Local Competition and PMSCs’ Behavior in Civil Wars
What is the significance of local or conflict-level competition on PMSCs’ military effectiveness? And what is the mechanism through which such competition improves PMSCs’ accountability? This chapter argues that variation in local competition, the number of PMSCs that operate in a given conflict zone, affects the level of accountability to the client. With the presence of multiple PMSCs, companies can anticipate the existence of informal peer monitoring. Whether gaining a competitive edge or safety concerns motivate companies’ monitoring of each other in the field, this puts pressure on PMSCs to fulfill contractual obligations and become more militarily effective or risk losing future contracts. The chapter argues that a greater level of local competition pushes companies to improve their skills and to limit fraud and human rights abuses, factors that contribute to quicker termination of war.