As nation-states continue their drive to become more efficient, they increasingly resort to private corporations to provide critical services. These services are core to the US reconstruction and security effort in Iraq. However, because these services are market-based, they offer global guerrillas substantial leverage for disruption (see Target: Halliburton for more). A proven methodology at work in Iraq and Saudi Arabia is to target employees of "Halliburton" companies providing this support. These attacks have drained both countries of needed expertise, radically increased costs (increased security, insurance, etc. have drained billions), driven away new investment (as well as market participants), and trashed operational tempo. The interesting aspect of this is how few real casualties are required to destabilize a market. The attached graph demonstrates the low level of fatalities that have been inflicted on "Halliburton" employees and how little real effort it takes global guerrillas to inflict damage through the use of these new tactics. In fact, the total number of fatalities has even declined over the last four months. The reasons for this include:
- A shift to hostage taking. The media attention gained through hostage dramas has made simple assaults less effective in comparison. Numerous corporate withdrawals in exchange for the release of employees held hostage have reinforced this.
- More and smarter security. Secure enclaves, guarded convoys, and more have reduced the number of fatalities. However, this has been done at huge expense to both efficiency and tempo. This has reduced the number of fatalities from private security companies (and reflects the bulk of the decline).
- Fewer targets. In general, Halliburton targeting has been a success. Many companies have withdrawn their employees from Iraq or ceased operations in the country. Reconstruction is proceeding at a snail's pace. The current rate of attacks can be seen as a maintenance effort to ensure the continuation of market destabilization.