Tag: Ukraine War

  • An Asia-Pacific NATO: fanning the flames of war

    An Asia-Pacific NATO: fanning the flames of war

     

    Former President Trump sidelined NATO to such an extent that European members were disillusioned with American leadership and NATO was in a state of fragmentation. With Biden’s presidency unleashing its Ukraine strategy and war against Russia, NATO has solidified with blind subservience to American leadership. Building on imagined threats from Russia and China, the US is now seeking to make a NATO alliance format for security across Asia as well. On the eve of the 33rd summit at Vilnius on 11-12 July 2023, Türkiye dropped its objections for Sweden to become the 33rd member of NATO, abandoning its 150-year tradition of proud neutrality and peace in favour of war-mongering. With an eye on Asia, the summit invited four Asian countries – Japan, South Korea, Australia, and New Zealand – as observers at the summit. The summit statement is, as expected, replete with anti-Russian rhetoric but more importantly extensive in its focus on the ‘China threat’ thus paving the way for NATO’s role in Asia. Jeffrey Sachs, in a speech in Australia in early July (reproduced below), has warned forcefully about the peril that NATO poses to global peace and security.                                           – TPF Editorial Team

    “My country, the U.S., is unrecognisable. I’m not sure who runs the country. I do not believe it is the president.”, says Jeffrey Sachs in a speech at a Saving Humanity and Planet Earth (SHAPE) seminar, Melbourne, Australia. “U.S. actions are putting us on a path to war with China in the same way that U.S. actions did in Ukraine.”

    “the idea of opening NATO offices in Asia is mind-boggling in its foolishness. Please tell the Japanese to stop this reckless action.”

    Jeffrey Sachs
    Speech to Shape (Saving Humanity and Planet Earth)
    July 5, 2023

    Good afternoon to everybody. I want to thank you for inviting me and to thank SHAPE for its leadership. I just had the privilege to listen to Alison Broinowski and Chung-in Moon. We have been treated to brilliant and insightful statements. I absolutely agree with all that has been said. The world has gone mad but especially the Anglo-Saxon world, I’m afraid. I don’t know whether there is any sense in our little English-speaking corner of the world. I’m of course speaking of the United States, UK, Canada, Australia and New Zealand.

    There’s something profoundly disheartening about the politics of our countries right now. The deep madness, I’m afraid, is British Imperial thinking that has been taken over by the United States. My country, the U.S., is unrecognisable now compared even to 20 or 30 years ago. I’m not sure, to tell you the truth, who runs the country. I do not believe it is the president of the United States right now. We are run by generals, by our security establishment. The public is privy to nothing. The lies that are told about foreign policy are daily and pervasive by a mainstream media that I can barely listen to or read anymore. The New York Times, Washington Post, Wall Street Journal and the main television outlets are 100 per cent repeating government propaganda by the day, and it’s almost impossible to break through.

    it’s about a madness of the United States to keep U.S. hegemony, a militarised foreign policy dominated by the thinking of generals who are mediocre intellects, personally greedy, and without any sense because their only modus operandi is to make war.

    What is this about? Well, as you’ve heard, it’s about a madness of the United States to keep U.S. hegemony, a militarised foreign policy dominated by the thinking of generals who are mediocre intellects, personally greedy, and without any sense because their only modus operandi is to make war.

    And they are cheer-led by Britain, which is unfortunately, in my adult life, increasingly pathetic in being a cheerleader for the United States for U.S. hegemony and for war. Whatever the U.S. says, Britain will say it ten times more enthusiastically. The U.K. leadership could not love the war in Ukraine more. It is the great Second Crimean War for the British media and for the British political leadership.

    Now, how Australia and New Zealand fall for this idiocy is really a deep question for me and for you. People should know better. But I’m afraid that it is the Five Eyes and the security establishment that told the politicians, to the extent that the politicians are involved in this, ‘well this is how we have to do it’. This is our Security State and I don’t think our politicians necessarily have much role in this. By the way, the public has no role in U.S. foreign policy at all. We have no debate, no discussion, no deliberation, no debates over voting the hundred, now $113 billion, but in fact much more money spent on the Ukraine War.

