Alpharetta Vemuri Madhavan Aff Peach State Classic Round2

7/23/2019 Alpharetta Vemuri Madhavan Aff Peach State Classic Round2

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CyberterrorContention One is Cyberterror:

The NSA’s electronic backdoors undermine overallcybersecurity – also shuts out the US from establishing cyber

norms

Sasso, technology correspondent for National Journal, 14

Brendan, "The NSA Isn't Just Spying on Us, It's Also Undermining InternetSecurity", April 29 2!, Natio nal Journal, ###$national%ournal$com&daily&thensaisnt%ustspyingonusitsalsoundermininginternetsecurity2!29

(NSA )ac*doors in+rastructure to ma*e hac*ing easy

(This encryption is aaila)le to anyone that -nds it . hac*ing

(Necessary +or international norm modelling people #on/t +ollo# til USA doestheir shit

Bolstering the nation/s de+enses against hac*ers has )een one o+ the 0)amaadministration/s top goals$ 01icials hae #arned +or years that a sophisticatedcy)erattac* could cripple destroy3 critical in+rastructure or allo# thiees to ma*eo1 #ith the -nancial in+ormation o+ millions o+ Americans$ 4resident 0)ama pushed

5ongress to enact cy)ersecurity legislation, and #hen it didn/t, he issued his o#n e6ecutie order in 2!7$ 8Thecy)er threat to our nation is one o+ the most serious economic and nationalsecurity challenges #e +ace, 0)ama #rote in a 2!2 oped in The :all Street Journal$ But critics

argue that the N ational S ecurity A gency has actually undermined

cybersecurity and made the U nited S tates more vulnerable to hackers$ At its

core, the pro)lem is the NSA/s dual mission$ 0n one hand, the agency is tas*ed #ithsecuring U$S$ net#or*s and in+ormation$ 0n the other hand, the agency mustgather intelligence on +oreign threats to national security$ 5ollecting intelligenceo+ten means hac*ing encrypted communications$ That/s nothing ne# +or the NSA; the agency

traces its roots )ac* to code)rea*ers deciphering Na<i messages during :orld :ar II$ So in many #ays,strong Internet security actually ma*es the NSA/s %o) harder $ 8This is an administration

that is a igorous de+ender o+ sureillance, said 5hristopher Soghoian, the head technologist +or the American

5iil =i)erties Union$ “Surveillance at the scale they ant re!uires insecurity "# The

lea*s +rom >d#ard Sno#den hae reealed a ariety o+ e1orts )y the NSA to #ea*ency)ersecurity and hac* into net#or*s$ 5ritics say those programs, #hile helping NSA

spying, hae made U$S$ net#or*s less secure$ According to the lea*ed documents,the NSA inserted a so$called back door into at least one encryption

standard that as developed by the N ational % nstitute of S tandards and

& echnology" The NSA could use that )ac* door to spy on suspected terrorists, )ut

the vulnerability as also available to any other hacker ho discovered it"

N%S&, a 5ommerce ?epartment agency, sets scienti'c and technical standards

that are idely used by both the government and the private sector " The

agency has said it #ould neer 8deli)erately #ea*en a cryptographic standard, )ut it remains unclear #hether

the agency #as a#are o+ the )ac* door or #hether the NSA tric*ed NIST into adopting the compromised

http://www.nationaljournal.com/daily/the-nsa-isn-t-just-spying-on-us-it-s-also-undermining-internet-security-20140429






standard$ NIST is re@uired )y la# to consult #ith the NSA +or its technical e6pertise on cy)ersecurity$ Thereelation that NSA someho# got NIST to )uild a )ac* door into an encryptionstandard has seriously damaged NIST/s reputation #ith security e6perts$ 8NIST is

operating #ith a trust de-cit right no#, Soghoian said$ 8 Anything that N%S& has

touched is no tainted"# It/s a particularly )ad time +or NIST to hae lost the

support o+ the cy)ersecurity community$ In his e6ecutie order, 0)ama tas*edNIST #ith dra+ting the cy)ersecurity guidelines +or critical infrastructure such

as poer plants and phone companies$ Because it/s an e6ecutie order instead o+ a la#, the

cy)ersecurity standards are entirely oluntary, and the U$S$ goernment #ill hae to conince the priate sector to

comply$ The Sno#den lea*s #eren/t the -rst to indicate that the NSA is inoled ine6ploiting commercial security$ According to a 2!2 Ne# or* Times report, theNSA deeloped a #orm, du))ed 8Stu6net, to cripple Iranian nuclear centri+uges$But the #orm, #hich e6ploited +our preiously un*no#n a#s in Cicroso+t:indo#s, escaped the Iranian nuclear plant and @uic*ly )egan damagingcomputers around the #orld$ The NSA and Israeli o1icials hae also )een tied to 8Dlame, a irus that

impersonated a Cicroso+t update to spy on Iranian computers$ Eanee Eines, an NSA spo*es#oman, said the U$S$

goernment 8is as concerned as the pu)lic is #ith the security o+ these products$ 8The United States pursues itsintelligence mission #ith care to ensure that innocent users o+ those same technologies are not a1ected, she said$

According to Eines, the NSA relies on the same encryption standards it recommends tothe pu)lic to protect its o#n classi-ed net#or*s$ 8:e do not ma*e recommendations that #e

cannot stand )ehind +or protecting national security systems and data, she said$ 8The actiity o+ NSA in setting

standards has made the Internet a +ar sa+er place to communicate and do )usiness$ But due to concernoer the NSA damaging Internet security, the president/s reie# group onsureillance issues recommended that the U$S$ goernment promise not to 8in any#ay su)ert, undermine, #ea*en, or ma*e ulnera)le generally aaila)lecommercial encryption$ 8>ncryption is an essential )asis +or trust on the Internet ;#ithout such trust, alua)le communications #ould not )e possi)le, the group #rote in

its report, #hich #as released in ?ecem)er$ 8(or the entire system to ork, encryption

softare itself must be trustorthy $ The :hite Fouse/s cy)ersecurity coordinator said that

disclosing security a#s "usually ma*es sense$" In response to the report, the administration adopted a ne# policyon #hether the NSA can e6ploit 8<erodaysGulnera)ilities that haen/t )een discoered )y anyone else yet$

According to the :hite Fouse, there is a 8)ias to#ard pu)licly disclosing a#s in security unless 8there is a clear

national security or la# en+orcement need$ In a )log post Conday, Cichael ?aniel, the :hiteFouse/s cy)ersecurity coordinator, said that disclosing security a#s 8usuallyma*es sense$ 8Building up a huge stoc*pile o+ undisclosed ulnera)ilities #hile leaing the Internet

ulnera)le and the American people unprotected #ould not )e in our national security interest, he said$ But?aniel added that, in some cases, disclosing a ulnera)ility means that the U$S$#ould 8+orego an opportunity to collect crucial intelligence that could th#art aterrorist attac*, stop the the+t o+ our nation/s intellectual property, or een discoermore dangerous ulnera)ilities$ Fe said that the goernment #eighs a ariety o+ +actors, such as the

ris* o+ leaing the ulnera)ility unpatched, the li*elihood that anyone else #ould discoer it, and ho# important

the potential intelligence is$ )ut privacy advocates and many business groups arestill uncomfortable ith the U"S" keeping security *as secret" And many

don+t trust that the NSA #ill only e6ploit the ulnera)ilities #ith the mostpotential +or intelligence and least opportunity +or other hac*ers$ 8The sureillance)ureaucracy really doesn/t hae a lot o+ sel+imposed limits$ They #ant to geteerything , said >d Blac*, the 5>0 o+ the 5omputer H 5ommunications Industry

Association, #hich represents companies including oogle, Cicroso+t, ahoo, andSprint$ 8No# I thin* people dealing #ith that )ureaucracy hae to understand they can/t ta*e anything +or



granted$ Cost computer net#or*s are run )y priate companies, and the

government must ork closely ith the private sector to improve

cybersecurity" )ut companies have become reluctant to share security

information ith the U"S" government, fearing the NSA could use any

info rmation to hack into their systems$ 8:hen you #ant to go into partnership

#ith some)ody and #or* on serious issuesGsuch as cy)ersecurityGyou #ant to*no# you/re )eing told the truth, Blac* said$ oogle and one other cy)ersecurity -rm

discoered 8Feart)leedGa critical a# in a #idely used Internet encryption toolGin Carch$ The companies noti-ed a +e# other priatesector groups a)out thepro)lem, )ut no one told the U$S$ goernment until April$ 8In+ormation you share#ith the NSA might )e used to hurt you as a company, #arned Ash*an Soltani, a technical

consultant #ho has #or*ed #ith tech companies and helped The :ashington 4ost #ith its coerage o+ the

Sno#den documents$ Fe said that company o1icials hae historically discussedcy)ersecurity issues #ith the NSA, )ut that he #ouldn/t )e surprised i+ thoserelationships are no# strained$ Fe pointed to ne#s that the NSA posed asDace)oo* to in+ect computers #ith mal#are$ 8That does a lot o+ harm to

companies/ )rands, Soltani said$ &he NSA+s actions have also made it diicult for

the U"S" to set international norms for cybercon*ict" Dor seeral years, theU$S$ has tried to pressure 5hina to scale )ac* its cy)erspying operations, #hichallegedly steal trade secrets +rom U$S$ )usinesses$ Jason Fealey, the director o+ the5y)er Statecra+t Initiatie at the Atlantic 5ouncil, said the U$S$ has 8militari<ed

cy)er policy$ “&he U nited S tates has been saying that the orld needs to

operate according to certain norms, # he said$ “%t is diicult to get the norms

that e ant because it appears to the rest of the orld that e only ant

to follo the norms that e think are important"# Eines, the NSA spo*es#oman,

emphasi<ed that the NSA #ould neer hac* into +oreign net#or*s to gie domestic companies a competitie edge

as 5hina is accused o+ doing3$ 8:e do not use +oreign intelligence capa)ilities to steal the trade secrets o+ +oreign

companies on )ehal+ o+Gor gie intelligence #e collect toGU$S$ companies to enhance their international

competitieness or increase their )ottom line, she said$ Jim =e#is, a senior +ello# #ith the 5enter +or Strategic

and International Studies, agreed that NSA spying to stop terrorist attac*s is +undamentally di1erent +rom 5hinastealing )usiness secrets to )oost its o#n economy$ Fe also said there is #idespread misunderstanding o+ ho# the

NSA #or*s, )ut he ac*no#ledged that there is a “trust problemG%usti-ed or not$ Fepredicted that re)uilding trust #ith the tech community #ill )e one o+ the topchallenges +or Ci*e ogers, #ho #as s#orn in as the ne# NSA director earlier thismonth$ 8All the tech companies are in arying degrees unhappy and not eager tohae a close relationship #ith NSA, =e#is said$

The risk of cyberterrorism is high!e"#erts agree that

adversaries have the technical skills and #olitical motivation to

carry out a dangerous cyberattack)urg, -rincipal US . /lobal 0ybersecurity eader, 14

?aid, Cichael 5ompton 4rincipal, 5y)ersecurity Strategy H 0perations, 4eterFarries 4rincipal, Fealth Industries, John Funt 4rincipal, 4u)lic Sector, Car*=o)el 4rincipal, Technology, >ntertainment, Cedia H 5ommunications, ary=oeland 4rincipal, 5onsumer and Industrial 4roducts H Serices, Joe Nocera4rincipal, Dinancial Serices, ?ae oath 4artner, is* Assurance, "US cy)ercrimeK



ising ris*s, reduced readiness Ley -ndings +rom the 2! US State o+ 5y)ercrimeSurey", June 2!, cosponsored )y The 5>T ?iision o+ the So+t#are>ngineering Institute at 5arnegie Cellon Uniersity, 5S0 maga<ine, United StatesSecret Serice, ###$p#c$com&us&en&increasingite1ectieness&pu)lications&assets&2!usstateo+cy)ercrime$pd+

