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October 27, 2003 The ENRON PENTAGON
You know the world is reaching an end game of almighty proportions where Washington's senior economics institute's newsletter includes a link to an article title The ENRON PENTAGON
charges include: we have a distortion of the free market that would shock Adam Smith, an interface between business and government that would awe the Founding Fathers, and a shift in the military-industrial complex that must have President Eisenhower rolling in his grave. Without change, this is a recipe for bad policy, and bad business. When our soldiers were still eating field rations and lacked running water, months after the president's infamous aircraft carrier landing, the blame fell on an overreliance on contractors. Contractors are not within the chain of command and thus cannot be ordered into combat zones. The same problems cross over into the Enron-like attitude toward financial costs. While one of the rationales for outsourcing military functions is cost savings, the evidence is either absent or limited. Even as we set greater goals for future outsourcing, we do not know if we are actually saving money.However, we do know that contracts have often been awarded with limited or no free-market competition, and frequently to politically connected firms. Private firms now play an even more stunning variety of roles in the Iraq occupation. One example is the controversial Dyncorp firm, a Virginia-based company whose employees were implicated in sex crimes in the Balkans; they are now training the post-Saddam police force. Other firms are training the new Iraqi army and paramilitary forces and guarding critical facilities. Brand USA has never been in such a non-transparent mess, at least not in my living recall. permalink Comments:
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