Jeremy Scahill - Blackwater

As populist movements grow stronger in Latin America, threatening U.S. financial interests as well as the standing of right-wing U.S. political allies throughout the region, the “war on drugs” becomes an increasingly central part of U.S. counterinsurgency efforts. It allows for more training of foreign security forces through the private sector—away from effective U.S. Congressional oversight—and a deployment of personnel from U.S. war corporations. With U.S. forces stretched thin, sending private security companies to Latin America offers Washington a “small footprint” alternative to the politically and militarily problematic deployment of active-duty U.S. troops. In a January 2008 report by the United Nations working group on mercenaries, international investigators found, “An emerging trend in Latin America but also in other regions of the world indicates situations of private security companies protecting transnational extractive corporations whose employees are often involved in suppressing the legitimate social protest of communities and human rights and environmental organizations of the areas where these corporations operate.” 13

In early 2008, Blackwater suffered a setback to its plans for work along the U.S. border. The company announced that it was abandoning its plans to build “Blackwater West” on 824 acres of land in Southern California, a stone’s throw from Tecate, Mexico. Blackwater had planned to use the camp to train border patrol agents and other law enforcement and military in a major front line in the immigration debate. 14Residents of the tiny town of Potrero—population 850—waged a heroic battle against the company’s presence there for more than a year. They expressed a wide range of concerns—from the company’s reputation in Iraq to environmental issues—and forced out local town officials who had attempted to push through Blackwater’s deployment in their community. Finally, in March 2008, Blackwater had had enough; it released a muted statement that said, “The proposed site does not meet our business objectives at this time.” 15A company spokesperson said the decision had nothing to do with the protests against Blackwater. In the bigger picture, this was a minor defeat for Blackwater’s growing business. Even without its desired California facility, Blackwater already annually trains more than 25,000 military and state, federal, and local law enforcement personnel at its Moyock headquarters. It also successfully established “Blackwater North” in Illinois.

If there is one quality that is evident from examining Blackwater’s business history, it is the company’s ability to take advantage of emerging war and conflict markets. Throughout the decade of Blackwater’s existence, Prince has aggressively built his empire into a structure paralleling the U.S. national security apparatus. “Prince wants to vault Blackwater into the major leagues of U.S. military contracting, taking advantage of the movement to privatize all kinds of government security,” reported the Wall Street Journal shortly after Nisour Square. “The company wants to be a one-stop shop for the U.S. government on missions to which it won’t commit American forces. This is a niche with few established competitors.” 16

In addition to providing armed forces for war and conflict zones and a wide range of military and police training services, Blackwater does a robust multimillion-dollar business through its aviation division. It also has a growing maritime division and other national and international initiatives. Among these, Blackwater is in Japan, where its forces protect the United States’ ballistic missile defense system, which, according to Stars and Stripes , “points high-powered radio waves westward toward mainland Asia to hunt for enemy missiles headed east toward America or its allies.” 17Meanwhile, in early 2008, Defense News reported, “Blackwater is training members of the Taiwanese National Security Bureau’s (NSB’s) special protection service, which guards the president. The NSB is responsible for the overall security of the country and was once an instrument of terrorism during the martial law period. Today, according to its Web site, the NSB is responsible for ‘national intelligence work, special protective service and unified cryptography.’” 18Former Pakistani Prime Minister Benazir Bhutto reportedly tried to hire Blackwater to protect her as she campaigned for the presidency in 2007. 19Conflicting reports indicated that either the U.S. State Department or the Pakistani government vetoed the plan. She was assassinated in December 2007.

Back home, Blackwater has stepped up its work on creating military hardware and surveillance equipment and technology to be marketed to the Pentagon and Department of Homeland Security.

Blackwater is hoping to sell its Mine Resistant Ambush Protected (MRAP) armored vehicle, the Grizzly, to the U.S. Army and Marine Corps. 20The company says it is already using three of the twenty-two-ton vehicles in Iraq. 21The Grizzly is portrayed as combining the versatility of an SUV with the durability of a powerful armored car. It can be driven at speeds up to sixty-five miles per hour and is said to be able to deflect ordnance as large as .50 calibers. 22In September 2007, the Pentagon received the green light to purchase more than 15,000 MRAP vehicles for about $11.3 billion. 23Blackwater is hardly alone in producing them, but winning a share of that deal, which seems likely, would be yet another profitable arrangement. The company will manufacture the Grizzlies at its 70,000-square-foot plant, staffed in part by former Ford workers, in North Carolina, with company executives predicting it may eventually crank out as many as a thousand vehicles annually. 24“We’re going to see good, steady growth for at least ten years,” Blackwater president Gary Jackson said. 25

For Homeland Security operations, counterinsurgency, or “war on drugs” activities, Blackwater is manufacturing an unmanned aerial vehicle, the Polar 400. The surveillance blimp is remote-controlled and, unlike traditional drones, will be capable of remaining in the air for days at a time, operating at an altitude of up to 15,000 feet and a speed of sixty miles per hour. “We can sit it over the top of Baghdad at 18,000 feet and watch all that goes on,” Jackson claimed. “The problem is if it really does work, it will be hard to produce them fast enough. I believe airships will be a multibillion-dollar business.” 26In late 2007, Blackwater conducted a test flight of a 170-foot prototype and predicted it would begin production in 2008. 27Blackwater, once again, was placing itself in the middle of a rapidly expanding market. Defense spending on unmanned aerial vehicles rose from $284 million in 2000 to more than $2 billion in 2005, a trend analysts predicted would continue. 28Blackwater, according to the Virginian-Pilot , is “touting its airship as a lower-cost, longer-operating alternative to the fixed and rotary-wing unmanned aerial vehicles now widely used by the Air Force and other military services.” Alan Ram, the head of production and business development for Blackwater Airships, said, “We think it’s a niche product with a lot of markets.” 29

Blackwater also continues to publicly agitate for a greater role in Homeland Security operations, disaster response, and international peacekeeping. Prince has consistently suggested Blackwater could be used in Darfur, saying in interviews after Nisour Square, “I mean, who can watch Hotel Rwanda and not want a different outcome?” 30In a 2007 interview, Jackson said, “The question is not, ‘Why would we use the private sector in humanitarian operations, ’ but, ‘Why aren’t we using the private sector to the fullest extent possible to reduce human suffering around the world?’” 31Prince said a friend of his actually contacted actor George Clooney on Prince’s behalf in an attempt to sell Clooney on a potential Blackwater role in Darfur. Clooney, who has been outspoken on the situation in Darfur, reportedly did not return the call. 32The UN peacekeeping budget is estimated as being between $6 billion and $10 billion. 33While private military companies have been used for years in UN operations for logistical support, the types of armed “services” Blackwater offers would undoubtedly spark major international controversy. “If you have now a marketplace for warfare, it is a commercial issue rather than a political issue involving a debate in the countries,” said Hans von Sponeck, a thirty-two-year veteran UN diplomat, who served as a deputy secretary general. “To outsource security-related, military-related issues to nongovernment, nonmilitary forces is a source of great concern.” 34While Blackwater continues to push that project, another major one, involving one of the most sensitive sectors of U.S. national defense, is already well under way.