(e6perts

(other nations hae )etter cy)ersecurity programs ussia

&he risks and repercussions of cybercrime In this !2th surey o+ cy)ercrimetrends, more than M US e6ecuties, security e6perts, and others +rom the pu)licand priate sectors o1ered a loo* into their cy)ersecurity practices and state o+ris* and readiness to com)at eoling cy)er threats and threat agents$ 0ne thing is

ery clearK &he cybersecurity programs of US organi2ations do not rival the

persistence, tactical skills, and technological proess of their potential

cyber adversaries" Today, common criminals , organi<ed crime rings, and nationstates leerage sophisticated techni@ues to launch attac*s that are highly targeted

and ery di1icult to detect$ 4articularly #orrisome are attac*s )y tremendously s*illed threat actors that

attempt to steal highly sensitieGand o+ten ery alua)leGintellectual property, priate communications, and

other strategic assets and in+ormation$ It is a threat that is nothing short o+ +ormida)le$ In +act, the US?irector o+ National Intelligence has ran*ed cy)ercrime as the top nationalsecurity threat, higher than that o+ terrorism, espionage, and #eapons o+ massdestruction$! Underscoring the threat, the DBI last year noti-ed 7, US companiesGranging +rom small

)an*s, ma%or de+ense contractors, and leading retailersGthat they had )een ictims o+ cy)er intrusions$ “&he

U nited S tates faces real 3cybersecurity threats +rom criminals, terrorists,spies, and malicious cy)er actors , said DBI ?irector James B$ 5omey at a recent

security con+erence$2 8The playground is a ery dangerous place right no#$ Nation$state actors pose

a particularly pernicious threat , according to Sean Joyce, a 4#5 principal and

+ormer DBI deputy director #ho +re@uently testi-ed )e+ore the US Fouse and Senate Intelligencecommittees$ 8 5e are seeing increased activity from nation$state actors, hich

could escalate due to unrest in Syria, %ran, and 6ussia, he said$ 8These groupsmay target -nancial serices and other critical in+rastructure entities$ In today/s

olatile cy)ercrime enironment, nationstates and other criminals continually andrapidly update their tactics to maintain an adantage against adances in securitysa+eguards implemented )y )usinesses and goernment agencies$ ecently, +or instance,

hac*ers engineered a ne# round o+ distri)uted denial o+ serice ??oS3 attac*s that can generate tra1ic rated ata staggering giga)its per second, the most po#er+ul ??oS assaults to date$

Cyber attacks are frequent and devastating$ %very attack

increases the risk of e"istential catastro#he$

Nolan &' — Andrew Nolan, Legislative Attorney at the Congressional Research

Service, former Trial Attorney at the United States Department of !stice, holds a

"D" from #eorge $ashington University, %&'( )*Cy+ersec!rity and nformation

Sharing- Legal Challenges and Sol!tions,. CRS Report to Congress, /arch '0th,

Availa+le 1nline at http-22fas"org2sgp2crs2intel2R3453'"pdf , Accessed &67&(7%&'(, p"

'748

http://www.pwc.com/us/en/increasing-it-effectiveness/publications/assets/2014-us-state-of-cybercrime.pdf


http://fas.org/sgp/crs/intel/R43941.pdf



http://fas.org/sgp/crs/intel/R43941.pdf



ntrod!ction

1ver the co!rse of the last year, a host of cy+erattac9s' have +een perpetrated on

a n!m+er of high #ro(le American companies " n an!ary %&'3, Target anno!nced

that hac9ers, !sing malware,% had digitally impersonated one of the retail giant:s

contractors,4 stealing vast amo!nts of data—incl!ding the names, mailing

addresses, phone n!m+ers or email addresses for !p to 6& million individ!als andthe credit card information of 3& million shoppers"3 Cy+erattac9s in ;e+r!ary and

/arch of %&'3 potentially e<posed contact and log7in information of e=ay:s

c!stomers, prompting the online retailer to as9 its more than %&& million !sers to

change their passwords"( n Septem+er, it was revealed that over the co!rse of >ve

months cy+er7criminals tried to steal the credit card information of more than >fty

million shoppers of the world:s largest home improvement retailer, ?ome Depot"0

1ne month later, "@" /organ Chase, the largest U"S" +an9 +y assets, disclosed that

contact information for a+o!t 60 million ho!seholds was capt!red in a cy+erattac9

earlier in the year"6 n perhaps the most infamo!s cy+erattac9 of %&'3, in late

Novem+er, Sony @ict!res ntertainment s!Bered a *signi>cant system disr!ption.

as a res!lt of a *+raen cy+er attac9.

that res!lted in the lea9ing of the personaldetails of tho!sands of Sony employees"5 And in ;e+r!ary of %&'(, the health care

provider Anthem =l!e Cross =l!e Shield Eend page 'F disclosed that a *very

sophisticated attac9. o+tained personal information relating to the company:s

c!stomers and employees"'&

The high pro>le cy+erattac9s of %&'3 and early %&'( appear to +e indicative of a

broader trend- the fre)uency and ferocity of cy+erattac9s are increasing,''

posing grave threats to the national interests of the United States" ndeed,

the attac9s on Target, e=ay, ?ome Depot, "@" /organ7Chase, Sony @ict!res, and

Anthem were only a few of the many p!+licly disclosed cy+erattac9s perpetrated in

%&'3 and %'&("'% <perts s!ggest that h!ndreds of tho!sands of other entities may

have s!Bered similar incidents d!ring the same period, '4 with one s!rvey indicating

that *+, of >rms in the United States had e<perienced a data +reach in the past

year"'3 /oreover, G!st as the cy+erattac9s of %&'4—which incl!ded incidents

involving companies li9e the New Hor9 Times, ;ace+oo9, Twitter, Apple, and

/icrosoft'(—were eclipsed +y those that occ!rred in %&'3,'0 the consensus vie- is

that %&'( and +eyond will witness more fre)uent and more so#histicated cy+er

incidents"'6 To the e<tent that its e<pected rise o!tpaces any corresponding rise in

the a+ility to defend against s!ch attac9s, the res!lt co!ld +e tro!+ling news for

co!ntless +!sinesses that rely more and more on comp!ters in all aspects of their

operations, as the economic losses res!lting from a single cy+erattac9 can +e

e"tremely costly"' And the res!lting eBects of a cy+erattac9 can have eBects

+eyond a single company:s +ottom line" As *nations are +ecoming ever moredependent on information and information technology,.'5 the threat posed +y any

one cy+erattac9 Eend page %F can have * devastating collateral and cascading

e.ects across a -ide range of #hysical/ economic and social systems".%&

$ith reports that foreign nations —s!ch as R!ssia, China, ran, and North Iorea —

may +e !sing cy+erspace as a ne- front to -age -ar,%' fears a+o!nd that a

cy+erattac9 co!ld +e !sed to shut do-n the nation’s electrical grid,%% hi0ack a

commercial airliner,%4 or even launch a nuclear -ea#on -ith a single



keystroke"%3 n short, the potential e<ists that the United States co!ld s!Ber a

* cyber 1earl 2arbor,. an attac9 that wo!ld *ca!se #hysical destruction and

loss of life.%( and e<pose—in the words of one prominent cy+ersec!rity e<pert

—* vulnerabilities of staggering #ro#ortions".%0

A cyberattack -ould trigger military retaliation and escalate

to nuclear -ar

o)ert &ilford 17, raduate US Army Air)orne School, Dt$ Benning, eorgia,

85y)er attac*ers could shut do#n the electric grid +or the entire east coast 2!2,httpK&&###$e6aminer$com&article&cy)erattac*erscouldeasilyshutdo#nthe

electricgrid+ortheentireeastcoa (((#e don/t agree #ith the a)leist language

(po#er grids no )ac*up generators

(radar systems go )lan*

(no communication

(launch nuclear #eapons )ecause #e don/t *no# #hat the +uc* is going on

To ma*e matters #orse a cyber attack that can ta*e out a ciilian po#er grid , +or e6ample

could also cripple 8destroy9 the U"S" military $ The senator notes that is that the same po#ergrids that supply cities and to#ns, stores and gas stations, cell to#ers and heart monitors also

po#er 8every military base in our country$ 8Although )ases #ould )e prepared to#eather a short po#er outage #ith )ac*up diesel generators, #ithin ho!rs, not days, +uel

supplies #ould run out, he said$ :hich means military c ommand and c ontrol centers

could go dark $ adar systems that detect air threats to our country #ould shut ?o#n

completely$ 85ommunication )et#een commanders and their troops #ould also go silent$

And many #eapons systems #ould )e le+t #ithout either +uel or electric po#er, said

Senator rassley$ 8So in a fe short hours or days, the mightiest military in the #orld

#ould )e le+t scram)ling to maintain )ase +unctions, he said$ :e contacted the4entagon and o1icials con-rmed the threat o+ a cy)er attac* is something very

real$ Top national security o1icialsGincluding the 5hairman o+ the Joint 5hie+s, the ?irector o+ the National

Security Agency, the Secretary o+ ?e+ense, and the 5IA ?irectorG hae said, 8preenting a cy)er attac* and

improing the nation/s electric grids is among the most urgent priorities o+ our country sourceK 5ongressional

ecord3$ So ho# serious is the 4entagon ta*ing all thisO >nough to start, or end a #ar oer it, +or sure$ A cy)er attac*

today against the US could ery #ell )e seen as an “Act of 5ar# and could )e met #itha 8+ull scale US military response$ That could include the use o+ “nuclear

eapons#, i+ authori<ed )y the 4resident$

http://www.examiner.com/article/cyber-attackers-could-easily-shut-down-the-electric-grid-for-the-entire-east-coa






That’s key to cybersecurity

&$ 3ackdoors make cyberterrorism a ticking time bomb

Sene!ue 14 areth, I5T pro+essional #ith a particular +ocus on UNIP

Architecture H ?esign, holds a degree in 4hilosophy&4olitics +rom the Uniersity o+Sydney, Ale6 5omninos, an independent researcher +ocusing on in+ormation and

communications technology and politics, a ?octoral 5andidate at Justus=ie)igUniersity in iessen, ermany at the ?epartment o+ eography, #here he isconducting doctoral research on the challenges and constraints o+ the use o+ usergenerated geographic in+ormation systems in >gypt, =i)ya, and North and Sudanin 2! to 2!!, "5y)er security, ciil society and ulnera)ility in an age o+communications sureillance", 2!, Justus=ie)ig Uniersity iessen and eist5onsulting, gis#atch$org&en&communicationssureillance&cy)ersecurityciilsocietyandulnera)ilityagecommunicationssur

The releance o+ Sno#den/s disclosures to cy)er security The scope and reach o+

the NSA/s sureillance is important$ &he NSA+s surveillance posture is Q as has )een

repeated )y eneral Leith Ale6ander, and is reected in the NSA slide in Digure ! Q to :collect it all:K72

+rom undersea ca)le taps, to ahoo ideo chats, to inight :iDi, to irtual #orlds

and online multiplayer games li*e Second =i+e and :orld o+ :arcra+t$ The NSA has at least three di1erent

programmes to get ahoo and oogle user data$ This sho#s that they try to get the same data +rom multiple

mechanisms$77 :ith the 5FR under the CUS5U=A programme it hac*ed into the internal data lin*s o+ oogle

and ahoo7 +or in+ormation that it could mostly hae gotten through the 4ISC programme$ In addition tohighlighting the NSA/s massie institutional oerreach and glo)al priacy inasion,Snoden+s disclosures also highlight the many points at hich our data is

insecure, and the vast numbers of vulnerabilities to sureillance that e;ist

throughout our digital #orld$ Fo#eer, #hile the NSA is the largest threat in thesureillance game, it is not the only threat$ oernments all around the #orld are

using the internet to sureil their citi<ens$ 0onsidering the rate of

technological change, it is not unforeseeable that the methods , tools and

vulnerabilities used by the NSA ill be the tools of states, cyber criminals

and lo$skilled hackers of the future" egardless o+ #ho the perceied attac*er

or sureillance operatie may )e, and #hether it is the NSA or not, large$scale,

mass surveillance is a groing cyber security threat" It has also )een disclosed that

the NSA and 5FR hae actiely #or*ed to ma*e internet and technology users around

the #orld less secure$ &he NSA has placed backdoors in routers running vital

internet infrastructures$7M The 5FR has impersonated social net#or*ing #e)sites li*e =in*edIn in

order to target system administrators o+ internet serice proiders$7 The NSA has )een #or*ing #ith

the 5FR to hac* into oogle and ahoo data centres$7 &he NSA also orks to

undermine encryption technologies , )y coertly inuencing the use o+ #ea*algorithms and random num)er generators in encryption products andstandards$7 The NSA in its o#n #ords is #or*ing under the BU==UN programmeto "insert ulnera)ilities into commercial encryption systems, IT systems,net#or*s, and endpoint communications deices used )y targets" and to 8inuencepolicies, standards and speci-cations +or commercial VencryptionW technologies$79

