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Managing Across
Boundaries
Brian D. FinlayManaging Director
Managing Across Boundaries ProgramThe Stimson Center
1111 19th St., NW 12th FloorWashington, DC 20036
(202) [email protected]
WMD Threats & Counterproliferation:WMD Threats & Counterproliferation:The Role of Private Industry and the The Role of Private Industry and the
Global South in Maritime SecurityGlobal South in Maritime Security
20 September 201220 September 2012Rome, ItalyRome, Italy
Managing Across
Boundaries
Stimson: Managing Across BoundariesStimson: Managing Across Boundaries
MANAGING ACROSS BOUNDARIES
AN INCREASING ARRAY OF TRANSNATIONAL CHALLENGES - FROM WMD PROLIFERATION AND
THE GLOBAL DRUG TRADE, TO CONTEMPORARY HUMAN SLAVERY,
SMALL ARMS TRAFFICKING, AND COUNTERFEIT INTELLECTUAL
PROPERTY - HAVE BECOME SO WIDESPREAD THEY THREATEN TO OVERWHELM THE CAPABILITIES OF
EVEN THE MOST WELL-INTENTIONED GOVERNMENTS TO MITIGATE THEIR
DESTRUCTIVE EFFECTS.
THE MANAGING ACROSS BOUNDARIES PROGRAM LOOKS FOR
INNOVATIVE GOVERNMENT RESPONSES - AT THE NATIONAL, REGIONAL, AND INTERNATIONAL
LEVELS - AND FOR SMART PUBLIC-PRIVATE PARTNERSHIPS TO MITIGATE THESE THREATS.
OUR EXPERTS AND RESEARCHERS WORK TO CONCEPTUALIZE AND CATALYZE "WHOLE OF SOCIETY"
SOLUTIONS TO THE MOST PRESSING TRANSNATIONAL CHALLENGES OF
OUR DAY.
STIMSON
NONPROFIT NATIONAL SECURITY THINK TANK
THE STIMSON CENTER'S WORK IS FOCUSED ON THREE PRIORITIES
THAT ARE ESSENTIAL TO GLOBAL SECURITY:
•STRENGTHENING INSTITUTIONS FOR INTERNATIONAL PEACE AND
SECURITY •BUILDING REGIONAL SECURITY, AND
•REDUCING WEAPONS OF MASS DESTRUCTION AND TRANSNATIONAL
THREATS
STIMSON'S APPROACH IS PRAGMATIC - GEARED TOWARD PROVIDING
POLICY ALTERNATIVES, SOLVING PROBLEMS, AND OVERCOMING
OBSTACLES TO A MORE PEACEFUL AND SECURE WORLD.
Managing Across
Boundaries
The Benefits of GlobalizationThe Benefits of Globalization
Foreign Direct Investment
International Trade Expansion
Globalized Business Practices
Spread of Innovation
Global Supply Chaining
Cold War Demobilization
Managing Across
Boundaries
Maturation of Global Supply ChainMaturation of Global Supply Chain
Managing Across
Boundaries
Global Narcotics Supply RoutesGlobal Narcotics Supply Routes
Managing Across
Boundaries
Global Supply Routes for Conventional ArmsGlobal Supply Routes for Conventional Arms
Managing Across
Boundaries
Global Human Trafficking RoutesGlobal Human Trafficking Routes
Managing Across
Boundaries
Global Proliferation Supply ChainGlobal Proliferation Supply Chain
Managing Across
Boundaries
Fusion of the Licit and Illicit Global Supply ChainsFusion of the Licit and Illicit Global Supply Chains
Managing Across
Boundaries
Critical Untapped PartnersCritical Untapped Partners
THE GLOBAL SOUTH
• Lacking border and maritime security capacity;
• Lack of financial resources to manage threat;
• Lacking political interest in the global WMD nonproliferation agenda
SUPPLY CHAIN INDUSTRY
• Enhanced information sharing
• Greater transparency
• Reasonable screening standards
• Profitable thickening of the supply chain
Managing Across
Boundaries
Yemen Printer Bomb PlotYemen Printer Bomb Plot
October 28, 2010, AQAP attempts to load explosive devices hidden in printer cartridges from Yemen to the USA;
Technical screening, canines, physical inspection all fail to detect devices;
Plot disrupted by specific human intelligence allowing companies to identify and neutralize the shipments.
