afghanistan. SOE backed her up, many of her actions romantic origins, the pair divorced in 1956. The experiences narrated in these stories are reflected in the broader military. could not be publicly corroborated until A 2007 study by the Rand Corp. found that divorce rates in the U.S. military were nearly three times higher for enlisted files were declassified in 2003. women than for their male counterparts, and a study of 1,358 U.S. Army families published in the Journal of Marriage and These books also show that no one Family in 2016 showed “the experience of prior deployments is associated with significantly lower current marital satisfac- can completely compartmentalize tion among military couples.” Though these studies indicate that all military marriages suffer when one partner deploys, war trauma and there is no single way to serve. The three books—as well as Madame Fourcade’s Secret War by Lynne Olson, which narrates the history of France’s top World War II spymaster; Love My Rifle More Than You by Kayla Williams; and Shoot Like a Girl by Mary Jennings Hegar—are the beginnings of a new library and a more robust approach to analyzing women’s essential role in war. This literature represents the early days of women’s military narratives; we still need to hear from women in non-Western armed forces. Their sto- All three of these books offer a new ries are still waiting to be told. Q dimension to previously written histories of the long-term consequences of war TERESA FAZIO (@DoctorFaz) is a former on mental health and relationships. U.S. Marine officer and freelance writer in New York City.

BOOKS IN BRIEF How to Hide an Empire: How to Hide An artist’s rendering of an atom bomb test by the United A History of the Greater an Empire: States over Bikini Atoll in the Marshall Islands in June 1946. United States A History of the Greater U.S. history. The Japanese film Gojira, for exam- WHEN MOST PEOPLE PICTURE A MAP OF THE UNITED STATES, United States ple, is a direct result of America’s hidden empire overseas: Atomic bomb tests on Bikini Atoll sick- they usually envision what is known as the lower DANIEL IMMERWAHR, ened Japanese fishermen, which prompted a 48—the contiguous continental states. Maybe kitschy, anti-nuclear movie featuring a giant sea they’ll add on Alaska and Hawaii. But they’re miss- FARRAR, STRAUS AND monster. (Gojira was later exported to the United ing the bigger picture, argues the Northwestern States, renamed Godzilla, and was heavily edited University history professor Daniel Immerwahr GIROUX, 528 PP., $30, to remove the anti-nuclear politics.) in How to Hide an Empire. The United States also includes territories such as Guam, Ameri- FEBRUARY 2019 Taking a more expansive view of the United can Samoa, and Puerto Rico. And in the 20th cen- States’ postwar empire—a sprawling network of tury, it controlled the Philippines, the Panama some 800 military bases around the world—the BETTMANN ARCHIVE/GETTY IMAGES Canal Zone, and hundreds of tiny islands in the legacy of greater America ranges from the surpris- Caribbean and Pacific. ing to the dangerous, Immerwahr finds. Thanks to the massive nearby U.S. air base at Burton- “The history of the United States is the history wood, England, in the 1950s and 1960s Liverpool of empire,” Immerwahr argues. For the most part, was flooded by the latest American rock-and-roll he doesn’t mean an empire like Britain’s, where records; those inspired the creation of hundreds prime ministers and the public took pride in the of cover bands, including one that would become red maps that stretched around the world—though the Beatles. And two decades later, the sprawling there’s a bit of that. U.S. President Theodore Roos- network of U.S. bases, the informal empire, was evelt, for example, eagerly sought out a “splendid the driving force behind Osama bin Laden’s vow little war,” as the British ambassador called it, that to rid the Middle East of American troops. Q would allow the United States to snap up the last bits of the crumbling Spanish Empire. KEITH JOHNSON (@KFJ_FP) is a senior staff writer at FOREIGN POLICY. Immerwahr’s main focus, however, is on what he calls the “Greater United States”—that is, all the bits and specks of lands and islands that have a big, if underexplored, place in U.S. history. And once Immerwahr starts looking, the historical conse- quences of those territories proliferate. America’s Pacific territories sucked the United States into World War II: Surprise Japanese attacks on Hawaii (not yet a state) and the Philippines (still a U.S. territory) led to the U.S. declaration of war on Japan. And America’s Caribbean ter- ritories, especially Puerto Rico, have repeatedly played an outsized historical role. In 1950, irate Puerto Rican nationalists, fed up with decades of second-class status, came within inches of assas- sinating President Harry Truman. More recently, President Donald Trump’s apparent disregard for Puerto Rico led to an anemic federal response to Hurricane Maria. How to Hide an Empire is not only fast-paced and fascinating, but it also offers a fresh view of

Our Man: Richard Holbrooke Midnight in Chernobyl: The and the End of the Untold Story of the World’s American Century Greatest Nuclear Disaster THE LATE RICHARD HOLBROOKE, the American diplomat IN THE LATE 1970S, at the height of the Cold War, a perhaps best known for brokering the Dayton Accords that brought a truce to the Balkan wars, should be new city sprung up near the border of Ukraine thought of as “our man,” George Packer writes in his homonymous book, because his self-defeating mix and Belarus. Pripyat was an atomgrad—a nuclear of idealism and egotism mirrored America’s own. city—built to house nearly 50,000 men and women Holbrooke started his career in 1963 as a young foreign service officer banging his head against the working at the nearby Chernobyl power plant. unsolvable problem of Vietnam. He ended it much the same way, desperately searching for an answer to the While Chernobyl is today synonymous with United States’ endless quagmire in Afghanistan. The effort, Packer suggests, literally blew his heart out: His catastrophe, it was designed as a symbol of Soviet aorta ruptured while in a difficult meeting with Secre- tary of State Hillary Clinton. In between, his intense dominance, the largest nuclear energy plant in life took him through a half-century of U.S. history and foreign policy (and FOREIGN POLICY, where he was the world. From the very start, however, writes an editor from 1972 to 1977). His story is littered with failed marriages, bitter enemies, political exile, a few Adam Higginbotham in his remarkable Midnight notable successes, and many more crushing defeats. in Chernobyl, the reactors were plagued by design Packer, a staff writer at the Atlantic, hasn’t written a traditional biography. Our Man reads more like a defects and shoddy workmanship. Under pressure winding, after-dinner tale about a deeply flawed man with a wholly admirable vision for what America is to meet the Kremlin’s unrealistic deadlines, engi- and what it can do in the world. Or could do. neers skimped on materials and safety measures. “[W]e swing wildly between superhuman exer- tion and sullen withdrawal,” Packer writes, eulogiz- Our Man: Modeling the book after Walter Lord’s min- ing both the eclipse of a United States engaged with Richard the world and Holbrooke, who worked tirelessly to Holbrooke ute-by-minute reconstruction of the sinking of make the American century endure. “I’m amazed and the End we came through our half century on top as well as of the the Titanic, for which Lord interviewed more than we did. Now it’s over.” American Century 60 contemporaries of that disaster, Higginbotham Packer’s Holbrooke is a fascinating character, if not a particularly sympathetic one. Holbrooke fought GEORGE PACKER, spent a decade questioning over 80 surviving fire- tooth and claw in the Washington jungle, convinced, KNOPF, 608 PP., even if almost nobody else ever was, that he would $30, MAY 2019 fighters, technicians, engineers, party leaders, and one day be secretary of state. Midnight in families from Pripyat. By digging into court docu- Holbrooke’s whole life was spent climbing, yet the Chernobyl: closest to the top he ever got was being appointed The Untold ments and scientific surveys, firefighters’ logs, and President Barack Obama’s special representative for Afghanistan and Pakistan. Once in the job, Holbrooke Story of contemporary periodicals, he succeeds in recreating knew what not to do—the memory of Vietnam never the World’s left him—but he couldn’t quite figure out what to do. not just the night the Chernobyl reactor exploded He tried to warn the Obama administration, but no Greatest one wanted to hear about those ghosts. Nuclear but the decades that led up to the explosion—and Disaster “How could he not be haunted?” Packer writes. the weeks, months, and years that followed. “[A]fter a half-century excursion across the heights ADAM of American greatness, we had returned to the exact HIGGINBOTHAM, The result is a gripping narrative, undergirded same place.”—KJ SIMON with the forensic detail of a courtroom drama. SCHUSTER, 560 Higginbotham meticulously traces the impact PP., $29.95, FEBRUARY 2019 on the first responders, who succumbed, one by one, to radiation sickness and burns that appeared weeks after the accident and then never healed. He reconstructs the decision-making process that led both Soviet leaders and plant administrators initially to try to keep the meltdown under wraps, delaying the evacuation of Pripyat even as chil- dren played in now potentially radioactive sand- boxes. Once a radiation cloud reached Sweden, however, it became harder for the Soviets to keep the disaster quiet. Ultimately, Chernobyl contributed to the unrav- eling of the communist experiment and the Soviet Union itself, Higginbotham concludes, as well as “public confidence in nuclear energy … [which] was finally shattered by the explosion.” Q SARAH WILDMAN (@SarahAWildman) is a deputy editor at FOREIGN POLICY.

KAZAKHSTAN: Sponsored Report A MEDIATOR AT THE CENTER OF EURASIA OF EURASIAN “East is East, and West is West, and never the twain shall meet,” Rudyard Kipling COOPERATION famously suggested. But that’s no longer true. For centuries, Europe and Asia — Kazakhstan’s location at which together account for 60% of global the heart of the Eurasian population, 65% of global GDP and 55% of super-continent has global trade — were treated as separate enabled it to develop the worlds. The idea was that they were too deft touch necessary to different politically, economically, socially turn the challenges of and culturally to be thought of as one. geopolitical competition into opportunities for But times have changed. Today’s world is cooperation. The complex interconnected. Globalization has shortened geopolitical situation distances, blurring boundaries between around Kazakhstan has Europe and Asia. The two regions have led to its leaders in Astana made giant steps towards interconnection developing a balanced with each other. Kazakhstan is the point foreign policy and playing where Europe and Asia meet to form the role of mediator in Greater Eurasia. disputes in the region and beyond. Kazakhstan The Republic of Kazakhstan is a relatively advocates Eurasia-wide young, rapidly developing country in dialogue and partnership Eurasia. Its size alone makes it important. to deal with common It is the world’s ninth-largest country, with threats and to benefit from its territory stretching 3,000 kilometers common opportunities. from east to west and 2,000 kilometers The Astana Club from north to south. And it sits at the geopolitical forum is geographical center of the Eurasian quickly developing into the continent. It is five times as big as France main platform to promote and almost twice as large as all Western such dialogue in Eurasia. European countries combined. This enormous land mass makes it difficult to ource: shutterstock / Harvepino classify which region Kazakhstan really belongs to. The question of whether it is European, Asian or something else still confounds experts and politicians alike. The answer is that Kazakhstan belongs neither to East nor West, to North nor South. It encompasses all four regions of the compass. It is a Eurasian country. A WINDOW OF OPPORTUNITY Kazakhstan’s central location in Greater Eurasia offers it a world of economic opportunity. KAZAKHSTAN: A MEDIATOR OF EURASIAN COOPERATION