&he NSA is also believed to hoard knoledge about vulnerabilities rather

than sharing them ith developers, vendors and the general public, as



ell as even maintaining a catalogue of these vulnerabilities for use in

surveillance and cyber attacks$! None o+ these actiities sere to ma*e theinternet more secure$ In +act, they do the ery opposite$ As US 5ongress#omanXoe =o+gren commentedK 8:hen any industry or organisation )uilds a )ac*door toassist #ith electronic sureillance into their product, they put all o+ our data

security at ris*$ %f a backdoor is created for la enforcement purposes, it+sonly a matter of time before a hacker e;ploits it, in +act #e hae already seenit happen$"2

4$ Norms!Curtailing surveillance is key to e.ective norms

building!that #revents cyber-arfare

(arrell 7<1=, Fenry Darrell, 4h? in oernment +rom eorgeto#n Uniersity,

Associate 4ro+essor o+ 4olitical Science and International A1airs, April 2!M,4romoting Norms +or 5y)erspace, 5ouncil on Doreign elations,httpK&&###$c+r$org&cy)ersecurity&promotingnormscy)erspace&p77MOcid.nlc

pressYreleasepressYnotelin*22!MHspYmid.7M!!7HspYrid.:tp):EyeUBoc7XDM=nE<S

()uild norms so+t po#er is necessary S4US 5004>ATI0N

(no one is listening to us rn

(ATK Treaties no one listens to them

U$S$ policyma*ers argue that the U nited S tates and others need to )uild norms to mitigatecy)ersecurity pro)lems$ Admiral Cichael S$ ogers, head o+ the National Security Agency NSA3 and

5y)er 5ommand, has argued that shared norms are a )asic )uilding )loc* +or cy)ersecurity$ Fe has called on

actors in academia and ciil society to help design them and to assist in their spread$ It may seem strange that

4entagon o1icials are arguing +or so+t tools rather than hard military options, )ut there are +ourgood reasons #hy norms are the )est option aaila)le$ Dirst, the United States is

vulnerable to cyberattacks and this #ea*ness is di1icult to address usingconentional tools o+ military statecra+t$ Second, it is di1icult to ensure that comple6in+ormation systems are +ully de+ended, since they may hae su)tle technical#ea*nesses$ Third, classical deterrence is not easy in a #orld #here it is o+tenchallenging to identi+y sophisticated attac*ers, or een to *no# #hen an attac* has ta*en place$

=astly, treaties are hard to en+orce )ecause it is so di1icult to eri+y compliance Gparticularly in cy)erspace, #here #eapons are so+t#are, not missiles$ Although norms are ha<ier than

treaty rules, they may still hae important conse@uences$ Norms against the use o+ nuclear #eapons hae ta*en

hold since the !9Ms, ma*ing their use nearly unthin*a)le in ordinary circumstances$ o)ustcy)ersecurity norms might, oer time, rule out some *inds o+ attac*s as

normatiely inappropriate$ They might encourage other states to see norm )reachesas attac*s on their security, too, spurring cooperation to preent or stop attac*s$ Dinally,norms can proide shared understandings )et#een states that allo# them to #or*together #here they hae shared interests and manage relations #here their interests clash$ 5hallenges to

Norm 4romotion It is hard to spread norms, een in the )est circumstances$ Un+ortunately,

these are +ar +rom the )est circumstances +or the United States$ U$S$ policyma*ers +ace

three ma%or pro)lems$ Dirst, it is easiest to promote norms #hen one can ino*e common alues to support them,

yet the #orld's cy)er po#ers hae di1erentGand radically incompati)leGalues oer ho# to protect cy)erspace$

http://www.cfr.org/cybersecurity/promoting-norms-cyberspace/p36358?cid=nlc-press_release-press_note--link2-20150406&sp_mid=48385113&sp_rid=YWtpbWVyeUBoc3RvZGF5LnVzS0








The clashing interests )et#een democratic and authoritarian regimes on the alue o+ an open Internet and

de-nitions o+ security ma*e e1ectie glo)al treaties impossi)le$ Second, the potential adopters o+ normsare li*ely to )e more receptie i+ they do not thin* the proponent o+ the norms isacting in )ad +aith$ To )e sure, many states #ere happy to use the Sno#denreelations as a coer +or opposition to any rules o+ )ehaior :ashington might

o1er$ But +or others, eorts at persuasion have been damaged by the e;posed

gap beteen U"S" rhetoric and actions$ At the ery least, other states must )e persuaded that

+ollo#ing a norm is in their national interest$ The disclosures, ho#eer, rein+orced the ie# o+ many states that theUnited States disproportionately )ene-ts +rom an open, glo)al, and secure Internet, and is only committed to

these alues to the e6tent that they +urther U$S$ economic, political, and military o)%ecties$ In light o+ theSno#den disclosures , the U nited S tates is poorly placed to persuade other actorso+ its good +aith or its commitment to shared interests and alues$ The e6tent o+ thedamage to the U$S$ reputation #as reealed #hen the United States accused NorthLorea o+ hac*ing into Sony's serers and announced its intention to retaliate against North Lorea

through lo#leel sanctions$ Building on preious indictments o+ 5hinese soldiers +or hac*ing into U$S$ -rms, U$S$o1icials +ollo#ed an approach o+ "naming and shaming" cy)erattac*ers #hile pursuing sanctions and possi)le

criminal charges$ These actions are highly unli*ely to result in success+ul prosecutions, )ut potentially sere a

normatie purpose )y signaling to the #orld that some actions are unaccepta)le$ Although a +e# states critici<ed

North Lorea, many did not )uy U$S$ claims that 4yongyang #as responsi)le$ Cem)erso+ the )usiness and technology communities also e6pressed polite s*epticism oer the

eidence supplied )y the Dederal Bureau o+ Inestigation$

+$ Trust!The SS5A -ould rebuild trust bet-een the

government and the #rivate sector!that’s key to cybersecurity

>e2ima, reporter ? &he 5ashington -ost, 1=

Latie, "0)ama signs e6ecutie order on sharing cy)ersecurity threat in+ormation",De) !2 2!M, ###$#ashingtonpost$com&)logs&postpolitics&#p&2!M&2&!2&o)amatosigne6ecutieorderoncy)ersecuritythreats&

(goernment and industry aren/t #or*ing together

(ATK P0 that %ust ma*es communication easier doesn/t mandate it

(encryption sets up pro)lems #ith priate and pu)lic sectors

4A=0 A=T0, 5ali+$ Q 4resident 0)ama signed an e6ecutie order Driday that urgescompanies to share cy)ersecuritythreat in+ormation #ith one another and the+ederal goernment$ 0)ama signed the order, #hich is adisory in nature, at the -rst :hite Fouse summit

on 5y)ersecurity and 5onsumer 4rotection at Stan+ord Uniersity here$ The summit, #hich +ocused on pu)lic

priate partnerships and consumer protection, is part o+ a recent :hite Fouse push to +ocus on cy)ersecurity$

0)ama said the prospect o+ cy)erattac*s are one o+ the nation's most pressing national security, economic andsa+ety issues$ The specter o+ a cy)erattac* crippling the nation's air tra1ic control system or a city #ith a )lac*out

is real, and hac*s such as the one on Sony 4ictures last year are "hurting America's companies and costing

American %o)s$" Fe also said they are a threat to the security and #ell)eing o+ children #ho are online$ "It/s one

o+ the great parado6es o+ our time that the ery technologies that empo#er us to do great good can also )e usedto undermine us and inict great harm," 0)ama said )e+ore a cheering, +riendly audience here at Stan+ord's

Cemorial Auditorium$ The order the president signed here encourages the deelopmento+ central clearinghouses +or companies and the goernment to share data andcreation o+ centers #here data can )e shared across speci-c geographic regions$

0)ama pushed +or colla)oration )et#een the pu)lic and priate sectors$ :&here+s

only one ay to defend America from these cyber threats, and that is

through government and industry orking together , sharing appropriate

http://www.washingtonpost.com/blogs/post-politics/wp/2015/02/12/obama-to-sign-executive-order-on-cybersecurity-threats/






information as true partners,: he said$ Caster5ard chie+ e6ecutie A%ay Banga

praised 0)ama/s e6ecutie action )ut said that eventually “e need a real

legislative solution $ An e6ecutie action can only ta*e you this +ar$ 8ather than -ght

this in indiiduali<ed groups, there/s some merit in %oining hands and doing it together, Banga said$ 0)ama'sorder is part o+ a )roader :hite Fouse e1ort to )ee+ up the nation's cy)ersecurity

in+rastructure, something the administration #ants to push on 5apitol Fill$=ast

month 0)ama proposed legislation that #ould shield companies +rom la#suits +or sharing threat data #ith the

goernment$ =ast month he proposed legislation that #ould shield companies +rom la#suits +or sharing threat

data #ith the goernment$ 0)ama said shortly a+ter he too* o1ice he reali<ed that cy)ersecurity is "one o+ themost serious economic national security challenges that #e +ace as a nation" and made con+ronting them a

priority$ 0)ama has signed other e6ecutie orders, including one that calls +or the creation o+ oluntary standards

to )olster the security o+ computer net#or*s in critical industries and a +rame#or* +or cy)ersecurity and anotherlast year to protect consumers +rom identity the+t$ So +ar nothing has )een a)le to stem the tide o+ attac*s such as

the one against Sony or others against retailers including Fome ?epot$ Both priacy groups and Silicon Ealley companies hae said they #ould oppose the legislation 0)ama proposed last

month unless reforms are 'rst made to the NSA@s surveillance program " In an

interie# #ith e&5ode, 0)ama ac*no#ledged tensions #ith Silicon Ealley a+ter the NSA disclosures$ " &he

Snoden disclosures """ ere really harmful in terms of the trust beteen

the government and many of these companies , in part )ecause it had animpact on their )ottom lines ," 0)ama said$ The president also said that there should )e a "pu)lic

conersation" a)out encryption and said he li*ely leans more to#ard strong data encryption than la#

en+orcement, )ut is sympathetic to them )ecause o+ the pressure they are under to *eep people sa+e$ U$S$goernment sureillance actiities hae )een seen as a potential lia)ility +or techcompanies that operate glo)ally$ 8Seenty to percent o+ the user )ases +or a lot o+ these companies

are the +oreigners #ho get ery little protection under our system, e6plained Julian Sanche<, a senior +ello#+ocused on technology and ciil li)erties at the 5ato Institute$ 8I+ they don/t display some push )ac*, they *no#

they #on/t do ery #ell #ith those mar*ets$ In ?ecem)er o+ 2!7, ma%or tech companiesincluding Apple, oogle, T#itter, Dace)oo*, Cicroso+t and ahoo %oined together inthe e+orm oernment Sureillance coalition, urging the 4resident and 5ongressto impose restrictions and oersight measures on U$S$ spying programs$ The

