The Privatisation of Military Force: Economic Virtues, Vices and Government Responsibility
Abstract
The article examines aspects of privatization in the process of defense production and supply from an economic point of view. It argues that the scope and rationale for the privatization of military output has expanded with the changes in the mode and style of warfare and the decline of defense budgets evidenced in the post-Cold War era. The article proposes that limited private production can be both cost-effective and efficacious, provided that the contracts for that service, and the duties described therein, are sufficiently specific. Privatization is not, however, a panacea for resource misallocation and not necessarily an organizational structure that provides appropriate incentives to firms, consumers, and the state. Viewed from the perspective of economic theory, the article concludes that privatization of military outputs seems to have some, but quite limited, viability.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 1999
- Accession Number
- ADA596603
Entities
People
- Adrian Kendry
- Eric Fredland