http://www.weeklystandard.com/Content/Public/Articles/000/000/013/220wwnna.asp

Privatize the CIA
Our intelligence community could use more - competition.
by Michael Rubin
02/05/2007, Volume 012, Issue 20

Twice this past week, on January 23 and 25, the Senate Select Committee 
on Intelligence held hearings on intelligence reform. Topics included 
the remaining 9/11 Commission recommendations and efforts both to 
facilitate information-sharing across the U.S. government's 16 
intelligence agencies and to increase the number of operatives and 
linguists.

The committee's schedule suggests Sen. Jay Rockefeller will use his new 
majority status and chairmanship to increase oversight and press the 
Bush administration on matters ranging from CIA rendition programs to 
the National Security Agency's warrantless surveillance programs. 
Oversight should be welcome, but neither it nor the 9/11 Commission's 
recommendations will be enough to rectify the quality of U.S. 
intelligence analysis.

In a seminal article in the Economist in 1955, historian C. Northcote 
Parkinson described the behavior of bureaucracies. First, he observed, 
any "official wants to multiply subordinates, not rivals; and [second,] 
officials make work for each other." He used the British admiralty to 
illustrate his case. Between 1914 and 1928, its commissioned ships 
declined two-thirds. Over the same period of time, the number of 
officials managing them almost doubled.

As John Negroponte prepares to move from the directorship of National 
Intelligence to Foggy Bottom, it is clear that his legacy falls far 
short of real reform. He hired 1,500 employees for his new office, but 
missed recruitment targets for both operatives and analysts.

This is failure. As both the Iranian nuclear drive and al Qaeda's 
declared war on the United States continue, the nation needs spies to 
peer where satellites cannot and men on

the ground to hear conversations that take place in caves rather than on 
cell phones. The failure to recruit and retain quality linguists is also 
a scandal. While Rockefeller criticizes wiretap procedures, the true 
outrage is the failure of the intelligence and law enforcement 
communities to put the products of such surveillance to use. On July 27, 
2005, Glenn Fine, inspector general for the U.S. Department of Justice, 
testified before the Senate Judiciary Committee that the Federal Bureau 
of Investigation backlog of counterterrorism and counterintelligence 
audio surveillance awaiting translation had grown from almost 25,000 
hours on December 31, 2003, to more than 38,000 hours on March 31, 2005. 
Department of Justice sources say the problem has not diminished.

While the number of spies and linguists may be a critical metric for 
gauging U.S. capabilities, access to raw material does not itself 
correlate with quality analysis. Here, the intelligence community falls 
short. Take Larry Johnson, a former CIA and State Department analyst to 
whom the CIA awarded two Exceptional Performance commendations. On July 
10, 2001, Johnson penned a New York Times op-ed entitled "The Declining 
Terrorist Threat." As Mohamed Atta and the other 9/11 hijackers 
conducted dry runs for their attack, and despite Osama bin Laden's 1998 
declaration of war on the United States, Johnson argued that Americans 
were not primary targets of terrorism. He blamed concern about Islamist 
terrorism on "24-hour broadcast news operations too eager to find a 
dramatic story line."

While Johnson is just one public example, the poor quality of the CIA's 
analytical products is an open secret among intelligence consumers. 
Reports circulated to the State Department, Pentagon, Treasury 
Department, National Security Council, and the White House are seldom 
more analytical or detailed than published newspaper accounts.

The reasons for poor analysis are multifold. The initial premise of a 
closed analytical shop segregated from policy was to maintain a bank of 
first-rate social scientists to prevent surprise and predict events. But 
social science has never lived up to its promise. The Soviet Union's 
collapse and 9/11 are just two prominent instances of the CIA's failure 
to predict. While it has become fashionable to scapegoat Iraqi National 
Congress head Ahmad Chalabi for faulty intelligence about Iraqi weapons, 
and thereby exculpate the CIA's perhaps $30 billion intelligence 
operation, the preponderance of Langley's analysis suggested Iraq was 
permeated with chemical and biological munitions.

