A weekly digest of the latest news and research related to the work of the Technology, Economics, and Governance Working Group. Topics covered in the digest include cybersecurity, domestic regulation, innovation, international competition, social media disinformation, and the California exodus.
This week’s roundup covers rising global inflation, US efforts to win the hypersonic arms race, European concerns about Nord Stream cuts, big tech lobbying activities, Russian cyber attacks targeting NATO countries, and a Council on Foreign Relations report proposing a new US cyber foreign policy. Additionally, researchers look to replace copper with an aluminum alloy and release survey results about US adults’ approval of political violence.
Industrial Policy & International Security
Global central banks ramp up inflation fight | The New York Times
Central banks across the globe are lifting interest rates to curb rapid inflation, which is increasing globally at the fastest pace experienced since the 1980s. The COVID-19 pandemic brought on a shortage of goods that, in some industries, has been exacerbated by the war in Ukraine. Experts believe that the surge in prices will continue and some banks have already begun to increase interest rates. The European Central Bank is set to follow suit with its first increase since 2011. While this tactic risks triggering a recession, a recent World Bank report forecasts that global economic growth will continue (but much more slowly). If inflation persists, central banks are likely to implement more aggressive rate increases.
U.S. touts progress in hypersonic arms race with China, Russia | The Washington Post
This week the Pentagon announced a successful hypersonic missile test. However, the Department of Defense is still under scrutiny after an all-system test failed last month and Russian and Chinese hypersonic development programs achieve new milestones. As a result, the Department is also focused on defensive measures and secured approximately $1.3 billion to launch a new missile defense satellite network by 2025. The multi-orbit network will reportedly use heat detection to track maneuvering hypersonic vehicles, which can evade traditional missile defense systems. Lawmakers concerned by adversaries’ progress are pressing the Missile Defense Agency to condense development and launch timelines.
Putin says Russia to meet gas commitments to Europe but warns of Nord Stream cuts | The Wall Street Journal
President Putin warned that flows of natural gas through the Nord Stream pipeline could be curbed if sanctions stay in place. The pipeline is under routine maintenance and European governments are concerned that Russia will not return to regular flows once work is completed. While Russia claims that any changes to gas flows would be a result of turbine maintenance and delivery delays caused by sanctions, European Union lawmakers believe otherwise. They worry that Nord Stream flows may be used to manipulate the economy and produce favorable geopolitical outcomes for Russia. Plans are in place to ration fuel across Europe to cope with this uncertainty.
US Regulation
Amazon secretly funds new coalition opposing tech regulation | Bloomberg
The Competitiveness Coalition, a new organization fighting antitrust legislation, received upwards of $1 million in funding from Amazon. While federal law does not require advocacy groups to disclose donors, the Coalition branded itself as a grassroots organization without revealing Amazon’s contributions and ran a media campaign opposing the American Innovation and Choice Online Act earlier this year. As regulatory pressures from lawmakers increase, big tech companies are leveraging “astroturfing” strategies that artificially generate the appearance of public support for favorable policies across different communities. According to sources familiar with the Competitiveness Coalition’s funding, Amazon viewed the organization as a conservative counterpart to the left-leaning, pro-tech Chamber of Progress.
Innovation
Can reengineered aluminum help fill the demand for copper? | WIRED
Keerti Kappagantula, a materials scientist at the Pacific Northwest National Laboratory (PNNL), is looking to make aluminum more conductive through additives. If she is successful, her aluminum alloy could replace copper (which is almost twice as conductive as pure aluminum) in electronic devices and alleviate increasingly difficult efforts to source copper as demand for the conductive metal increases. Electric vehicles, for example, can use four times as much copper as a conventional car. Kappagantula and PNNL are using a process called solid-phase manufacturing to create an alloy structure that’s not only conductive but strong enough for industrial use.
Cyber
Confronting Reality in Cyberspace: Foreign Policy for a Fragmented Internet | Council on Foreign Relations
The Council on Foreign Relations task force report, Confronting Reality in Cyberspace: Foreign Policy for a Fragmented Internet, outlines a new foreign policy for cyberspace that recognizes the internet’s evolution from free and open ideals to a “less free, more fragmented, and less secure” space. The report authors argue that adapting US policy to this new reality will help mitigate destabilizing activity online and reduce threats to national security. Three specific recommendations to the US government are at the crux of the report’s proposed strategy: develop a coalition of allies dedicated to protecting the internet as a trusted, international communication platform; leverage more offensive cyber operations and establish clear norms for acceptable targets and escalation while imposing targeted diplomatic and economic costs on adversaries; and integrate digital competition and national security strategies.
Russian cyber spies targeting NATO countries in new hacking campaign | Sky News
According to a new report by cybersecurity company Palo Alto Networks, state-sponsored Russian hackers targeted diplomatic missions to NATO with a phishing campaign in the months leading up to the Madrid summit. The hackers are suspected to be part of the same group responsible for the 2020 SolarWinds attack and may work for Russia’s foreign intelligence service (SVR). Palo Alto Networks discovered that the hackers leveraged Google Drive and Dropbox to avoid detection; Dropbox reports that they disabled the associated user accounts after working with industry partners. SVR-sponsored cyber campaigns are known to be more covert than other Russian government-led cyber activity and SVR sometimes conducts parallel operations.
State & Local Tech Ecosystems
Opinion: Why are California lawmakers luring tech lobbyists to wine country? | Mercury News
Lauren Rosenhall, a LA Times editorial writer, criticizes the lack of transparency surrounding the upcoming “Technology Policy Summit” in Napa Valley. Run by California assemblyman Evan Low (D-Campbell), the summit brings together state legislators and tech lobbyists paying between $10,000 to $35,000 for the privilege of speaking on panels and delivering briefings. The donations go to the sponsoring nonprofit organization, the Foundation for California’s Technology and Innovation Economy. California law requires lawmakers to disclose requests for donations of over $5,000 to nonprofit organizations; however, Low has been under investigation for over two years for failing to release this type of information. Rosenhall sees the summit as an opportunity for Big Tech to pay for 1-on-1 time with influential lawmakers before the August congressional session.
Democracy Online
Half of Americans anticipate a U.S. civil war soon, survey finds | Science
UC Davis researchers surveyed American adults about their perceptions of democracy and political violence in the United States. Their findings are chilling: nearly half of Americans would sacrifice democracy for a strong leader and expect a civil war within the next few years and one in five believe political violence is sometimes justified. While respondents can exaggerate their views when responding to surveys, the results align with similar studies. Moreover, survey analysis indicates that right-wing conspiracy theories are influencing Americans’ appetite for political violence; however, party affiliation was not measured. Experts believe regulating misinformation and disinformation online is the first step to de-escalate the propensity for political violence in the United States.
