Manipur: Rahul Gandhi to tour India state rocked by ethnic unrest

NEW DELHI, INDIA - MARCH 25: Congress leader Rahul Gandhi addresses a press conference at the AICC headquarters, on March 24, 2023 in New Delhi, India. Rahul Gandhi said that he does not care if he gets disqualified permanently from the Lok Sabha and claimed that he has been disqualified because Prime Minister is scared of my next speech on Adani. I have seen it in his eyes, he added, claiming the recent development came as a result of his retribution to his demand for a probe into the Adani-Hindenburg issue. (Photo by Sanjeev Verma/Hindustan Times viaGetty Images

India’s opposition leader Rahul Gandhi is set to visit the north-eastern state of Manipur which has been wracked by ethnic violence.

On Thursday and Friday, Mr Gandhi will visit relief camps for people displaced by the violence and meet leaders of civil society groups.

For the past two months, Manipur has been convulsed by clashes between the majority Meitei and Kuki communities.

More than 100 people have died and over 400 have been wounded so far.

On Monday, Prime Minister Narendra Modi held a meeting with top government officials to review the situation in Manipur. However, Congress leaders have criticised him for not visiting the state or commenting on the situation there.

Almost a month after violence began, Home Minister Amit Shah visited the state to put in place a plan to restore normalcy, but fresh incidents of violence continue to be reported almost daily.

Mr Gandhi’s visit comes amid the opposition’s demand for the resignation of the state’s chief minister, N Biren Singh, who is from the Bharatiya Janata Party (BJP).

Congress leaders have criticised Mr Singh for not being able to “restore peace and normalcy” in the state and have asked for federal rule to be imposed.

Senior Congress leader KC Venugopal tweeted about Mr Gandhi’s visit on Tuesday, and said that the state had been “burning for nearly two months” and “desperately needs a healing touch so that society can move from conflict to peace”.

Since the clashes began early in May, many homes, churches and temples have been destroyed by mobs while the homes of some state ministers and legislators have been attacked and set on fire.

Nearly 60,000 people have been displaced and close to 40,000 security forces have been deployed to quell the violence.

But the situation continues to remain tense. Normal life has been thrown completely out of gear for the locals who are facing curfews, internet shutdowns and sporadic killings and arson.

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Sri Lanka: Five-day bank holiday for domestic debt restructuring

A labourer carries a sack of green beans at a market in Colombo.Getty Images

Sri Lanka began a five-day bank holiday from Thursday to allow the crisis-hit nation to restructure $42bn (£33.2bn) in domestic debt.

The country is facing its worst economic crisis since it won independence from the British in 1948.

There are fears that the government’s restructuring plan could lead to volatility in financial markets.

Debt restructuring can involve the extension of the period over which a loan is repaid.

“The government’s action to call an extended public holiday means it obviously saw the risk of bank runs,” Alex Holmes, a senior economist at Oxford Economics, told the BBC.

Local media also quoted analysts as saying that the holiday was announced to provide a suitable buffer for any potential market reactions to significant financial announcements.

Earlier this week, Sri Lanka President Ranil Wickremesinghe reassured the public that the restructuring would “not lead to a collapse of the banking system”.

On Wednesday, Mr Wickremesinghe’s office said his cabinet had approved a restructuring proposal by the country’s central bank. The plan will be submitted to parliament for approval over the weekend.

“(The) government expects the entire process to conclude while the markets are closed during these five days,” Sri Lanka central bank chief Nandalal Weerasinghe said.

Mr Weerasinghe added that “local depositors are assured of the safety of their deposits and interests will not be affected”.

The move to restructure domestic debt comes as the country is struggling to come out of its worst economic crisis.

Last year, Sri Lanka defaulted on its debt with international lenders for the first time in its post-independence history.

However, there have been several important lifelines extended to the country in recent months.

The World Bank has just granted it $700m, following a $3bn bailout package from the International Monetary Fund (IMF).

The World Bank said in a statement on Thursday that it would provide support in a “phased approach”.

The organisation added that it has allocated $500m to budgetary support, while the remaining $200m would be used to “provide better-targeted income and livelihood opportunities to the poor and vulnerable”.

The IMF’s bailout in March, which was nearly a year in the making, was viewed as a massive lifeline for Sri Lanka.

However, the bailout came with conditions, such as requiring the country to make “swift progress” on restructuring its debts.

In March, the IMF said Sri Lanka had secured financing assurances from all its major creditors, including China and India, which paved the way for the bailout.

The IMF has so far released around $330m in funds to Sri Lanka, with the rest due in disbursements over four years.

The economic crisis

Sri Lanka’s economy has been hit hard by the pandemic, rising energy prices, populist tax cuts and inflation of more than 50%.