    So far there’s not been an hour of organised debate even in the Congress on this, much less in the public, but my guess is that your security establishment is really the driver of this in Australia, and they explain to the Prime Minister and others: ‘you know this is the utmost National Security, and this is what America has told us. Let us, your security apparatus, explain what we’re seeing. Of course, you cannot divulge this to the broader public, but this is, at the essence, a struggle for survival in the world’.

    Everything I see myself, and I’m now 43 years in this activity as an economic advisor all over the world, suggests that this message is nonsense. One thing that would be interesting for people to look at, in order to understand these developments, is a very telling article by a former colleague of mine at Harvard, Ambassador Robert Blackwell and Ashley Tellis, written for the Council on Foreign Relations in March 2015. I want to read a couple excerpts from it because it laid out the plan of what’s happening right now pretty directly. This is how things work in the U.S., in which future plans are laid out to the establishment in such reports.

    “Since its founding, the United States has consistently pursued a grand strategy focused on acquiring and maintaining preeminent power over various rivals. First on the North American continent, then in the Western Hemisphere, and finally, globally. Preserving U.S. primacy in the global system ought to remain the central objective of U.S. grand strategy in the 21st century.”    

     – Robert Blackwill and Ashley Tellis in a March 2015 article for Council on Foreign Relations.

    We’re basically told in 2015 what’s going to happen in US-China relations. The deterioration of relations was planned — it’s not ad hoc. So, here’s what Blackwell and Tellis wrote in 2015. First, “Since its founding, the United States has consistently pursued a grand strategy focused on acquiring and maintaining preeminent power over various rivals. First on the North American continent, then in the Western Hemisphere, and finally, globally.” And then they argue that “preserving U.S. primacy in the global system ought to remain the central objective of U.S. grand strategy in the 21st century.”

    So, what’s the U.S. goal? The goal is very straightforward, it is the primacy of the United States globally. Blackwell and Tellis lay out the game plan for China. They tell us what to do.

    Here’s the list, though I’m only excerpting: “Creating new preferential trading arrangements among U.S. friends and allies to increase their mutual gains through instruments that consciously exclude China.” This is the game that Obama already started with TPP, though he couldn’t get it through domestic political opposition. Second, “create, in partnership with U.S. allies, a technology control regime vis-à-vis Beijing,” to block China’s strategic capabilities. Third, build up “power-political capacities of U.S. friends and allies on China’s periphery,” and “improving the capability of U.S. military forces to effectively project power along the Asian rimlands despite any Chinese opposition.”

    This foreshadowing of US policies by way of the Council on Foreign Relations (CFR) is well-known in recent history.

    What I find especially remarkable about this list is that it was made in 2015. It’s the step-by-step plan of action actually being carried out. This foreshadowing of US policies by way of the Council on Foreign Relations (CFR) is well-known in recent history. In 1997 in the CFR’s journal Foreign Affairs, Zbigniew Brzezinski laid out with precision the intended timeline for NATO enlargement and specifically the intention to include Ukraine in that NATO enlargement. Of course, that NATO enlargement plan has led us directly to the Ukraine War, which is indeed a proxy Russia-US war over NATO enlargement.

    Now the friends and geniuses that brought you the Ukraine War are on their way to bringing you a new war in your neighbourhood. As Professor Moon noted, the North Atlantic Treaty Organization is starting to open its offices in East Asia, which is not exactly the North Atlantic.

    So, this is where we are. It’s not absolutely simple to see through for one main reason, at least in the U.S. I’m not sure what it’s like in Australia but I expect that it’s pretty much the same as in the U.S., where we have no honesty or public deliberation about any of this. The policies are owned entirely by the security establishment, the military-industrial complex, the network of “think tanks” which are in fact non-think tanks in Washington, with almost all funded by the military-industrial complex.

