The Military, Economic, and Legal Impacts of Private Military Companies

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The Military, Economic, and Legal Impacts Of

Private Military Companies

To Robert Yamaguchi, D.B.A.

From Jason Stonehawk

November 15, 2010

Jason Stonehawk
2480 Irvine Blvd Apt 360
Tustin, CA 92782
714-389-5822

November 15, 2010

Dr. Robert Yamaguchi
Fullerton College
321 E. Chapman Avenue
Fullerton, CA 92832

Dear Dr. Yamaguchi:

War and business share a well known rapport. The military industry has become influential throughout global business. “The Military, Economic, and Legal Impacts of Private Military Companies” will provide detail of many private military companies.

Private military companies have a great impact on the global business scene. Larger companies can effect on overall success of the regular military; some employee totals are larger than some countries’ presence. Taxpayer savings and good asset use will confirm economic value of military contractors. The legal plights of many firms highlight the risks of the military industry as a whole.

The current political climate has created a need for military presences across the globe. Military contractors provide many needed services at the lowest of costs. The effects of competitive bidding, business ethics, and legal issues are felt throughout the global corporate community; the shape of the business world as a whole is influenced by these companies.

The face of global industries is ever changing. Private military companies are just one entity with sway in the current business scene. Knowledge of the activities for corporations will serve as a guide and frame for the next great development for business as a whole.

Sincerely yours,

Jason Stonehawk

js

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TABLE OF CONTENTS

ContentPage

Letter of Transmittal ……………………………………………………………………… ii

List of Figures ……………………………………………………………………………. iv

Summary of Report ………………………………………………………………………. v

Actual Military Impact …………………………………………………………………… 1

Economic Value Contractors ……………………………………………………………... 5

Private Company Controversies ………………………………………………………….. 9

Bibliography of Report ………………………………………………………………… A1

iii

LIST OF FIGURES

FigurePage

Figure One: Changing of the Guard ……………………………………………………… 2

Figure Two: Layers of Costs …………………………………………………………… 6

Figure Three: Blackwater Nisour Square ……………………………………………… 11

iv

SUMMARY OF REPORT

The title of this business report is, “The Military, Economic, and Legal Impacts of Private

Military Companies.”

Actual Military Impact

Private military companies are the second largest contingent of forces in the Middle East.

Their impact on the effectiveness of military function is a common question.

Economic Value Contractors

Monetary savings to the taxpayer is the highest importance of use in private military

companies. The outsourcing of non-combat roles shows their economic and military value..

Private Company Controversies

Questions have arisen regarding business ethics. Domestic and international legal issues

have tainted private military company reputations throughout the world. Improvements in

oversight and accountability for these companies are being sought to alleviate such concerns.

v

ACTUAL MILITARY IMPACT

The title of “the world’s oldest profession” tends to prompt thoughts of the sex trade.

History has shown another industry perhaps having even greater prevalence. War has always

been a presence in the growth of nations. Progress and technology are ever changing the face and

tools of warfare. Social and political influences motivate conflict on almost every continent of

the world. The growth of the military industrial complex has been affected at every level.

Nations facing economic crises have been forced to reduce their military spending (Cooper,

2004). Private military companies (PMCs) have grown into powerful global businesses....
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