What a splendid title they chose for my NYT column on the economics of Blackwater. To start:
…whatever the possible sins of the Blackwater firm, the overall problem
is not private contracting in itself; contractors do not set the tone
but rather reflect the sins and virtues of their customers, namely
their sponsoring governments.
…War is, among other things, an economic undertaking, so the profit motive in military affairs isn’t always bad or ignoble.
And then:
Today, America no longer has a draft, its military bureaucracy can be
inflexible and the public wishes to be insulated from the direct impact
of war. Contractors are a symptom of government weakness, but are not
the problem itself. The first Persian Gulf War, which enjoyed greater
international support, was not reliant on contractors to nearly the
same degree.
Contractors can offer many efficiencies, but:
When things are going well and the “good guys” are in control, the
flexibility and experience of military contractors can make things go
even better. But when the environment is hostile and events are
spiraling out of control, the incentives of private contractors may
lead to many mistakes.Note that a serious issue for Blackwater –
the allegations about needless deaths of innocent civilians – has also
been an issue for United States government forces from the beginning of
the conflict.Most of all, contractors are appealing when a
victory is possible in relatively quick order. The potential
accountability problems won’t linger for long; conversely, few
contractors will look good when a conflict runs on for years.
As they say, read the whole thing; I discuss Alex’s research as well.
I’m afraid this particular piece seems like a tautology to me.
If you assume that private companies are simply responders to incentives, then it is clear that contractors can do no more than reflect the incentives to which they are exposed.
If you assume that governments are autonomous framers of incentives, then it is clear that any bad outcomes from the use of private industry can be laid at the door of government.
To wade into the Blackwater mess with the intent of preserving the virtues of markets (“the overall problem is not private contracting in itself”) and to blame governments (“this reflects the priorities of the United States military itself”) is an odd choice of argument. It ignores the fact that in military matters the state and the market have always been close partners (Eisenhower’s “military-industrial complex”). To argue for the virtues of one piece of the complex by blaming the other is to argue over which arm of the octopus to blame (a terrible simile, I know).
Tom: Even if you take the word of one man to establish the validity of your statement (that market and government/military are close partners), industrial != market. Industry, while able to be accomplished by market driven means, is also able to function under other economic mechanisms.
Tyler: As much as most American’s are loath to admit it, their actions (or indifference) suggest that the contractor situation and the collateral damage is acceptable (albeit not desired). Our recent attitudes toward foreigners (immigration, racisim in the south), non-traditional lifestyles and (as you mentioned) our narrow-minded focus on our citizens not only reinforce our ego-driven appearance in the world but are directly reflected not only by the man we elected (twice) to our highest office but by the people that fight overseas (both military and contractors/ex-military).
Should we change our ways just to appease someone else? No, nor should we expect others to change who they are to appease us. Are there any easy solutions? No. Will there be pain? Yes (this is really what bothers anti-market people). Every one is worried about the consequences if we just up-and-leave. Good or bad, we care more about our soldiers and citizens than the outcome overseas. Pull out and let the pain happen and make us stronger (and hopefully more cautious/careful).
The economics/budget aspects of private contracting in the military are the key to understanding why this is happening. The equation is simple: to make it look like you’re keeping spending low, you mainyain lower-than-needed troops + lower-than-required reserves. Add to that no draft + a imited ability to increase use of who you have + no real support from allies and you get an inevitable reliance on contractors. It’s happening in every federal agency. The only reason we know about Blackwater is that they shoot at people.
Your country did not win the War of 1812.
He is referring to what in Britain is called the “American War of 1812″,
which of course nowadays is a minority and non-standard term for that war.
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