    The military-industrial complex and its corporate lobby have taken over the East Coast universities where I teach. I taught at Harvard for more than 20 years, and now I teach at Columbia University. The influence of the intelligence agencies on the campuses is unprecedented, in my experience. All of this has happened without much public notice, almost a silent coup. There is no debate, no public politics, no honesty, no documents revealed. Everything is secret, confidential and a bit mysterious. Since I happen to be an economist who engages with the heads of state and ministers around the world, I hear a lot of things and see a lot of things that help me to pierce through the official “narratives” and pervasive lies.

    You will not find any of this in our public discourse. And just a word, if I may, about the Ukraine War. The war was completely predictable, and resulted from a U.S. plan for hegemony based on NATO enlargement that dates back to the early 1990’s. The U.S. strategy was to bring Ukraine into the U.S. military orbit. Brzezinski, again in 1997 in his book The Global Chess Board, laid out the strategy. Russia without Ukraine is nothing, he argued. Ukraine, he wrote, is the geographical pivot for Eurasia. Interestingly, Brzezinski warned American policymakers to ensure that they don’t push Russia and China into an alliance. In fact, that would be so antithetical to U.S. interests that Brzezinski clearly believed that it would never happen. But it has, because U.S. foreign policy is incompetent as well as profoundly dangerous and misconceived.

    During 1990-91, I happen to have been an advisor to Gorbachev, and during 1991-94, to Boris Yeltsin and Leonid Kuchma, spanning the late days of perestroika and the early days of Russian and Ukrainian independence after the dissolution of the Soviet Union. I watched very closely what was happening. I saw that the United States was absolutely uninterested in any way in helping Russia to stabilise.

    The idea of the U.S. security establishment from the early 1990s was U.S.-led unipolarity or U.S. hegemony. In the early 1990s, the U.S. rejected measures to help stabilise the Soviet economy and then the Russian economy, while it also began planning NATO enlargement, in direct contradiction to what the U.S. and Germany had promised Gorbachev and Yeltsin. So, the issue of NATO enlargement, including to Ukraine, is part of a U.S. game plan that started in the early 1990s, and eventually led to the Ukraine war.

    By the way, the U.S. was deeply involved in the overthrow of Ukraine’s pro-Russian president in 2014. Yes, this was a coup, and to an important extent, a regime change operation of the United States. I happen to have seen a part of it, and I know that U.S. money poured into supporting the Maidan. Such U.S. meddling was disgusting and destabilising, and all part of the game plan to enlarge NATO to Ukraine and Georgia.

    When one looks at the map it’s indeed Brzezinski’s 1997 idea: surround Russia in the Black Sea region. Ukraine, Romania, Bulgaria, Turkey and Georgia would all be members of NATO. That would be the end of Russian power projection in the Eastern Mediterranean and the Middle East. So it went for these “security” geniuses.

    Putin put forward diplomatic responses that were repeatedly rejected by the U.S. and its NATO allies, including the Minsk II Agreement endorsed by the U.N Security Council, but then ignored by Ukraine.

    On December 17, 2021, Putin put on the table a perfectly reasonable document as the basis for negotiation, A Draft U.S.-Russia Security Agreement. At the core was Russia’s call for an end to NATO expansion. Tragically, the U.S. blew it off. I called the White House at the end of December 2021, spoke with one of our top security officials, and pleaded, “Negotiate. Stop the NATO enlargement. You have a chance to avoid war.” Of course, to no avail. The United States’ formal response to Putin was that NATO enlargement was non-negotiable with Russia, a matter in which Russia has absolutely no say.

    This is a mind-boggling way to pursue foreign affairs because it is a direct road to war. I hope everybody understands this war in Ukraine was close to ending as early as March 2022 with a negotiated agreement just one month after Russia invaded on February 24th. The negotiated agreement was stopped by the U.S. because it was based on Ukraine’s neutrality. The U.S. told Ukraine to fight on, end negotiations, and reject neutrality.

