Asia & the Pacific

What the Iron Man-like character is claiming for his futuristic automotive company is not unheard of. On a systemic basis, mammoth institutional investment—especially from sovereign wealth funds (SWFs)—is flowing into start-ups and technology-oriented publicly traded companies. In this case, Saudi billions would help Mr Musk escape the pressures of being publicly listed. SWFs have invested large sums into high-growth start-ups promising innovation and financial returns. In fact, just this month, Saudi’s Public Investment Fund (PIF) announced a US$1bn investment in Tesla’s rival, Lucid, and a US$2bn stake in Tesla. The rise in SWF balance sheets and activity is having ramifications on global efforts to be more Silicon Valley-like, and on Silicon Valley itself.

Key features of Chinese history and culture have put it in a position to become the global leader in artificial-intelligence technologies, surpassing even the tech giants of Silicon Valley. But to do so, China will need to overcome economic hurdles – both at home and abroad – that could stand in its way.

Dr. Ian Bremmer, expert in political risk and founder of the Eurasia Group, gave a seminar sponsored by the the Future of Diplomacy Project on Thursday, November 9 at the Harvard Kennedy School, titled “Managing Risk in an Unstable World."

"Realists believe nationalism and other local identities are powerful and enduring; states are mostly selfish; altruism is rare; trust is hard to come by; and norms and institutions have a limited impact on what powerful states do. In short, realists have a generally pessimistic view of international affairs and are wary of efforts to remake the world according to some ideological blueprint, no matter how appealing it might be in the abstract."

"A negotiated solution would require a military stalemate on the ground, and this depends on NATO forces guaranteeing that Afghan forces in key positions will not be overrun. This is the political objective that should inform Western military support in Afghanistan from here on out: to make clear to the Taliban that they can achieve more through a peace deal than through fighting and to make clear to Western electorates that this isn't a forever war."