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The Private Military Company: An Entity at the Center of Overlapping Spheres of Commercial Activity and Responsibility

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Private Military and Security Companies

Abstract

Despite growing awareness of the private military company (PMC) as a distinctive commercial entity due to the involvement of numerous such enterprises in Iraq and the wider war on terror, confusion is still palpable in determining what precisely constitutes a PMC. Whilst the various angles from which the PMC is approached in the literature have not yet converged to a conclusive view on the constitution of the PMC in its contemporary form, it is also necessary to acknowledge that the delineation of this form of commercial activity within wider and shifting corporate structures is in its infancy. Various firms labeled PMCs are not PMCs entirely, but corporations possessing PMC capabilities and offering private military services only as part of diversified portfolios of services. As a result, the PMC category is on occasions inaccurately stretched to encompass all the services on offer by these corporations. In turn, PMCs expand beyond their core business and offer services that cannot be categorized as private military services. Defining the PMC and delineating its articulation within wider, adjacent, and overlapping corporate structures are the aims of this chapter.

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References

  1. In the academic debate, these ‘active’ and ‘passive’ distinctions have been used by O’Brien (2000).

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  2. Alex Duperouzel, founder of Background Asia Risk Solutions, e.g., comments that the strategy of his company is “based around the idea of deterrence. We are trying to tell people that we are armed and serious and that there are easier targets elsewhere.” (cited in Harris/ Fidler 2005)

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  3. Nick Clissitt, from Control Risks Group, notes that “while most private military activity is now in the tactical area, in the future, the private sector is increasingly likely to help governments with strategic issues” (cited in Fidler 2005).

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  4. In 2004, 63,500 ships passed through the Straits, with traffic currently estimated to grow at 5% per year (Johnston 2005).

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  5. Vaux et al. (2002: 17) note that “even if one chose to (...) hire a small local company, a transnational conglomerate might purchase the company without making the transaction known”. They illustrate this issue with the case of Federation of the Red Cross and Red Crescent Societies hiring a local company in Uganda not being aware that the company was part of Saladin.

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  6. In management theory, an important outsourcing premise is “differentiating between core and non-core functions and then transferring all non-core functions to a specialist in that function” (Heywood 2001: 29). This is also known as the theory of the virtual organization, which implies that “any function that is not core should be transferred to an external specialist in that function” (Heywood 2001: 29). The current transformation of the military in various Western countries mirrors the theory of the virtual organization, with most of the non-combatant and supportive tasks increasingly being contracted out or outsourced to the private sector.

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  7. During the Gulf War, approximately one in 50 Americans deployed was a civilian; in contrast, for the NATO peacekeeping operation in Bosnia the ratio had gone down to one in 10 (McIntire Peters 1996).

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Thomas Jäger Gerhard Kümmel

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© 2007 VS Verlag für Sozialwissenschaften | GWV Fachverlage GmbH, Wiesbaden

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Ortiz, C. (2007). The Private Military Company: An Entity at the Center of Overlapping Spheres of Commercial Activity and Responsibility. In: Jäger, T., Kümmel, G. (eds) Private Military and Security Companies. VS Verlag für Sozialwissenschaften. https://doi.org/10.1007/978-3-531-90313-2_4

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