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The privatisation of war
Private corporations have penetrated western warfare so deeply that they are now the second biggest contributor to coalition forces in Iraq after the Pentagon, a Guardian investigation has established.

While the official coalition figures list the British as the second largest contingent with around 9,900 troops, they are narrowly outnumbered by the 10,000 private military contractors now on the ground.

The investigation has also discovered that the proportion of contracted security personnel in the firing line is 10 times greater than during the first Gulf war. In 1991, for every private contractor, there were about 100 servicemen and women; now there are 10.

The private sector is so firmly embedded in combat, occupation and peacekeeping duties that the phenomenon may have reached the point of no return: the US military would struggle to wage war without it.

While reliable figures are difficult to come by and governmental accounting and monitoring of the contracts are notoriously shoddy, the US army estimates that of the $87bn (£50.2bn) earmarked this year for the broader Iraqi campaign, including central Asia and Afghanistan, one third of that, nearly $30bn, will be spent on contracts to private companies.

The myriad military and security companies thriving on this largesse are at the sharp end of a revolution in military affairs that is taking us into unknown territory - the partial privatisation of war.

"This is a trend that is growing and Iraq is the high point of the trend," said Peter Singer, a security analyst at Washington's Brookings Institution. "This is a sea change in the way we prosecute warfare. There are historical parallels, but we haven't seen them for 250 years."

When America launched its invasion in March, the battleships in the Gulf were manned by US navy personnel. But alongside them sat civilians from four companies operating some of the world's most sophisticated weapons systems.

When the unmanned Predator drones, the Global Hawks, and the B-2 stealth bombers went into action, their weapons systems, too, were operated and maintained by non-military personnel working for private companies.

The private sector is even more deeply involved in the war's aftermath. A US company has the lucrative contracts to train the new Iraqi army, another to recruit and train an Iraqi police force. ...

...Since the end of the cold war it is reckoned that six million servicemen have been thrown on to the employment market with little to peddle but their fighting and military skills. The US military is 60% the size of a decade ago, the Soviet collapse wrecked the colossal Red Army, the East German military melted away, the end of apartheid destroyed the white officer class in South Africa. The British armed forces, notes Mr Singer, are at their smallest since the Napoleonic wars.

The booming private sector has soaked up much of this manpower and expertise.

It also enables the Americans, in particular, to wage wars by proxy and without the kind of congressional and media oversight to which conventional deployments are subject.

From the level of the street or the trenches to the rarefied corridors of strategic analysis and policy-making, however, the problems surfacing are immense and complex.

One senior British officer complains that his driver was recently approached and offered a fortune to move to a "rather dodgy outfit". Ex-SAS veterans in Iraq can charge up to $1,000 a day.

"There's an explosion of these companies attracting our servicemen financially," said Rear Admiral Hugh Edleston, a Royal Navy officer who is just completing three years as chief military adviser to the international administration running Bosnia.

He said that outside agencies were sometimes better placed to provide training and resources. "But you should never mix serving military with security operations. You need to be absolutely clear on the division between the military and the paramilitary."

"If these things weren't privatised, uniformed men would have to do it and that draws down your strength," said another senior retired officer engaged in the private sector. But he warned: "There is a slight risk that things can get out of hand and these companies become small armies themselves."

And in Baghdad or Bogota, Kabul or Tuzla, there are armed company employees effectively licensed to kill. On the job, say guarding a peacekeepers' compound in Tuzla, the civilian employees are subject to the same rules of engagement as foreign troops.

But if an American GI draws and uses his weapon in an off-duty bar brawl, he will be subject to the US judicial military code. If an American guard employed by the US company ITT in Tuzla does the same, he answers to Bosnian law. By definition these companies are frequently operating in "failed states" where national law is notional. The risk is the employees can literally get away with murder. ...