Feral Jundi

Thursday, August 9, 2012

Building Snowmobiles: Institutions Vs. Collaboration… And The Strength Of Offense Industry

In this deal I wanted to highlight the Power Law concept and the Pareto principle (80-20 rule) mentioned by Clay Shirky at around 8:30 in the TED video below. To me, this is an important element of Offense Industry, and it also shows how the collaborative nature of Offense Industry is able to compete against enemies that use institutions for warfighting.

Specifically, I wanted to highlight the actions of privateers during the war of 1812 versus the British Royal Navy. One group is a collaborative effort, and the other was an institution. At the end of the day, the collaborative effort of the privateers being focused on merchants and other valuable British prizes, ended up contributing greatly to the overall success of the war effort. And yet, there was no admiral coordinating the privateer attacks, no institution that dictated how each privateer operated other than a license (letter of marque) giving them authority, and there was room in this offense industry for the top performers all the way down to the one hit wonders.

Privateers during that time period also seem to exhibit a power law, 20-80 type effort. There were the privateers that were the top performers (20 percent that captured most of the prizes), and then there were the long tail of privateers who would get a prize here and there (one hit wonders or 80 percent). This entire grouping of privateers ended up accomplishing quite a lot, and at no cost the US government. Actually, the government made money off of these privateers and usually collected about 10 percent from each prize taken, which then went back into the war chest to further fund ‘institutions’ like the navy.

This system also rewards the top 20 percent, but still gives hope to those that are part of the effort. But governments that utilize the privateering system should know that those 20 percent are crucial to your effort, and every effort should be given to identifying and working with this 20 percent so they continue to be successful. A government should also be aware of the 80 percent and understand their place in the effort as well.

It should also be noted that the US Navy only had 23 ships during the war and the total registered amount of privateers was 517. Likewise, privateers were able to capture 1300 prizes and the navy was able to capture 254. Yet privateers funded their own vessels and self organized, whereas the navy was an institution requiring investment by the US. This is expensive and time consuming and obviously the US was not able to raise an adequate Navy in time for this war.

So instead, the US depended upon the ‘collaborative’ strength and cost effectiveness of a privateering system to accomplish the task of attacking British commerce and logistics.  To me, this collaborative nature of offense industry is it’s strength. I also wanted to identify this strength and archive it for future discussions about Offense Industry. You can also see that the more inclusive and massive the privateering system is, the more effective that privateering system will be at gaining prizes. It’s a numbers game, and institutions will have a hard time competing with that.

You could also apply this concept to what is happening in the arab spring. You have people who are part of a collaborative effort to overthrow their government and it’s ‘institutions’. These collaborative efforts follow the power law curve as well, and you will have the top performers and the one hit wonders throughout the effort, and the overall results of that effort equate to great accomplishments and the overthrow of dictators. Interesting stuff and the video below is definitely worth your time to watch. –Matt

 

Friday, July 20, 2012

Maritime Security: Germany Plans To License And Regulate Anti-piracy Security Firms

“We are breaking new ground here,” Otto said. “We mainly have foreign companies that operate in international waters.” The German government estimates that British and US companies in particular could apply for a license.

This is interesting and I really liked the quote up top. To have a German ‘Letter of Marque’ or a license would be pretty cool. Although on the down side, I did not like the limitations that the Germans were putting on weapons use.

Weapons for the private ship protectors will have to be registered separately. The law stipulates that no heavy military weapons can be employed. Semi-automatic weapons, though, could be permitted.

So the pirates can operate heavy military weapons for attacks, but armed security defending these boats are not allowed too have them?  And what exactly is the German definition of ‘heavy military weapons’?

The other point that was kind of interesting is the license fees and process.

The Federal Office of Economics and Export Control (BAFA) will most likely be the office in charge of the procedure. It will be able to call in the Federal Police for consultation. Security firms will have to pay between 8,000 euros ($9,800) and 16,000 euros for the licenses, which will be valid for two years.

This is peculiar to me and I was wondering how the fee schedule works?  Do you pay less for a license if you are only defending small vessels, or what?  Or do you pay more if you are a foreign security company versus a national one? We will see…

The last part of this article also mentioned some key statistics. Like ‘German shipping companies operate the third largest merchant fleet in the world’! Specifically, they mentioned these numbers.

German shipping companies operate the third largest merchant fleet in the world. However, only a small proportion flies under the German flag. The country’s black-red-gold flag only flies on 492 ships. This makes the vessels German territory. Criminal offences on board, for example, are tried before German courts.
On the other hand, 3,161 ships operated by German shipping companies sail under foreign flags. Shipowners, unions and the government are aiming to bring a total of 600 ships under the German flag. But to date, this goal has shown little success.