    And so we are in a war that continues to escalate towards possible nuclear war, which is what would happen if Russia were to suffer deep defeats on the battlefield. Russia is not losing on the battlefield just now, but if it did, it would likely escalate to nuclear war. Russia is not going to be pushed out of the Donbas and Crimea and meekly go home with apologies. Russia is going to escalate if it needs to escalate. So, we are right now in a spiral that is extremely dangerous.

    Japan plays utterly into this spiral. And Australia does as well. It’s so sad to watch Australia accepting to be used in this reckless way. To pay a fortune for new military bases in a reckless, provocative, and costly way, that will feed the U.S. military-industrial complex while weighing heavily on Australia.

     

    Such U.S. actions are putting us on a path to war with China in the same way that U.S. actions did in Ukraine. Only an Asia-Pacific war would be even more disastrous. The whole idea of the U.S. and its allies fighting China is mind-boggling in its implications, its stupidity and its recklessness. All of this is utterly divorced from Australia’s real security interests. China is not a threat to Australia. It is not a threat to the world.

    I don’t know of a single Chinese overseas invasion in its history, by the way, except when the Mongols briefly ruled China and tried to invade Japan. Other than the Mongol invasion, defeated by a typhoon, China has not launched overseas wars. It’s just not part of China’s statecraft, nor would such wars be in China’s national interest.

    What worries me about the world is a deeply neurotic United States (in)security leadership that aims to be number one, but that can’t be number one in the way that it believes. This is pathetic, yet is applauded each day in London, a place that still dreams of the glory of global empire from a long bygone era.

    RCEP is the correct concept for the region to bring together China, Korea, Japan, the ten ASEAN countries, Australia and New Zealand in a coherent framework, especially around the climate challenge, energy policy, trade policy, and infrastructure and investment policy. A well-functioning RCEP would do a world of good, not only for the 15 countries in RCEP but for the entire world.

    Permit me, in conclusion, to take one minute to say what should be done.

    First, the war in Ukraine could end the day Biden steps up and says NATO will not enlarge to Ukraine. The basis for a negotiated security arrangement has been there for 30 years, but has been rejected so far by the U.S.

    Second, the idea of opening NATO offices in Asia is mind-boggling in its foolishness. Please tell the Japanese to stop this reckless action.

    Third, the U.S. approach to arming Taiwan is profoundly dangerous, provocative and deliberately so.

    Fourth, what is needed most in the Asia-Pacific is regional dialogue amongst Asia-Pacific nations.

    Fifth, the Asia-Pacific should build on RCEP [Regional Comprehensive Economic Partnership Agreement]. RCEP is the correct concept for the region to bring together China, Korea, Japan, the ten ASEAN countries, Australia and New Zealand in a coherent framework, especially around the climate challenge, energy policy, trade policy, and infrastructure and investment policy. A well-functioning RCEP would do a world of good, not only for the 15 countries in RCEP but for the entire world.

    Sorry to have run on so long but it’s so important what SHAPE is doing. You’re completely on the right track and all best wishes to your efforts.

     

    This transcript of Jeffrey Sach’s speech was published earlier in Pearls and Irritations.

    Feature Image Credit: bnn.network

    Cartoon Credit: Global Times

  • Ukraine War: India’s Stature in the Emerging World Order

    Ukraine War: India’s Stature in the Emerging World Order

    The war between Russia and Ukraine has caused a major disruption not only in that region, but the entire world. Power centres are shifting; a new world order is emerging out of this global churn. The world anxiously waits for India to take a more active role in a bid to end hostilities. What will India do?

    India’s firm stand of neutrality about the conflict in Ukraine has attracted considerable attention from the world’s strategic thinkers and governments. In this regard, many see the rise of India as a future pole power of the 21st century, as the current world order has entered a phase of instability, conflict, and competition. The Ukraine war may be the tipping point for the Euro-American dominance in the last three centuries, as a multi-polar world order is emerging, albeit slowly. India’s stature in this world order transformation is critical, as the non-western countries that constitute two-thirds of the world will meticulously observe and monitor it. A careful analysis of the ongoing transformation of the world order amidst the massive cacophony of propaganda and a plethora of biased reports (masquerading as research and academic outputs) is a huge challenge for serious researchers and policymakers.