A shortage of medicines, fuel and other essentials also helped to push the cost of living to record highs, triggering nationwide protests which overthrew the ruling government in 2022.

Sri Lanka’s central bank outlined the extent of the country’s economic crisis earlier this year.

According to its latest annual report, “several inherent weaknesses” and “policy lapses” helped to trigger the severe economic problems that engulfed the South Asian nation.

The central bank also forecast that the Sri Lankan economy would shrink by 2% this year, but expand by 3.3% in 2024.

Its prediction is more optimistic than that of the IMF, which forecast economic growth of 1.5% in Sri Lanka next year.

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Dhaka determinedly neutral in great power rivalry

Bangladesh, owing to its geostrategic significance, has for some time faced immense pressure from both the United States and China regarding its stance on their competition. Due to its neutral, balancing policy, it has been stuck in the middle of the power rivalry.

For instance, a former Chinese envoy has warned the country not to join in Quadrilateral Security Dialogue, while the United States has expressed its desire for Bangladesh to support the US Indo-Pacific strategy on several occasions. Regional politics and the Sino-Indian rivalry have also brought new challenges.

Amid such a complex political space, Bangladesh’s neutral and balancing “Indo-Pacific Outlook,” released two months ago, is a fine example of its practice of self-determination. On April 24 – one day before Bangladeshi Prime Minister Sheikh Hasina visited Japan – the country’s foreign ministry formally announced the much-awaited document.

The outlook highlights Bangladesh’s independence, self-determination, guiding principles, and firm belief in the existing liberal international order. Against this backdrop, it is worth assessing the document, which positions Bangladesh as an example for other small states on how to participate in the liberal order yet remain neutral in an era of great power competition.

Bangladesh’s ‘Outlook

The outlook’s announcement holds a great deal of significance for the country’s foreign relations. The Bangladeshi prime minister’s Japan visit was crucial for both nations, as eight memorandums of understanding were signed during the visit. Moreover, Hasina visited the United States and the United Kingdom directly afterward.

The 15-point outlook views security as a prerequisite for economic prosperity. In it, Dhaka clarifies that it has no intention of picking sides in the ongoing geopolitical rivalry between China, on the one hand, and the United States and its allies on the other.

It should be noted that the term “Indo-Pacific” is, itself, of Western origin, and China has criticized its use as part of a strategy to contain China. However, as Bangladesh has traditionally practiced a balanced foreign policy, it appears unconcerned about the Chinese reaction to such a concept – and China has, thus far, not reacted to Bangladesh’s outlook.

Bangladesh Prime Minister Sheikh Hasina at a press conference in Dhaka on December 31, 2018. Photo: Indranil Mukherjee / AFP
Bangladesh Prime Minister Sheikh Hasina is taking a middle path between the US and China. Photo: AFP / Indranil Mukherjee

Bangladesh does believe in a free, open, peaceful, secure and inclusive Indo-Pacific and considers the stability and prosperity of the region essential to its Vision-2041, which expresses its aspiration to emerge as a developed nation by 2041.

In the outlook, clearly with a view to the increasing pressure put on “swing” states to join the sides of great powers, Bangladesh also clarifies that it believes in international relations based on the principles of respect for national sovereignty and equality, political independence, non-interference in the internal affairs of other nations and peaceful settlement of international disputes.

Bangladesh also reaffirms adherence to the relevant UN treaties and international conventions such as the United States Convention on the Law of the Sea. It also emphasizes the strengthening of mutual trust and respect, forging partnerships and cooperation and promoting dialogue among the nations. Moreover, it calls for strengthening existing mechanisms on maritime safety and security in the Indo-Pacific.

Bangladesh’s outlook also prioritizes enhancing physical, institutional, energy, digital and human connectivity, facilitating the movement of goods, services, capital and people across state boundaries.

Across the region, Bangladesh’s outlook also calls for fostering cooperation among Indo-Pacific countries. The 15 points also include collaboration with sub-regional partners and relevant organizations for regional cooperation and mutual benefits.

Balancing the great power rivalries

A look at the 15-point document suggests that Bangladesh reaffirms its belief in the liberal order. Accommodating the free and open Indo-Pacific and reaffirming its belief in the peaceful settlement of disputes is an example of such claims. Bangladesh’s belief in liberal values and norms facilitates the interests of Western countries, such as the United States and its allies, in maintaining the status quo.

On the other hand, Bangladesh’s emphasis on connectivity and free movement of goods and services facilitates the interests of emerging powers such as China and India. Hence, the outlook may allow the country to equalize tensions among great powers, especially amid the current geopolitical rivalry.