To start with, it is a transport hub between existing Sponsored Report and emerging centers of the world economy — Europe, China, Russia, India and Southeast Asia. Since its independence in 1991, Kazakhstan Because of this, Kazakhstan is a key part of China’s has attracted more than $300 billion in Belt and Road Initiative, whose goal is to boost foreign direct investment — 75% of all the trade across Eurasia by investing $1 trillion in investment in Central Asia as a whole. infrastructure. It was no accident that Chinese Another telling figure is that Kazakhstan’s President Xi Jinping announced the initiative in GDP equals that of the other Central Asia Astana in 2013. Today, two main rail and road states and the Caucasus countries pathways of the initiative traverse Kazakhstan, combined. delivering Chinese goods to Europe and European goods to China. Given its size, its location in the heart of Eurasia, its transport-link initiatives, its success at attracting foreign investment, and its dynamic over-all economy, Kazakhstan possesses all the prerequisites necessary for it to continue being the most important bridge between East and West on the continent. Source: Institute of World Economics and Politics A LOAD OF RESPONSIBILITY Kazakhstan will also play a key role in the European Although Kazakhstan’s location at the center Union’s Connectivity Strategy, under which the of Eurasia is a blessing, it carries with it a lot political and economic alliance will spend billions of of responsibility. dollars to make Eurasia a more coherent and interlinked continent. The Belt and Road, the As in the past, Eurasia remains a theater of Connectivity Strategy and other initiatives are geopolitical rivalry and unresolved tensions. helping the two parts of Eurasia — Europe and Unfortunately, confrontation, not Asia — move towards each other. The initiatives cooperation, has become the dominant will make Eurasia a single organism, with networks trend in Eurasia and beyond. One need of transport infrastructure functioning as blood only read the headlines. Great powers are vessels while Kazakhstan serves as the organism’s starting trade wars and imposing sanctions. heart — the place where all the transport routes A new arms race is looming among three intersect. nuclear-club countries. The stand-off between Iran and other countries, the North Although Kazakhstan welcomes sweeping Eurasia- Korea nuclear issue and the India-Pakistan wide integration initiatives like the Belt and Road relationship have the potential to spin out of and the Connectivity Strategy, it has also been control. Conflicts in the Middle East, building continent-connecting roads, railways and Afghanistan and Ukraine are already ports on its own, partly through foreign investment. straining the global security apparatus. In fact, the country’s ability to attract foreign Even relatively stable Europe has been investment for all kinds of projects has made experiencing transatlantic discord, headlines. migration and other challenges. Surrounded by this complex geopolitical tapestry, Kazakhstan could easily be enveloped in any instability that occurs in Eurasia. To minimize such fallout, its leaders decided long ago on a balanced foreign policy. KAZAKHSTAN: A MEDIATOR OF EURASIAN COOPERATION

At the core of this approach is building close Sponsored Report relationships with all countries on the continent while helping to forge Eurasia-wide cooperation Kazakhstan opened the first Low mechanisms. The notion of a united Eurasia, which Enriched Uranium Bank that the Kazakhstan's Leader, the First President Nursultan International Atomic Energy Agency laid Nazarbayev proposed 25 years ago, has been one the ground for. It was a milestone in of the central pillars of Kazakhstan’s foreign policy nuclear non-proliferation because it since independence. reduced the chance of more countries developing nuclear capabilities. Kazakhstan has taken trailblazing steps to turn pan-Eurasian cooperation into a reality and The notion of a united Eurasia, which continues to pour considerable energy into this Kazakhstan's Leader, the First President effort. Its initiatives have included: Nursultan Nazarbayev proposed 25 years ago, has been one of the central Kazakhstan voluntarily gave up the fourth- pillars of Kazakhstan’s foreign policy largest nuclear arsenal in the world during its since independence. early years of independence to help make Eurasia more secure. In conjunction with this, These achievements not only illustrate it closed the world’s largest nuclear-testing Kazakhstan’s commitment to helping lead site on its soil. Eurasia in a peaceful direction by example, but also its commitment to playing the role Over the past decade, Kazakhstan provided a of mediator on the continent. As a logical platform for negotiations between Iran and extension of these efforts, the country came powers wanting to prevent Iran from up with another initiative — establishing the developing nuclear weapons. The result was Astana Club as a continuing platform for the Joint Comprehensive Plan of Action, continent-wide dialogue. commonly known as the Iran nuclear deal. ASTANA CLUB — A DIALOGUE The Astana Process on Syria led to the PLATFORM FOR EURASIA creation of de-escalation zones in many parts of the war-torn country, helping bring peace The Astana Club was set up in 2015. Its to tens of thousands of ordinary Syrians. founding was a response to the destruction of the security architecture that had prevailed in Kazakhstan's First President Nazarbayev Europe since the break-up of the Soviet Union played a critical role in normalizing relations — but that crumbled when the West and Russia between Russia and Turkey after Turkey shot squared off over the situation in Ukraine. down a Russian plane in 2015. Source: Institute of World Economics and Politics KAZAKHSTAN: A MEDIATOR OF EURASIAN COOPERATION

