Jeremy Scahill - Blackwater

• Prince’s Total Intelligence Solutions, headed by three CIA veterans (among them Blackwater’s number-two, Cofer Black), puts CIA-TYPE services on the open market for hire by corporations or governments. ( See Epilogue .)

• Blackwater is launching an armored vehicle called the Grizzly, which the company characterizes as the most versatile in history. Blackwater intends to modify it to be legal for use on U.S. highways.

• Blackwater’s aviation division has some forty aircraft, including turboprop planes that can be used for unorthodox landings. It has ordered a Super Tucano paramilitary plane from Brazil, which can be used in counterinsurgency operations. In August 2007, the aviation division won a $92 million contract with the Pentagon to operate flights in Central Asia.

• In late 2007, it flight-tested the unmanned Polar 400 airship, which may be marketed to the Department of Homeland Security for use in monitoring the US-Mexico border and to “military, law enforcement, and non-government customers.”

• A fast-growing maritime division has a new 184-foot vessel that has been fitted for potential paramilitary use.

What Blackwater has done since it first opened for business in the late 1990s is to build up a privatized parallel structure to the U.S. national security apparatus. As of this writing, it continues to receive major contracts for its various divisions, and the U.S. government remains the greatest consumer of its services. In December 2007, it registered a new high-powered lobbying firm, Womble, Carlyle, Sandridge & Rice. 188The disclosure form, filed with the U.S. Senate in January 2008, indicated the firm would be lobbying for Blackwater on a wide range of contracts in: defense, homeland security, aerospace, disaster planning, foreign relations, and law enforcement.

In many ways, Blackwater is the embodiment of the Bush administration’s “revolution in military affairs,” which has entailed aggressive outsourcing of core military functions. The company’s centrality to the U.S. occupation of Iraq was emblematic of the new face of the U.S. war machine. But it is also a symbol of the times in which we live, where every aspect of life is being radically privatized—schools, healthcare, prisons, homeland security operations, intelligence, municipal services. While Blackwater certainly owes its stunning success to the belligerent, offensive foreign policies of the Bush administration, it is important to remember that Blackwater opened for business during President Bill Clinton’s time in office. It was Clinton’s administration that authorized Blackwater as a vendor to the federal government and awarded the firm its first government contracts.

The fact is that privatization is not just a Republican or a Bush administration agenda—it was rapidly escalated by Bush, but it has been embraced and nurtured by the power structures of both political parties for decades. “Even under the Clinton administration, this was a standard operating procedure,” said Illinois Democrat Jan Schakowsky, one of the sharpest Congressional critics of war contracting. “But we’ve seen this enormous escalation of this industry so that now it’s billions and billions of dollars. This is definitely an expansion.” 189The U.S. government pays contractors as much as the combined taxes paid by everyone in the United States with incomes under $100,000, meaning “more than 90 percent of all taxpayers might as well remit everything they owe directly to [contractors] rather than to the [government],” according to a 2007 investigative report in Vanity Fair . 190As journalist Naomi Klein put it, “According to this radical vision, contractors treat the state as an ATM, withdrawing massive contracts to perform core functions like securing borders and interrogating prisoners, and making deposits in the form of campaign contributions.” 191

“I think it’s extraordinarily dangerous when a nation begins to outsource its monopoly on the use of force and the use of violence in support of its foreign policy or national security objectives,” said veteran U.S. diplomat Joe Wilson, who served as the last Ambassador to Iraq before the 1991 Gulf War. The billions of dollars being doled out to war companies, Wilson argues, “makes of them a very powerful interest group within the American body politic and an interest group that is in fact armed. And the question will arise at some time: to whom do they owe their loyalty?” 192

While the bipartisan privatization virus spreads further, companies like Blackwater become ever more deeply embedded in the most sensitive sectors of government. Blackwater is moving ahead at full steam. Individual scandals clearly aren’t enough to slow it down. Even if Blackwater were to go out of business tomorrow, there are scores of companies that would gladly step in to take over its work.

While radical privatization is having a devastating impact throughout society, the privatization of the war machine has been lethal. Blackwater is a company whose business depends on war and conflict to thrive. It operates in a demand-based industry where corporate profits are intimately linked to an escalation of violence. That demand has been tremendous during the presidency of George W. Bush. In particular, the unprecedented militarization of the State Department’s Bureau of Diplomatic Security, which has occurred in tandem with the process of rapid privatization, has enriched Blackwater. The department’s Worldwide Personal Protective Services was originally envisioned as a small-scale bodyguard operation to protect small groups of U.S. diplomats and other U.S. and foreign officials. In Iraq, the administration turned it into a paramilitary force several thousand strong. Spending on the program jumped from $50 million in 2003 to $613 million in 2006. 193According to the Congressional Oversight Committee’s investigation, “In fiscal year 2001, Blackwater had $736,906 in federal contracts. By 2006, Blackwater had over $593 million in government contracts, an increase of more than 80,000%.” 194In 2007, Blackwater had two-thirds as many operatives deployed in Iraq as the U.S. Bureau of Diplomatic Security had in all other countries in the world combined. As Ambassador Ryan Crocker said in late 2007, “There is simply no way at all that the State Department’s Bureau of Diplomatic Security could ever have enough full-time personnel to staff the security function in Iraq. There is no alternative except through contracts.” 195

As of summer, 2007, there were more “private contractors” deployed on the U.S. government payroll in Iraq (180,000) than there were actual soldiers (160,000). 196These contractors worked for some 630 companies and drew personnel from more than 100 countries around the globe. 197Tens of thousands were armed operatives like those who work for Blackwater—exactly how many was unknown, because neither the administration nor the military could or would provide those numbers. This meant the U.S. military had actually become the junior partner in the coalition that occupies Iraq. The existence of a powerful shadow army enabled the waging of an unpopular war with forces whose deaths and injuries went uncounted and unreported. It helped keep a draft, which could make the continuation of the war politically untenable, off the table. It also subverted international diplomacy because the administration didn’t need to build a “coalition of the willing”: it rented an occupation force. Private soldiers were hired from countries that had no direct stake in the war or whose home governments opposed it, and were used as cheap cannon fodder.

War is business, and business has been very good. It is not just the actions of Blackwater and its ilk that need to be investigated, exposed, and prosecuted. It is the whole system. If the insatiable demand for these mercenary “services,” which derives from offensive, unpopular wars of conquest, is not forcefully challenged, Blackwater and other mercenary firms have little to fear. In street parlance, they are the dealers, but the government is the addict. These companies are not simply bad apples. They are the fruit of a very poisonous tree. This system depends on a wedding of immunity and impunity. If the government started slapping mercenary firms with indictments for war crimes or murder or human rights violations—and not just in a token manner—the risk for the companies would be tremendous. This, in turn, would make wars like the one in Iraq far more difficult and arguably impossible. But even after the outrage of Nisour Square, there was no sign of this happening. In early 2008, President Bush once again sought to force the Iraqi government to extend immunity to private contractors, as he negotiated a new “Status of Forces” agreement with Baghdad. 198He also said he would “waive” a provision of a 2008 law—which he signed—that would have established a bipartisan Wartime Contracting Commission to investigate war contractors, as well as one that provided protections for whistleblowers working for government contractors. In a statement, Bush said these provisions would “inhibit the President’s ability” to “protect national security, to supervise the executive branch, and to execute his authority as Commander in Chief.” 199