Page 39 - Counter Insurgancy

The Private Sector

MULTINATIONAL CORPORATIONS
Multinational Corporations usually become involved in counterinsurgency when
their corporate interests (financial interests, foreign based personnel, or infrastruc-
ture, etc.) are threatened, or when a financial advantage is perceived. COIN plan-
ners will not always have the ability to influence the activities of multi-national
corporations in an affected country, but may find that their interests complement the
COIN effort. In particular, firms in extractive sectors (oil, mining, etc.) have large
initial investment and long production cycles, which mean that withdrawal from a
country could result in significant financial cost. For such companies, investment in
local stabilization activities (from micro-loans to security sector reform activities)
makes economic sense.
CONTRACTORS
Contractors are frequently used by the affected nation and supporting countries to
provide a wide range of functions of which security is only one. Policy makers
should be aware that the dynamics of contracting arrangements often lead to
“contractor mission creep” over time, resulting in expanded costs and responsi-
bilities for contractor personnel. Policy makers should also be cognizant of the fact
that U.S. hired contractors, especially security contractors, are often viewed by the
local population as U.S. Government representatives and any negative behavior or
interaction with the local population can have an adverse impact on COIN efforts.
They should therefore ensure that armed contractors (including security personnel,
facility guards, trainers and advisers) are subject to robust, well-designed rules for
the use of force, and that their relationship with the affected government is ethical
and transparent. Despite these concerns, contractors (across all functions) are now
so essential to U.S. Government overseas operations that large scale COIN inter-
vention is probably inconceivable without them.

GRANTEES
The U.S. Government generally delivers development assistance through grants to
non-governmental organizations and private individuals or through contracts. U.S.
Government grant managers oversee the activities of grantees to ensure that funds
are used for the intended purpose. Generally, they can only change the nature of the
grant once it has been authorized if the grant is written to provide for termination
or modification in the event of changed circumstances. Grantees are often subject
to the same ‘humanitarian space’ considerations as NGOs and frequently prefer to
be separated from military activity. COIN planners must therefore maintain aware-
ness of U.S. Government-funded grantee activities in order to protect U.S. invest-
ment, avoid duplication of effort, and prevent military compromise of their status.
Grantees may require armed security personnel who would be subject to the same
concerns as armed security contractors.

34 U.S. GOVERNMENT COUNTERINSURGENCY GUIDE • JANUARY 2009