Nor did Langley ever attract top academics. Many specialists shy away 
from government careers. In practice--unbelievable as it may 
seem--travel and regional experience disqualify applicants during the 
security clearance process. Those with native fluency in languages like 
Arabic, Persian, or Pashtun seldom pass CIA vetting. While Langley 
recruits Mormons returning from missions with linguistic ability, most 
intelligence hires are book smart but experience poor.

As a result, the products of the intelligence community lack both 
cultural nuance and a feel for personalities. Too many analysts assume 
that Iranian officials approach diplomacy with the sincerity of their 
U.S. counterparts; they cannot imagine the prospect that 
seminary-trained clerics practice religiously sanctioned dissimulation. 
Hence, many intelligence professionals at the time believed that Iranian 
president Mohammad Khatami was sincere in his calls for a dialogue of 
civilizations; now it is apparent that he pursued Iran's covert nuclear 
program with the same energy as his

successor. When European leaders and Secretary of State Madeleine 
Albright relaxed sanctions and offered an olive branch to Tehran, the 
Islamic Republic used the resulting hard currency influx to upgrade 
Iran's military and fuel its covert nuclear program.

Cubicle isolation is also apparent to anyone who knows the people about 
whom dossiers are compiled. When writing biographies of Iraqi 
politicians, CIA analysts commonly erred on such basic information as 
the languages they spoke, let alone their predilections or personalities.

Extreme compartmentalization also reduces the chances for sound 
comparative analysis. As the CIA has grown, its analysts' areas of 
responsibility have narrowed. Expertise in arcane subjects should be 
welcome, but if it comes at the expense of comparative analysis, much 
can be lost. Analysis of Iranian nuclear capabilities, for example, 
should not be separated from study of the North Korean ballistic missile 
program or Pakistani weapons design. Nor should Iran area specialists be 
segregated from al Qaeda analysts. Rogue regimes and terrorists do not 
always compartmentalize relationships as neatly as does the U.S. 
bureaucracy.

The CIA does have many good analysts, but the organizational 
prioritization of group-think and seniority strangles them. Bureaucratic 
interests dominate. As reports filter up through multiple levels, 
officials insert trap-door statements to assert the opposite of any 
conclusion so that if the report's thrust is wrong, the agency can be 
absolved of responsibility. A single sentence questioning Saddam's 
weapons programs, for example, might be buried on page 17 of a report 
otherwise declaring their existence.

As former CIA operative Reuel Marc Gerecht points out, the formulaic 
assumption that any watershed event is five-to-ten years away is both 
the product of caution and a way to avoid acknowledging ignorance. 
Repeated statements that Iran is five-to-ten years away from autonomous 
nuclear capability, for example, have become the 21st-century equivalent 
of the Ten-Year Rule that left Great Britain scrambling to meet the 
challenge of a resurgent Germany prior to World War II.

Secrecy protects shoddy analysis. Langley may oust analysts for security 
reasons, but, like any government body, it seldom purges mediocrity. 
While intelligence analysts conflate questioning with politicization, 
the desire to avoid inquiry is often a sign of lack of confidence. 
Analysts who publish openly and under their own names must, for the sake 
of their reputations, produce solid work or else they will hemorrhage 
credibility and jeopardize their employment. Too often, though, 
intelligence briefers cannot answer basic questions. When queries are 
followed by requests to see raw intelligence, the source material does 
not always support the proffered conclusions. Intelligence professionals 
should be able and willing to defend their products.

It is this phenomenon that was at the root of tension between the CIA's 
Directorate of Intelligence and the Defense Department's Iraq policy 
shop. The forthcoming report of an investigation by the Pentagon's 
Office of Inspector General into the Office of Special Plans will 
absolve the unit of charges that it produced its own intelligence--it 
did not--but the report may criticize the office for questioning too 
much the products it received from Langley. But to move toward a 
standard of blind acceptance of intelligence would be both dangerous and 
wrong.