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  • The Geopolitical Consolidation of Artificial Intelligence

    The Geopolitical Consolidation of Artificial Intelligence

    Key Points

    • IT hardware and Semiconductor manufacturing has become strategically important and critical geopolitical tools of dominant powers. Ukraine war related sanctions and Wassenaar Arrangement regulations invoked to ban Russia from importing or acquiring electronic components over 25 Mhz.
    • Semi conductors present a key choke point to constrain or catalyse the development of AI-specific computing machinery.
    • Taiwan, USA, South Korea, and Netherlands dominate the global semiconductor manufacturing and supply chain. Taiwan dominates the global market and had 60% of the global share in 2021. Taiwan’s one single company – TSMC (Taiwan Semiconductor Manufacturing Co), the world’s largest foundry, alone accounted for 54% of total global revenue.
    • China controls two-thirds of all silicon production in the world.
    • Monopolisation of semiconductor supply by a singular geopolitical bloc poses critical challenges for the future of Artificial Intelligence (AI), exacerbating the strategic and innovation bottlenecks for developing countries like India.
    • Developing a competitive advantage over existing leaders would require not just technical breakthroughs but also some radical policy choices and long-term persistence.
    • India should double down over research programs on non-silicon based computing with a national urgency instead of pursuing a catch-up strategy.

    Russia was recently restricted, under category 3 to category 9 of the Wassenaar Arrangement, from purchasing any electronic components over 25MHz from Taiwanese companies. That covers pretty much all modern electronics. Yet, the tangibles of these sanctions must not deceive us into overlooking the wider impact that hardware access and its control have on AI policies and software-based workflows the world over. As Artificial Intelligence technologies reach a more advanced stage, the capacity to fabricate high-performance computing resources i.e. semiconductor production becomes key strategic leverage in international affairs.

    Semiconductors present a key chokepoint to constrain or catalyse the development of AI-specific computing machinery. In fact, most of the supply of semiconductors relies on a single country – Taiwan. The Taiwan Semiconductor Manufacturing Corporation (TSMC) manufactures Google’s Tensor Processing Unit (TPU), Cerebras’s Wafer Scale Engine (WSE), as well as Nvidia’s A100 processor. The following table provides a more detailed1 assessment:

    Hardware Type

    AI Accelerator/Product Name

    Manufacturing Country

    Application-Specific Integrated Circuits (ASICs)

    Huawei Ascend 910

    Taiwan

    Cerebras WSE

    Taiwan

    Google TPUs

    Taiwan

    Intel Habana

    Taiwan

    Tesla FSD

    USA

    Qualcomm Cloud AI 100

    Taiwan

    IBM TrueNorth

    South Korea

    AWS Inferentia

    Taiwan

    AWS Trainium

    Taiwan

    Apple A14 Bionic

    Taiwan

    Graphic Processing Units (GPUs)

    AMD Radeon

    Taiwan

    Nvidia A100

    Taiwan

    Field-Programmable Gate Arrays (FPGAs)

    Intel Agilex

    USA

    Xilinx Virtex

    Taiwan

    Xilinx Alveo

    Taiwan

    AWS EC2 FI

    Taiwan

    As can be seen above, the cake of computing hardware is largely divided in such a way that the largest pie holders also happen to form a singular geopolitical bloc vis-a-vis China. This further shapes the evolution of territorial contests in the South China Sea. This monopolisation of semiconductor supply by a singular geopolitical bloc poses critical challenges for the future of Artificial Intelligence, especially exacerbating the strategic and innovation bottlenecks for developing countries like India. Since the invention of the transistor in 1947, and her independence, India has found herself in an unenviable position where there stands zero commercial semiconductor manufacturing capacity after all these years while her office-bearers continually promise of leading in the fourth industrial revolution.

