Posted by Ilya Somin:
Blackwater and the Debate over Privatization:
http://volokh.com/archives/archive_2007_09_30-2007_10_06.shtml#1191478287


   Recent revelations that private military contractors employed by
   Blackwater may have committed atrocities and other abuses in Iraq have
   led many to call for an end to the use of private military contractors
   and their replacement with government personnel. Unfortunately, many
   of the anti-Blackwater/anti-privatization arguments are beset with
   typical fallacies that bedevil the debate over the role of government
   in society. To be clear, I don't know whether the use of private
   contractors should be abolished or not. I lack the expertise to say.
   Perhaps Blackwater should be fired; perhaps all private military
   contractors should be. Blackwater and its rivals do not actually
   represent full privatization (complete replacement of the government
   by the private sector). They represent a form of contracting out - the
   government hiring private contractors to do work it mandates.
   Nonetheless, several of the standard arguments against the use of
   private contractors contain major fallacies that often recur in
   debates over the role of government.

   I. Failure to Apply the Same Standards to Both Alternatives.

   Let's assume that private military contractors really do commit
   atrocities (I certainly don't doubt that it happens). That is not
   enough to prove that privatization is undesirable. After all,
   government military forces - including, sad to say, American ones -
   also commit atrocities. Yet, when US military personnel engage in such
   misconduct, no one seriously claims that that fact "proves" that they
   should all be replaced with private contractors.

   Whenever we wage a large-scale war, especially one fought in a setting
   where it is sometimes difficult to tell civilians from enemy
   combatants, it's inevitable that some atrocities will be committed by
   our forces. The key question is: what institutional arrangements will
   minimize their occurrence? Privatization critics must do more than
   prove that Blackwater or other firms commit atrocities or engage in
   coverups. They must show that they are systematically more likely to
   do so than government employees would be in their place.
   Unfortunately, this comparative aspect of the question is usually
   neglected. Too often, privatization critics implicitly compare
   hypothetical perfect government employees with real-world, imperfect
   private contractors.

   II. Double Standards in Assessing Motives.

   Similar double standards apply to the way that privatization critics
   analyze motives. For example, private military contractors are often
   attacked as "mercenaries" interested only in profit. The problem here
   is that government personnel may also be motivated solely or primarily
   by self-interest. There is a reason why the Pentagon offers a wide
   variety of material incentives (e.g. - free college tuition, health
   and welfare benefits, etc.) for volunteers to enlist in the army and
   for key personnel to stay in. This is not to say that government
   military personnel are motivated solely by personal gain. Far from it.
   In reality, they surely have a wide range of motivations, including in
   many cases a sense of patriotic duty.

   But the same is true of private military contractors. After all, most
   of the security personnel employed by Blackwater and its competitors
   are in fact[1] former government soldiers, often ex-special forces. It
   would be surprising if such individuals were completely selfless
   patriots during their days in the military and then suddenly became
   self-seekers motivated solely by money once they sign on with
   Blackwater. In reality, they are probably more or less the same kinds
   of people in both phases of their careers. Just as military personnel
   may be motivated by a combination of patriotism and self-interest, so
   too may private contractors. Putting on a government uniform doesn't
   make selfishness disappear, and taking it off doesn't make it
   magically come back.

   A closely related fallacy is the implicit assumption that warriors
   motivated by personal gain will necessarily commit more atrocities and
   abuses than those motivated by patriotism or other selfless
   considerations. This is far from obvious. Self-interested
   "mercenaries" may choose to refrain from atrocities precisely because
   they hurt the bottom line: by giving the firm bad publicity and giving
   the local population incentives to target its personnel. Selfless
   motives, by contrast may in some cases increase the risk of atrocities
   (e.g. - if soldiers feel that atrocities will help them win, or if a
   strong sense of solidarity amongst themselves leads them to
   "dehumanize" the enemy). Whether self-interested soldiers will commit
   more abuses than selfless ones is an empirical question, not one that
   can be settled by a priori assumptions.

   Thus, we have two unsupported assumptions about motives and
   privatization: assuming that the private sector is necessarily driven
   by self-interest alone, while government officials care only about the
   public interest; and assuming that selfless motives necessarily lead
   to better results. Either or both claims may actually be true in a
   particular instance. But they need to proven, not just asserted.

   III. Ignoring the Potential Benefits of Competition.

   If Blackwater or some other private contractor performs badly, it can
   be fired and replaced with one of its competitors. This is an
   important incentive for contractors to do a good job. By contrast, it
   is extremely difficult to abolish a failing government bureaucracy or
   - in many cases - even to reduce its funding.

   The advantages of competition are important benefits of contracting
   out that have mostly been ignored in the Blackwater debate. They don't
   necessarily outweigh all other considerations, but they should
   certainly be a much bigger part of the discussion.

   IV. Appeals to Mythical Tradition.

   Finally, [2]some privatization critics claim that the use of
   "mercenaries" violates a supposedly longstanding American tradition of
   hostility to military privatization, one that allegedly goes back to
   the Founding Fathers. They conveniently ignore the fact that the
   Continental Army in the Revolutionary War relied heavily on European
   mercenary officers, many of whom were motivated by profit more than
   principle. Without them, we might not have won our independence. For
   example, [3]the German mercenary Baron von Steuben was the officer in
   charge of training the Continental Army, and credited by George
   Washington with playing a decisive role in the war. The United States
   also relied heavily on privateers to raid British seaborne commerce in
   both the Revolution and the War of 1812

   The fact that the Founders relied heavily on foreign mercenaries and
   privateers doesn't prove that we should permit military privatization
   today. Maybe the Founders were wrong, or maybe the utility of
   privatization has declined since the 1780s. It does, however, show
   that military privatization doesn't go against tradition in the way
   critics allege.

References

   1. http://opinionjournal.com/editorial/feature.html?id=110010676
   2. http://balkin.blogspot.com/2007/03/mercenary-and-citizen-soldier.html
   3. http://en.wikipedia.org/wiki/Friedrich_Wilhelm_von_Steuben

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