492 ships flying the flag of Germany is a significant number of vessels to protect under this scheme. No telling how many of them transit through dangerous waters. But increasing that to 600 ships will only increase the odds of more work for security firms. Not to mention the 3,161 vessels out there operated by German shipping companies. Perhaps these security measures will bring more vessels back under their flag? –Matt

 

Germany plans to regulate anti-piracy security firms
July 19, 2012
Sea piracy off the coast of Somalia has dropped dramatically, in part as the result of private security forces accompanying the ships. The German government now wants to regulate their certification.
The German Cabinet has agreed on legislation to introduce a licensing procedure for security companies on board ships. The draft bill determines which requirements these firms have to fulfill if they are protecting German-registered vessels. The government coordinator for the maritime industry, Hans-Joachim Otto, welcomed the decision.

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Wednesday, July 4, 2012

History: Privateers Reenact Battle Of The War Of 1812 In Boston Harbor

Filed under: History,Letter Of Marque — Tags: , , , — Matt @ 11:27 AM

Happy 4th of July and I thought this was a cool little deal to put out there. Private industry or privateers were very much a part of this country’s war for independence. It is great that we have such a strong military now, but it is equally great that private industry is able to contribute if need be…and our early days is proof of that. –Matt

 

Thursday, June 21, 2012

Books: The Privateering Stroke, By Capt. Michael Rustein

Henry Adams stated flatly that “the privateers contributed more than the regular navy to bring about a disposition for peace in the British classes most responsible for the war.”

For those of you that have been following along with the blog’s focus on privateering, letter of marque and reprisal, and offense industry, then you will know why this book would interest me. I have not had a chance to check it out yet, but from the sounds of it, it was written by a privateering ‘maven‘.

The author has actually built a schooner called the Fame, based on the first privateering vessel to capture a prize during the War of 1812. He has written several books on the subject and even has a business that teaches the public the history and the workings of a privateer vessel. I would say that would be defined as pretty passionate about the subject. lol

Probably the most interesting aspect of this book from the description below, is the author’s focus on how important privateers really were during the war. This was the ultimate in old school privatized warfare and offense industry in overdrive.

An entire industry focused on attacking the weakness of an enemy, and Britain’s weakness was their commerce/trade. There is no way our navy and privateers could have taken on the Royal Navy directly, so instead we did like most small disadvantaged forces would do in that situation, and attacked their poorly defended commerce/trade. Check this quote out.

Deprived of customs duties, the United States government was in dire straits by the end of 1814. Had the conflict continued, the nation would have been incapable of defending itself without a central bank, new taxes, and conscription. Meanwhile, America’s privateers were waging a highly effective war against British trade. They captured an estimated 2,000 prizes worth $40 million, sent insurance rates to unprecedented levels, and drove up prices at a time when Britain’s economy was groaning under the strain of two decades of warfare. The British public was outraged; merchants bombarded the government with protests and appeals. With the United States incapable of maintaining the initiative in Canada, privateering became the nation’s last, best, and only offensive weapon. 

Pretty neat and this book would be another good one to check out. Especially if you are a student of ‘offense industry’ or are interested in the letter of marque concept. This would also be a good read for those of you interested in naval history and guerrilla warfare. –Matt

The Privateering Stroke

By Capt. Michael Rustein
Book Description
Publication Date: March 25, 2012
High school and even college textbooks oversimplify the War of 1812 — when they don’t ignore it completely. Popular histories emphasize the military as opposed to the economic and political aspects of the war. The U.S. Navy’s role has been written about ad nauseum. Meanwhile, we are still waiting for a definitive work on the equally important contributions of American privateers. While the Navy’s outstanding performance in single-ship engagements remains a source of national pride, those victories did not change the course of the war one iota. Had Constitution defeated a dozen British frigates, the thousand-ship Royal Navy would still have blockaded our coasts, strangled our commerce, bottled up our warships, and hunted down those that escaped. Even her former commander, Tyrone Martin, conceded that Constitution’s victories were “no more than pin pricks” that “had no direct effect on the course of the war.”

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Friday, May 25, 2012

Quotes: Secretary William L Marcy On The Paris Declaration And Privateering, 1856

Lately I have been delving into privateering history, and Secretary of State William L Marcy comes up now and again. Even John Arquilla was quoting stuff about Marcy in some of his work, so I thought it would be cool to do some digging.

