Feral Jundi

Thursday, April 26, 2012

Publications: Selective Privatization Of Security: Why American Strategic Leaders Choose To Substitute PSC’s For National Military Forces, By Bruce Stanley

This study argues that when political leaders chose to reduce their nation’s military force structure, they may face conflicts beyond their anticipated scope and duration. Such decision- makers are left with no choice but to legalize and legitimize the use of PMCs resulting in the increased use of PMCs as a deliberate tool of foreign policy.

A big hat tip to David Isenberg for finding this paper and posting his commentary about it. What makes this so significant is that the author of the paper is actually using qualitative and quantitative analysis to prove exactly what the reason is for the rise of the use of private security contractors. It is this kind of analysis that can be pointed to as ’empirical’ evidence for what is really going on with this industry. Here is what David had to say about the paper:

Considering how many times over years I have critiqued the private military and security (PMSC) industry for making claims without providing evidence to back it up, it is always noteworthy to find that rare person who tries to fill that empirical evidence gap.

Absolutely. This is important stuff, and especially for those that are policy makers in government. It is also important information that companies can use for strategic business planning.

I also really enjoyed the use of economic theory in this paper. In essence, this model of dissertation is pretty close to what I would use for something like Offense Industry.  It is also interesting to point out that the author did come across some speed bumps when it came to incomplete data.

To be accurate in analysis, you need good data. Because the US government didn’t record as well as they could of, all of the contractors involved with this war and what they did, that studies like this one can suffer a little. The author pointed this out, but he was able to come to some interesting conclusions.

Summary
This dissertation was framed around the question of why there has been a rapid growth in the reliance on the private security industry in US foreign policy in the past two decades. More importantly this dissertation sought to demonstrate: first, that the use of private security contractors by the United States is not a new phenomenon; second, that the recent increased use of private security as an instrument of military policy or foreign policy may in fact be a consequence of deliberate policy decisions of successive presidential administrations; and third, that the security environment in the target state of an intervention is a factor that results in an increase of private security contractors. The goal of this dissertation was to move beyond most of the extant literature which describes the phenomenon, and develop theory that helps explains why there has been a rapid growth in the reliance on the private security industry.
This study argues that when political leaders chose to reduce their nation’s military force structure, they may face conflicts beyond their anticipated scope and duration. Such decision- makers are left with no choice but to legalize and legitimize the use of PMCs resulting in the increased use of PMCs as a deliberate tool of foreign policy. Using “supply-demand” theory as the theoretical approach, this dissertation built upon the three key influences emphasized first by Singer (2003) and then by others: the decreasing supply of national troops, decreasing national defense budgets, and the rising demand from global conflicts and humanitarian emergencies.
As the previous chapters demonstrate the basic theory and thus insights from the descriptive literature have value, however they failed to provide a fully exhaustive explanation of this important phenomenon. The additional elements added to the relatively spare theory resulted in a more convincing explanation of the increased use of PMCs. In sum, this study added precision to our understanding of the causes of the increased use of PMCs.
This chapter examines the findings of my dissertation, a few methodological problems, and suggests some areas for further research. The next section presents the theoretical discussion and empirical findings and conclusions from the qualitative and quantitative section. The section that follows provides a few suggestions on how to improve the research design. The final section offers a few policy prescriptions and areas for further research.
Findings
This study asserted that the private security industry fills vacuums created when the US government does not have the means or the will to fully provide domestic and international security. To understand the broader context of the private security industry’s relationship to mature democracies this dissertation focused initially on five hypotheses:
H1: When military outlays decrease there is an increase in the use of private security.
H2: When the size of a national military decreases there is an increase in the use of private military security.
H3: When the number of a military disputes, military engagements and militarized conflicts increases there is an increase in the use of private security internationally.
H4: When the duration of a military conflict increases there is an increase in the use of private security.
H5: When there is a decrease in bureaucratic controls and regulations there is an increase in the use of private security.
Three additional hypotheses were added to this study upon completion of the case studies. They are:
H6: When there is a force cap placed on the size of the military force there is an increase in the use of private security.
H7: When there is no host nation supporting the intervention there is an increase in the use of private security.
H8: When the security environment is non-permissive there is an increase in private security.
Using a mixed methods approach, the hypotheses were tested using both a qualitative and quantitative approach. The qualitative approached relied on the case method, using a series of structure focused questions to compare the outcome of three historical cases where the US used private contractors. As a result, the controlled comparison helped identify the outcome of the dependent variable, private contractors, and provided a historical explanation of private contractors in relation to a set of independent variables. In this instance, structured, focused comparison helped to tease out exactly how supply, demand and other pressures help to stimulate the rise of PMCs.
The quantitative approach relied on a statistical method, using interrupted time series to examine the use of private contractors by the US from 1950 to 2010. The quantitative component analyzed a larger time period and increased the generalizability of the findings. It also provided insight on the relative explanatory weight of different causal influences.
The findings of this research demonstrates that the three key influences asserted in the extant literature the decreasing supply of national troops, decreasing national defense budgets, and the rising demand from global conflicts and humanitarian emergencies are very important to understanding the rise of the private security industry in the past two decades. Yet as this dissertation shows the nature of the security environment in the target state and the reduction (or elimination) of bureaucratic controls in the acting state are also important to explaining the increased reliance of the private security industry. Two other variables that were prevalent in the case studies that may be a factor in the increased reliance on private contractors: limitations on the number of troops committed to an intervention, and the duration of the intervention.