4resident agreed in principle to some limits on spying programs, including the )ul*collection o+ domestic phone records, during a speech last year$ But progress on reforms has

been too slo +or some priacy adocates , as the administration urged +orlegislatie action that has yet to succeed$ Tech companies , mean#hile, hae ta*en

some measures into their o#n hands )y strengthening and e;panding theirdeployment o+ encryption to secure users' online actiities Q setting up a

con*ict beteen the companies and la enforcement ho arn that such

actions may make it harder for them to pursue crime and terrorism #hichincreasingly includes a digital component$ 8I thin* it/s +air to say that changes on the technology

+ront hae outpaced goernmental and legislatie e1orts, said Andre# 5roc*er, a legal +ello# at ciil li)erties

group the >lectronic Drontier Doundation$

Only strong encry#tion can #reserve cybersecurity$6ehl et al$ &' — Danielle Iehl, Senior @olicy Analyst at the 1pen Technology

nstit!te at the New America ;o!ndation, holds a ="A" in ?istory from Hale

University, with Andi $ilson, @olicy @rogram Associate at the 1pen Technology

nstit!te at the New America ;o!ndation, holds a /aster of #lo+al ABairs degree

from the /!n9 School at the University of Toronto, and Ievin =an9ston, @olicy

Director at the 1pen Technology nstit!te at the New America ;o!ndation, former

Senior Co!nsel and Director of the ;ree <pression @roGect at the Center for



Democracy J Technology, former Senior StaB Attorney at the lectronic ;rontier

;o!ndation, former !stice $illiam =rennan ;irst Amendment ;ellow at the American

Civil Li+erties Union, holds a "D" from the University of So!thern California Law

School, %&'( )*Doomed To Repeat ?istoryK Lessons ;rom The Crypto $ars of the

'55&s,. Report +y the 1pen Technology nstit!te at the New America ;o!ndation,

!ne, Availa+le 1nline at https-22static"newamerica"org2attachments243&677

'%(2Lessons%&;rom%&the%&Crypto%&$ars%&of%&the

%&'55&s"%d0'(0dc'53'6a(fa('+'3d((%43f"pdf , Accessed &67&07%&'(, p" '58

Strong ncryption ?as =ecome A 3edrock Technology That @rotects The Sec!rity

1f The nternet

The evol!tion of the ecosystem for encrypted comm!nications has also enhanced

the protection of individ!al comm!nications and improved cy+ersec!rity" Today,

strong encryption is an essential ingredient in the overall sec!rity of the modern

networ9, and adopting technologies li9e ?TT@S is increasingly considered an

ind!stry +est7practice among maGor technology companies"'66 ven the report of

the @resident:s Review #ro!p on ntelligence and Comm!nications Technologies, the

panel of e<perts appointed +y @resident =arac9 1+ama to review the NSA:s

s!rveillance activities after the %&'4 Snowden lea9s, was une)uivocal in its

emphasis on the importance of strong encryption to protect data in transit and at

rest" The Review #ro!p wrote that-

ncryption is an essential +asis for tr!st on the nternetM witho!t s!ch tr!st,

val!a+le comm!nications -ould not be #ossible " ;or the entire system to

wor9, encryption software itself m!st +e tr!stworthy" Users of encryption

m!st +e con>dent, and G!sti>a+ly con>dent, that only those people they

designate can decrypt their data" ndeed, in light of the massive increase in

cy+er7crime and intellect!al property theft on7line, the !se of encryption

sho!ld +e greatly e<panded to protect not only data in transit, +!t also dataat rest on networ9s, in storage, and in the clo!d"'6

The report f!rther recommended that the U"S" government sho!ld-

@romote sec!rityEF +y )'8 fully su##orting and not undermining eBorts to create

encryption standardsM )%8 ma9ing clear that it will not in any way s!+vert,

!ndermine, wea9en, or ma9e v!lnera+le generally availa+le commercial encryptionM

and )48 s!pporting eBorts to enco!rage the greater !se of encryption technology for

data in transit, at rest, in the clo!d, and in storage"'65

Cyberattacks could shut do-n the #o-er grid for years

7aly/ columnist 8 The 7aily 3east/ &+/ichael, OU"S" Not Ready for Cy+erwar ?ostile ?ac9ers Co!ld La!nchO, ;e+ %' %&'4,

www"thedaily+east"com2articles2%&'42&%2%'2!7s7not7ready7for7cy+er7war7hostile7

hac9ers7co!ld7la!nch"html

f the nightmare scenario +ecomes s!ddenly real """ f hac9ers sh!t down m!ch of the electrical grid

and the rest of the critical infrastr!ct!re goes with it """ f we are pl!nged into chaos and s!Ber more

physical destr!ction than (& monster h!rricanes and economic damage that dwarfs the #reat Depression """ Then

https://static.newamerica.org/attachments/3407--125/Lessons%20From%20the%20Crypto%20Wars%20of%20the%201990s.882d6156dc194187a5fa51b14d55234f.pdf








we will wonder why we failed to g!ard against what o!tgoing Defense Secretary Leon

@anetta has termed a *cy+erP@earl ?ar+or". *An aggressor nation or e<tremist gro!p

co!ld !se these 9inds of cy+ertools to gain control of critical switches ,. @anetta said in a

speech in 1cto+er" * They co!ld derail passenger trains or, even more dangero!s, derail passenger

trains loaded with lethal chemicals" They co!ld contaminate the water s!pply in

maGor cities orshut do-n the #o-er grid across large #arts of the country

".

And @anetta was hardly +eing an alarmist " ?e co!ld have added that cy+ersec!rity e<perts

s!ch as oe $eiss of Applied Control Sol!tions s!ggest a fullon cyberattack

-ould seek not sim#ly to shut do-n systems/ but -reck them, !sing

software to destroy hardware" Some +elieve -e could then be sent into chaos not

0ust for days of even -eeks/ but for months " The mother of all nightmare

scenarios wo!ld see electric, oil, gas, water, chemical , and transit, o!r entire

essential infrastructure, knocked out as -e sought to re#lace e)ui#ment

that can take more than a year to manufacture and is in many cases no longer made in

the U"S" Lights wo!ld stay o!t" #as stations wo!ld +e !na+le to p!mp and wo!ld have nothing to p!mp anyway"

There wo!ld +e no heat, no f!el, in many places no r!nning water, no sewage treatment, no gar+age, no traQc

lights, no air7traQc control, minimal comm!nication, and of co!rse, no $i7;i" Neigh+orhoods aro!nd chemical plants

co!ld +ecome =hopals"

A longterm loss of electrical #o-er -ould cause nuclear

reactor meltdo-ns!guarantees e"tinction

2odges &*

Dave, an esta+lished award winning psychology, statistics and research professor as

he teaches college and !niversity classes at +oth the !ndergrad!ate and grad!ate

level, an esta+lished a!thor as his articles are p!+lished on many maGor we+sites,

citing !dy ?aar, a recognied e<pert in n!clear plant fail!re analyses, ON!clear@ower @lants $ill =ecome Americas <tinction Level ventO, April ' %&'3,

www"theli+erty+eacon"com2%&'32&32'2n!clear7power7plants7will7+ecome7americas7

e<tinction7level7event2

;!9!shima is often spo9en of +y many, as a possi+le e<tinction level event +eca!se

of the radiation threat" ;!9!shima contin!es to wrea9 havoc !pon the world and in the United States as we

are +eing +athed in deadly radiation from this event" =eca!se of ;!9!shima, >sh are +ecoming

inedi+le and the ocean c!rrents as well as the prevailing ocean winds are carrying

deadly radiation" Undo!+tedly, +y this time, the radioactivity has made its way into the

transpiration cycle which means that crops are +eing dowsed with deadly radiation"

The radiation has !ndo!+tedly made its way into the water ta+le in many areas and

impacts every aspect of the food s!pply" The health costs to h!man +eings is

incalc!la+le " ?owever, this article is not a+o!t the devastation at ;!9!shima, instead, this article foc!ses

on the fact that North America could have a total of &4* 9ukushima events if

the necessary conditions were present" A ;estering @ro+lem Long +efore ;!9!shima,

American reg!lators 9new that a power fail!re lasting for days involving the power

grid connected to a n!clear plant , regardless of the ca!se, wo!ld most li9ely lead to a

dangero!s radioactive lea9 in at least several n!clear power plants" A com#lete

loss of electrical #o-er #oses a ma0or #roblem for nuclear #o-er #lants



+eca!se the reactor core m!st +e 9ept cool as well as the +ac97!p cooling systems,

all of which re!ire massive amo!nts of power to wor9" ?eretofore, all the NRC drills

which test the readiness of a n!clear power plant are predicated on the notion that

a +lac9o!t will only last %3 ho!rs or less" Amaingly, this is the s!m total of a NRC litm!s test"

Altho!gh we have the technology needed to harden and protect o!r grid from an /@ event, whether nat!ral or

man7made, we have failed to do so" The cost for protecting the entire grid is placed at a+o!t the cost for one =7'

Stealth =om+er" Het, as a nation, we have done nothing" This is ine<plica+le and ine<c!sa+le" 1!r collective inactionagainst protecting the grid prompted Congressman ;ran9s to write a scathing letter to the top oQcials of NRC"

?owever, the good Congressman failed to mention the most important aspect of this pro+lem" The pro+lem is

entirely ><a+le and NRC and the US government are leaving the American people

and its infrastr!ct!re totally !nprotected from a total meltdown of n!clear power

plants as a res!lt of a prolonged power fail!re" Critical Analyses According to !dy ?aar,

a recognied e<pert in n!clear plant fail!re analyses, when a n!clear power plant

loses access to oB7grid electricity, the event is referred to as a *station +lac9o!t." ?aar states that all '&3 US n!clear power plants are +!ilt to withstand electrical o!tages witho!t e<periencing any

core damage, thro!gh the activation of an a!tomatic start !p of emergency generators powered +y diesel" ;!rther,

when emergency power 9ic9s in, an a!tomatic sh!tdown of the n!clear power plant

commences" The dangero!s control rods are dropped into the core, while water is

p!mped +y the diesel power generators into the reactor to red!ce the heat andth!s, prevent a meltdown" ?ere is the catch in this process, the spent f!el rods are

encased in +oth a primary and secondary containment str!ct!re which is designed

to withstand a core meltdown" ?owever, sho!ld the p!mps stop +eca!se either the

generators fail or diesel f!el is not availa+le, the f!el rods are s!+se!ently

!ncovered and a ;!9!shima type of core meltdown commences immediately" At this

point, too9 !dy ?aar:s comments to a so!rce of mine at the @alo erde N!clear power plant" /y so!rce informed

me that as per NRC policy, n!clear power plants are re!ired to have eno!gh diesel f!el to r!n for a period of

seven days" Some plants have thirty days of diesel" This is the good news, +!t it is all downhill from here" The

Unresolved @ower =lac9o!t @ro+lem A longterm loss of outside electrical #o-er -ill

most certainly interru#t the circulation of cooling -ater to the #ools$ Another

one of my @alo erde n!clear power plant so!rces informed me that there is no long term sol!tion to a power

+lac9o!t and that all +ets are oB if the +lac9o!t is d!e to an /@ attac9" A more detailed analysis reveals that the

spent f!el pools carry depleted f!el for the reactor" Normally, this spent f!el has had

time to considera+ly decay and therefore, red!cing radioactivity and heat" ?owever,

the newer discharged f!el still prod!ces heat and needs cooling" ?o!sed in high

density storage rac9s, contained in +!ildings that vent directly into the atmosphere,

radiation containment is not acco!nted for with regard to the spent f!el rac9s" n

other words, there is no capt!re mechanism" n this scenario, accompanied +y a

lengthy electrical o!tage, and with the emergency power waning d!e to either

generator fail!re or a lac9 of diesel needed to power the generators, the plant co!ld

lose the a+ility to provide cooling " The water will s!+se!ently heat !p, +oil away

and !ncover the spent f!el rods which re!ired +eing covered in at least %( feet of

water to remain +enign from any deleterio!s eBects" Ultimately, this wo!ld lead to