The outlook also emphasizes sub-regional and other relevant organizations for mutual benefit. For the past few years, Bangladesh has deepened its engagement with ASEAN and attended mini-laterals such as the Colombo Security Conclave. It is also the current chair of the Indian Ocean Rim Organization.

Such subregional and minilateral organizations will help the country to ensure security in the region without picking any sides. And, lastly, Bangladesh’s incorporation of multilateralism and sustainable development goals also suggests that the country is likely to rely on global platforms and forums for its security. Emphasis on these organizations will allow Bangladesh to remain neutral while ensuring security at the same time.

Moreover, to assure the great powers of its intentions, Bangladesh has incorporated both the “connectivity” philosophy of emerging great powers – such as China and, to an extent, India – to expand their connections with the world through infrastructure, mobility and cooperation in various sectors, but also liberal values such as the free and open Indo-Pacific valued by Western powers.

Bangladesh map: Asia Times files

Perhaps it is tough for a neutral state to embrace both. The efficacy of such an outlook is largely dependent upon its diplomacy and national power.

In any case, this stance is in keeping with Bangladesh’s long-practiced principles such as friendship to all, malice towards none, balanced and neutral foreign policy, and multilateralism.

An example for other littoral and small states?

It seems Bangladesh’s outlook may emerge as successful for the foreseeable future. Through the outlook and subsequent tilt towards Japan, perhaps the country aims to balance between Chinese and Western states. Like many other countries, Bangladesh prefers to sit on the fence in current great power rivalries.

Hence, the country aims to manage great power interest geo-economically – a much-neglected yet very relevant approach.

Two major actions by Bangladesh – joining China’s Belt and Road Initiative and approving a deep-sea port project with Japan – suggest that Dhaka aims to provide equal geo-economic opportunity for both blocs while satisfying its infrastructural demand. But success will largely depend on the country’s diplomatic prudence and policy execution.

In the present context, the littorals and small states require peace and security for their nation’s prosperity. Amid such complex interdependence, they rely almost entirely on the great powers and powerhouses for their wide-ranging commercial, economic, and security activities. Therefore, picking a side becomes a zero-sum game and poses a challenge to their interdependence.

Bangladesh’s Indo-Pacific Outlook has the potential to ensure both in this context. It promotes a positive-sum game and stays away from any side-picking. Its reliance on multilateralism and neutral policy is also beneficial for cooperation. Hence, it is an exemplary outlook for states such as Sri Lanka or Maldives or any other small and littoral Indo-Pacific states.

A small state that cannot afford side-picking should maintain a balance between the great powers, as Bangladesh has done, and mobilize its geo-economic means to equalize the stakes among them.

Doreen Chowdhury ([email protected]) is a doctoral researcher at the University of Groningen.

This article was first published by Pacific Forum. Asia Times is republishing it with permission.

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China beats the drum for faster fusion energy results

China’s government is urging the nation’s fusion energy physicists to redouble and accelerate their efforts in view of recent key breakthroughs in the field made by US and Japanese scientists.

Chinese state media reported that Science and Technology Minister Wang Zhigang inspected the Experimental Advanced Superconducting Tokamak (EAST) experimental fusion reactor and met with local scientists at the Hefei Institutes of Physical Science (HFIPS) where it is housed earlier this month.

Wang did not say whether the Chinese government will provide more funding for fusion projects, though it is expected that if scientists develop sound proposals with clear goals the government will direct state-owned enterprises to invest.

“How can scientific technology be applied in power engineering? What stage is our fusion power technology at?” Wang, who studied telecommunications in Xidian University from 1978-1982, asked physicists in a closed-door forum on June 7.

Wang said Chinese scientists must study Party General Secretary Xi Jinping’s important speech about China’s goal of technological self-sufficiency and try to realize the potential of fusion energy.

“We need to discuss which fusion technology to adopt. Magnetic confinement fusion, fusion-fission hybrid or hydrogen-boron fusion have their pros and cons and timetables for breakthroughs,” he said. “Everyone is now talking about the commercial applications of fusion power. We should plan backward from this and see what to do in the next steps.”

Magnetic confinement fusion is what most countries, including China, are currently pursuing. Plasma particles flow and fuse in the magnetic field of a tokamak, a donut-shaped machine first developed by Soviet scientists in 1958. 

Fusion-fission hybrid is similar but the fast neutron created by fusion will hit and split up uranium-238 or thorium-232, creating nuclear waste. This reaction can be seen in the explosion of a hydrogen bomb. Some scientists have tried to use this technology to reduce nuclear waste.

Hydrogen-boron fusion combines proton and boron to become helium and release energy. It was achieved in February in Japan’s Large Helical Device, which is similar to a tokamak but as the name suggests has a helical shape.