Sponsored Report At the time, trust between the two sides was The hope is that decision-makers at the dramatically declining, and the risk of geopolitical national, regional and global levels will use instability increasing. Not only has the tension the recommendations to come up with more worsened since then, but it has also spread balanced and productive policies. Those across the entire continent. attending the Astana Club meeting on November 11-12 of this year will create the The Astana Club’s founders, the Institute of World top 10 risks list for 2020. Economics and Politics and the Foundation of the First President of Kazakhstan, decided to position The theme of this year’s meeting will be the fledgling organization as a platform for “Security of Greater Eurasia: On the Way to constructive dialogue on the tensions and risks a New Architecture.” It is particularly timely, the Eurasian continent is struggling with. It given that the former security architecture has provides government, political, economic, collapsed, and it is unclear who will assume academic and other leaders a unique opportunity responsibility for constructing a new one. to share opinions and synchronize their watches Unfortunately, no one has yet come up with a on urgent issues, and to propose ideas for vision of a new system. Against this backdrop, resolving them. Kazakhstan is calling for the world to work more diligently on a new anti-nuclear At the four annual meetings since 2015, dozens architecture in particular. The Astana Club of high-profile guests, including heads of state could well be the geopolitical forum that and government, foreign ministers, Nobel Prize generates the ideas that lead to a new global winners and renowned scholars and experts, have security system. sought to make progress toward the goal of establishing a continental dialogue. The year 2020 will mark the 45th anniversary of the Helsinki Final Act — the agreement that In 2018, the Astana Club issued a report called established the post-Cold War security Global Risks for Eurasia that it plans to produce structure in Europe. The world needs a new, annually. It stemmed from participants’ expanded version of the agreement. This assessments of the top 10 geopolitical risks for time it should cover not just Europe, but all 2019. The primary objective was to identify the of Eurasia. In this regard, Astana is becoming problems that most threaten Greater Eurasia’s an equidistant and neutral place, where a security and economy. In addition, the experts consensus on future security architecture of offered recommendations for managing the risks. Eurasia can be achieved. KAZAKHSTAN: A MEDIATOR OF EURASIAN COOPERATION



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Sponsored Report MALTA FUTUREPROOFING THE ISLANDS’ ECONOMIC BOOM Photo: Shutterstock / Leoks MALTA Valletta, the capital city of Malta Futureproofing the player in financial services, ad- islands’ economic boom vanced manufacturing, the mari- time sector, logistics and tourism, The Maltese government’s focus on macroeconomic stability, this focus on diversification has diversity and innovation has put the islands at the global helped turn the country into a hub forefront of numerous traditional and emerging industries for emerging innovative and high- tech industries such as blockchain The small Mediterranean archi- notes Scicluna: “Unemployment and online gaming. Edward Scicluna pelago is one of Europe’s best rates are also now among the low- Minister for Finance performing economies — the EU est in the EU and the national debt A key to Malta’s position at estimates that its gross domes- has seen a significant decline.” the forefront of these sectors is its idly increasing our market share. tic product (GDP) grew by 6.2% innovative and rapid approach to Our rebranding reflects our re- in 2018 and a further increase of Macroeconomic stability is one introducing legislation. For exam- newed vision — we want to build a 5.3% is expected in 2019. factor attracting increasing inter- ple, in 2018 it launched the world’s new future with our clients, backed national businesses to the islands. first regulatory framework for dis- by a high level of service, and the “Malta’s success came because Other draws include a first-rate tributed ledger technologies. ability to offer innovative products we identified the main drags on the business climate, good infrastruc- economy and confronted them,” ture, competitive labor costs, EU The new framework will help says Minister for Finance Edward membership, a strategic location Malta build on an already very Scicluna. This resulted in numer- that makes it a gateway to Europe strong financial services sector that ous structural reforms, such as and Africa, and the use of English. includes the world’s 17th-sound- shifting the energy mix away from est banking system, according to oil, introducing free childcare for In addition, “Malta’s small size the World Economic Forum. all and shifting the tax burden and reliance on smart manpower from direct to indirect taxation. As due to lack of natural resources “Malta is very much on the international investor radar. a result, not only is the economy pushes it to the limits of economic It has an open, diversified and growing economy.” booming but Malta has had a bud- diversification. No new sector is get surplus for three years in a row, overlooked,” says Scicluna. Tra- Michael Collis, CEO and Managing Director, BNF Bank ditionally renowned as a leading Michael Collis, CEO and man- and solutions,” says Collis. aging director of BNF Bank, gives “Our capital increase will enable two reasons for this soundness: “Malta has a robust regulatory us to increase our share of the larg- environment and banks are con- er-corporate sector, tap into new servative. Even during the global markets and further international- financial crisis, they were resilient.” ize the bank,” he says, noting that BNF Bank is a shining example of it already has excellent relations this. Originally called Banif Bank, with bigger U.S. institutions, such it established operations in Malta as Bank of New York Mellon, and 10 years ago and its activities are is actively involved in helping busi- split 50:50 between retail and cor- nesses move to Malta. porate banking. “We are seeing a great deal of Since 2016, when Qatar’s Al investment coming in at the mo- Faisal Holding acquired majority ment and Malta is very much on shares in the bank, “Our capital the international investor radar,” base has increased from $28 mil- he states; “It has an open, diversi- lion to $96 million and we are rap- fied and growing economy — Mal- ta has a lot to offer.” 1