>res as well and the release of radioactivity into the atmosphere" This wo!ld +e the+eginning of another ;!9!shima event right here on American soil" =oth my so!rce

and ?aar shared e<actly the same scenario a+o!t how a meltdown wo!ld occ!r"S!+se!ently, spo9e with Roger Landry who wor9ed for Raytheon in vario!s Department of Defense proGects for %

years, many of them in this arena and Roger also con>rmed this information and that the a+ove information is well

9nown in the ind!stry" $hen e<amine Congressman ;ran9s letter to NRC and read +etween the lines, it is clear

that ;ran9s 9nows of this ris9 as well, he G!st stops short of speci>cally mentioning it in his letter" @lacing 1dds 1n a

;ail!re s a ;ools rrand An analysis of individ!al plant ris9s released in %&&4 +y the N!clear Reg!latory Commission

shows that for 45 of the '&3 n!clear reactors, the ris9 of core damage from a +lac9o!t



was greater than ' in '&&,&&&" At 3( other plants the ris9 is greater than ' in ' million, the threshold

NRC is !sing to determine which severe accidents sho!ld +e eval!ated in its latest analysis" According to the

N!clear Reg!latory Commission, the =eaver alley @ower Station, Unit ', in @ennsylvania has the greatest ris9 of

e<periencing a core meltdown, 0"( in '&&,&&&, according to the analysis" These odds don:t so!nd li9e

m!ch !ntil yo! consider that we have '%3 n!clear power generating plants in the

US and Canada and when we consider each individ!al facility, the odds of fail!re

clim+" ?ow many meltdowns wo!ld it ta9e in this co!ntry +efore o!r citiens wo!ld+e condemned to the hellish nightmare, or worse, +eing e<perienced +y the apaneseK The !estion

That:s Not =eing As9ed None of the NRC, or the N!clear Reg!latory tests of handling a

prolonged +lac9o!t at a n!clear power plant has answered two critical !estions,

*$hat happens when these n!clear power plants r!n o!t of diesel f!el needed to

r!n the generators., and *$hat happens when some of these generators fail.K n the

event of an /@ attac9, can tan9er tr!c9s with diesel f!el get to all of the n!clear power plants in the US in time to

re7f!el them +efore they stop r!nningK $ill tan9er tr!c9s even +e r!nning themselves in the aftermath of an /@

attac9K And in the event of an /@ attac9, it is not li9ely that any plant which r!ns low on f!el, or has a generator

malf!nctions, will ever get any help to mitigate the crisis prior to a plethora of meltdowns occ!rring" Th!s, every

n!clear power plant in the co!ntry has the potential to ca!se a Cherno+yl or ;!9!shima type accident if o!r co!ntry

is hit +y an /@ attac9" CAN H1U N /A#N '%3 ;UIUS?/A NTS N N1RT?

A/RCA ?A@@NN# AT T? SA/ T/K T2S ;OU<7 CONSTTUT% T2%

U<T=AT% 7%1O1U<ATON %>%NT" And There s /ore The rami>cations raised in

the previo!s paragraphs are signi>cant" $hat if the +lac9o!t lasts longer than %3

ho!rs K $hat if the reason for the +lac9o!t is an /@ +!rst ca!sed +y a high altit!de n!clear +last and

transportation comes to a standstillK n this instance, the cavalry is not coming" Adding f!el

to the >re lies in the fact that the power transformers presently ta9e at least one

year to replace" Today, there is a three year +ac9log on ordering +eca!se so many have

+een ordered +y China" This ma9es one wonder what the Chinese are preparing for with these m!ltiple orders for

+oth transformers and generators" n short, o!r !npreparedness is a prescription for disaster" As a

+yprod!ct of my investigation, have discovered that most, if not all, of the n!clear power plants are on 9nown

earth!a9e fa!lt lines" All of California:s n!clear power plants are located on an earth!a9e fa!lt line" Can anyone

tell me why wo!ld anyone in their right mind +!ild a n!clear power plant on a fa!lt lineK To see the depth of this

threat yo! can visit an interactive, overlay map at this site" Concl!sion have st!died this iss!e for

almost nine months and this is the most el!sive topic that have ever investigated" The more facts gather a+o!t the threat of a mass n!clear meltdown in this co!ntry, the more

!estions realie that are going !nanswered" $ith regard to the n!clear power ind!stry we have

the prover+ial tiger +y the tail" Last A!g!st, =ig Sis stated that it is not matter of if -e have a

mass #o-er grid take do-n/ but it is a matter of -hen" wo!ld echo her

concerns and apply the *not if, +!t when. admonition to the possi+ility of a mass

meltdown in this co!ntry " t is only a matter of time until this scenario for

disaster comes to fruition " 1!r collective negligence and high level of e<treme

depraved indiBerence on the part of NRC is criminal +eca!se this is indeed an

%"tinction <evel %vent" At the end of the day, can anyone tell me why wo!ld any co!ntry +e so

negligent as to not provide its n!clear plants a fool proof method to cool the secondary processes of its n!clear

materials at all of its plantsK $hy wo!ld ANH n!clear power plant +e +!ilt on an earth!a9e fa!lt lineK $hy are we

even !sing n!clear energy !nder these circ!mstancesK And why are we allowing the Chinese to par9 right ne<t door

to so many n!clear power plantsK



Plan TextThe United States federal government should substantially

curtail its use of domestic backdoor encry#tion standards anddomestic metadata collection #rograms$



InternetContention 4 is nternet:

Ne"t is the Cloud Com#uting Scenario:7omestic surveillance erodes American com#etitiveness in the

cloudcom#uting industry!other countries are using the

s#ecter of NSA surveillance as a selling #oint/ costing

American com#anies billions

ehl, -olicy Analyst at Ne America+s Bpen &echnology

%nstitute, 14

?aielle, Lein Ban*ston, 4olicy ?irectorat 0TI, o)yn reene, 4olicy 5ounsel at0TI, o)ert Corgus, esearch Associate at 0TI, "Sureillance 5ostsK The NSA's

Impact on the >conomy, Internet Dreedom H 5y)ersecurity", July 2!, Ne# America's 0pen Technology Institute 4olicy 4aper,httpsK&&###$ne#america$org&do#nloads&SureilanceY5ostsYDinal$pd+

(trust gap in s@uo

(#e)hosting serices are haing an economic +allout +oreign companies are)ene-ting

(! )illion dollar loss in 7 years

(long term drought +or this mar*et. econ collapse

5osts to the U$S$ 5loud 5omputing Industry and elated Business Trust in American )usinesses has ta*en a signi-cant hit s ince the initial reports on the 4ISC

program suggested that the NSA #as directly tapping into the serers o+ nine U$S$companies to o)tain customer data +or national security inestigations$2 The

:ashington 4ost/s original story on the program proo*ed an uproar in the media and prompted the 5>0s o+

seeral ma%or companies to deny *no#ledge o+ or participation in the program$29 The e6act nature o+ the re@uests

made through the 4ISC program #as later clari-ed,7 )ut the pu)lic attention on the relationship

beteen American companies and the NSA still created a signi'cant trust

gap , especially in industries #here users entrust companies to store sensitiepersonal and commercial data$ 8=ast year/s national security lea*s hae also had a commercial and

-nancial impact on American tech nology companies that hae proided these records, noted

epresentatie Bo) oodlatte, a prominent epu)lican leader and 5hairman o+ the Fouse Judiciary 5ommittee, in

Cay 2!$ 8They hae e6perienced )ac*lash +rom )oth American and +oreignconsumers and hae had their competitie standing in the glo)al mar*etplacedamaged $7! ien heightened concerns a)out the NSA/s a)ility to access data

stored )y U$S$ companies, it is no surprise that American companies oering

cloud computing and ebhosting services are among those e;periencing

the most acute economic fallout from NSA surveillance$ :ithin %ust a +e# #ee*s o+

the -rst disclosures, reports )egan to emerge that American cloud computing companies li*e ?rop)o6 and

Ama<on :e) Serices #ere starting to lose )usiness to oerseas competitors$72 The 5>0 o+ Artmotion, one o+S#it<erland/s largest o1shore hosting proiders, reported in July 2!7 that his company had seen a M percent

%ump in reenue since the -rst lea*s,77 an early sign that the country/s perceied neutrality and strong data and

https://www.newamerica.org/downloads/Surveilance_Costs_Final.pdf




priacy protections7 could potentially )e turned into a serious competitie adantage$7M (oreign

companies are clearly poised to bene't +rom gro#ing +ears a)out the securityrami-cations o+ *eeping data in the United States$ In a surey o+ 7 British and5anadian )usinesses released )y 4>> ! in January 2!,7 2M percent o+respondents indicated that they #ere moing data outside o+ the U$S$ as a result o+

the NSA reelations$ An oer#helming num)er o+ the companies sureyedindicated that security and data priacy #ere their top concerns, #ith ! percentstating that they 8#ant to *no# e6actly #here their data is )eing hosted$ Seentypercent #ere een #illing to sacri-ce per+ormance in order to ensure that theirdata #as protected$7 It appears that little consideration #as gien oer the past decade to the potential

economic repercussions i+ the NSA/s secret programs #ere reealed$7 This +ailure #as acutely demonstrated )y

the 0)ama Administration/s initial +ocus on reassuring the pu)lic that its programs primarily a1ect non

Americans, een though nonAmericans are also heay users o+ American companies/ products$ Dace)oo* 5>0Car* Xuc*er)erg put a -ne point on the issue, saying that the goernment 8)le# it in its response to the scandal$

Fe noted sarcasticallyK 8The goernment response #as, Z0h don/t #orry, #e/re not spying on any Americans$/ 0h,

#onder+ulK that/s really help+ul to companies Vli*e Dace)oo*W trying to sere people around the #orld, and that/sreally going to inspire con-dence in American internet companies$79 As Xuc*er)erg/s comments reect,

certain parts o+ the American technology industry are particularly ulnera)le tointernational )ac*lash since gro#th is heaily dependent on +oreign mar*ets$ Dore6ample, the U$S$ cloud computing industry has gro#n +rom an estimated [)illion in 2 to [!M )illion in 2!, #ith nearly M percent o+ #orld#ide cloudcomputing reenues coming +rom the U$S$ Street Institute/s January 2!policy study concluded that in the ne6t +e# years, ne# products and serices that

rely on cloud computing #ill )ecome increasingly perasie$ 80loud computing is

also the root of development for the emerging generation of 5eb$based

applications Ghome security, outpatient care, mo)ile payment, distance learning,e1icient energy use and drierless cars, #rites Street/s Steen Titch in the

study$ 8And it is a research area #here the United States is an undisputed

leader$! &his traCectory may be dramatically altered, hoever, as a

conse!uence of the NSA+s surveillance programs" Dconomic forecasts after

the Snoden leaks have predicted signi'cant, ongoing losses for the cloud$

computing industry in the ne;t fe years$ An August 2!7 study )y theIn+ormation Technology and Innoation Doundation ITID3 estimated that reelations

a)out the NSA /s 4ISC program could cost the American cloud computing industry [22to [7M )illion oer the ne6t three years$2 0n the lo# end, the ITID pro%ection suggests that U$S$

cloud computing proiders #ould lose ! percent o+ the +oreign mar*et share to >uropean or Asian competitors,

totaling in a)out [2!$M )illion in losses; on the highend, the [7M )illion -gure represents a)out 2 percent o+ the

companies/ +oreign mar*et share$ )ecause the cloud computing industry is undergoing

rapid groth right no Ga 2!2 artner study predicted glo)al spending oncloud computing #ould increase )y ! percent +rom 2!2 to 2!, compared to a

7 percent oerall gro#th rate in the tech industry as a #hole7G vendors in this

sector are particularly vulnerable to shifts in the market$ Dailing to recruitne# customers or losing a competitie adantage due to e6ploitation )y rialcompanies in other countries can @uic*ly lead to a d#indling mar*et share $ TheITID study +urther notes that 8the percentage lost to +oreign competitors could gohigher i+ +oreign goernments enact protectionist trade )arriers that e1ectiely cutout U$S$ proiders, citing early calls +rom erman data protection authorities tosuspend the U$S$>U Sa+e Far)or program #hich #ill )e discussed at length in the ne6t

section3$ As the Street 4olicy Study highlights, 8Ironically, the NSA turned the competitie



edge U$S$ companies hae in cloud computing into a lia)ility, especially in >urope$M In a