Wan Yuanxi, an 84-year-old academician at the Chinese Academy of Engineering, said China has already proven the feasibility of using a tokamak to develop fusion power and that the next step is to achieve power generation.

Wan said China needs to invest more in scientific research, develop core technologies and build related infrastructure while setting a clear roadmap with improved regulations to realize fusion energy use as soon as possible.

Since the 1970s, China has built small and medium-sized tokamaks such as the HL-1 and HL-1M in the Southwestern Institute of Physics (SWIP) in Chengdu and the HT-6B and HT-6M at the Institute of Plasma Physics (ASIPP) of the Chinese Academy of Sciences in Hefei.

The government had included a fusion-fission hybrid project in its 863 program, a high-technology development plan launched in 1987, but terminated the project in 2000.

In 2006, China joined the France-based International Thermonuclear Experimental Reactor (ITER) – the world’s largest fusion project supported by the European Union, India, Japan, Korea, Russia and the US. Its stated goals are to commence deuterium-tritium operations by 2035 and make power generation for commercial use by 2050.

China agreed in 2006 to take up 10% of the collaborative effort’s scientific research tasks and that same year launched the EAST (HT-7U).

A robot in the Experimental Advanced Superconducting Tokamak (EAST). Photo: Chinese Academy of Sciences

In May 2021, the EAST achieved 101 seconds of steady-state high-confinement mode (H-mode) operation at 120 million degrees. In December 2021, it maintained a stable plasma at 70 million degrees for 1,056 seconds. On April 12 this year, it achieved the world’s first 403-second steady-state H-mode plasma.

By comparison, the France-based Tungsten Environment in Steady-state Tokamak (WEST), formerly called Tore Supra, achieved 390 seconds at 70 million degrees in 2003. Japan’s JT-60SA achieved 28.6 seconds at 100 million degrees in 2006. It sustained plasmas of up to 200 million degrees for 100 seconds. It can reach up to 522 million degrees.

Li Jiangang, an academician at the Chinese Academy of Engineering and a physicist at ASIPP, said his team has failed in experiments at least 50,000 times over the past 20 years. Li said it is a long process to boost the EAST’s temperature from several million degrees to over 100 million degrees.

Song Yuntao, director of ASIPP, said the unit had worked with 120 fusion research institutes from 45 countries in the past and is visited by about 500 foreign experts each year. Chinese media said EAST owns 2,000 patents and that 80% of its core parts and raw materials are supplied by Chinese firms.

On December 13 last year, the US Department of Energy (DOE) and its National Nuclear Security Administration (NNSA) announced that scientists at the Lawrence Livermore National Laboratory (LLNL) achieved a net gain of energy by delivering 2.05 megajoules (MJ) of energy to a target, an experiment which produced 3.15 MJ of fusion energy output.

The DOE said the experiment demonstrated for the first time a fundamental scientific basis for inertial fusion energy. Scientists have said if a reactor can achieve 10 ignitions per second, fusion power generation is possible. Media reports said the LLNL experiment used about 200 lasers and did not use a tokamak to enable a fusion reaction.

To create fusion ignition, laser energy is converted into X-rays inside the hohlraum, which then compress a fuel capsule until it implodes, creating a high temperature, high pressure plasma. Photo: LLNL

Last month, Helion Energy, a US startup backed by Sam Altman, who has also invested in artificial intelligence firm OpenAI, said Helion plans to supply Microsoft with 50 megawatts of fusion electricity in 2028. The firm said it will use a self-developed tool called Polaris, which points two laser beams at each other to create plasmas.

“The LLNL’s ignition has an important meaning as it is a big step for mankind to realize fusion energy,” a Guangdong-based technology columnist wrote in an article. “But there is a very long way to go before people can actually use fusion power.”
 
Citing a CNN report, the columnist said the amount of energy produced by the ignition was still small, likening it to just enough to boil 10 kettles of water. He claimed the US spent a decade and several billion dollars to achieve such a small ignition, demonstrating how difficult the process is.

He also says people should not directly compare the progress of the US and China as the latter will use another ignition method.  

Last September, Peng Xianjue, an academician at the Chinese Academy of Engineering, was quoted by the South China Morning Post as saying that fusion power will be available in China by 2028. In fact, he was referring to a fission-fusion hybrid plant in Chengdu, not a pure hydrogen fusion one.

Read: China to make its own quantum computer fridges

Follow Jeff Pao on Twitter at @jeffpao3

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Putin’s Chechen ‘foot soldier’ reveals limits of loyalty

Of all the dramatic events to occur during Russia’s year-plus war on Ukraine, few approach the sensationalism of last weekend.

After months of increasingly vitriolic complaints and threats against Russia’s military leadership, Yevgeny Prigozhin, the head of the Wagner mercenary group, acted. His men first took over the southwestern Russian city of Rostov-on-Don before marching on Moscow, shooting down multiple Russian helicopters that tried desperately to halt their progress. 

