ARTICLE: "Iraq Contractor In Shooting Case Is Rehired By U.S.: Blackwater Rebounds; U.S. Lacks Alternatives to Security Firm—Intense Lobbying," by James Risen, New York Times, 10 May 2008, p. A1.
ARTICLE: "Lucrative Privatizing Of Defense Drives Deal," by August Cole, Peter Lattman and Joann S. Lublin, Wall Street Journal, 17-18 May 2008, p. A1.
Remember when I wrote that Blackwater is too big to fail?
So no surprise here. A frontier-integrating age naturally spawns new Pinkertons.
For the same reason why mafias bloom (a sort of legal authority you turn to when you can't turn to the government, for whatever reason) in this age of expansive globalization, you see private security firms booming (a sort of quasi-police/military that governments turn to when they're operating in lawless areas—i.e., the Gap).
So the rise of the private contractors merely represents the reality that shrinking the Gap is being done, must be done, and will continue to be done. Not a "theory" or a "vision," but a simple, observable dynamic and reality. You add three billion new capitalists and roughly two billion new middle class consumers to the mix and the global economy simply will not be contained. The Gap must be shrunk to meet all that demand.
So those who see the war on terror as a supply function are wrong, even if the Bush administration wrongly employs too many supply-depressing tactics. It is a demand function, just like transnational terrorism is, and the driver of that demand is globalization's rapid extension around the planet.
So don't expect privatization to go away anytime soon in the national security realm. It's only going to increase.