RAND has a new research paper out on Islamic State’s economics:
At its peak, the Islamic State of Iraq and the Levant (ISIL) controlled vast portions of territory in Iraq and Syria with several million inhabitants. ISIL’s territorial ambition and desire to conduct state-like governance over this territory are integral to its global ideological appeal. By examining ISIL’s impact on local economic activity in Iraq and Syria, this report seeks to assess the effectiveness of ISIL’s governance over its self-styled caliphate.
This report leverages remote sensing data and commercial satellite imagery to offer a unique, data-driven look inside areas controlled by the Islamic State. It paints a bleak picture of economic life under ISIL, replete with shortages of electricity, massive refugee flows, reductions in agricultural output, and upticks in violence all associated with ISIL control.
At times, ISIL was able to build a dense governing apparatus that helped maintain stable local commercial activity, particularly in its strategic capitals in Raqqah and Mosul. At other times, ISIL mismanaged key resources or sought to punish its citizenry rather than govern it. However, this report suggests that decaying economic conditions in ISIL-held territory are also a product of ISIL’s inability to insulate its territory from opposing military forces. Outside pressure against ISIL successfully prevented the group from realizing its governing ambitions across significant parts of its caliphate, with major consequences for its ability to support functioning local economies.
This report is important for those trying to understand the group’s impact on local populations in Iraq and Syria, for those seeking to counter its financing or conduct post-conflict stabilization, and for broader efforts to understand the economic impact of insurgent governance.
I’ll likely be citing it in my in-progress PhD chapter on Islamic State.
Washington and Lee University’s Seth Cantey has a new article out in Studies in Conflict & Terrorism on negotiating with Al Qaeda and Islamic State:
This article argues that prospects for negotiations with al Qaeda (AQ) and the Islamic State (IS) have been undertheorized. Drawing on nearly two thousand pages of primary source material – all issues of Inspire and Dabiq magazines published at the time of writing – it examines these groups’ statements about their motivations for violence, their objectives, and their views about the possibility of dialogue with the West. It finds stark differences in all three areas and suggests that assumptions that have prevented theorizing about negotiations with these groups should be revisited.
Strategic culture deals with strategic bargaining situations. Its potential use in negotiating with terrorists remains under-explored. Cantey’s article is a first step to further theorising.
A few research notes from my PhD thesis draft:
- The journal International Affairs may be a source for Russian perspectives on Jack Snyder’s original conceptualisation of strategic culture, and the SALT nuclear arms reduction talks. In particular, a comparative US-Russia historical perspective is needed.
- Robert Jay Lifton and Haruki Murakami’s interviews with Aum Shinrikyo renunciates provide possible secondary data to identify possible hypnotisibility. The APA Division 30 definition of hypnotisibility (2014): “An individual’s ability to experience suggested alterations in physiology, sensations, emotions, thoughts, or behavior during hypnosis.”
- Coercive persuasion sequelae in Aum Shinrikyo and Islamic State would be coded as Other Specified Dissociative Disorder in DSM V (following the work of Robert Jay Lifton and Edgar Schein).
- A social psychological perspective suggests that the renunciates were sensitised to Aum Shinrikyo’s leader Shoko Asahara from Aum propaganda such as media reports, books, and short anime films. Haruki Murakami documents how Aum renunciates often provided the labour for this media to be produced and disseminated.
A summary of my in-progress thesis from my mid-candidature review documentation:
Terrorist organisations such as Al Qaeda and Islamic State pose a national security threat to Australia. Terrorist organisations that are able to grow in members and resources, and consolidate their power over a longer period of time require different policymaking responses from counterterrorism, defence, and national security experts. This thesis contributes to: (i) a new understanding of how such terrorist organisations formulate their strategies, allocate resources, and engage in decision-making to plan and conduct terrorist operations; and (b) the development of a new strategic cultures framework using case studies of Islamic State and Japan’ s Aum Shinrikyo.
Professor Tyler Cowen (Average Is Over; The Great Stagnation) has posted at his Marginal Revolution blog an email I wrote him about the parallels between Islamic State and the momentum investment strategy in response to an earlier post.
The comments got trolled with posters misunderstanding how momentum strategies actually work; describing strategic culture as a folk theory; and critiquing my graduate school experience via Leo Strauss and the Sokal affair.
There are several parallels between Islamic State and momentum investing:
1. Islamic State has grown rapidly in terms of its mujahideen membership; control of parts of northern Iraq and Syria; and its power projection.
2. Islamic State has outperformed its peer jihadist groups in terms of the impact of its terrorist campaign.
3. Islamic State has persisted over time despite efforts by Iraq, Turkey, the United States, Russia, the United Kingdom, Australia, and France to end it.
4. Islamic State has exploited weaknesses in its enemies through a sophisticated psychological warfare strategy.
5. The Obama Administration may have initially underreacted to Islamic State as a national security threat.
Rapid growth; persistence over time; outperformance of peers; and arbitrage of behavioural biases is observable in momentum strategies for equity stocks.
I thank Tyler for posting my comment and also Gary Antonacci (Dual Momentum Investing) for his insight that momentum strategies rely in part on behavioural biases that are ubiquitous.
What I’m currently reading:
Abu Bakr Naji’s Management of Savagery: The Most Critical Stage Through Which The Umma Will Pass (2004) translated by William McCants (translation funding provided by Harvard University’s John M. Olin Institute for Strategic Studies): an eye-opening manifesto on the Islamist jihadist plan to re-establish a Caliphate.
William McCants’ The ISIS Apocalypse: The History, Strategy, and Doomsday Vision of the Islamic State (New York: St Martin’s Press, 2015). There are a bunch of quick primers around on Islamic State. McCants is familiar with the source material. He has the language / political science background to understand Islamic State’s ideological vision.
Oliver Morin’s How Traditions Live and Die (New York: Oxford University Press, 2015). Morin posits a new framework for understanding cultural transmission as due to cognitive preferences rather than imitation. Provides theory-building to understand Abu Bakr Naji’s strategic vision and William McCants’ analysis of Islamic State.
Yesterday, I gave a presentation on in-progress thesis research about Islamic State to the annual SPS Symposium at Australia’s Monash University. For the past several years I have used the SPS Symposium to gain feedback on thesis chapters as I am drafting them. This year, I had about 25 minutes of great questions from fellow Monash graduate students and researchers. Thanks to the SPS Symposium committee for a great event.
As part of my PhD mid-candidature review I’m giving the following talk at Monash University in October (date TBC):
Islamic State: Insights from Strategic Subcultures Theory and Combatting Terrorist Propaganda
Strategic subcultures theory examines why and how certain terrorist groups persist over time and grow despite counterterrorism measures. Abu Bakr al-Baghdadi’s Islamic State has gained control of parts of northern Iraq and Syria. Islamic State also poses a current national security threat to Australia in terms of terrorist propaganda (including social media campaigns) and the possible radicalisation of Australian recruits. This presentation evaluates Islamic State as a potential strategic subculture and considers Yale University philosopher Jason Stanley’s guidance in How Propaganda Works (New Haven, CT: Yale University Press, 2015) about how to strengthen democratic nation-states like Australia – and countering violent extremism – through combatting terrorist propaganda.