Finally, just 200 kilometers from the capital, Prigozhin agreed to end his march and go into exile in Belarus, in an outcome whose ultimate contours are still very much unclear.

One of the groups that rallied around Russian President Vladimir Putin was led by Ramzan Kadyrov, the mercurial Kremlin-appointed warlord of Chechnya, whose men headed to both Rostov and Moscow to confront Wagner. In this instance and future such mutinies, Kadyrov’s troops could play a crucial role in defending the Kremlin – but only to a point.

Perhaps none of the many politicians and security chiefs in Russia who owe their positions solely to the backing of Putin have benefited from this personal relationship more than Kadyrov. 

Kadyrov came to power after the 2004 death of his father, Akhmad Kadyrov, with whom Putin had forged a deal to lead Chechnya as a loyal satrap after Russian forces reconquered the rebellious province in the Second Chechen War. 

Widely despised by the Russian military and other siloviki (those in charge of Russian security services), the younger Kadyrov nevertheless received the full backing of Putin to run Chechnya nearly autonomously. The only caveat was that he needed to crush the region’s separatist movement. 

Massive state subsidies, forming nearly nine-tenths of the Chechen government budget, were provided as both reward and incentive.

While Kadyrov and his cronies in Grozny enjoyed unparalleled autonomy, the Chechen leader was never without powerful enemies. Wagner was destined to become one of these almost from the start.

Many of Wagner’s professional soldiers were veterans of the Chechen wars, where they fought against Chechen rebel forces that, at one time, included Kadyrov himself. Ethnic Chechens are even explicitly banned from joining Wagner.

There was a degree of mutual support over the past year between Kadyrov and Prigozhin in public messaging on the Ukraine war, with both men casting aspersions on the Russian Defense Ministry and verbally attacking top Russian generals to cast the army leadership as hapless and only their own semi-privatized forces as effective.

But this was a marriage of convenience, something thoroughly illustrated by a June 1 threat from Dmitry Utkin, Wagner’s top military commander, to Kadyrov’s top deputy, urging the latter to face him “man to man.”

Kadyrov’s role in rebellion

Kadyrov had significant motivation to challenge Prigozhin’s mutiny and prevent any possibility of Putin being toppled. Not only is his position dependent on Putin’s continued financial and political support, Kadyrov also holds long-running acrimony toward the Wagner Group.

Driven by this calculus, he duly deployed his men to both of Saturday’s hotspots, sending one armored column to Rostov while directing another to the outskirts of Moscow, where Russian forces and other loyalist troops were setting up hasty defensive positions. In Rostov, Kadyrov’s Chechens nearly came face-to-face with Wagner forces, entering the city amid a tense standoff. 

Crucially, however, the Kadyrovtsy didn’t engage. They never fired on Prigozhin’s men, while in Moscow, they arrived after the abrupt truce between Wagner and the Kremlin had been agreed. Kadyrov demonstrated his loyalty to Putin by immediately deploying his men, but stopped short of anything resembling combat, choosing instead to wage a war of words and loudly proclaiming Prigozhin a traitor.

In many ways, Kadyrov’s response to Prigozhin’s march was like his role in the Russian invasion of Ukraine – demonstrating loyalty but stopping short of risking any more of his own men than necessary. In the early stages of the war, the Kadyrovtsy took part in the initial drive on Kiev, while also playing a role in storming the Donbas city of Severodonetsk and (to a lesser extent) Mariupol.

But that was it. After losses, Kadyrov largely withdrew his men to rear positions, if not back to Chechnya itself. Since last summer, they’ve rarely fought in Ukraine at all.

This now is the essence of Kadyrov’s role beyond Chechnya’s borders. Even in quieter times – the eight years or so between the final crushing of the insurgency in Chechnya and the Russian invasion of Ukraine – Kadyrov has always been paranoid, worried about any potential uprising against him and any possible challenge from Moscow and the Russian security services that so despise him.

With the remnants of Chechnya’s extirpated rebel movement reconstituted in Ukraine and openly planning to return and overthrow him, Kadyrov is even more loath to risk his brutal, personally loyal security apparatus. Despite his dependence on Putin’s continued rule, it’s difficult to imagine the Chechen leader ever deploying more than a token amount of his own troops to safeguard the Russian president.

Kadyrov may declare himself a “foot soldier of Putin,” but he has little interest in degrading his own combat power, power he may need in any potential future breakdown of the existing order in Russia – or in Chechnya itself.

This article was provided by Syndication Bureau, which holds copyright.

