The Vast and Dangerous Transfer of American Spying to Mercenary Companies

By Chalmers Johnson, Tomdispatch.com. Posted July 28, 2008.

Editor's note--

Chalmers Johnson has produced a superb new article on what privatization has meant to the U.S. Intelligence Community.

Focusing on Tim Shorrock's new book, Spies for Hire, Johnson traces the history of "the wholesale transfer of military and intelligence functions to private, often anonymous operatives" from Ronald Reagan's day to the present, reminding us of just how crucial the Clinton administration was to this development. He also lays out just what can happen when the intelligence budget soars and startling amounts of it are placed in private, for-profit hands. Not only, he claims, has the privatization of intelligence made it easier for enemies to penetrate American intelligence and greased the slippery slope to the loss of professionalism within the community of intelligence analysts, but, perhaps most serious of all, it has ensured the loss of the most valuable asset any intelligence organization possesses -- its institutional memory.

Johnson concludes: "The current situation represents the worst of all possible worlds. Successive administrations and Congresses have made no effort to alter the CIA's role as the president's private army, even as we have increased its incompetence by turning over many of its functions to the private sector. We have thereby heightened the risks of war by accident, or by presidential whim, as well as of surprise attack because our government is no longer capable of accurately assessing what is going on in the world and because its intelligence agencies are so open to pressure, penetration, and manipulation of every kind."

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Most Americans have a rough idea what the term "military-industrial complex" means when they come across it in a newspaper or hear a politician mention it. President Dwight D. Eisenhower introduced the idea to the public in his farewell address of January 17, 1961. "Our military organization today bears little relation to that known by any of my predecessors in peacetime," he said, "or indeed by the fighting men of World War II and Korea We have been compelled to create a permanent armaments industry of vast proportions We must not fail to comprehend its grave implications We must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex."

Although Eisenhower's reference to the military-industrial complex is, by now, well-known, his warning against its "unwarranted influence" has, I believe, largely been ignored. Since 1961, there has been too little serious study of, or discussion of, the origins of the military-industrial complex, how it has changed over time, how governmental secrecy has hidden it from oversight by members of Congress or attentive citizens, and how it degrades our Constitutional structure of checks and balances.

From its origins in the early 1940s, when President Franklin Delano Roosevelt was building up his "arsenal of democracy," down to the present moment, public opinion has usually assumed that it involved more or less equitable relations -- often termed a "partnership" -- between the high command and civilian overlords of the United States military and privately-owned, for-profit manufacturing and service enterprises. Unfortunately, the truth of the matter is that, from the time they first emerged, these relations were never equitable.

In the formative years of the military-industrial complex, the public still deeply distrusted privately owned industrial firms because of the way they had contributed to the Great Depression. Thus, the leading role in the newly emerging relationship was played by the official governmental sector. A deeply popular, charismatic president, FDR sponsored these public-private relationships. They gained further legitimacy because their purpose was to rearm the country, as well as allied nations around the world, against the gathering forces of fascism. The private sector was eager to go along with this largely as a way to regain public trust and disguise its wartime profit-making.

In the late 1930s and early 1940s, Roosevelt's use of public-private "partnerships" to build up the munitions industry, and thereby finally overcome the Great Depression, did not go entirely unchallenged. Although he was himself an implacable enemy of fascism, a few people thought that the president nonetheless was coming close to copying some of its key institutions. The leading Italian philosopher of fascism, the neo-Hegelian Giovanni Gentile, once argued that it should more appropriately be called "corporatism" because it was a merger of state and corporate power. (See Eugene Jarecki's The American Way of War, p. 69.)

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Chalmers Johnson is the author of three linked books on the crises of American imperialism and militarism. They are Blowback (2000), The Sorrows of Empire (2004), and Nemesis: The Last Days of the American Republic (2006). All are available in paperback from Metropolitan Books.

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