MALTA FUTUREPROOFING THE ISLANDS’ ECONOMIC BOOM Sponsored Report Why Malta is ahead of the game in blockchain and cryptocurrencies Malta’s transformation into “Blockchain Island” is founded on an Photo: Shutterstock / LuckyStep innovative approach to legislation and regulation that builds on its success in creating a first-class environment for gaming 2018 saw the world’s media hail Silvio Schembri Malta has become a global frontrunner in distributed ledger technologies Malta as “Blockchain Island” when it introduced the first legislative Parliamentary Secretary for Financial Services, framework for distributed ledger technologies (DLTs), blockchain Digital Economy and Innovation and cryptocurrencies. the world’s largest cryptocurrency random number generation, and of the largest players in the indus- “Malta has become a leading innovator in these technologies exchanges — Hong Kong’s OKEx DLT for know-your-customer due try and it is especially tempting for because we see their huge poten- tial and the likelihood of them and Binance — the confidence diligence.” start-ups. Our biggest advantage changing the landscape for various industries,” explains Silvio Schem- to start operating in the country. The MGA is the independent is that we were the first to regulate bri, Parliamentary Secretary for Fi- nancial Services, Digital Economy “The response has been tremen- regulator for online and land- gaming 14 years ago, so everything and Innovation. dous and produced a ripple effect based gaming in Malta, and is is here: top lawyers, accounting The government is committed to embracing the disruptive tech- among other crypto and block- responsible for implementing the firms, specialist services and gov- nologies and putting Malta at the epicenter of their advance, he says: Regulators need to ensure operators are compliant but ernment support,” Farrugia states. “We have laid the foundations for Over those years, the sector has this technological revolution to flourish. But our aim is not just to they also need to be innovative.” evolved from casinos to high-tech attract these technologies. It is to create a conductive environment Heathcliff Farrugia, CEO, Malta Gaming Authority online gaming. To take account of where innovation can take place its development, Malta updated in legal certainty and with peace of mind that any legislative changes chain-based companies,” he notes. government’s strategy for these its gaming legislation in 2018. The will not occur without considering industry concerns.” “Thanks to Malta’s diversified technologies in gaming. “We are new legislation has also improved Indeed, the new framework con- economy, it offers an attractive now accepting applications to the MGA’s ability to carry out its sisting of three acts was developed after detailed consultation with all ecosystem where these firms can license operators, who will be al- regulatory activities and simplified stakeholders. “The acts provide le- gal certainty and will help achieve benefit from synergies with, for lowed to use cryptocurrencies and bureaucracy for operators. stability, market integrity and con- sumer protection,” says Schembri; example, our financial and gaming DLTs in a controlled ‘sandbox’ Farrugia believes it is vital for “We like to think we are showing the world the way forward.” sectors,” says Schembri. environment. We hope that by the the MGA to remain at the cut- Malta’s track record in creating Heathcliff Farrugia, CEO of the end of the year we can remove the ting-edge of regulation: “Regula- innovative and effective legislation that has allowed highly special- Malta Gaming Authority (MGA), sandbox and accept what we have tors need to ensure operators are ized industries, such as gaming, to thrive has already given two of confirms that the islands’ gam- learnt as part of the law,” he says. compliant but they also need to ing companies are increasingly This development should boost be innovative. When you have interacting with the disruptive Malta’s third-largest economic proper regulations, you can start technologies: “They are looking sector, which accounts for over controlling, understanding and at cryptocurrency as a payment 11% of gross domestic product. supervising new sectors. For the solution, for instance, blockchain “Our small country is packed with MGA, innovation is not an option, for automating payments and gaming companies. We have some it is a must.” HOME OF GAMING EXCELLENCE 2 *DPLQJ0DOWDLVDQLQGHSHQGHQWQRQSURͤWIRXQGDWLRQVHWXSE\\WKH*RYHUQPHQWRI0DOWD DQG WKH 0DOWD *DPLQJ $XWKRULW \\ 0*$  7DVNHG ZLWK WKH UHPLW RI SURPRWLQJ 0DOWD DV D FHQWHURIH[FHOOHQFHLQWKHGLJLWDODQGUHPRWHJDPLQJVHFWRUJOREDOO\\LWLVDOVRUHVSRQVLEOH IRU OLDLVLQJ ZLWK WKH ORFDO UHOHYDQW DXWKRULWLHV WR LPSURYH 0DOWD̵V DWWUDFWLYHQHVV DVDMXULVGLFWLRQDQGHQKDQFHWKHHFRV\\VWHPVXUURXQGLQJWKHJDPLQJLQGXVWU\\ Read the full version of this and other interviews in this report at www.prisma-reports.com