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Revisiting volatile Pakistan-Saudi ties

On his visit to Pakistan in 2019, Saudi Crown Prince Mohammed bin Salman signed memoranda of understanding (MoUs) for a total investment of US$21 billion, including $12 billion to be utilized for a deep conversion refinery and petrochemical complex.

The prospect of such a substantial investment brought hope and excitement to millions of Pakistanis, who anticipated the economic benefits it could bring to their country. However, to their disappointment, this much-anticipated venture never saw the light of day. Instead, it remained yet another failed undertaking, marred by diplomatic slip-ups and strained foreign relations.

Also read: Pakistan’s tumultuous relationship with the IMF

The turning point in Pakistan’s relationship with Saudi Arabia can be traced back to late 2020 when Islamabad accused the Organization of Islamic Cooperation (OIC), the Saudi Arabia-led bloc of 57 Muslim-majority countries, of not intervening in the Kashmir issue – an issue of great importance and sensitivity for former Pakistani prime minister Imran Khan.

This accusation and the subsequent friction called into question Saudi Arabia’s hegemony over the Muslim world, leading to a souring of its otherwise cordial relations with Pakistan.

In response to this perceived threat, Saudi Arabia took significant actions that further strained the relationship.

The first blow came in the form of the retraction of an interest-free loan of $1 billion that Saudi Arabia had extended to Pakistan in November 2018. This withdrawal worsened Pakistan’s already declining foreign-exchange reserves, pushing the country to the brink of sovereign default.

Additionally, Saudi Arabia withdrew the deferred-oil-payments scheme, which was intended to help Pakistan manage its import costs.

These actions had a severe impact on Pakistan’s economic stability and put the country in a precarious position.

Historic links

However, despite these recent challenges, Pakistan and Saudi Arabia have a long history of unwavering resilience in their relationship. Rooted in shared religious beliefs and cultural affinities, the two nations have enjoyed a long-standing alliance and maintained exceptionally close ties.

Pakistan has consistently relied on Saudi Arabia during challenging economic periods, especially for crucial oil supplies and financial support. The friendship between the two countries has endured through numerous highs and lows, proving its enduring nature.

Given Pakistan’s recurrent challenges of dwindling foreign-exchange reserves, volatile exchange rates, and escalating inflation, the reported investment plans of the Saudi kingdom amounting to $11 billion, along with the increase of its loan deposit to the State Bank of Pakistan from $3 billion to $5 billion, could serve as a potential lifeline for Pakistan’s struggling economy.

These measures might prevent Pakistan from falling under the scrutiny of the International Monetary Fund (IMF), which would otherwise necessitate further increases in electricity and gasoline prices and additional tax burdens.

Saudi Arabia has not only provided economic support to Pakistan but has also been a generous benefactor during humanitarian crises. The country has disbursed deposits of $200 million each in favor of Pakistan’s central bank and for the purchase of urea fertilizers.

Moreover, Saudi Arabia has contributed 13.3% of the global funds pledged to Pakistan for stress relief from floods. The aid extended is not limited to monetary terms but also includes cargo airlifts and trucks, as well as search-and-rescue supplies.

This unique and profound relationship predates Pakistan’s independence, with generous donations received from Saudi Arabia in 1943 when the Bengal famine struck. Additionally, the two countries formed an anti-communist front during the Cold War and stood against the Soviet occupation of Afghanistan, cementing their bond further.

Valued alliance

Contrary to common perception, Saudi Arabia’s relationship with Pakistan goes beyond religious ideologies. It views Pakistan as a reliable ally and an indispensable defense partner, particularly due to Pakistan’s possession of a nuclear arsenal that serves as a deterrent against threats in the Persian Gulf region.

Additionally, Pakistan plays a crucial role in meeting Saudi Arabia’s labor demands, providing a steady supply of inexpensive workers for the country’s ambitious infrastructure projects. Furthermore, Pakistan represents a significant international market for Saudi Arabia’s oil and offers attractive opportunities for foreign investment.

The manner in which Pakistan responds and upholds its end of this mutually beneficial relationship remains uncertain. The country heavily relies on Saudi Arabia for the inflow of remittances, with a significant sum contributed by a large expatriate community of 2.5 million individuals.

Moreover, Saudi Arabia plays a critical role in meeting almost a quarter of Pakistan’s oil import requirements, a contribution that has been vital for the Pakistani economy. The provision of oil at subsidized rates has played a critical role in sustaining Pakistan’s economic stability over the years.

However, the persistent display of hostility by Pakistan in international forums poses a significant risk to the strong bond that has been established between the two nations over the past 75 years.