October 29th, 2010, Express Association of America (EEA) brings four express carriers into conversation with Customs and Border Patrol and Transportation Security Administration;
All agree that providing information on cargo shipments earlier would help enhance transparency;
Companies were allowed to take the lead in developing the right solution.
Managing Across
Boundaries
Air Cargo Advanced Screening (ACAS)Air Cargo Advanced Screening (ACAS)An Example of Effective CooperationAn Example of Effective Cooperation
RESULT
•By January 2011, all four express firms transmitting data con shipments from identified list of countries;
•Seven key data elements part of new information sharing system;
•Transmission time expanded from 4 hours to 24 hours;
•Express companies provide access to proprietary information and targeting systems to help CBP/TSA resolve anomalies;
•Each company develops own IT solutions;
•To date, more than 33 million air cargo shipments analyzed;
•Nearly 3000 have been identified for additional screening.
•Key factor for success is flexibility by both public and private sectors;
•Government agrees NO TIME DEADLINES, NO PENALTIES for inaccurate or incomplete data
•All achieved without federal register notices, no new regulations, no legislation;
•No Congressional overreaction;
•Seen in mutual interest of private companies and US Government.
Source: Express Association, Michael Mullen
http://www.expressassociation.org/
Managing Across
Boundaries
Core Objectives of the Task Force: enhanced information flows between the private sector and
government in support of identifying and preventing illicit activities; and
development of new mechanisms for industry self-regulation consistent with government security needs.
TASK FORCE MEMBERS
RADM (ret) Jay Cohen*Principal, Chertoff GroupTask Force Chairman
Barry Blechman**Former CEO, DFI InternationalTask Force Vice-Chairman
Valerie AbendManaging Director, BNY Mellon
Ann BeauchesneVP of National Security & Emergency Preparedness, US Chamber of Commerce
Kenneth BrillFormer Director, National Counterproliferation Center
John CoglianoVP, Homeland Security Solutions, Lexington Insurance Company
Brad GaryFormer VP, Allergan
Ronnie GoldbergExecutive VP, U.S. Council for International Business
Gary GreggFormer President and CEO, Liberty Mutual Agency Corp.
Rupert Herbert-BurnsFormer Director of Intelligence, Lloyd’s List Intelligence
Peter LichtenbaumPartner, Covington & Burling
Michael C. MullenExecutive Director, Express Association of America
RADM (ret) David OliverFormer COO, EADS North America
Rob RosenbergCFO, NTELX
GUIDING PRINCIPLES for ENGAGEMENT
oPublic-private collaborations must be responsive to market characteristics and security gaps. Even when modeled on past successes, static, formulaic approaches will not keep pace with today’s economic and security dynamics. The key to mutually beneficial collaboration is a flexible process and incentive structure that satisfies the economic concerns of industry and the regulatory concerns of government. Market forces, in themselves, are not a panacea . Respect for proprietary business operations and the profit motive must be balanced with sufficient transparency for oversight in service of security challenges.oInformation-sharing must be an ongoing priority. Properly calibrating the roles and responsibilities of government and private sector actors depends on an institutionalized information-sharing framework that benefits both constituencies. Moreover, when effective public-private collaborations already exist, new initiatives should strengthen and complement them rather than duplicating effort.oSecurity and profitability can be mutually reinforcing goals. Companies can maintain existing advantages and unlock new market opportunities by improving security within their organizations and respective industries, and by contributing to the security and resilience of the wider global trading and financial systems.
