Be’er Sheva Dialogue 2022 – Proceedings and Outcomes

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The Eighth annual Be’er Sheva Dialogue was held in Canberra on 21 November 2022. We kindly thank the Australia Israel Jewish Affairs Council (AIJAC), the Pratt Foundation and the Embassy of Israel in Australia for their support and partnership in the development of this year’s Dialogue.

The Dialogue is named in honour of the Battle of Beersheba (1917), with the 2022 Dialogue marking the 105th anniversary of the battle. Since its inception in 2015, the Dialogue has brought together defence officials, senior parliamentarians and analysts from both Australia and Israel to discuss areas of shared strategic interests and challenges, as well as the potential for collaboration.

Discussions during the Dialogue affirmed the significant potential for growth in the security relationship, especially military to military cooperation and sharing experiences and perspectives of defence industry. A recurring message during the Dialogue was that Israel’s experience with respect to sovereign development of defence and security capabilities and enhancement of weapon systems could be a valuable one for Australia to learn. This was highlighted by the Deputy Prime Minister and Defence Minister the Hon Richard Marles MP in opening the Dialogue:

Australia looks to Israel as an example of a nation which has been a leader in defence strategic thinking—be it in regard to its defence industry capabilities (and the innovation system, economy and workforce built around that) or in regard to its deep cultural relationship with science and technology. As we look forward, we need to think about how we can continue to deepen our bilateral relationship, which also extends to the relationship between our militaries and defence industries.

Richard Marles, Be'er Sheva 2023

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The Be’er Sheva Dialogue remains an invaluable forum for having these candid and constructive debates.

We look forward to the 2023 Be’er Sheva Dialogue in Israel.

State-sponsored economic cyber-espionage for commercial purposes: tackling an invisible but persistent risk to prosperity

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As part of a multi-year capacity building project supporting governments in the Indo-Pacific with defending their economic against the risk of cyber-enabled theft of intellectual property, ASPI analysed public records to determine the effects, the actual scale, severity and spread of current incidents of cyberespionage affecting and targeting commercial entities.

In 2015, the leaders agreed that ‘no country should conduct or support ICT-enabled theft of intellectual property, including trade secrets or other confidential business information, with the intent of providing competitive advantages to companies or commercial sectors.’

Our analyses suggests that the threat of state-sponsored economic cyberespionage is more significant than ever, with countries industrialising their cyberespionage efforts to target commercial firms and universities at a grander scale; and more of these targeted industries and universities are based in emerging economies.

“Strategic competition has spilled into the economic and technological domains and states have become more comfortable and capable using offensive cyber capabilities. Our analysis shows that the state practice of economic cyber-espionage appears to have resurged to pre-2015 levels and tripled in raw numbers.”

In this light, we issued a Briefing Note on 15 November 2022 recommending that the G20 members recognise that state-sponsored ICT-enabled theft of IP remains a key concern for international cooperation and encouraging them to reaffirm their commitment made in 2015 to refrain from economic cyber-espionage for commercial purposes. 

This latest Policy Brief, State-sponsored economic cyber-espionage for commercial purposes: tackling an invisible but persistent risk to prosperity, further suggests that governments should raise awareness by better assessing and sharing information about the impact of IP theft on their nations’ economies in terms of financial costs, jobs and competitiveness. Cybersecurity and intelligence authorities should invest in better understanding the extent of state sponsored economic cyber-espionage on their territories.

On the international front, the G20 and relevant UN committees should continue addressing the issue and emphasising countries’ responsibilities not to allow the attacks to be launched from their territories. 

The G20 should encourage members to reaffirm their 2015 commitments and consider establishing a cross-sectoral working group to develop concrete guidance for the operationalisation and implementation of the 2015 agreement while assessing the scale and impact of cyber-enabled IP theft.

State sponsored economic cyberespionage Briefing note
Defending against cyber IP theft Project flyer

‘With a little help from my friends’: capitalising on opportunity at AUSMIN 2022

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The annual Australia-US Ministerial Consultations have been the primary forum for bilateral engagement since 1985. The Australian Minister for Defence and Minister for Foreign Affairs will meet with their American counterparts in Washington in 2022, in the 71st year of the alliance, and it’s arguably never been so important.

