how private armies became a $120bn global industry

....arguably the fastest-growing industry in the global economy. The sector is now worth up to $120bn annually with operations in at least 50 countries, according to Peter Singer, a security analyst with the Brookings Institution in Washington.

"The rate of growth in the security industry has been phenomenal," says Deborah Avant, a professor of political science at UCLA. The single largest spur to this boom is the conflict in Iraq.

The workings of this industry have come under intense scrutiny this week in the angry aftermath of the killing of Iraqi civilians by the US-owned Blackwater corporation in Baghdad. The Iraqi government has demanded the North Carolina-based company is withdrawn. But with Blackwater responsible for the protection of hundreds of senior US and Iraqi officials, from the US ambassador to visiting congressional delegations, there is certainty in diplomatic and military circles that this will not happen.

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Now the mercenary trade comes with its own business jargon. Guns for hire come under the umbrella term of privatised military firms, with their own acronym PMFs. The industry itself has done everything it can to shed the "mercenary" tag and most companies avoid the term "military" in preference for "security". "The term mercenary is not accurate," says Mr Ayers, who argues that military personnel in defensive roles should be distinguished from soldiers of fortune.

There is nothing new about soldiers for hire, the private companies simply represent the trade in a new form. "Organised as business entities and structured along corporate lines, they mark the corporate evolution of the mercenary trade," according to Mr Singer, who was among the first to plot the worldwide explosion in the use of private military firms.

In many ways it mirrors broader trends in the world economy as countries switch from manufacturing to services and outsource functions once thought to be the preserve of the state. Iraq has become a testing ground for this burgeoning industry, creating staggering financial opportunities and equally immense ethical dilemmas.

None of the estimated 48,000 private military operatives in Iraq has been convicted of a crime and no one knows how many Iraqis have been killed by private military forces, because the US does not keep records.

According to some estimates, more than 800 private military employees have been killed in the war so far, and as many as 3,300 wounded.

These numbers are greater than the losses suffered by any single US army division and larger than the casualties suffered by the rest of the coalition put together.

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In Abu Ghraib, all of the translators and up to half of the interrogators were reportedly private contractors.

Private soldiers are involved in all stages of war, from training and war-gaming before the invasion to delivering supplies. Camp Doha in Kuwait, the launch-pad for the invasion, was built by private contractors.

It is not just the military that has turned to the private sector, humanitarian agencies are dependent on PMFs in almost every war zone from Bosnia to the Democratic Republic of Congo. Which raises the next market the industry would like to see opened: peacekeeping. And the lobbying has already begun.

http://news.independent.co.uk/world/middle_east/article2984818.ece