I was reading recently how many nations are cutting their armed forces and slashing their defence budgets and it got me thinking about this question. What does everyone think about investing in private military companies? Could we see in the near future these private companies being hired to maintain a hold over areas once the main countries force has left? What about security missions and restoring order? My views might be wrong but I can see these companies being needed a lot more within some years. What do others think?
The UK has privatized a lot of security work that used to undertaken by public bodies, such as court security, probation services etc. I can actually see a major sell-off of its fighting armed forces too. In fact, the army has been greatly reduced in size, which might be a precursor to the invitation of bids form outside firms to cover some of the sectors left un-staffed by these cuts. I think this is a watch, wait and see thing for the moment.
The whole Blackwater "scandal" seemed to knock the wind out of the private contractor business for a while, but I never really saw what it was that they were doing which was so bad. They've reincarnated into the Academi brand now, and seem to be doing good trade. Mercenaries have been a part of war since the beginning - there's no reason to think they wont be for a long time to come....
Came here to say this. In fact if I am not mistaken mercenaries were used long before standing armies were common-place.
Gee, private military companies. This is the first time I've heard of this. Here in the Philippines, there is the thing called private army which is, of course, illegal. Mostly maintained by rich and powerful politicians in remote provinces, the private armies uphold the law of the politician and not of the constitution. I cannot imagine if a country would depend on private armies for its military needs, the company would then be a powerful firm that can make or break a government. Tsk, tsk, coup d' etat would be simple to do.
The thing is that pretty much all private military companies are privately held. So in other words, you're not going to get your hands on their shares unless you have some serious capital to spend.
Hey JR do you have any recommendations on buying shares in any of them? I don't know much about the US defense industry.
They'd be in only for the money. The Nigerians for example not too long ago hired South African mercenaries to help them fight Boko Haram and they did a better job than the Nigerian army which is ill-trained. In Ukraine, 2014 . . . https://www.rt.com/news/158212-academi-blackwater-ukraine-military/ Powerful though these private military companies might be they work for those who hire them.
There is a similar case here but I wouldn't mention the specifics. The jobless men were hired by a group to supposedly fight the rebels but it turned out that those men were trained to kidnap people and earn money from the ransom. Later on that group became a professional KFR (kidnap for ransom) group in the southern Philippines victimizing mostly foreigners. One news reporter had uncovered that some member of that group came from the rebel groups who have no more funding.