Sponsored Report MALTA FUTUREPROOFING THE ISLANDS’ ECONOMIC BOOM Malta’s financial services in line with the new technologies. it will evolve into one of the top five regulator leads — setting an Blockchain, for example, is revolu- financial regulators in Europe. The example for the rest of Europe tionizing the way service platforms groundbreaking regulatory technol- interact with end users. Cuschieri ogy being implemented under Cus- The Malta Financial Services Authority is reinventing itself and explains: “Financial technology and chieri’s leadership, coupled with investing in innovation to take account of new technologies automation will empower consum- Malta’s undisputed seniority in the ers. For regulators, this presents industry, looks set to put Malta way The Malta Financial Services Au- Joseph Cuschieri new challenges because up till ahead of the competition. thority — MFSA — is the single CEO, Malta Financial Services Authority (MFSA) now we have regulated and super- regulator for all financial service ac- vised the sector in the traditional Reactions to Malta’s regulation tivities in Malta. It is also responsi- vision for the MFSA, making tech- way. Moving forward within such of distributed ledger technology ble for housing the country’s com- nology mission-critical for our orga- a technologically dynamic envi- and cryptoassets in the interna- panies’ registry. Joseph Cuschieri, a nization,” states Cuschieri. ronment, it will be all about the tional community have been var- man who brings to the table exten- stringent standards we have set for ied. Some of the key players in the sive experience in economic regula- One of the challenges the MFSA ourselves.” blockchain industry, for example tion in both the public and private faces is transforming Malta’s tra- France and Switzerland, have taken sector, was appointed as its new ditional financial services sector The government sponsored the a practical approach that follows CEO in 2018. Delta Summit in 2018, the first Malta’s lead. Other countries, like event of its kind, to showcase Mal- the US, have made their concerns Cuschieri plans to transform the ta’s achievements in the blockchain clear, with worries centered around organization into an internationally space. The summit surpassed all the risks of money laundering. recognized world-class regulator. expectations. Cuschieri, who was on “Blockchain, fintech and the tech- the panel at the event, believes that: Cuschieri is convinced the Eu- nological transformation currently “The regulatory framework, which ropean Union will come up with defining Malta’s financial industry puts legal certainty on the tech- a regulatory framework soon. His are going to have a massive impact nology surrounding blockchain, is view is that: “As a jurisdiction, it is on the financial services sector as ensuring that Malta becomes a hub not up to us to state whether virtual we know it today. One of my pri- not just for established financial in- currencies are a good or bad option. mary objectives is to create a new stitutions but also for start-ups in What we are doing is implementing blockchain, gaming companies and a framework — introducing regu- service sectors, like health, tourism lations and legislation which will and support services.” ensure maximum transparency and protection for consumers, while The MFSA recently announced a safeguarding the integrity of our fi- three-year plan that aims to ensure nancial system here in Malta.” Leading the world in the regulation of virtual financial assets In November 2018, Malta became the it was supervising and ensuring the compli- Already known for its high standards, in first country in Europe to introduce a ance of over 2,180 operators and funds with an the new regulations, “MFSA has raised the holistic package of legislation covering aggregate net asset value of €10.6 billion. But bar in terms of the standards we impose. distributed ledger technologies, such as the regulation of fintech brings new challeng- Some in the industry think they are too high blockchain, and cryptoassets. The new es, he says: “The way you govern the sector but there are inherent risks in cryptoassets framework has received “very positive has to change and MFSA needs to be a leader and we wanted to make sure they were miti- feed back,” says Joseph Cuschieri, CEO in new technology in order to administer and gated. We did this by raising the bar in both of the Malta Financial Services Author- supervise the sector, to show leadership and to technical standards and licensing require- ity (MFSA), who was a member of the set an example. If you are legislating, profess- ments — but we haven’t made it impossible,” task force that developed the laws. “It ing and pontificating about blockchain, fin- stresses Cuschieri. was an area that was unregulated and we tech and cryptocurrencies, you can’t be using wanted to put a framework in place which technology from the ’90s yourself.” Most of the regulatory measures for ob- protects consumers and the financial in- taining licenses to operate in Malta’s new tegrity of our system,” he explains. cryptoasset space concern consumer protec- tion and platform integrity, while also making Providing legal certainty, investor pro- sure anti-money-laundering procedures are tection, market integrity and financial applied and that Malta’s traditional financial stability, all while demonstrating support system is not contravened. for innovation and technology, the reg- ulations should help “make Malta the Cuschieri is convinced that the traditional hub for blockchain,” states Cuschieri. financial services sector’s interaction with us- Implementing the framework is also the ers will be transformed by new technologies first step in the MFSA’s vision to become and that Malta is ideal for companies operat- internationally recognized as a regulator ing in these disruptive industries: “Malta is of excellence in fintech. outstanding when it comes to technology and innovation. We offer the right environment, Malta’s financial services regulator is the right incentives and the right support for highly experienced — at the end of 2017, companies. It’s the perfect place.” Malta Financial Services Authority www.mfsa.com.mt 3