+ollo# up to the ITID study, Dorrester esearch analyst James Staten argued that the thin*tan*/s estimates #ere lo#, suggesting that the actual 'gure could be as high as

E1F< billion over three years$ Staten highlighted t#o additional impacts notconsidered in the ITID study$ The -rst is that U"S" customersGnot %ust +oreign companiesG

ould also avoid US cloud providers , especially +or international and oerseas)usiness$ The ITID study predicted that American companies #ould retain their domestic mar*et share, )ut

Staten argued that the economic )lo#)ac* +rom the reelations #ould )e +elt at home, too$ 8ou don/t haeto )e a Drench company, +or e6ample, to )e #orried a)out the US goernmentsnooping in the data a)out your Drench clients, he #rote$ Coreoer, the analysis highlighted

a second and 8+ar more costly impactK that foreign cloud providers, too, ould lose

as much as 7< percent of overseas and domestic business because of

similar spying programs conducted by other governments$ Indeed, the NSA

disclosures 8hae prompted a +undamental ree6amination o+ the role o+ intelligence serices in conductingcoordinated cross)order sureillance, according to a Noem)er 2!7 report )y 4riacy International on the

8Die >yes intelligence partnership )et#een the United States, the United Lingdom, 5anada, Australia, and Ne#

Xealand$ Staten predicts that as the sureillance landscape around the #orld )ecomes

more clear, it could hae a serious negatie impact on all hosting and outsourcingserices, resulting in a 2M percent decline in the oerall IT serices mar*et, ora)out [! )illion in losses$9 ecent reports suggest that things are, in +act,moing in the direction that analysts li*e 5astro and Staten suggested$M A sureyo+ !, 8VIn+ormation and 5ommunications Technology I5T3W decisionma*ers +rom Drance,

ermany, Fong Long, the UL, and the USA in De)ruary and Carch 2! +ound that the

disclosures “have had a direct impact on ho companies around the orld

think about %0& and cloud computing in particular $M! According to the data +rom NTT

5ommunications, percent o+ decisionma*ers are changing their purchasing)ehaior #hen it comes to the cloud, #ith the ast ma%ority indicating that thelocation o+ the data is ery important$ The results do not )ode #ell +or recruitmento+ ne# customers, eitherG2 percent o+ those currently not storing data in thecloud indicated that the reelations hae since preented them +rom moing theirI5T systems there$ And -nally, 2 percent suggested that they agree #ithproposals made )y erman 5hancellor Angela Cer*el in De)ruary 2! to hae separatedata net#or*s +or >urope, #hich #ill )e discussed in +urther detail in 4art III o+ this report$ 4roidingdirect eidence o+ this trend, Serint, a Eirginia)ased #e)hosting company,reported in June 2! that international clients hae declined )y as much as hal+,dropping +rom appro6imately percent o+ its )usiness to 7 percent since the

lea*s )egan$M2 5ith faith in U"S" companies on the decline, foreign

companies are stepping in to take advantage of shifting public perceptions$

As eorg Cascolo and Ben Scott predicted in a %oint paper pu)lished )y the :ilson 5enter and the Ne# America

Doundation in 0cto)er 2!7, 8Ca%or commercial actors on )oth continents are preparing o1ensie and de+ensie

strategies to )attle in the mar*et +or a competitie adantage dra#n +rom Sno#den/s reelations$M7 Dore6ample, un)o6, a small Nor#egian company that o1ers secure email serice,reported a 7 percent %ump in customers since June 2!7$M un)o6 mar*ets itsel+ as a sa+er

email and #e)hosting proider +or )oth indiidual and commercial customers, promising that it 8#ill neer

disclose any user data unauthori<ed, trac* your usage, or display any adertisements$MM Since the NSAreelations, the company has touted its priacycentric design and the +act that itsserers are located in Nor#ay as a competitie adantage$ 8Being -rmly located in Nor#ay,

the un)o6 email serice is goerned )y strict priacy regulations and is a sa+e alternatie to American emailserices as #ell as cloud)ased serices that moe data across )orders and %urisdictions, company



representaties #rote on its )log in early 2!$M DSecure, a Dinnish cloud storage company, similarly

emphasi<es the +act that 8its roots VareW in Dinland, #here priacy is a -ercely guarded alue$M -resenting

products and services as GNSA$proof+ or Gsafer+ alternatives to American$

made goods is an increasingly viable strategy for foreign companies hoping

to chip aay at U"S" tech competiveness$M

The current business climate in the technology sector -ill do

lasting damage to American economic com#etitiveness!only

meaningful government reform can change the economic

tra0ectory

ehl, -olicy Analyst at Ne America+s Bpen &echnology

%nstitute, 14

?aielle, Lein Ban*ston, 4olicy ?irectorat 0TI, o)yn reene, 4olicy 5ounsel at0TI, o)ert Corgus, esearch Associate at 0TI, "Sureillance 5ostsK The NSA's

Impact on the >conomy, Internet Dreedom H 5y)ersecurity", July 2!, Ne# America's 0pen Technology Institute 4olicy 4aper,httpsK&&###$ne#america$org&do#nloads&SureilanceY5ostsYDinal$pd+

(declining prices in oerseas mar*ets

( 8secure alternaties

0osts to Bverseas &ech Sales H The economic impact o+ NSA spying does not end

#ith the American cloud computing industry$ According to The Ne# or* Times, 8>en as

5ashington grapples ith the diplomatic and political +allout o+ Cr$ Snoden+s leaks, the

more urgent issue, companies and analysts say, is economic$M9 In the past year,

a num)er o+ American companies have reported declining sales in overseasmarkets like 0hina #here, it must )e noted, suspicion o+ the American goernment #as already high

)e+ore the NSA disclosures3, loss of customers including foreign governments, and

increased competition from non$U"S" services marketing themselves as

Gsecure+ alternatives to popular American products" There is already

signi'cant evidence linking NSA surveillance to direct harm to U"S"

economic interests $ In Noem)er 2!7, 5isco )ecame one o+ the -rst companies to pu)licly

discuss the impact o+ the NSA on its )usiness, reporting that orders +rom 5hina +ell ! percentand that its #orld#ide reenue #ould decline to ! percent in the +ourth @uarter,

in part )ecause o+ continued sales #ea*ness in 5hina$ Ne# orders in the deeloping #orld +ell!2 percent in the third @uarter, #ith the Bra<ilian mar*et dropping roughly 2M percent

o+ its 5isco sales$! Although John 5ham)ers, 5isco/s 5>0, #as hesitant to )lameall losses on the NSA, he ac*no#ledged that it #as li*ely a +actor in declining 5hinese sales2

and later admitted that he had neer seen as +ast a decline in an emerging mar*et as the drop in 5hina in late

2!7$7 These num)ers #ere also released )e+ore documents in Cay 2! reealed that the NSA/s Tailored

Access 0perations unit had intercepted net#or* gearGincluding 5isco routersG)eing shipped to targetorgani<ations in order to coertly install implant -rm#are on them )e+ore they #ere deliered$ In response,

5ham)ers #rote in a letter to the 0)ama Administration that 8i+ these allegations are true, these actions

ill undermine con'dence in our industry and in the ability of technology

companies to deliver products globally"#M Cuch li*e 0isco, Iualcomm, %),





icrosoft, and Kelett$-ackard all reported in late 7<1L that sales ere

don in 0hina as a result of the NSA revelations$ San+ord 5$ Bernsteinanalyst Toni Sacconaghi has predicted that a+ter the NSA reelations, 8UStechnology companies +ace the most reenue ris* in 5hina )y a #ide margin, +ollo#ed

)y Bra<il and other emerging mar*ets$ Industry o)serers hae also @uestioned #hether

companies li*e AppleG#hich hopes to )ring in signi-cant reenue +rom i4honesales in 5hinaG#ill +eel the impact oerseas$ >en ATHT reportedly +acedintense scrutiny regarding its proposed ac@uisition o+ Eoda+one, a >uropean #ireless carrier, a+ter

%ournalists reealed the e6tent o+ ATHT/s colla)oration #ith the NSA $9 American

companies are also losing out on business opportunities and contracts ith

large companies and foreign governments as a result of NSA spying$ According

to an article in The Ne# or* Times, 8American )usinesses are )eing le+t o1 some re@uests+or proposals +rom +oreign customers that preiously #ould hae included them$

This re+ers to erman companies, +or e6ample, that are increasingly uncom+orta)le giing their

)usiness to American -rms$ Cean#hile, the /erman government plans to change

its procurement rules to preent American companies that cooperate #ith theNSA or other intelligence organi<ations +rom )eing a#arded +ederal IT contracts$!

The goernment has already announced it intends to end its contract #ith Eeri<on,

#hich proides Internet serice to a num)er o+ goernment departments$2 8There are indications that Eeri<on is legally re@uired to proide certain things to the NSA, and that/s one o+the reasons the cooperation #ith Eeri<on #on/t continue, a spo*esman +or theerman Interior Cinistry told the Associated 4ress in June$7 The NSA disclosureshae similarly )een )lamed +or Bra<il/s ?ecem)er 2!7 decision to a#ard a [$M)illion contract to Saa) oer Boeing, an American company that had preiously)een the +rontrunner in a deal to replace Bra<il/s eet o+ -ghter %ets$ :el)er Barral, a

+ormer Bra<ilian trade secretary, suggested to Bloom)erg Ne#s that Boeing #ould hae #on the contract a year

earlier,M #hile a source in the Bra<ilian goernment told euters that 8the NSA

problem ruined it for the Americans$ As #e #ill discuss in greater depth in the ne6t section,

ermany and Bra<il are also considering data locali<ation proposals that could harm U$S$ )usiness interests andpreent American companies +rom entering into ne# mar*ets )ecause o+ high compliance costs$ 5ost to 4u)lic Trust in

American 5ompanies The pressure is increasing on American companies to respond to the reelations in order to mitigate potential )ac*lash and preent +oreign companies +rom

poaching their )usiness$ According to the Street Institute study, 8It appears the NSA/s aggressie sureillance has created an oerall +ear among U$S$ companies that there is Zguilt)y association/ +rom #hich they need to proactiely distance themseles$9 Some companies hae tried to regain trust )y pu)licly stating that they are not part o+ 4ISC or otherNSA programs, issuing disclaimers along the lines o+ those pu)lished )y Ama<on and Sales+orce in June 2!7$ 0thers that hae )een directly lin*ed to the NSA programs haepu)licly critici<ed the American goernment and called +or greater transparency in order to re)uild user con-dence and counteract potential economic harms$! To that end, ninema%or American companiesGA0=, Apple, ?rop)o6, Dace)oo*, oogle, =in*edIn, Cicroso+t, T#itter, and ahooG%oined together in the 8e+orm oernment Sureillance campaign in

January 2!, #here they launched a #e)site and #rote an open letter to goernment leaders laying out principles +or sureillance re+orm, including an end to )ul* collection and

opposition to data locali<ation re@uirements$2 Since the launch, the coalition has urged re+orm on 5apitol Fill through outreach and letters to 5ongress, supported the De)ruary2! 8The ?ay :e Dight Bac* actiist campaign, and hired a lo))yist to )olster their e1orts to cur) the NSA/s reach$7 This unli*ely, pu)lic partnership o+ some o+ Internet/s )iggest

rials spea*s to the seriousness o+ the threats to their collectie )usiness interests$ Indeed, according to an April 2! Farris poll commissioned )y a data security company, nearlyhal+ o+ the 2, respondents percent3 hae changed their online )ehaior since the NSA lea*s, paying closer attention not only to the sites they isit )ut also to #hat they say and

do on the Internet$M In particular, 2 percent indicated that they are no# doing less online shopping and )an*ing since learning the e6tent o+ goernment sureillance programs$