The Australian Strategic Policy Institute is proud to release ‘With a little help from my friends’: Capitalising on opportunity at AUSMIN 2022, a report featuring chapters from our defence, cyber and foreign policy experts to inform and guide the Australian approach to the 2022 AUSMIN consultations.

In this report, ASPI harnesses its broad and deep policy expertise to provide AUSMIN’s principals with tangible policy recommendations to take to the US. The following chapters describe Australia’s most pressing strategic challenges. The authors offer policy recommendations for enhancing Australian and US collaboration to promote security and economic prosperity.

The collection of essays covers topics and challenges that the US and Australia must tackle together: defence capability, foreign affairs, climate change, foreign interference, rare earths, cyber, technology, the Pacific, space, integrated deterrence and coercive diplomacy. In each instance, there are opportunities for concrete, practical policy steps to ensure cohesion and stability.”

Counterterrorism Yearbook 2022

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The Road from 9/11

It’s been its been over two decades since the 9/11 attacks when two planes hit the World Trade Center, one hit the Pentagon and a fourth crashed in Pennsylvania. Close to 3,000 people died and many others were injured, and even more people were traumatised by the experience and the loss of loved ones. Today’s release of the Counterterrorism (CT) yearbook 2022 coincides with the anniversary of the November 2008 Mumbai terrorist attacks and the deaths of 174 people. These and other acts of terror have left an indelible mark and shaped the years that followed.

Australia’s overall security environment is increasingly challenging to navigate. Emerging threats such as information operation campaigns, cyberattacks and climate change are increasing the complexity of the world. In 2022, major geopolitical events including Russia’s war on Ukraine and China’s continuing coercive operations and aggression, occupied a significant space in national discourse. Foreign interference and espionage have continued to rise to the forefront of intelligence agencies priorities.

Yet, terrorism prevails as a significant security concern for Australia and the wider region. These continuing challenges mean that ASPI’s 6th edition of the Counterterrorism Yearbook is as important as ever.

ASPI’s Executive Director, Justin Bassi, notes in the preface of this 6th edition of the CT Yearbook, that ‘while terrorism is no longer assessed by ASIO to be our top security threat, it hasn’t disappeared and in fact continues to be one of the predominant security concerns for Australia and the region.’

The 2022 yearbook was co-edited by Katja Theodorakis, head of ASPI’s Counterterrorism, CVE and Resilience program and Gill Savage, an ASPI senior fellow, considers CT challenges through the lens of the world context, today’s challenges and explores wider policy considerations through a range of chapters from 16 expert authors. The yearbook includes chapters on trends in terrorism, precrime policing and extremism, radicalisation of teenagers, strategic competition and CT, public trust, multiculturalism and bioterrorism and resilience.

Theodorakis notes in her introduction that:

‘For most of the past two decades, terrorism and extremism were largely seen as an external issue brought to Australia by foreign problems. Even when talking about ‘homegrown jihadists’, extremist ideological motivations were generally ascribed to global terrorist sources in faraway places.’

The presence of motivated violent extremist groups continues and are increasingly accompanied by issue-specific radicalised individuals. A key aspect of the changing environment is the use of social media by extremist groups to tap into public discord arising from Covid lockdowns and vaccination mandates as well as violence driven by divisive political agendas in democratic countries such as the White House riots in 2020.

Today’s CT environment is an increasingly complex one, the impact of which hasn’t diminished. It represents a challenge that requires governments, community and academia to continue to work together.

North of 26 degrees south and the security of Australia: views from The Strategist, Volume 6

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The Northern Australia Strategic Policy Centre’s latest report, North of 26 degrees south and the security of Australia: views from The Strategist, Volume 6, is a series of articles published in The Strategist over the last six months, building on previous volumes by identifying critical intersections of national security, nation-building and Australia’s north.

This issue, like previous volumes, includes a wide range of articles sourced from a diverse pool of expert contributors writing on topics as varied as maritime law enforcement, equatorial space launch, renewable energy infrastructure, rare earths and critical minerals, agriculture, Industry 4.0, advanced manufacturing, fuel and water security, and defence force posturing. It also features a foreword by the Honourable Madeleine King MP, Minister for Northern Australia.