Year Export (US$ Million) Import (US$ Million) Total Trade Volume (US$ Million) Pakistan’s Total Trade Deficit (US$ Million)
2003 469.6 1416.7 1886.2 947.1
2004 353.1 1757.8 2111 1404.7
2005 354.9 2650.6 3005.5 2295.7
2006 309 3033.2 3342.3 2724.2
2007 295.5 4011.8 4307.3 3716.3
2008 441.1 5954.9 6396 5513.9
2009 425.7 3500.1 3925.8 3074.4
2010 409 3837.9 4247 3428.9
2011 420.2 4668.3 5088.5 4248.1
2012 455.6 4283.5 4739.2 3827.9
2013 494.1 3847.2 4341.3 3353.2
2014 509.7 4417.4 4927.1 3907.7
2015 431.3 3006.8 3438.1 2575.4
2016 380.4 1843.1 2223.6 1462.7
2017 334.5 2730.4 3064.9 2395.9
2018 316.3 3242.3 3558.7 2926
2019 404.9 2436.3 2841.2 2031.4
2020 432.3 1893.1 2325.4 1460.8
Table 1: Pakistan’s Trade with Saudi Arabia (2003-2020). Source: The World Bank

The relationship between Pakistan and Saudi Arabia is at a critical juncture. While historical ties and shared interests continue to bind the two countries together, recent developments have tested the strength of their alliance. Pakistan’s economic challenges and geopolitical dynamics add complexity to the equation.

How Pakistan navigates these challenges and demonstrates its commitment to the alliance will determine the future trajectory of this significant partnership.

A more detailed article by this author can be found here: Debt ad Infinitum: Pakistan’s Macroeconomic Catastrophe.

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Quake felt in the North

Quake struck northern Thailand, felt by people in six provinces

The Google map on the website of the Earthquake Observation Division shows the epicentre of the earthquake in Phitsanulok province early Thursday morning.
The Google map on the website of the Earthquake Observation Division shows the epicentre of the earthquake in Phitsanulok province early Thursday morning.

An earthquake shook northern Thailand early Thursday morning and people in six provinces felt it, according to the Meteorological Department.

The Earthquake Observation Division of the department reported that the 4.5-magnitude quake was detected five kilometres underground in tambon Phai Lom of Phitsanulok’s Bang Krathum district at 12.17am.

People in Phitsanulok and the adjacent provinces of Phichit and Kamphaeng Phet felt the tremor.

People in Nakhon Sawan province in the lower North and the northeastern province of Loei also felt it, according to the division. 

There were reports of new cracks at Wat Rat Chang Khwan in Muang district of Phichit. The Buddhist temple stands about 7km from the epicentre of the earthquake.

The Department of Mineral Resources attributed the quake to the movement of a hidden fault which had not been active for a century.

It said the earthquake was at a relatively shallow depth and was felt in the six provinces of Phitsanulok, Phichit, Kamphaeng Phet, Phetchabun, Nakhon Sawan and Loei, said the department.

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Singapore researchers develop wearable wound health monitoring patch, powered by AI

REVOLUNTIONALISING WOUND CARE

The team first studied the demand for such a product in hospitals, where they found different wound biomarkers were used to indicate various stages of the wound healing process.

Currently, wound infections are mostly diagnosed by swabbing, followed by a bacteria culture test, which involve lengthy wait time and multiple technologies.

This new skin patch aims to drastically simplify the procedure, and reduce the price tag.

“This is a low-cost technology because in one simple paper-based sensor patch, we have five different indicators,” said principal scientist Su Xiaodi.

“Traditionally, testing these five parameters rely on laboratory-based technologies, which take a long time and lots of facilities. Hence, this integrated, miniaturised sensor will potentially provide low-cost wound care.”

However, incorporating the different markers into one tiny paper patch, with each sensor made by different material and based on different sensing principles, was also one of the toughest parts of PETAL’s development.

“Our team has done lots of optimisation to make sure that each sensor can be functional,” said Dr Su, who is also the group leader at A*STAR’s Institute of Materials Research and Engineering (IMRE).

“By integrating them together, we will be able to provide a more holistic, effective and accurate assessment by the AI algorithm.”

After undergoing clinical trials, which could take another three years, researchers plan to introduce the patch to medical practitioners for usage on more severe injuries like chronic wounds.

Prof Tee said he hopes the product can eventually make it to shelves, so that consumers can use the technology on even minor cuts.

Ideally, the patches can help patients with a proper recovery process that will leave them scar-free, said researchers.

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The great chatbot bubble

NEW YORK – Microsoft has added about US$1.5 trillion to its market capitalization this year after the launch of ChatGPT. Nvidia has added about $640 billion. Overall, the market value of generative AI models has increased by several trillions of dollars. What is supposed to justify this kind of valuation?

Market research firms claim that the market for generative AI will reach $126.5 billion by 2031. That’s not a lot of revenue compared to the market valuation. Microsoft now sells at about 12 times sales, and that’s a natural monopoly.