    Bottlenecking Global AI Research

    There are two aspects of developing these AI accelerators – designing the specifications and their fabrication. AI research firms first design chips which optimise hardware performance to execute specific machine learning calculations. Then, semiconductor firms, operating in a range of specialities and specific aspects of fabrication, make those chips and increase the performance of computing hardware by adding more and more transistors to pieces of silicon. This combination of specific design choices and advanced hardware fabrication capability forms the bedrock that will decide the future of AI, not the amount of data a population is generating and localising.

    However, owing to the very high fixed costs of semiconductor manufacturing, AI research has to be focused on data and algorithms. Therefore, innovations in AI’s algorithmic efficiency and model scaling have to compensate for a lack of equivalent situations in the AI’s hardware. The aggressive consolidation and costs of hardware fabrication mean that firms in AI research are forced to outsource their hardware fabrication requirements. In fact, as per DARPA2, because of the high costs of getting their designs fabricated, AI hardware startups do not even receive much private capital and merely 3% of all venture funding between 2017-21 in AI/ML has gone to startups working on AI hardware.

    But TSMC’s resources are limited and not everyone can afford them. To get TSMC’s services, companies globally have to compete with the likes of Google and Nvidia, therefore prices go further high because of the demand side competition. Consequently, only the best and the biggest work with TSMC, and the rest have to settle for its competitors. This has allowed this single company to turn into a gatekeeper in AI hardware R&D. And as the recent sanctions over Russia demonstrate, it is now effectively playing the pawn which has turned the wazir in a tense geopolitical endgame.

    Taiwan’s AI policy also reflects this dominance in ICT and semiconductors – aiming to develop “world-leading AI-on-Device solutions that create a niche market and… (make Taiwan) an important partner in the value chain of global intelligent systems”.3 The foundation of strong control over the supply of AI hardware and also being #1 in the Global Open Data Index, not just gives Taiwan negotiating leverage in geopolitical competition, but also allows it to focus on hardware and software collaboration based on seminal AI policy unlike most countries where the AI policy and discourse revolve around managing the adoption and effects of AI, and not around shaping the trajectory of its engineering and conceptual development like the countries with hardware advantage.

    Now to be fair, R&D is a time-consuming, long-term activity which has a high chance of failure. Thus, research focus naturally shifts towards low-hanging fruits, projects that can be achieved in the short-term before the commissioning bureaucrats are rotated. That’s why we cannot have a nationalised AGI research group, as nobody will be interested in a 15-20 year-long enterprise when you have promotions and election cycles to worry about. This applies to all high-end bleeding-edge technology research funding everywhere – so, quantum communications will be prioritised over quantum computing, building larger and larger datasets over more intelligent algorithms, and silicon-based electronics over researching newer computing substrates and storage – because those things are more friendly to short-term outcome pressures and bureaucracies aren’t exactly known to be a risk-taking institution.

    Options for India

    While China controls 2/3 of all the silicon production in the world and wants to control the whole of Taiwan too (and TSMC along with its 54% share in logic foundries), the wider semiconductor supply chain is a little spreadout too for any one actor’s comfort. The leaders mostly control a specialised niche of the supply chain, for example, the US maintains a total monopoly on Electronic Design Automation (EDA) software solutions, the Netherlands has monopolised Extreme UltraViolet and Argon Flouride scanners, and Japan has been dishing out 300 mm wafers used to manufacture more than 99 percent of the chips today.4 The end-to-end delivery of one chip could have it crossing international borders over 70 times.5 Since this is a matured ecosystem, developing a competitive advantage over existing leaders would require not just proprietary technical breakthroughs but also some radical policy choices and long term persistence.