Minister King writes, “Northern Australia promises boundless opportunity and potential. It is the doorway to our region and key to our future prosperity.”

The 24 articles propose concrete, real-world actions for policy-makers to facilitate the development, prosperity and security of Australia’s north. The authors share a sense that those things that make the north unique – its vast space, low population density, specific geography, and harsh investment environment – are characteristics that can be leveraged, not disadvantages.

This is a link to the previous volume 5.

The 2022 US midterm elections and what they might mean for Australia

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On 8 November, Americans will vote in midterm congressional elections to determine all 435 voting seats in the House of Representatives and one-third of the 100 seats in the Senate. This ASPI commentary outlines what the midterm election outcomes could mean for Australia’s strategic interests by examining the role of congressional committees in US foreign, security and defence policymaking. While most core elements of the Australia–US relationship are bipartisan and enduring, changes to the congressional committees can influence policy areas that overlap with or are vital to Australian interests. Even small changes in the way Congress works could determine how much priority Australian strategic interests receive. Canberra should therefore be highly attuned to the changes in committee structure and membership. 
 
Once the new Congress settles in, the Australian Government will have a brief window of opportunity to feed into and influence outcomes in US foreign, security and defence policymaking. After that point, campaigning will consume Congress, making it harder for Australian diplomats, politicians and other officials to be heard leading up to the 2024 US presidential election. AUSMIN in December 2022, the outcomes of the Defence Strategic Review and AUKUS pathway review (both expected March 2023) along with major Quad meetings held in the first half of 2023, all fall within this window and provide opportunities for senior Australian Government representatives visiting Washington to engage with both their Administration counterparts and with members of Congress including, for example, the strong friends of Australia in the AUKUS Working Group. 
 
This analysis of the midterms and their implications for Australia is informed by a series of meetings with congressional committee staff members (policy analysts and researchers). Those individuals serve both Democratic and Republican members of Congress and work in both the House of Representatives and the Senate.

Assessing the groundwork: Surveying the impacts of climate change in China

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The immediate and unprecedented impacts of climate change are becoming increasingly apparent across China, as they are for many parts of the world. Since June 2022, China has been battered by record-breaking heatwaves, torrential downpours, flooding disasters, severe drought and intense forest fires.

In isolation, each of those climate hazards is a reminder of the vulnerability of human systems to environmental changes, but together they are a stark reminder that climate change presents a real and existential threat to prosperity and well-being of billions of people. 

Sea-level rise will undermine access to freshwater for China’s coastal cities and increase the likelihood of flooding in China’s highly urbanised delta regions. Droughts are projected to become more frequent, more extreme and longer lasting, juxtaposed with growingly intense downpours that will inundate non-coastal regions. Wildfires are also projected to increase in frequency and severity, especially in eastern China. China’s rivers, which have historically been critical to the county’s economic and political development, will experience multiple, overlapping climate (and non-climate) impacts.

In addition to these direct climate hazards, there will also be major disruptions to the various human systems that underpin China, such as China’s food and energy systems as are discussed in this report. These impacts deserve greater attention from policy analysts, particularly given that they’ll increasingly shape China’s economic, foreign and security policy choices in coming decades.

This report is an initial attempt to survey the literature on the impact that climate change will have on China. It concludes that relatively little attention has been paid to this important topic. This is a worrying conclusion, given China’s key role in international climate-change debates, immense importance in the global economy and major geostrategic relevance. As the severity of climate change impacts continue to amplify over the coming decades, the significance of this gap will only grow more concerning.

Budgets, the economy and the Defence Strategic Review

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Current debate over how to defend Australia in a more threatening strategic environment points to an urgent need to strengthen the capabilities of the ADF, partly through purchasing new types of weapons incorporating the latest technologies. 

Standing in the way of that need being realised are two factors. One is a trillion dollars of government debt and intense demands for higher expenditure on other public priorities ranging from health care to climate change. The other is a perception that any shift in defence investment away from more established to new types of weaponry would threaten jobs and growth. 