So that is is pretty interesting. A company can literally look at the current situation and say that if their country decreases the size of their military force, the size of that military’s budget decreases, and there is a dramatic increase in conflict/emergencies, that the demand for force will more than likely point towards the use of PMSC’s. And you can see that going on throughout the world as we speak.

But the thing that I look at is the strategic uses of PMSC’s. I have always argued that this industry is a strategic asset, and not a liability–regardless of the few hiccups this industry has had over the years. We are what made the concept of an ‘All Volunteer Force’ work. Here is the quote that grabbed my attention.

Policy Implications
State policy makers may be able to use the results of this study to inform decisions on military budgeting, structure, or civil-military relations. As the worldwide economic crisis continues, policy makers faced with budget choices will look to reduce their military expenditures and possibly their military force structure. However, if they are faced with foreign policy problems requiring military intervention, then it should not be surprising if they substitute national military forces for private security forces. It is likely that more state policy makers may move towards the legalization of private security companies. Thus, the trend towards legalization leads toward further legitimization of the use of private security contractors. The US has certainly set the example in the past twenty years for other nations to follow.

This legalization process is the one thing that I am always on the look out.  The Letter of Marque is probably the most significant legal mechanism out there for authorizing companies to wage war in the name of the state.

As to current legalization processes, I would have to say that it has been slow and tedious. But we are seeing movement, and the Commission on Wartime Contracting is a prime example of that effort. I point to the recent legislation that members of this commission put forth–which helps to further legitimize this industry.

As the industry is further legitimized by lawmakers seeking better controls over it, then the comfort in using such a force for foreign policy increases.  Most of all, it allows this nation to enjoy their ‘peace dividend’ at the end of wars, but at the same time have a mechanism in place that can support a call up of force for whatever emergency or conflict that may come up.

The use of the ICoC and the standardization process that is currently going on throughout the world is another example. Efforts like this will further legitimize the use of private security and will help to increase it’s use. Even with the current grey areas of legal use, we are seeing the maritime security industry grow at an incredible pace. Armed guards on boats is definitely another example of this increased use of private security.

As for actual strategy, sometimes private force is the better option. It gives politicians the ability to quietly buildup or draw down for a conflict. Private forces fill in the gaps as the use of force is debated, depending on the current political environment. Meaning one day, a President might have a specific strategy for a conflict that a nation is involved with, and then within a month when that President is voted out of office by a President with a different strategy, then that military must be able to flex with that.  Private security is what allows for that flexibility.  Likewise, PMSC’s have been used by two Presidents of different parties, both with different strategies, and in multiple wars over the last ten years. Obviously someone likes us. lol

In fact, we have actually reached a point in the war where there were more contractors than military force in places like Afghanistan. Or that contractors became the primary force representing US interest in places like Iraq.