MALTA FUTUREPROOFING THE ISLANDS’ ECONOMIC BOOM Sponsored Report Gozo’s historic Cittadella has been recently restored Gozo: I live, I work, I play and embraces modern industries. Businesses benefit from a vibrant Gozo means business recent restoration of the historic ecosystem and favorable incentives, Cittadella is a shining example of and a new entity for regional devel- Malta’s second-biggest island is value-added, idyllic and sustainable regeneration. Barts and opment will provide a further boost. focused on economic and environmental sustainability the London School of Medicine and Dentistry are establishing a med- Gozo looks to the future with Gozo has been one of the best per- on its natural and architectural as- ical school in Gozo, and Steward optimism, eager to forge partner- forming eurozone economies for sets, and agricultural and marine Healthcare is developing a medical ships with businesses that can grow five years. It benefits from Malta’s traditions. Its unspoiled, inspiring hub. Thynk Software and RS2 Soft- in a way that is consistent with its growth in tertiary services and tour- and tranquil beauty provide the ide- ware are examples of successful IT long-term vision of a value-added ism, but its approach to investment al getaway, while kayaking, climbing companies in Gozo that are con- and idyllic destination focused on attraction is focused on high-value and diving are enjoyed for most of necting efficiently with the world. economic and environmental sus- niches fitting its development goals. the year, thanks to its mild climate. tainability. Gozo is connected. It is an hour Gozo is idyllic. With 7,000 years Gozo is innovative and distinc- from Malta International Airport of history, it is pursuing an ecologi- tive. It focuses on longer-stay tour- and connectivity is being enhanced cal development brand for tourism ists seeking immersive experiences though investments in maritime, and residential services that builds and boutique accommodation. The digital and road infrastructures. Gozo is well resourced. Its pop- ulation is ambitious, well-educated The exquisite island of Gozo is building connections with the world’s tourists and businesses Justyne Caruana, Minister for Justyne Caruana was restricted to the summer season. to move people once they have parked Gozo, explains how Malta’s sec- Minister for Gozo The ministry worked hard to change this their vehicles and is in line with Gozo’s ond-largest island is developing by creating a year-round cultural cal- status as an ecological island. sustainably. U.K.’s Stonehenge. Today, I am opening endar with numerous events and now an exhibition, which includes a work by there is tourism throughout the year. PR You have said there are not PR Half of Gozo’s gross do- Salvatore Busuttil that is one of the fin- enough contractors in Gozo but mestic product depends on est artistic pieces on the island. We were PR A mega project has been an- there is increasing international tourism. How are you promot- very fortunate to acquire it for Gozo’s nounced — building a tunnel to interest. What incentives are there ing Gozo internationally? museum. link Malta and Gozo. How will this for businesses to set up in Gozo? contribute to growth? JC We are trying to promote There are various other attractions JC Our government is very open and Gozo as a distinct destination from on the island that we are working to JC We are now in a position to es- always just a phone call away. If a new Malta. Traditionally, people came promote, such as Roman remains and a tablish timeframes for the project, which business is opening or relocating here, to Malta and then by chance dis- Phoenician shipwreck. In addition, Gozo will be based around a seven-year pro- we have business packages on offer. If covered Gozo. We are working to faced a huge challenge — its tourism gram. At the moment, the connection is you need to hire an employee, we will challenge this — and we are suc- via ferry. When the tunnel is operational, give you €6,000 to support you in this ceeding because people now want we are expecting huge changes and the when you provide an employment con- to come specifically to Gozo. influx of visitors will increase greatly. tract for at least three years. This is just one way we encourage businesses to We are promoting Gozo’s dis- There will be positive and negative come to Gozo and employ local people. tinctive package. If you take the impacts. One of the positives will be the time to look around, you will see mobility of our people but it will also We are trying to turn the ministry into the natural beauty of the area. Apart increase vehicle traffic and our carbon a one-stop shop. So, if you come here from its environmental attractions, footprint. We have already started work and you want to get things moving fast, we have a very strong cultural her- on preventing the negative byproducts you will not need to go from one place itage; for example, the Megalithic of this. Part of our decarbonization to another. In business, time is money, is the world’s oldest prehistoric strategy is to place a park-and-ride at so we make business in Gozo worth temple — much older than the the tunnel. This will use electric buses your while. Ministry for Gozo MINISTRY FOR GOZO St. Francis Square, Victoria, Gozo, Malta | Tel: +356 2210 0000 | [email protected] | www.mgoz.gov.mt For further information please visit www.prisma-reports.com 4

Sponsored Report MALTA FUTUREPROOFING THE ISLANDS’ ECONOMIC BOOM Making Malta a better place to live, work and invest Transparent, fair, efficient and innovative planning services — and we are available to meet digital mapping services and is provide a balanced and sustainable environment in Malta any investor at very short notice,” implementing an ambitious na- he states. tional information project that will Malta is seeing unprecedented Johann Buttigieg make Malta a global frontrunner in growth in construction projects, Executive Chairman, Planning Authority In order to carry on fulfilling its geo-spatial technology. Part of this says Johann Buttigieg, executive responsibilities effectively and effi- project will see the creation of 3D chairman of the country’s Planning fair planning services that balance ciently in a period of rapid growth, maps of the islands that extend up Authority, the entity responsible for the sustainability of Malta’s envi- the entity has recently upgraded to a nautical mile from the coast- regulating land use on the islands. ronment with the changing needs and modernized its internal pro- line, he says: “We are looking to “Due to the huge government ini- of the population and investors. cesses and technologies, and intro- progress and not only at offering tiatives for foreign investors there “We are extremely careful about duced a new online platform. It is services for land-based industries is enormous investment coming controlling the quality of develop- also updating its policy framework. but also underwater. We expect to in and every week companies are ments. However, a planning permit “We have forged ahead to a much invest a further €40 million in this.” opening offices,” he says. is normally granted promptly — higher level. Now, we must push there is a time limit of 100 days Malta’s boom forward but control The authority is also research- This influx creates a need for its negative effects,” says Buttigieg. ing best international practices more housing, schools, education for managing disused land and and hospitals. for example. “The Planning for the future expanding its strategy for smart government is also investing over In line with Malta, the Planning cities. “We are moving towards de- €100 million a year in infrastruc- Authority is focused on being a veloping smart cities that are inte- ture,” notes Buttigieg. As a result, leader in innovation and it is cur- grated into our infrastructure. Per- the authority received over 11,300 rently coordinating 10 EU-funded haps Malta will set the bar and be planning applications in 2017, a research projects worth over €7 the first in Europe to run as a smart rise of 24% on 2016, and in 2018 it million in topics that include green country,” he suggests. Buttigieg be- approved new projects worth over infrastructure, coastal manage- lieves that new planning advances €500 million. ment and smart cities. such as this will help attract even more investors and stresses that The Planning Authority’s major Spacial information is another the Planning Authority is “ready to role is to provide transparent and key research priority. The author- deliver — whenever, wherever.” ity has recently launched new 5

