Cyberspace as a medium for terrorists

Given that terrorists are quickly acquiring technical skills that increase the utility of cyberspace to an effective distributed organizational network and the likelihood of potential attacks on U.S. critical infrastructure and defense systems, we consider the value of cyberspace to terrorists. To this end, it is necessary to address the following questions pertinent to the attributes of cyberspace to examine why and how terrorists may utilize cyberspace to advance their goals: (1) What is cyberterrorism? (2) Is cyberterrorism warfare? (3) Why would terrorists use cyberspace? (4) What do we know or anticipate that terrorists want to do in cyberspace? (5) How do we deal with terrorists in cyberspace? We conclude with an assessment of the cyberterrorism threat facing the U.S. today and recommendations that address increasing technical capabilities and security measures for intelligence gathering, digital control and supervisory control and data acquisition (DC/SCADA) systems, and emergency response systems.     

Memory, transaction records, and The Wealth of Nations

Adam Smith hypothesized that impersonal exchange was necessary for a society to develop specialized division of labor and create wealth. Douglass North and Vernon Smith argue that successful developed economies are the result of institutions. We hypothesize and provide evidence from ethnographic data that the basic accounting technology of recording transactions is associated with more extensive impersonal exchange and increased specialization in the division of labor. Our intuition is that extensive impersonal exchange requires reliable memory of trading partners’ past behavior to sustain trust and encourage reciprocity when a group expands beyond the size of traditional hunter-gatherer groups. Our findings are consistent with the hypothesis that transaction records are necessary for the emergence of complex economies as suggested by the archaeological evidence of recordkeeping in Mesopotamian societies 10,000 years ago.