Vertical Markets

PMSC paper

by Mark Rowe

An anti-corruption pressure group has called for better regulation of private military and security companies (PMSCs) in the context of military conflicts.

Transparency Germany has demanded that the awarding of contracts to PMSCs and the imposition of international quality standards be made more transparent. What were until recently regarded as responsibilities of the government are now being delegated to private service providers, say the anti-corruption campaigners. With this shift it is becoming increasingly difficult to attribute responsibility. A lack of transparency creates opportunities for corruption; the more so because most military interventions now occur in countries where corruption is rampant. For this reason, TI says, it is necessary to define the government’s core military responsibilities and to stop the outsourcing of those responsibilities to private companies. Appropriate registration and licensing systems must be established, the campaign group adds.

The Munich Security Conference on February 13, which covers such international topics as terrorism, NATO and peacekeeping in Africa, will include lectures and workshops on PMSCs, TI will present a policy paper “Capacity Gained — Accountability Lost? Establishing a Better Political and Regulatory Framework”.

The paper covers Afghanistan, the DR Congo, and Chad and the Central African Republic. It points out that the UK has no licensing of PMSCs, nor does it have any other specific legislation on PMSCs. Hence, governmental contracts with PMSCs could be an instrument to regulate the companies, but TI suggests that the
government is not making enough use of its contracts to raise industry standards. Instead, it seeks to raise the standards of PMSCs by relying on voluntary regulation within the industry. However, monitoring such companies is difficult, not least because there is no register of British PMSCs.

After scandals over the use of PMSCs in Iraq and Afghanistan in the 2000s, as the paper says, the US has oversight of such companies; regulation is split however among several bodies, and with loopholes.

For the 11-page paper, visit the Transparency Germany website.

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