    It is also needless to say that the leaders are also able to attract and retain the highest quality talent from across the world. On the other hand, we have a situation where regional politicians continue cribbing about incoming talent even from other Indian states. This is therefore the first task for India, to become a technology powerhouse, she has to, at a bare minimum, be able to retain all her top talent and attract more. Perhaps, for companies in certain sectors or of certain size, India must make it mandatory to spend at least X per cent of revenue on R&D and offer incentives to increase this share – it’ll revamp things from recruitment and retention to business processes and industry-academia collaboration – and in the long-run prove to be a lot more socioeconomically useful instrument than the CSR regulation.

    It should also not escape anyone that the human civilisation, with all its genius and promises of man-machine symbiosis, has managed to put all its eggs in a single basket that is also under the constant threat of Chinese invasion. It is thus in the interest of the entire computing industry to build geographical resiliency, diversity and redundancy in the present-day semiconductor manufacturing capacity. We don’t yet have the navy we need, but perhaps in a diplomatic-naval recognition of Taiwan’s independence from China, the Quad could manage to persuade arrangements for an uninterrupted semiconductor supply in case of an invasion.

    Since R&D in AI hardware is essential for future breakthroughs in machine intelligence – but its production happens to be extremely concentrated, mostly by just one small island country, it behoves countries like India to look for ways to undercut the existing paradigm of developing computing hardware (i.e. pivot R&D towards DNA Computing etc) instead of only trying to pursue a catch-up strategy. The current developments are unlikely to solve India’s blues in integrated circuits anytime soon. India could parallelly, and I’d emphatically recommend that she should, take a step back from all the madness and double down on research programs on non-silicon-based computing with a national urgency. A hybrid approach toward computing machinery could also resolve some of the bottlenecks that AI research is facing due to dependencies and limitations of present-day hardware.

    As our neighbouring adversary Mr Xi says, core technologies cannot be acquired by asking, buying, or begging. In the same spirit, even if it might ruffle some feathers, a very discerning reexamination of the present intellectual property regime could also be very useful for the development of such foundational technologies and related infrastructure in India as well as for carving out an Indian niche for future technology leadership.

    References:

    1. The Other AI Hardware Problem: What TSMC means for AI Compute. Available at https://semiliterate.substack.com/p/the-other-ai-hardware-problem

    2. Leef, S. (2019). Automatic Implementation of Secure Silicon. In ACM Great Lakes Symposium on VLSI (Vol. 3)

    3. AI Taiwan. Available at https://ai.taiwan.gov.tw/

    4. Khan et al. (2021). The Semiconductor Supply Chain: Assessing National Competitiveness. Center for Security and Emerging Technology.
    5. Alam et al. (2020). Globality and Complexity of the Semiconductor Ecosystem. Accenture.

  • Will Government Steps Tame Runaway Inflation?

    Will Government Steps Tame Runaway Inflation?

    “The steps announced by the government are only a first step. Prices of essentials have to be brought down (not just rate of inflation) and wages indexed to inflation”

    WPI rising at 15.08% in April 2022 has set alarm bells ringing in the government. Not only has the WPI been rising at above 10% per annum for over 13 months, but it has also been rising faster since February 2022. In other words, it has accelerated. Of course, the war in Ukraine has impacted it but it had been rising rapidly prior to that. In November 2021 it had risen by 14.87%. It moderated a little till January 2022 and then again rose.

    In November 2021 the government had cut taxes on petro goods to bring down their prices. Now the government has again cut these taxes in the hope of moderating inflation. By restricting the exports of wheat and sugar it seeks to lower their prices. Additionally, it has acted to lower the prices of basics like steel, cement and plastics. These steps should help moderate inflation. The issue is how much and whether it will benefit the citizens, especially the marginalized ones?

    Acceleration and Generalization to all Commodities.

    When indirect taxes are levied on basic items of production, they feed into the price of all other products. For instance, if the price of energy rises, since it is used in all production, the price of all products rises – there is a generalized price rise. If the tax on diesel is raised, transport costs, cost of running pumps in the fields and electricity generated using diesel rise. Similar is the case with coal, cement, steel and plastics. So, one way of lowering the rate of inflation is to reduce taxes on these basics.

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