I was able to find an old article written about Marcy’s mission to the Congress of Paris, and the debates he was having with the other members of that congress about the terms of the Paris Declaration Respecting Maritime Law. This of course is the treaty that banned privateering.

With that said, Secretary Marcy is the reason why the US is ‘not’ a signatory of this treaty.  His reasons were pretty simple as the quote below says.  Privateering is a tool of warfare that smaller sovereigns can use, that lack the resources for creating navies that can compete with the larger countries with more powerful navies. It was the great equalizer of the time, and the US was not about to give up that tool of warfare.

Privateering is also an ‘offense industry’ that creates an industry that attacks weakness with strength (Sun Tzu). That ‘weakness’ is a poorly defended and dispersed commerce (and logistics/source of wealth) of an enemy, and the ‘strength’ is an industry that only grows with each prize that it captures. (today’s piracy is a prime example)

The strength does not come from one vessel, but of thousands of vessels, all hunting and canvassing the seas, looking for their prey. And all of these vessels are competing with each other over enemy prizes. The successful privateers grow their fleets and expand upon their winning strategies, while the competitors of these successful privateers watch and learn and try to mimic what they are doing to be equally successful.

This system of free market warfare also works well with The New Rules of War that John Arquilla and David Ronfeldt put together.(watch this video about the concept) That privateers are the ‘small and many’, that go up against the enemy’s ‘large and few’.  Privateers also fit well within the concept of ‘swarming’, because privateers do not set out in large battle groups or flotillas–they attack from all and any directions in small groups, and at the time and choosing of each individual privateer. There is no large navy, for a large navy to attack….

Although under the swarming concept, this industry kind of shuns large companies to do this.  A swarm has to be cost effective, if it is to be done by a single privateer company. Most would prefer to go after low hanging fruit or easy prizes. But if the money was there, swarming could easily be cost effective. Today’s pirates are experimenting with swarming and the market will determine if this is a profitable venture.

On the other hand, an industry of thousands of privateers versus the commerce of an enemy totally presents itself as a swarm. No one controls it’s actions, it attacks when and where it wants. There is no admiral directing the attacks of all of these vessels, and that is what makes it a unique attack group. The only controls in this type of industry, are a simple Letter of Marque.

Most of all, the concept of ‘finding’ works really well with privateers, because each private vessel is purely focused on ‘finding’ prizes. Their livelihood depends upon it, and those captains that are best at finding prizes, wins. Investors hire them specifically because of their success rates, and they depend upon these captains for profit. An example would be commercial fishermen, and how important a good captain is for finding fish and to covering the costs of investment–both internal and external.

All of these attributes combined, is what makes privateering an asset for nations. Secretary Marcy knew this as well, and our leaders knew this when they decided not to be a signatory to the Paris Declaration.

Finally, I mentioned before that private industry was important during times of war, because this nation uses an All Volunteer Military system. The problem with this system is that during the post war era, a citizenry demands a peace dividend, and their politicians give it to them. The military is then reduced in size and cost, and everyone is happy–until another ‘9/11’ happens.  And then we must go to war with the military we have, and not the one we wished we had.

Or during that war, it becomes unpopular for whatever reason–like it drags on and on, or there is an uptick in deaths, or the economy is doing well.  Finding volunteers during those times is tough. Or when a nation’s war plans becomes a victim of politics, with changing leadership or alliances crumbling because of issues in their home countries, and manpower issues arise during those time periods.

Man power requirements are always changing during a war, and war planners and politicians need tools to meet the needs of those changing man power requirements. Using privateers and private industry during times of war is a tool that gives our leaders the means to deal with the ups and downs, beginnings and ends of war or multiple wars. Private industry is what makes an All Volunteer Military work in this kind of environment, pure and simple. I think Secretary Marcy and others realized this back then about privateering, and today’s leaders realize how important private industry is for our current and future wars. –Matt

*For an excellent history about the Paris Declaration and why the US did not sign it, check out this downloadable book.  It is called “The Abolition of Privateering and the Declaration of Paris”, written in 1887 by Francis Raymond Stark.

 

 

They tell us, “reserving the right to make what havoc our overgrown navies may choose to inflict upon your tempting commerce, we demand that you exempt our commerce from the only means of retaliation you possess, the system of privateering.”
We reply, “The terms are unfair. Equalize them by declaring your public and our private armed vessels under the same prohibitory rule, and we are with you. Otherwise, we are constrained to deny that privateering is or ought to be abolished.”

 

quote of Secretary William L. Marcy, about the Congress of Paris and terms of treaty, August 12, 1856.

 

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