5learly, there are signi-cant -nancial incenties +or companies to distance themseles +rom the programs, and a s a result, they are e6pending capitalGactual and politicalGto do so$ 0ther companies hae ta*en it a step +urther, deeloping ne# products or ta*ing additional precautions to assure customers that their data is sa+e +rom the NSA$ 8Cany techcompanies +eel they hae no choice )ut to try to deelop NSA resistant products )ecause customers +rom 5hina to ermany threaten to )oycott American hard#are and cloud serices

they ie# as compromised, #rote USA Today in De)ruary 2!$ 5ompanies li*e ahoo and oogle hae deoted increased resources to hardening their systems against NSAsureillance in order to assure users that their data is ade@uately protected$ ahoo implemented automatic encryption on its email serice in January 2!, and in Carch 2!)egan encrypting all tra1ic that moed )et#een its data centers, as #ell as @ueries on its homepage and its messaging serice$ oogle/s Eice 4resident +or Security >ngineering,>ric rosse, re+erred to e1orts to protect users/ data +rom goernment sureillance as 8an arms race, #hen discussing the company/s moe last +all to encrypt all in+ormationtraelling )et#een its data centers$9 In June 2!, oogle uneiled a source code e6tension +or the 5hrome )ro#ser called 8>ndto>nd #hich is designed to ma*e email encryptioneasy, and announced a ne# section o+ its transparency report called 8Sa+er >mail #hich details the percentage o+ email that is encrypted in transit and identi-es the proiders #ho

support encryption$9 These changes are part o+ a ne# +ocus on encouraging users and companies to harden their systems against NSA sureillance, and the strategy appears to )e#or*ing$ Almost immediately, 5omcast announced its plans to #or* #ith oogle to encrypt all email tra1ic e6changed #ith mail a+ter the ca)le company #as descri)ed as one o+ the

#orst o1enders in the ne# report$9! Cean#hile, Cicroso+t has )een pu)lici<ing its policy that allo#s customers to store their data in Cicroso+t data centers in speci-c countries$92

John >$ Dran*, deputy general counsel at Cicroso+t, told The Ne# or* Times, 8:e/re hearing +rom customers, especially glo)al enterprise customers, that they care more than eera)out #here their content is stored and ho# it is used and secured$97 IBC is reportedly spending oer a )illion dollars to )uild oerseas data centers in an e1ort to reassure +oreigncustomers that their data is protected +rom U$S$ sureillance$9 In re+erence to +oreign customers as*ing a)out #hether their data is protected +rom goernment snooping, an IBCe6ecutie said, 8Cy response is protect your data against any third party G #hether it/s the NSA, other goernments, hac*ers, terrorists, #hateer, adding that it is time to 8start

tal*ing a)out encryption and E4Ns and all the #ays you can protect yoursel+$9M Dinally, +aced #ith an impossi)le choice )et#een maintaining user trust and complying #ith

goernment re@uests, a hand+ul o+ American companies that proide secure email serices hae had to shut do#n their operations altogether$ =aa)it, a secure email serice proiderthat e6perienced a !,9 percent increase in account registrations a+ter the Sno#den reelations, shuttered its )usiness a+ter it )ecame clear that user data could not )e protected

+rom goernment sureillance$ :hen the NSA could not read =ai)it/s communications directly )y )rea*ing its encryption, the agency o)tained orders compelling the company tohand oer in+ormation related to its encryption *eys, #hich #ould hae gien the NSA the a)ility to decrypt the communications o+ all , o+ =aa)it/s customers$9 Silent 5ircle,

a secure communications proider that sa# a percent reenue increase +ollo#ing the Sno#den reelations, +ollo#ed =aa)it/s lead and shut do#n its secure mail serice,

e6plaining that the decision #as made )ecause 8#e see the #riting on the #all$9 %t is abundantly clear that the NSA

surveillance programs are currently having a serious, negative impact on



the U"S" economy and threatening the future competitiveness of American

tech nology companies $ Not only are U$S$ companies losing oerseas sales andgetting dropped +rom contracts #ith +oreign companies and goernmentsGthey arealso #atching their competitie adantage in +astgro#ing industries li*e cloudcomputing and #e)hosting disappear, opening the door +or +oreign companies #ho

claim to o1er 8more secure alternatie products to poach their )usiness$ Industrye1orts to increase transparency and accounta)ility as #ell as concrete steps topromote )etter security )y adopting encryption and other )est practices are

positie signs, )ut U"S" companies cannot solve this problem alone" 8It/s not

)lo#ing oer, said Cicroso+t eneral 5ounsel Brad Smith at a recent con+erence$ 8In June o+ 2!, it is clear it is

getting #orse, not )etter$9 5ithout meaningful government reform and better

oversight, concerns about the breadth of NSA surveillance could lead to

permanent shifts in the global technology market and do lasting damage to

the U"S" economy"

Our evidence is reverse casual the cloudcom#uting industry

is necessary to save the economy!the information economy

a.ects all organi?ations and is ri#e for innovation

Coviello/ %"ecutive >ice 1resident/ %=C Cor#oration/ &&

Art, OCan Clo!d Comp!ting Save The American conomyKO, /arch '4 %&'', ;or+es,

www"for+es"com2sites2ciocentral2%&''2&42'42can7clo!d7comp!ting7save7the7

american7economy2

The American dream is in peril from the conV!ence of s9y roc9eting de>cits , high

!nemployment , and the tic9ing time +om+ of an aging +a+y +oomer generation ,

with its coincident increase in the +!rden of entitlements as a percentage of #D@ " ;or

the >rst time, the ne<t generation of Americans, o!r grandchildren, ris9 having a lower standard of living than weenGoyed" t is not a pro+lem that can +e remedied with ta< increases and +!dget red!ctions" $e will not save

or c!t o!r way +ac9 to economic prosperity" The -ay for-ard is innovation"

America m!st innovate its way o!t of economic stagnation and +ac9 to economic

growth" As has +een the case for the last '(& years, Americans have always responded well in a crisis and yet

again, we are well positioned to lead the world o!t of this one" $ant proofK American +!sinesses systemically and

c!lt!rally react fast" Two years after the economic downt!rn +egan the United States was generating 56 of its

economic o!tp!t with only 5& of the la+or" This sort of gain in prod!ctivity !ltimately translates into increased

economic activity, the a+ility to pay down de+t and a higher standard of living for those of !s who are employed"

Unfort!nately it does not directly address the iss!e of !nemployment" The fact is that prod!ctivity gains

from wor9ing harder can only ta9e !s so far" nnovation and technology can and

m!st ta9e !s the rest of the way, creating new Go+s and new ind!stries" Our *so

called. information economy, for e<ample, is ri#e for innovation" Today, allorgani?ations are de#endent on information tech nology$ $hat ma9es me

optimistic a+o!t the f!t!re is that we have not even +eg!n to scratch the s!rface of

all that can +e accomplished +y act!ally applying information technology

pervasively" $e have spent trillions of dollars worldwide for the comp!ters to create

and process information, networ9s to move it aro!nd and the hardware to store it"

=!t we are at a point where we spend 0& to 6& of *T. +!dgets G!st to maintain

those systems and infrastr!ct!res" No wonder progress in applying T is so slow" This is the



technology e!ivalent of every organiation in the world, +ig or small, investing the

capital and h!man reso!rces to +!ild and operate their own electricity prod!cing

power plants" =!t instead, pict!re a world where software platforms are availa+le

online and easily c!stomia+le" @ict!re a world where comp!te power is generated

oB site, availa+le in !antities when and where yo! need it" And pict!re a world

where information is safely stored, eQciently managed and accessi+le, when and

where yo! need it" These are clo!d infrastr!ct!res" The economies of scale,

Ve<i+ility and eQciency they oBer will not only save organiations massive amo!nts

of capital and maintenance costs +!t emancipate them to apply and !se

information as never +efore" An !n+elieva+le opport!nity to raise prod!ctivity while

creating !nprecedented opport!nities for +!sinesses and wor9ers" Now pict!re a health7

care system where a doctor has medical records at his >ngertips, can see <7rays with the clic9 of a mo!se, is a+le to

learn and apply the latest diagnostic and s!rgical techni!e from anywhere in the world" Thin9 of the eQciencies in

hospital s!pply chains, the delivery of prescription dr!gs, the processing of +illing and ins!rance claims, red!ctions

in fra!d, and the application of +est practices for cost controls" The capacity for improvement is endless" As a

matter of fact, these innovations are already +eing applied in isolated poc9ets" =!t for !s to seie the

opport!nity +efore !s it:s imperative that we move from isolated centers of

e<cellence to connected systems of e<cellence" @ic9 any ind!stry and systemic improvements li9e

these are availa+le" A new age of innovation and technology advancement is within o!rgrasp P an opport!nity for Go+ creation, greater prod!ctivity and economic growth"

The time for clo!d comp!ting is now" $e need government and ind!stry to

accelerate +road scale adoption of clo!d infrastr!ct!res so we can reap the rewards

of a tr!e information +ased economy" As said at the o!tset, Americans respond well in a crisis" t is

the nat!re of o!r society- egalitarian, free, open and competitive that ma9e !s the most adaptive, inventive and

resilient co!ntry in the world" Time again for !s to lead"

2egemony creates #eace by #reventing both great #o-er and

regional con@icts

Stephen /" ;alt, %&4, American professor of international aBairs at ?arvardUniversitys ohn ;" Iennedy School of #overnment, *A/RCAN @R/ACH- ts

@rospects and @itfalls., http-22www"h9s"harvard"ed!2fs2swalt2>les2art'7sp%"pdf

A second conse!ence of U"S" primacy is a decreased danger of great7power rivalry

and a higher level of overall international tran!ility" ronically, those who arg!e that

primacy is no longer important, +eca!se the danger of war is slight, overloo9 the

fact that the e<tent of American primacy is one of the main reasons why the ris9 of

great7power war is as low as it is" ;or most of the past fo!r cent!ries, relations among the maGor

powers have +een intensely competitive, often p!nct!ated +y maGor wars and occasionally +y all7o!t str!ggles for

hegemony" n the >rst half of the twentieth cent!ry, for e<ample, great7power wars

9illed over eighty million people" Today, however, the dominant position of the

U nited S tates places signi>cant limits on the possi+ility of great7power competition,

for at least two reasons" 1ne reason is that +eca!se the U nited S tates is c!rrently so far ahead,

other maGor powers are not inclined to challenge its dominant position" Not only is

there no possi+ility of a *hegemonic war. )+eca!se there is no potential hegemon to mo!nt a

challenge8, +!t the ris9 of war via miscalc!lation is red!ced +y the overwhelming gap

+etween the U nited S tates and the other maGor powers" /iscalc!lation is more li9ely to lead to

war when the +alance of power is fairly even, +eca!se in this sit!ation +oth sides can convince themselves that

they might +e a+le to win" $hen the +alance of power is heavily s9ewed , however, the



leading state does not need to go to war and wea9er states dare not try " '% NAAL

$AR C1LL# R$ The second reason is that the contin!ed deployment of ro!ghly two h!ndred tho!sand

troops in !rope and in Asia provides a f!rther +arrier to conVict in each region" So long as U"S" troops are

committed a+road, regional powers 9now that la!nching a war is li9ely to lead to a

confrontation with the United States" Th!s, states within these regions do not worry

as m!ch a+o!t each other, +eca!se the U"S" presence eBectively prevents regional

conVicts from +rea9ing o!t" $hat oseph oBe has termed the *American paci>er. is not the only

+arrier to conVict in !rope and Asia, +!t it is an important one" This tran!iliing eBect is not

lost on America:s allies in !rope and Asia" They resent U"S" dominance and disli9e

playing host to American troops, +!t they also do not want *Uncle Sam. to leave "5

Th!s, U"S" primacy is of +ene>t to the United States, and to other co!ntries as well ,

