LONDON — Assymetrical warfare has plagued the efforts of highly-trained military forces there but Iraq has emerged as a huge market for private military contractors.
A new study said Iraq has become the focus in the growth of the private
defense services market.
The Stockholm International Peace Research
Institute said companies have replaced the U.S.-led military coalition in
Iraq in logistics and support services.
"The privatization of defense services and support is drawing new kinds
of suppliers into military contracting," SIPRI said in its annual survey, according to Middle East Newsline.
"This has been made apparent in Iraq, with companies taking on support roles
that in the past the armed forces would have undertaken."
The survey said a huge growth area in Iraq has been site protection
provided by private contractors. The institute said site protection has been
regarded as an expansion of the arms industry, which has created new
companies to fulfill the demand.
"These developments have resulted in marked changes in the arms industry
and further changes can be expected," the institute said.
SIPRI said sales by the 100 largest defense companies rose by 15 percent
during 2004 to $268 billion. The institute said 63.3 percent of sales were
conducted by 40 U.S. companies; and 29.4 percent by 36 West European
companies.
