Just finished reading a fascinating book titled Spies for Hire about the US intelligence industry. Yes intelligence “industry” because over the past ten years it has become one based on the work of private contractors. This $ 50 billion a year industry with a global outreach in all the world hot spots particularly Iraq, Afghanistan and Pakistan is actually monopolized by hundred companies . Some of the companies are more well known such as Booze Allen Hamilton , Lackheed Martin , Blackwater whereas there are also smaller industries with small scale assignments like SpecTal based in Virgina who perform intelligence missions in Afghanistan and Iraq.
According to the book ,“ Outsourcing has also spread to human intelligence. At the CIA , contractors help staff overseas stations and provide disguises used by agents working undercover. Today a contractor stationed in Iraq supervises where CIA agents go in Baghdad and who they meet.
Intelligence outsourcing has mushroomed at the Department of Defence, which controls more than 85 percent of the US intelligence budget. On the battlefields of Iraq, Afghanistan civilians intelligence specialists under contract to the National Geospatials Intelligence Agency operate signals intelligence and imagery equipment for Army and Marine units on the move against Iraqi insurgents and Islamic militias.”
Since September 11 the CIA has given about $ 2.5 billion a year to these private for profit companies who are essentially running the show for the US government. To protect their interests, there are three business associations representing intelligence contractors.. These are the (a) Intelligence and National Security Alliance (INSA) which is very close to the US government (b) Armed Forces Communications and Electronics Association which has the largest membership and (c) United States GeoSpartial Intelligence Foundation
Such is the extent of privatizing of these services that it the security which the US government was providing to President Mushraff actually was being provided by Blackwater guards. Equivalent to our Brinks security firm providing security.
Will we see other countries following suit? In times of recessions today, when governments are getting into business again by supporting bankrupt for profit companies , what are the implications of the concept of privatizing intelligence services. Is it a new step forward or is it a case of the government not doing what is should and doing what it should not do ?