+eca!se it dampens the overall level of international insec!rity" $orld politics might +e

more interesting if the United States were wea9er and if other states were forced to compete with each other more

actively, +!t a more e<citing world is not necessarily a +etter one" A comparatively +oring era may provide few

opport!nities for gen!ine heroism, +!t it is pro+a+ly a good deal more pleasant to live in than *interesting. decades

li9e the '54&s or '53&s"

$

No- is key/ #o-er ga# is declining and leads to transition -arsBhang and Shi && EH!han Whang, researcher at the Carnegie Endowment for

International Peace, Lin Shi, Columbia University, independent consultant for the

Eurasia Group and a consultant for the World Ban in !C, *America:s decline- A

har+inger of conVict and rivalry.,

http-22www"eastasiafor!m"org2%&''2&'2%%2americas7decline7a7har+inger7of7conVict7

and7rivalry2, D/intF

@a!l Iennedy was pro+a+ly right- the US will go the way of all great powers — down" The individ!al dramas of the

past decade — the Septem+er %&&' terrorist attac9s, prolonged wars in the /iddle ast and the >nancial crisis —

have delivered the world a message- US primacy is in decline"

This does not necessarily mean that the US is in systemic decline, +!t it encompasses a

trend that appears to +e negative and perhaps alarming" Altho!gh the US still possesses

incompara+le military prowess and its economy remains the world:s largest, the

once seemingly indomita+le chasm that separated America from anyone else is

narrowing " Th!s, the glo+al distri+!tion of power is shifting, and the inevita+le res!lt

will +e a world that is less peacef!l, li+eral and prospero!s, +!rdened +y a dearth of eBective

conVict reg!lation"

1ver the past two decades, no other state has had the a+ility to serio!sly challengethe US military " Under these circ!mstances, motivated +y +oth opport!nity and fear, many actors have

+andwagoned with US hegemony and accepted a s!+ordinate role " Canada, most of

$estern !rope, ndia, apan, So!th Iorea, A!stralia, Singapore and the @hilippines have all Goined the US, creating a stat!s !o that has tended to m!te great power conVicts"

?owever, as the hegemony that drew these powers together withers, so will the

p!lling power +ehind the US alliance" The res!lt will +e an international order where

http://www.eastasiaforum.org/2011/01/22/americas-decline-a-harbinger-of-conflict-and-rivalry/






power is more diB!se, American interests and inV!ence can +e more readily

challenged, and conVicts or wars may +e harder to avoid"

As history attests, power decline and redistri+!tion res!lt in military confrontation" ;or

e<ample, in the late '5th cent!ry America:s emergence as a regional power saw it la!nch its >rst overseas war of

con!est towards Spain" =y the t!rn of the %&th cent!ry, accompanying the increase in US power and waning of

=ritish power, the American Navy had +eg!n to challenge the notion that =ritain Xr!les the waves": S!ch a notion

wo!ld event!ally see the US attain the stat!s of sole g!ardians of the $estern ?emisphere:s sec!rity to +ecome the

order7creating Leviathan shaping the international system with democracy and r!le of law"

De>ning this US7centred system are three 9ey characteristics- enforcement of property

rights, constraints on the actions of powerf!l individ!als and gro!ps and some

degree of e!al opport!nities for +road segments of society" As a res!lt of s!ch political

sta+ility, free mar9ets, li+eral trade and Ve<i+le >nancial mechanisms have

appeared" And, with this, many co!ntries have so!ght opport!nities to enter this system,

proliferating sta+le and cooperative relations"

?owever, what will happen to these advances as America:s inV!ence declinesK #iven that America:s

a!thority, altho!gh s!llied at times, has +ene>ted people across m!ch of Latin America,

Central and astern !rope, the =al9ans, as well as parts of Africa and, !itee<tensively, Asia, the answer to this !estion co!ld aBect glo+al society in a

profo!ndly detrimental way"

@!+lic imagination and academia have anticipated that a post7hegemonic world

wo!ld ret!rn to the pro+lems of the '54&s- regional +locs, trade conVicts and strategic

rivalry" ;!rthermore, m!ltilateral instit!tions s!ch as the /;, the $orld =an9 or the

$T1 might give way to regional organisations"

;or e<ample, !rope and ast Asia wo!ld each step forward to >ll the vac!!m left +y

$ashington:s withering leadership to p!rs!e their own visions of regional political

and economic orders " ;ree mar9ets wo!ld +ecome more politicised — and , well, less

free — and maGor powers wo!ld compete for s!premacy"

Additionally, s!ch power plays have historically possessed a ero7s!m element" n the

late '50&s and '56&s, US economic power declined relative to the rise of the apanese and $estern

!ropean economies, with the US dollar also +ecoming less attractive" And, as American power eroded,

so did international regimes )s!ch as the =retton $oods System in '5648"

A world witho!t American hegemony is one where great power wars re7emerge, the

li+eral international system is s!pplanted +y an a!thoritarian one , and trade

protectionism devolves into restrictive, anti7glo+alisation +arriers" This, at least, is one

possi+ility we can forecast in a f!t!re that will inevita+ly +e devoid of !nrivalled US primacy"

3est data #roves – economic colla#se causes -ar

edidiah 5oyal/ Director of Cooperative Threat Red!ction at the U"S" Department

of Defense, /"@hil" Candidate at the University of New So!th $ales, %&&,

*conomic ntegration, conomic Signalling and the @ro+lem of conomic Crises.

Th!s, the answer to the >rst !estion set o!t at the +eginning of this section, whether economic integration and

economic crises are lin9ed, seems reasona+ly well7esta+lished" S!+stantial recent scholarship indicates a positive

association +etween interdependence and economic crises" $hat then a+o!t the second !estionK s there a

correlation +etween economic crises and armed conVictK The impacts at an individ!al level



and on a state level are int!itive and well7doc!mented )see" e"g", Richards J #elleny, %&&08" Rodri9 )'556a, '556+8,

among others, arg!es that insta+ility in the glo+al economic system contri+!tes to social

disintegration and political conVict " Social !nrest, regime change and even civil war

have directly res!lted from the vagaries of economic integration" 2 Less int!itive is how

periods of economic decline may increase the li9elihood of e<ternal conVict " @olitical

science literat!re has contri+!ted a moderate degree of attention to the impact of economic decline and the

sec!rity and defence +ehavio!r of interdependent stales" Research in this vein has +een considered at systemic,dyadic and national levels" Several nota+le contri+!tions follow" 2 ;irst, on the systemic level, @ollins )%&&8

advances /odels9i and Thompsons )'5508 wor9 on leadership cycle theory, >nding that rhythms in the

glo+al economy are associated with the rise and fall of a pre7eminent power and the

often +loody transition from one pre7eminent leader to the ne<t" As s!ch, e<ogeno!s shoc9s s!ch as

economic crises co!ld !sher in a redistri+!tion of relative power )see also #ilpin, '5'8

that leads to !ncertainty a+o!t power +alances, increasing the ris9 of miscalc!lation );earon"

'55(8" Alternatively, even a relatively certain redistri+!tion of power co!ld lead to a permissive environment for

conVict as a rising power may see9 to challenge a declining power )$erner" '5558" Separately, @ollins )'5508 also

shows that glo+al economic cycles com+ined with parallel leadership cycles impact the

li9elihood of conVict among maGor , medi!m and small powers, altho!gh he s!ggests that the

ca!ses and connections +etween glo+al economic conditions and sec!rity conditions remain !n9nown" 2 Second, on

a dyadic level, Copeland:s )'550" %&&&8 theory of trade e<pectations s!ggests that *f!t!re e<pectation of trade. is

a signi>cant varia+le in !nderstanding economic conditions and sec!rity +ehavio!r of states" ?e arg!es thatinterdependent states are li9ely to gain paci>c +ene>ts from trade so long as they have an optimistic view of f!t!re

trade relations" ?owever, if the e<pectations of f!t!re trade decline, partic!larly for diQc!lt to

replace items s!ch as energy reso!rces, the li9elihood for conVict increases, as states will +e

inclined to !se force to gain access to those reso!rces" Crises co!ld potentially +e

the trigger for decreased trade e<pectations either on its own or +eca!se it triggers

protectionist moves +y interdependent states" 2 Third, others have considered the lin9

+etween economic decline and e<ternal armed conVict at a national level " =lom+erg and

?ess )%&&%8 >nd a strong correlation +etween internal conVict and e<ternal conVict,

partic!larly d!ring periods of economic downt!rn" They write, 2 The lin9ages +etween internal

and e<ternal conVict and prosperity are strong and m!t!ally reinforcing" conomic conVict tends to

spawn internal conVict, which in t!rn ret!rns the favo!r" /oreover, the presence of a

recession tends to amplify the e<tent to which international and e<ternal conVicts

self7reinforce each other" )=lom+erg J ?ess" %&&%" p" 58 2 conomic decline has also +een

lin9ed with an increase in the li9elihood of terrorism )=lom+erg7 ?ess, J $eerapana" %&&38,

which has the capacity to spill across +orders and lead to e<ternal tensions " 2

;!rthermore, crises generally red!ce the pop!larity of a sitting government"

7iversionary theory s!ggests that, when facing !npop!larity arising from economic

decline, sitting governments have increased incentives to fa+ricate e<ternal military

conVicts to create a rally around the @ag eBect " $ang )'5508, DeRo!en )'55(8, and

=lom+erg, ?ess, and Thac9er )%&&08 >nd s!pporting evidence showing that economic decline and !se of force are

at least indirectly correlated" #elpi )'5568, /iller )'5558, and Iisangani and @ic9ering )%&&58 s!ggest that the

tendency towards diversionary tactics are greater for democratic states than a!tocratic states, d!e to the fact that

democratic leaders are generally more s!scepti+le to +eing removed from oQce d!e to lac9 of domestic s!pport"

DeRo!en )%&&&8 has provided evidence showing that periods of wea9 economic performance in the United States,and th!s wea9 @residential pop!larity, are statistically lin9ed to an increase in the !se of force" 2 n s!mmary, recent

economic scholarship positively correlates economic integration with an increase in the fre!ency of economic

crises, whereas political science scholarship lin9s economic decline with e<ternal conVict at systemic, dyadic and

national levels"( This implied connection +etween integration, crises and armed conVict has not

feat!red prominently in the economic7sec!rity de+ate and deserves more attention"



1rioriti?e sto##ing @ash#oints of -ar over structural violence –

stats #rove this is a better a##roach to sto# in0ustice

osh!a Doldstein, nt:l Rel @rof Y American U, 4&, $ar and #ender, p" 3'%

;irst, peace activists face a dilemma in thin9ing a+o!t ca!ses of war and wor9ing for peace"/any peace scholars and activists s!pport the approach, *if yo! want peace, wor9 for

G!stice". Then, if one +elieves that se<ism contri+!tes to war one can wor9 for gender G!sticespeci>cally )perhaps among others8 in order to p!rs!e peace" This approach +rings strategicallies to the peace movement )women, la+or, minorities8, +!t rests on the ass!mption thatinG!stices ca!se war" The evidence in this +oo9 s!ggests that ca!sality r!ns at least as

strongly the other way " ;ar is not a #roduct of ca#italism/ im#erialism/ gender/innate aggression/ or any other single cause/ altho!gh all of these inV!ence wars:o!t+rea9s and o!tcomes" Rather, war has in part f!eled and s!stained these and otherinG!stices "5 So,.if yo! want peace, wor9 for peace". ndeed, if yo! want G!stice )gender andothers8, wor9 for peace " Ca!sality does not r!n G!st !pward thro!gh the levels of analysis,from types of individ!als, societies, and governments !p to war" t r!ns downward too" nloes!ggests that changes in attit!des towards war and the %0

military may +e the most important way to *reverse women:s oppression". The

dilemma is that peace wor9 foc!sed on G!stice +rings to the peace movement

energy, allies, and moral gro!nding, yet, in light of this +oo9:s evidence, the

emphasis on inG!stice as the main ca!se of war seems to +e empirically inade!ate "

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