The traditional value of intelligence products was to provide a baseline 
of neutral expertise, but the era of an apolitical Langley is over. In 
November 2005, W. Patrick Lang, former defense intelligence officer for 
the Middle East, South Asia, and counterterrorism, told the American 
Prospect of CIA analysts' attempts to hurt the White House prior to the 
2004 election. "Of course they were leaking," he said. "They told me 
about it at the time. They thought it was funny. They'd say things like, 
'This last thing that came out, surely people will pay attention to 
that. They won't reelect this man [President Bush].'" Intelligence 
analysts should not participate in policymaking. Their frequent and 
as-yet-unplugged leaks may win some short-term policy battles for 
Langley, but such illegalities have badly damaged trust. To suggest the 
Directorate of Intelligence is policy-neutral is risible.

So what is the solution? Washington's inclination is always to expand 
hiring. But that will constrain rather than improve analysis. Today, the 
CIA's analytical wing is the ultimate expression of Parkinson's Law, 
rather than a generator of accurate explanation or prediction. Rather 
than expand, the government should privatize much of its analysis.

Privatization works. Already, Beltway firms like SAIC and Booz Allen 
Hamilton operate streamlined intelligence shops. Their analysts hold the 
highest security clearances. So do many think-tank scholars and some 
university academics. Many private-sector analysts have language 
abilities and experience their government counterparts lack.

Freeing analysts from some government rules and regulations could 
improve their products. Not only would it enable outside-of-the-box 
thinking, but it could also improve access. U.S. government personnel 
visiting Beirut, let alone Baghdad, must adhere to embassy regulations 
stipulating intrusive security for travel outside compound walls. 
Nongovernment employees roam free--or at least set their own rules for 
security.

Privatization would improve productivity. It can take the CIA hierarchy 
weeks to sign off on an analyst's report and release it to intelligence 
consumers across the U.S. government. Private companies react faster. 
Competition might also expedite exploitation of several million pages of 
documents seized in Afghanistan and Iraq.

A decade ago, the CIA curtailed its subscriber-based circulation of 
foreign newspapers and media broadcasts in translation, partly for 
financial reasons and partly out of misdirected hand-wringing that such 
products might violate even North Korean and Iranian intellectual 
property rights. Today, the Open Source Center, the office within the 
CIA that translates published material, still withholds much of its 
product from the public. Getting this into the hands of a wider pool of 
analysts would be in the national interest, even if the analysts offered 
differing interpretations.

Expanding the pool of professionals who hold security clearances would 
have auxiliary benefit. Not only would it enable more opinion and debate 
without the costs of salary and pension; but, in the long term, it would 
also erode the clearance lag. Even with "expedite" orders, whoever wins 
the presidency in 2008 will have to wait 15 months to staff the National 
Security Council with new faces unless they already hold clearances. At 
present, the CIA spends hundreds of thousands of dollars to screen and 
train analysts who may leave government service after only a couple of 
years. Making it easier for the U.S. government to employ such people 
would increase return on investment.

There would be drawbacks to more privatization--security and 
counterintelligence problems would expand--but the risks need not be 
excessive. Even State Department student interns receive top-secret 
clearances. Access to government products should still require 
background checks, security clearance, and the incumbent oaths to 
protect the material. The FBI and other relevant agencies should 
nevertheless expand counterintelligence checks. Dissemination of 
sensitive compartmentalized information like signals and communications 
intercepts should, of course, remain subject to the presence of adequate 
facilities to handle and protect the information.

Some outside scholars might also cherry-pick data. But then government 
intelligence analysts do so now. While data are open to interpretation, 
competition exposes bad methodology, and ultimately quality shines 
through. Individual authorship promotes accountability.

Would the CIA's analytical wing disappear? No. But it should shrink, as 
the pool of outside experts expands. Much of the money allocated for the 
analytical wing would be better applied to the Directorates of 
Operations and Science & Technology. Langley and its consumers might 
maintain yellow pages of analysts by expertise and repositories of 
finished products. Congressmen could call on individuals to explain 
their reports or even have multiple specialists debate interpretations. 
It is not uncommon in, say, the Pentagon for senior leaders to host 
closed debates among academics and analysts. One thing is certain, 
though. With threats multiplying, bloat and a culture of job security 
over performance will neither protect the United States nor promote the 
serious thinking needed to help it face new challenges.

Michael Rubin, a resident scholar at the American Enterprise Institute, 
was a staff adviser for Iran and Iraq in the office of the secretary of 
defense between 2002 and 2004.

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