In closing, it is amazing to me that we have this massive officer corps for the military, numerous think tanks, and plenty of military colleges that all focus on the use of ‘military force’.  And yet, private force is making this much of an impact on the way we do business? Does anyone else see the imbalance here? Where are the think tanks dedicated to the use of PMSC’s?  Where are the PMSC colleges and universities? What institutions other than the military or business schools produce the future leadership of ‘private security and military companies’?

It is also odd to me that there are so few voices talking about this.  I can count on my hand, the number of blogs or journalists that purely focus on PMSC’s. It is nice to enjoy a niche like this as a blogger. But for how significant this industry is, and how fast it has grown, I would have thought that more folks would have come into the mix to analyze and synthesize about this industry. Interesting stuff, and it really makes you think. A big hat tip to Bruce Stanley for the work he put into this! –Matt

Link to paper here.

Monday, April 9, 2012

Publications: Journal Of International Peace Operations, March-April 2012

Filed under: Industry Talk,Publications — Tags: , , — Matt @ 11:45 AM

I always like posting these, just because the ISOA puts a lot of effort into making a good product here and the stories are relevant to the industry. –Matt

 

Friday, March 23, 2012

Publications: Structuring A Sustainable Letters Of Marque Regime, By Lieutenant Todd Hutchins

A big hat tip to David Isenberg for finding this paper and writing an excellent article about it. Also bravo to the California Law Review for publishing this paper and hopefully between this site and David’s, we can really promote this thing. I am always on the lookout for modern legal interpretations of, and the possible uses for the LoM.

It is also cool that the author of this paper is an officer in the US Navy and a current JAG student. Maybe he can come up and talk a little about any feedback he has received for this paper, and the reason why he chose this particular topic.

Now for a couple of points of interest. Lt. Hutchins is more focused on an international LoM system, as opposed to countries issuing LoM’s. You know, I don’t think this approach would work, just because personally speaking, I would rather answer to the laws and customs of my own country versus answering to an international court. What is to prohibit any biases towards me and my nationality in such a international court?  So personally, I would much rather have a LoM issued by a country whose legal system I trust and would give me the best odds in a trial of my peers–from my country.

I still think companies would seek an internationally issued LoM. Especially if the profit margin was there. If it is not, then the risk will definitely not equal the reward and this industry will not thrive. You really need to make the enemy into the ‘Blufin Tuna’ or ‘Buffalo’ of prizes.

Which brings me to my next point. Offense Industry requires a strong profit motive for the destruction or capture of a declared enemy. The reward must equal or be greater than the risk in this case. I tend to lean towards greater than the risk, just because we want extreme competition for this highly valuable enemy.

So the question with this is if the enemy has enough assets that can be seized and decided upon in a prize court. The guys with the money are on land or hiding out in Dubai or wherever. How will a company be able to seize their assets on the international stage?

Now privateers like Captain Morgan did do land raids to capture enemies and their assets. He was quite successful at it, and if we were to target Somali pirates, then allowing companies to raid wealthy Somali investors in Somalia or elsewhere would be key. But then that would require special agreements with those countries that these investors are hiding in. The LoM would have to be very specific and comprehensive in this regard.

Or, the issuing party could throw in bounties and create a false market out of the whole thing. To artificially attach value to these targets, as well as allow companies to seize assets. That to me would be optimum, just because you really have to sweeten the pot for companies to get involved with this thing. Perhaps the 10 percent that governments would receive via prize courts, would go back into the pot for bounties and costs of running prize courts?  Raising money for bounties is a factor when creating artificial values of targets.

I also applaud the author for identifying how expensive the current Defense Industry is for maritime security. I have mentioned in the past that DI’s are costly, and they do nothing to eliminate the problem. If anything, DI’s profit from the continuation of war or piracy, and it is against the best interest of these participants to remove the very thing that gives them their reason for existence. But DI’s have their place, and I believe that in order to reduce the costs of DI, you need to also implement an offensive capability. You will always need guards to protect that in which you love, but you must also have a force tasked with hunting the bad guys–to keep them off balance and put them on the defense. And ultimately, you would like to make piracy into a very unprofitable game for all parties thinking about getting into that business.

Finally, I would like to add one more deal to this review, just to emphasize the significance of profit and reward in warfare. This quote comes from Sun Tzu.

Now in order to kill the enemy, our men must be roused to anger; that there may be advantage from defeating the enemy, they must have their rewards…Therefore in chariot fighting, when ten or more chariots have been taken, those should be rewarded who took the first. Our own flags should be substituted for those of the enemy, and the chariots mingled and used in conjunction with ours. The captured soldiers should be kindly treated and kept….This is called, using the conquered foe to augment one’s own strength.- Paragraphs 16, 17, 18, Chapter 2, ‘Waging War’.

Even Sun Tzu understood the value of reward in war.  Might I add that the interpretation of ‘rewards’ refers to spoils, and not some ideological reward of just ‘winning’. Although that has it’s place for incentive, but feeling good about a win does not pay the bills as they say. lol

I should also note that Sun Tzu also delved into the concept of the cost of protracted war. It is expensive, and if there is no element of a strategy focused on eliminating an enemy, and industry is only used for defense, then the costs will continue to drain the treasures of those nations and companies with interest in the matter.

There is no instance of a country having benefited from prolonged warfare…It is only one who is thoroughly acquainted with the evils of war that can thoroughly understand the profitable way of carrying it on. –Paragraphs 6,7, Chapter 2, ‘Waging War’.

That pretty much sums up why wars should be fought as quickly as possible, and why there should be thought about creating an industry that profits from ending it, and not ‘carrying it on’. Something to give balance or even counter strong DI’s that come about from prolonged warfare. –Matt

 

 

Structuring A Sustainable Letters Of Marque Regime: How Commissioning Privateers Can Defeat the Somali Pira…

Thursday, February 9, 2012

Publications: The Oil And Gas Infrastructure Security Market 2012-2022

Visiongain calculates the global oil and gas infrastructure security market will reach $29.16bn in 2012.

Boy, I would love to get my hands on this thing. But at $2,633, I will have to pass. lol As you can see, this type of information is extremely valuable to those companies that specialize and compete in this market. Oil and Gas security is a huge market for security contractors, and as the demand for energy increases and more instability threatens the oil producing regions of the world, then guys and gals like us who protect the infrastructure and the people building and supporting that infrastructure will become increasingly important and necessary. It’s nice to be wanted.

Just look at piracy and it’s impact on oil shipments? An entire tanker taken off the market because of a couple of hijackers, can send ripples in the market. Numerous tankers taken can send shock waves.

Look at the attacks on pipelines all throughout the world and try to calculate the impact on those markets that depend on that gas or oil. Especially during winter time. Energy security is big business, and until some ‘black swan’ type energy invention comes on to the scene that makes oil and gas obsolete, then I don’t see much change in the current direction of the market.

Interesting stuff and if any of the companies that bought this thing, or anyone that has actually looked at the report would like to give us some juicy tidbits, we are all ears. –Matt

 

The Oil & Gas Infrastructure Security Market 2012-2022
Report Details

Over the next decade, global demand for oil and gas is set to rapidly increase as rising populations and economic growth help to drive the industry. This will create a need for additional oil and gas infrastructure to be constructed. At the same time, many countries around the world are currently facing a number of security challenges stemming from civil unrest, terrorist activities, and a competitive global market. Together, these factors will create substantial opportunities for companies involved in the oil & gas infrastructure security market as a range of products and services will be needed to protect both existing and future assets. Visiongain calculates the global oil and gas infrastructure security market will reach $29.16bn in 2012.

This report offers an examination of the oil and gas infrastructure security market over the next decade, providing detailed market forecasts for each of the leading 15 national markets, as well as forecasts for the four sub-markets: perimeter security and surveillance, maritime security, access control, and cyber security. The various drivers and restraints of the market are evaluated in order to provide readers with specific insights into the future direction of the industry and where the greatest opportunities are likely to be found. How much are the leading national oil and gas infrastructure security markets planning to spend on acquiring new technologies and services between 2012 and 2022? How will each of the sub-markets perform over the next ten years? Who are the leading companies in the oil and gas infrastructure security industry? What factors will drive growth opportunities over the next decade?

(more…)

Tuesday, February 7, 2012

Publications: Contractor Support Of USCENTCOM AOR, 1st Quarter FY 2012

Contractor Support Of USCENTCOM AOR, 1st Quarter FY 2012

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