There is nothing new or nefarious about privatizing military support functions. But, in Iraq, the contractors aren't just building latrines or staffing mess halls. They're also running around with assault rifles and black body armor performing "tactical" functions. Many are well-trained U.S. or British veterans, but others are Rambo wannabes or sordid desperados. Among the mercenaries who have surfaced in Iraq are South Africans who were members of apartheid-era death squads and Chileans who served in Pinochet's security services.
When U.S. service members are accused of wrongdoing, they are investigated and, if necessary, court-martialed. That's not the case with civilians who are generally not covered by the laws of their home countries for crimes committed abroad. The Iraqi legal system could hold them to account, but in practice Baghdad won't do anything that might lead to an exodus of foreign firms. Dozens of U.S. and British soldiers have been prosecuted for misconduct in Iraq — but not a single contractor.
Actually, until the new Iraqi government changes the law, their courts have no recourse. According to the coalition's Order 17, enacted by US administrators shortly after the invasion, military personnel and most private contractors working in Iraq cannot be brought before Iraqi courts.
A lack of accountability leads to occurences such as those described by four former Custer Battles employees who claim that poorly trained Kurds on the firm's payroll killed innocent motorists. In one incident, a guard supposedly fired his AK-47 into a passenger car to clear a traffic jam. In another, an aggressive driver in a giant pickup truck allegedly pulverized a sedan with children inside. When true (the firm denies any wrongdoing), such incidents only create more insurgent recruits.
U.S. policymakers argue that they have to rely on private help because the U.S. armed forces simply aren't big enough to do everything, and allies have not made up the shortfall. But that's an argument for expanding the armed forces, not for hiring a lot of freelance gunslingers. Administration officials complain that a bigger army is too expensive, but are they really saving money by relying on privateers?
The most valued contractors are experienced former U.S. Special Forces operatives whose training cost the Pentagon hundreds of thousands of dollars. They are being lured out of uniform by the promise of making $500 to $1,000 a day. (If they stay in the service they'll be lucky to make $140 a day.) And where does that money come from? Pretty much all the foreign firms in Iraq are paid by the U.S. Treasury. So the government is in competition with itself for its most skilled and hard-to-replace soldiers. Does this sort of outsourcing really make sense?
Sure it makes sense to an Administration bent on "starving the beast". Bush's agenda is to return billions of government tax dollars to the private sector any way he can, to run up a huge debt so big any future attempt to balence the budget will result in major cuts in entitlements. Clinton proved that Reagan's initial attempt failed. So the only recourse was to raise the debt to mind boggling proportions. Interest payments alone on this debt will force cuts in entitlements or a tax increase. Republican's are banking on their being no support for tax increases. The rich take no risk in this, the middle class will no longer have an economic safety net should bad times strike if the Republican's get their way.