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The wrong approach to a political decision
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January 23rd, 2008 issue

It’s a clever political strategy.

First, bring together U.S. defense contractors and Czech companies that might be able to profit from the proposed radar defense base.
Mix with promises of business contracts worth $740 million (13.1 billion Kč) over a five-year period.
Stir slowly.
In greatly simplified terms, that’s what U.S. Defense Department officials did last week when they came to town with companies such as Boeing, Lockheed Martin and Northrop Grumman in tow for two days of meetings with about 45 local companies.

In political parlance, this is called “priming the pump.” It’s how business gets done around the world, no matter how many government regulations call for competing bids and fair market value.

In this case, it’s clearly not fair to all the Czechs interested in the outcome of the radar site decision. Nor do we believe it’s the best way to move forward.
U.S. leaders have said they are ready to fund a missile-defense system in Central Europe if the Czechs (and Poles) agree to host sites for it. Of the $9.9 billion originally requested for the project, $9.3 billion has been funded, according to U.S. officials.
However, U.S. Congress cut $139 million from the project last year. And, with a new U.S. president coming into office in 12 months, the political climate is bound to change as well.
So what’s the rush? Why do these deals need to be discussed right now?
They fit a larger pattern of privatizing government business that’s been adopted by the U.S. military, especially over the past five years in Iraq, often to the detriment of taxpayers.
Some $13 billion has gone to “cost-plus” contracts with U.S. companies such as Halliburton, DynCorp and yes, even Northrop Grumman, in Iraq. Those contracts were essentially made as exceptions to normal procurement rules, with the companies getting a flat percent above the total amount (the “plus”) with virtually no scrutiny from taxpayers or Congress until millions have been spent.
As far as we know, no such contracts are being discussed here, nor are they necessarily likely to happen. The modus operandi is disturbingly familiar: Give the private sector a slice of big defense spending, and therefore a financial stake in a controversial project, before it’s been formally approved, much less discussed.
Polls consistently show a majority of the Czech population in opposition to the radar base. This doesn’t absolutely mean that the government should reject it, but it certainly merits debate, with appropriate input from the citizenry. And there are larger considerations with this project, such as how, or even whether, it will fit into NATO defenses.
If a lot of money is going to be spent, then Czech companies should get a piece of the action — no argument there. But courting them before the proper political decisions have been made smacks of the same kind of arrogance and shady deals that have ruined the United States’ reputation abroad and gouged taxpayers at home.
And the Czech Republic should think twice before becoming part of it.


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