MALTA FUTUREPROOFING THE ISLANDS’ ECONOMIC BOOM Sponsored Report On the road to quality transportation Malta: Facts and figures With excellent airport and seaport facilities in place, Dr. Ian Borg, Minister for Transport, Infrastructure and Capital Projects, is focusing his attention on Malta’s roads PR How are you ensuring Malta’s The government has committed itself to major road infrastructure projects The islands economic success continues? ulated island state. Our public transport is Dr. Ian Borg The Mediterranean archipelago IB The various decisions we have made carrying more than 3.5 million passengers Minister for Transport, Infrastructure and of Malta is made up of three as a government have ensured the creation a year. We have to improve and increase Capital Projects of a healthy financial environment for local this capacity, while at the same time work- islands: Malta, Gozo and Comino and foreign investors, which has also at- ing to create further transport systems. We plan. Can you provide more insight tracted foreign direct investment. It is clear are encouraging our authorities to do more, into this strategy? Surface area that Malta and its economy are growing especially in marine transportation, for ex- steadily. But for every country with a grow- ample, the ferries. We have a thriving ferry IB We would like to resurface all our 122 square miles ing economy, it is necessary to have sound system between Cottonera, Valletta and roads, especially the residential ones. Local and high-quality infrastructure. We have Sliema. 62,000 passengers were carried on councils had responsibility for their up- Population achieved extraordinary results — but not our ferries in 2012 — 1.6 million was the keep but were not equipped with the right because of our infrastructure. final figure for 2018. resources. The government decided to take 475,700 on the responsibility, share the burden, and So this is what we are doing now — we It is imperative that we combine our set up an infrastructure agency to carry out Capital city are focusing on upgrading our country’s advances with e-motor vehicles. However, the works within seven years. infrastructure, our road network. This we have to be realistic about our culture Valletta, the European Capital of government has committed itself to major — most Maltese people like their cars. We We have achieved considerable eco- Culture, 2018 infrastructural road projects and also to the need to offer incentives, which we started nomic success, tourism is booming, and upgrading of the whole residential road doing a couple of years ago. We are cur- people want to work and live in Malta. It GDP growth network. We are investing almost $800 rently providing free public transport to is, therefore, imperative that we ensure that million to enable our country to finally get young people and offering incentives for no part of the island is neglected. For this 5.3% is predicted for 2019 a residential road network that caters for switching to cleaner transport, such as no reason, the government is actively inter- today’s needs, while we are implementing registration tax and up to almost $7,900 vening to improve our infrastructure. We Currency other medium and long-term projects on when people switch to an electric vehicle. strongly believe that infrastructure is one our road arteries and junctions. This is the of the pillars of any country’s economy and Euro priority of our government’s program. We are investing in the infrastructure so we are committed towards an improved that supports electric vehicles but I still be- infrastructure for our country for the benefit Unemployment PR What impact does Malta’s size lieve that the electrification of the transport of our communities. rate have on the ease of doing business? system is a market-driven scenario. People are still waiting for electric vehicles to have 3.8% IB I am convinced that being part of a improved designs, longer-lasting batteries small community, like Malta, provides the and lower prices. So, it is not only about the Official languages opportunity to be nearer to the people, to government giving out incentives, it is also listen to people and to their real needs, and about the automobile industry doing its English and Maltese to be able to take action to respond prompt- part. And products are already improving. ly and efficiently to them. 6 PR In 2018 more than $67 million The same applies to foreign investors; was spent on road infrastructure, we are only a phone call away. Being a which will rise to about $113 mil- small country makes it easier to make lion in 2019, as part of a seven-year things happen faster — meeting compa- nies that are willing to invest in our country is a normal part of our course of work and I regularly receive requests for meetings with companies looking to invest. This agility can only be found in small administrations. This government believes in strong and healthy public and non-governmental orga- nization participation. We are willing to put ideas on the table and discuss, and that is what we are doing. Be it for land adminis- tration, transport planning, connecting the islands of Malta and Gozo, or better plan- ning, for example. PR Can you comment on the gov- ernment’s public and private trans- port initiatives? IB This is a complex issue — there is no single solution for such a densely pop- For further information please visit www.prisma-reports.com

artifact Unbreakable that swapped in letters for other let- The hidden history of the ters as the typist hit keys. The machine Soviets’ impenetrable encoded a message, and then a com- espionage machine. mutator, or electrical switch, further By Anna Borshchevskaya randomized the letters. That message was punched as holes into a ticker tape, and the tape could then be fed into a sis- ter machine and quickly decoded. Pri- marily used by the military, the Fialka was so secret that soldiers trained in using it reportedly had to sign special contracts specifying that they wouldn’t travel abroad for two years. The Fialka overcame the Enigma’s shortcomings: The encryption on the Russian machine was more secure because it used 10 rotating wheels of let- ters, compared with the Enigma’s three or four. Each rotation enabled the Fialka to encrypt each letter individually. All in all, the machine could produce more than 500 trillion codes. The Soviets’ encryption was so advanced, according to Stephen Budiansky, who examined the U.S. National Security Agency’s efforts to crack Soviet ciphers in his book Code

The Fialka encryption system, part of the collection at the KGB Espionage Museum in New York City. LEFT: A container used for holding punched cards after they were encoded. KGB ESPIONAGE MUSEUM Warriors, that it could be broken only about the internal scrambling patterns championed, and fear nurtured. by human error, theft, or defiance. “It of the coding systems.” These days, the craft of keeping has always been easier to make a good code than to break a good code,” he Although tools such as the Fialka have secrets has changed. The ciphers of said. “The significant breaks that both become kitsch, the stuff of spycraft col- the past have been trumped by an [the United States] and the Soviets lector websites, secrecy isn’t going any- encrypted device far more powerful made throughout the Cold War in each where. Paranoid thinking increasingly than anything the Cold Warriors could other’s systems came either through permeates the Kremlin, and rather than have dreamed of: the smartphone. Q ‘direct’ means,” such as stealing key acknowledge history and face the future, lists of codes, “or blunders in proce- the current Russian government encour- ANNA BORSHCHEVSKAYA (@annaborsh) is dures that gave away crucial details ages celebration of a past in which its a senior fellow at the Washington Insti- people were suppressed, secrecy was tute for Near East Policy.


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