Among the few options available to Defence to overcome both obstacles is avoiding a significant price premium for preferring the domestic over foreign supply of major weapons platforms and systems through a more targeted approach to Australian industry participation. 

That option need not detract from Australia’s independence or economic welfare. Indeed, available data indicates positive outcomes can be achieved, on both fronts, if at least part of what’s saved through avoiding high price premiums in some areas of defence capability development can be re-invested in others.

However, that depends on avoiding the defence industry policy pitfalls of the recent past. Linking an updated defence capability plan to an outdated industry policy is, at best, a high-risk venture. More realistically, it represents a path to disappointment.

This paper addresses how Defence can not only save money when purchasing a new cadre of weaponry but do so in a way that benefits the economy. Both issues relate to affordability which may ultimately determine the impact of the Defence Strategic Review.

Marles’s Defence Strategic Review—an exploding suitcase of challenges to resolve by March 2023

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Stephen Smith and Angus Houston have an enormous amount to do and almost no time to do it.  Prime Minister Albanese and Deputy Prime Minister Richard Marles chose them to be the independent heads of the Defence Strategic Review.  

The Review is to report before March 2023 so that the Albanese government can make decisions on it at the same time as they are deciding about the path that gives Australia 8 nuclear submarines within an AUKUS partnership that makes these safe and effective. 

Before they even get to thinking about their task – ‘to ensure Defence has the right capabilities to meet our growing strategic needs’ —Smith and Houston will need to confront the ugly fact that Defence’s current plans are already unaffordable despite the large and growing defence budget the Albanese government has committed to. 

Nasty choices and sub-optimal trade offs are needed before any new ideas that take money are even put forward. And the only mega project not yet agreed to that can provide potential savings is the $20-27bn Army plan to buy an additional 450 heavily armoured vehicles for purposes that aren’t clearly connected to Australia’s needs in our region. These must now be made clear if it is to proceed, in whatever form.

But even multi-billion dollar megaproject is a distraction to the real work. The Review must give Marles what he needs to provide practical, urgent direction to defence in four big areas:

  • Climate change and the Defence Force’s inescapable – but unwanted – role;
  • China’s direct security challenge in Australia’s near region – making our strategic environment uncomfortably clear, not complex as we like to tell ourselves;
  • New ways to increase Australian military power quickly – because no taxpayer is going to give defence more funding if it can’t show it has different, faster ways to increase the ADF’s, military power; and
  • The danger of prioritising ‘integration’ in all things in pursuit of the military nirvana of ‘every sensor a shooter and every shooter a sensor’ – because this highly aspirational goal is the enemy of getting capabilities into the hands of our military fast.

This Strategic Insight unpacks the exploding suitcase of Defence and sets out the key paths the Review can take.

‘Deep roots’: agriculture, national security and nation-building in northern Australia

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This report offers a multidisciplinary analysis of the various components that make up and influence the vast and complex agriculture industry network in northern Australia. It examines the economic and historical underpinnings of the agriculture industry we know today; the administration, direction and implementation of agricultural policy and funding across levels of government; the many and varied demographic and cultural characteristics of the northern Australian population; and the evolution of place-based physical and digital infrastructure.

The role of infrastructure and infrastructure funding in northern Australia plays a key role in the report’s narrative, which outlines the implications for national security, economic prosperity, service delivery, social cohesion and policy implementation if prevailing arrangements aren’t reformed to a sufficient standard that addresses contemporary challenges.

The report also examines biosecurity vulnerabilities, mitigation strategies for those vulnerabilities and their strategic and national security implications, and the long-term positioning of the north of Australia as critical for future growth, prosperity and security. The focus on opportunities presented by the north’s unique nature throughout the report culminates in a set of recommendations for policymakers to take a unified and big-picture approach across a daunting array of issues and disciplines.

This report suggests:

  1. a unified message among all relevant stakeholder groups with awareness of the strategic role of the northern agriculture sector
  2. greater investment in agricultural research to grow and protect agricultural industries (prosperity is key to security)
  3. greater engagement of Indigenous populations, with genuine appreciation for the role of Indigenous people and their connection and knowledge of land and  water as the key to unlocking potential.
  4. a cohesive nation-building plan.