BUSINESS AND SECURITY What does that make you think of?

OVERMIGHTY WESTERN MULTINATIONALS? But the worlds biggest multinational is now Chinese (Who is actually running globalization now…?) Business is also your insurance company, your hairdresser and shoes mender and the guy who runs the bar round the corner - and the lady running an African market stall

ABUSES BY PRIVATE MILITARY COMPANIES? But the biggest of these now focus on peacetime services, security services (eg guarding) and post-conflict services (retraining etc) as much as or more than on front-line, armed duties The UN and EU use them regularly, so does Finland for services to its armed forces

PRIVATIZATION? Very true that trend in OECD (and ex- Communist) states has been to sell or delegate security-related functions to business: - Arms production+research - Nuclear and chemical industries - Sensitive medical research, drugs - Power and transport systems, IT - Prisons, hospitals etc

AND OTHER RELATED TRENDS State outsourcing of specific business goods/services even in state-run areas Multinationalization and single markets --> key business services often now from foreign firms (eg electricity supply, water, banking, media) Modern conflict + other social violence more directly involves business

BUT ALSO COUNTER- TRENDS…. Trend in non-western countries to renew state control of key extractive and export branches (Russia+energy); and take over or regulate BANKS All states tempted by protectionism esp ag foreign acquisition of strategic bits Sovereign equity funds At worst, state conflict over econ.assets

CLASSIFYING BUSINESS ROLES (see handout) Security and defence for business? Business as part of the problem: direct action, carelessness, side-effects Businesss special vulnerabilities or attractions as a target Potential of business to help state and people in good peacetime security and crisis handling

SOME NORDIC EXAMPLES (besides kreppa) Finnish doctrine of protecting vital functions of society Danish businesses abroad attacked over cartoons crisis Icelandic business helped in tsunami and Lebanon evacuations Swedish business hardly did, was excluded from new int.sec. policy

BUT NOTE IMPORTANT VARIATIONS IN RANGE OF INTERACTIONS In North and South More state-run and more free-market economies Countries with a single elite or establishment and those where politics and business are more separate (often on gender basis!)

THEORETICAL RANGE OF SOLUTIONS To block bad and maximise good business roles in security: 1)Stopping = prohibition, restriction 2)Law+regulation - (i) formal controls, standards (ii) control by contract 3)Convert them - use market and moral pressure, encourage self-regulation

BUT NOT SO SIMPLE…. Effective prohibition, regulation + even contract practice should now be global How to bring in the S hemisphere? Do we believe in self-regulation? (NB limitations of CSR) Cannot overstress importance of subjective factors in p-p relations (see second handout)

AFTER THE BREAK We will talk through the application of the 3 sets of methods in two examples: –Dangerous bio-research in a W state –A company supplying military services in Iraq

RECALL THE THREE TYPES OF SOLUTIONS Prohibition (+ punishment) Law, regulation, contract Market + moral pressure --> self- regulation In practice obviously need a mixture…

(i) AN ICELANDIC BIO- RESEARCH COMPANY What might we want to forbid or punish? (is it for security or other reasons??)

CASE (i) What types of laws and regulations might we apply? On national or international basis - what institutions?

CASE (i) Which things would it be better to encourage the firm to do of its own accord? And how?

(ii) PRIVATE MILITARY COMPANY IN IRAQ What might we specifically forbid or exclude it from? What things might we punish it for and how? (and who is we?)

CASE (ii) (Say we have to use the company for armed guarding and escort duties) what kinds of law/regulation can we apply to minimize problems? How is the contract relevant?

CASE (iii) Does market and moral pressure have any place here? Does self-regulation?

IF TIME: BANKS AND THE KREPPA?? A case where all the methods seem to have failed……? But what was the real underlying problem??