Even if that estimate were correct, market valuations are three to five times higher than $126 billion of revenue would justify. And I don’t see how generative AI can throw off that level of revenue, not by an order of magnitude.

Just what is generative AI supposed to do? Supposedly it can answer customer queries, replace low-level programmers and produce better online search results. But how much revenue can that bring in?

Let’s do some back-of-envelope calculations.

Suppose that chatbots replaced every employee of every help desk in the United States. There are 38,808 help desk employees who earn on average $43,275 a year. Replace them all, and you save $1.68 billion a year. Of course, you can’t replace all of them, and chatbots cost something, so I’ll guess that potential savings are $1 billion a year, provided that the gizmo actually works.

Markets are bumping up chatbot valuations on faulty projections. Photo: Twitter / Getty Images

Then there are computer programmers. ChatGPT can write basic code. There are 132,740 programmers in the US, so lets guesstimate that generative AI can replace the bottom quarter of them, or 33,185 programmers. The bottom quartile of programmers makes $34.84 an hour, according to the Bureau of Labor Statistics. That would save $2.312 billion, minus the cost of the AI program.

So far we’ve wiped out two major areas of employment, and saved a bit over $3 billion in paychecks. I don’t know where the marketing surveys came up with a $125 billion number, but it seems as if they are off by an order of magnitude.

There are plenty of other generative AI applications, for example, for medical diagnostics. But we’ve heard that story before. AI was supposed to read X-rays faster and more accurately than a human radiologist, but that turned out to be a bust.

“Radiologists have more reason than most to be disappointed, because CAD [computer-aided detection] in medical imaging was more than an unrealized promise. Almost uniquely across the world of technology, medical or otherwise, the hype and optimism around second-era AI led to the widespread utilization of CAD in clinical imaging. This use was most obvious in screening mammography, where it has been estimated that by 2010 more than 74% of mammograms in the United States were read with CAD assistance. Unfortunately, CAD’s benefit has been questionable. Several large trials came to the conclusion that CAD has at best delivered no benefit and at worst has actually reduced radiologist accuracy, resulting in higher recall and biopsy rates,” according to one study.

This isn’t the first instance of AI hype ballooning stock valuations.

Remember autonomous vehicles? Ford put $1 billion into an AV startup called Argo AI, valued at $12.4 billion in 2021, and at zero in October 2022, when it shut down. Driverless cars are the technology of a future that won’t come anytime soon, at least not in the United States.

The dirty little secret of AVs is that they require an enormous amount of data with a very short transmission time (low latency). America’s so-called 5G network doesn’t have the low latency required for AVs. It’s only a hyped-up 4G with a slow response time.

China already has autonomous taxi services in some cities. China’s 5G network is not only the world’s largest, but also offers a nearly instantaneous response time made possible by the new technology. AVs are a great idea when you have broad and straight roads (as in some Chinese cities), but not in the jumble of American urban landscapes.

Mark Zuckerberg’s Meta put $100 billion into a virtual reality world that couldn’t find enough visitors willing to wear heavy and expensive headsets. Meta’s stock price collapsed in the wake of the metaverse fiasco, but soared along with other tech companies in the AI bubble.

The hypothetical calculations above really are beside the point. Chat GPT interacts very badly with real human beings. By the standards of a human 10-year-old, it’s really, really dumb. It can’t make the kind of mental connections that make humor possible. In a recent essay for Law&Liberty, I reported some less-than-satisfactory exchanges with OpenAI’s chatbot on the subject of self-referential humor.

Joking aside, generative AI simply can’t fathom how human beings think and talk. Mental associations that come naturally to human beings are incomprehensible to generative AI models, unless the models happen to have been trained on an identical case in the past.

Better Images of AI / Alan Warburton / CC BY-SA Creative Commons

They won’t replace help desk representatives any time soon, let alone radiologists. And the trillions of stock market valuations that mushroomed in anticipation of generative AI will vanish like the other AI bubbles of the past few years.

AI, to be sure, works wonders when it is applied to routine tasks, for example, picking defective items off a conveyor belt, or manipulating autonomous cranes and trucks at a port. America’s largest port at Long Beach, California, is one of the world’s least efficient (it ranks number 300 on the World Bank list). It takes roughly 48 hours to unload a large container ship.

At China’s most modern port, Tianjin, a 5G network using AI systems designed by Huawei can unload the same ship in 15 minutes. Smart cranes find bar codes on containers, move them to autonomous trucks and go on to the next.

AI is there to free humans from mechanical tasks, not to make machines imitate humans. That’s where AI will add economic value.

Follow David P Goldman on Twitter at @davidpgoldman

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