Licensing regimes for the export of military goods and services
Given that PMCs operate mostly in weak states without the capacity or willingness to regulate and control their conduct, more emphasis falls on states exporting their goods and services. Of the key exporting states only three — the United States, South Africa, and Israel — operate licensing regimes controlling the export of commercial military services. This chapter examines two of these regimes with very different underlying principles. It shows that the regulatory system adopted in South Africa has proven ineffective due to its overly burdensome approach, causing firms either to circumvent it or to relocate altogether. By contrast, the US approach reflects the different perceptions of the industry as a potential tool for foreign policy. What both regimes have in common, however, is the power shift to the executive and the lack of sufficient resources to ensure enforcement.
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