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1. Supply and demand
Since the Cold War ended in 1991, the US military downsized to about two-thirds its former size, a process Dick Cheney, as defense secretary, called BRAC - Base Realignment and Closure, followed by privatizing military functions. But given America's permanent war agenda, the Pentagon needed help, especially because of the proliferation of small arms, over 550 million globally or about one for every 12 human beings, and their increased use in local conflicts.
2. Changes in the conduct of war
Earlier distinctions between soldiers and civilians are breaking down, the result of low-intensity conflicts against drug cartels, warlords and persons or groups aggressor nations call "terrorists," the same ones they call "freedom fighters" when on their side for imperial purposes.
High-intensity warfare also changed, so sailors aboard guided missile ships, for example, serve along side weapons and technology company personal, needed for their specialized expertise.
In addition, the combination of powerful weapons and sophisticated information technology let the Pentagon topple Saddam with one-fourth the number of forces for the Gulf War. This strategy can be just as effective in other conventional warfare theaters, depending on how formidable the adversary, but it doesn't work in guerrilla wars - the dilemma America faces in Afghanistan, earlier in Iraq and still now as violence there is increasing.
3. The "privatization revolution"
Singer calls it a "change in mentality, a change in political thinking, (a) new ideology that" whatever governments can do, business can do better so let it. The transformation is pervasive in public services, including more spent on private police than actual ones in America. And the phenomenon is global. In China, for example, the private security industry is one of its fastest growing.
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