David Isenberg wrote in his Dogs of War column Friday discussing whether or not PMCs are cost effective.
If you’ve heard it once, you’ve heard it countless times: Governments and corporations turn to private military contractors because it is more cost-effective than using regular military forces. But is it true?
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But whether it’s true that contractors are cost effective is at best an open question, the answer to which depends, in part, on what you mean by cost.While outsourcing can be effective, doing things in-house is often easier and quicker. You avoid the expense and hassle of haggling, and retain operational reliability and control, which is especially important to the military.
Then there is the fact that outsourcing works best when there’s genuine competition among suppliers. …
The Bush/Cheney administration has greatly reduced competition:
An analysis showed that fewer than half of all “contract actions” - new contracts and payments against existing contracts - were now subject to full and open competition. Just 48 percent were competitive in 2005, down from 79 percent in 2001.
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Many academics who examine the issue of the relative cost of private versus public point to the politics behind the ways one can measure cost. What you include or exclude can be a complicated, and highly political, exercise. Economists disagree on how to answer the question at least in part because they use different variables when measuring cost.
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… What little cost-benefit analysis there has been to date has focused on narrow economic cost comparisons and generally avoided addressing equally important political factors, such as avoiding tough choices concerning military needs, reserve call-ups and the human consequences of war.As Tyler Cowen, an economics professor at George Mason University, wrote, “Excessive use of private contractors erodes checks and balances, and it substitutes market transactions, controlled by the executive branch, for traditional political mechanisms of accountability. When it comes to Iraq, we’ve yet to see the evidence of a large practical gain in return; instead, use of contractors may have helped to make an ill-advised venture possible.”
And related to the “human consequences of war”, one big question is who pays which costs? The military budget, and the government’s operating budget are hardly the only ones affected. Many employees of the PMC corporations are finding that their immediate employer is a shell incorporated outside the US to avoid US laws, such as medical coverage for the PMC employees. Quite a number of PMC employees are third country nationals, and as individuals, may have to carry a lot of the cost of their participation. The other cost may be to their countries of origin. What needs or expectations will they bring back? And how will their training in Iraq affect their participation in society and government at home?
Outsourcing is a way of cost shifting rather than cost saving. I see it every day. The young Spanish speaking woman who cleans our offices daily is our colleague. She does a superb job. Yet the contractor she works for pays her minimum wage and no benefits. My employer “saves” money by not paying permanent employees salaries and benefits to do the cleaning. The costs are shifted onto the individual at the bottom of the pay scale who is least able to bear these costs. And of course, the costs come back to government, which must deal with the emergency situations this cost shifting generates. Walmart is famous for these cost shifting “savings”, but its size makes it visible, it is hardly alone.
As Isenberg says, it depends on what you mean by cost.
sy hersh on democracy now may 24th:
…the thing that’s amazing about this government, the thing that’s really spectacular, is even now how they can get their way mostly with a lot of the American press. For example, I do know — and, you know, you have to take it on face value. If you’ve been reading me for a long time, you know a lot of the things I write are true or come out to be more or less true. I do know that within the last month, maybe four, four-and-a-half weeks ago, they made a decision that because of the totally dwindling support for the war in Iraq, we go back to the al-Qaeda card, and we start talking about al-Qaeda. And the next thing you know, right after that, Bush went to the Southern Command — this was a month ago — and talked, mentioned al-Qaeda twenty-seven times in his speech. He did so just the other day this week — al-Qaeda this, al-Qaeda that. All of a sudden, the poor Iraqi Sunnis, I mean, they can’t do anything without al-Qaeda. It’s only al-Qaeda that’s dropping the bombs and causing mayhem. It’s not the Sunni and Shia insurgents or militias. And this policy just gets picked up, although there’s absolutely no empirical basis. Most of the pros will tell you the foreign fighters are a couple percent, and then they’re sort of leaderless in the sense that there’s no overall direction of the various foreign fighters. You could call them al-Qaeda. You can also call them jihadists and Salafists that want to die fighting the Americans or the occupiers in Iraq and they come across the border. Whether this is — there’s no attempt to suggest there’s any significant coordination of these groups by bin Laden or anybody else, and the press just goes gaga. And so, they went gaga a little bit over the Syrian connection to the activities in Tripoli. It’s just amazing to me, you guys.
b real
Straight reporting, disguised as satire, from Jesus’ General:
And for true, a truly classic quote from the US Secretary of State: