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Public-Private Sector Relationships in a New Security Environment BUSINESS AND SECURITY PUBLIC–PRIVATE SECTOR RELATIONSHIPS IN A NEW SECURITY ENVIRONMENT EDITED BY ALYSON J. K. BAILES AND ISABEL FROMMELT The private business sector suffered both directly and indirectly from the terrorist strikes of 11 September 2001. Many busi- ness workers perished in the New York World Trade Center, and the insurance, transport and tourism industries were hard hit by the aftermath. Restrictions imposed in the name of security made business travel and the movement of goods more complicated. The private sector was called upon to support the fight against terrorism actively with tougher controls on money transfers and on the export of dangerous materials and technologies. These events offered a striking case of the growing interdependence of the private and public sectors in tackling present-day security challenges. The impact of the private sector, for good or ill, in areas of conflict has long been recognized. Private business is at the centre of the latest concerns over the vulnerability of crucial infrastructures, including energy supply. Systematic public–private sector consulta- tion and partnership are needed to tackle these problems, but neither the principles nor comprehensive mechanisms for such cooperation have yet been identified. This book is based on the proceedings of a conference on Business and Security, held at Vaduz, Liechtenstein, in September 2003. It brings together reflections on general and specific aspects of public– private sector interaction, from a variety of experts in business, government, inter- national organizations and the academic world. For completeness and balance, it also enquires into the costs of security and includes perspectives from Africa and the Arab world. It offers new reference material to help in the further exploration of this important subject. ABOUT THE EDITORS Alyson J. K. Bailes (United Kingdom) is Director of SIPRI. She has served in the British Diplomatic Service, most recently as British Ambassador to Finland. She spent several periods on detachment outside the service, including two academic sabbati- cals, a two-year period with the British Ministry of Defence, and assignments to the European Union and the Western Euro- pean Union. She has published extensively in international journals on politico-military affairs, European integration and Central European affairs as well as on Chinese for- eign policy. Isabel Frommelt (Liechtenstein) is a Research Assistant at SIPRI, conducting research on issues related to business and security. She was previously a research assistant at the Swiss State Secretariat for Economic Affairs of the Foreign Trade Department, responsible for elaborating third-country economic and political profiles, and has worked at the Institute for Social Planning and Social Management (Bern). In 2001 she completed a traineeship pro- gramme at the Liechtenstein Mission to the United Nations in New York, focusing on terrorism, humanitarian issues and conflict prevention. This book explores a broad span of issues and challenges relevant to the private–public sector security dialogue and cooperation, under six thematic headings: • The general framework: goals and norms • Cutting off resources for terrorism and crime: the global and European dimensions • Business and conflict • Preserving the legitimate economy and critical infrastructure • The economic consequences of terrorism: can we afford to be safe? • The security–economy linkage in a global perspective Recent and forthcoming SIPRI books from Oxford University Press SIPRI Yearbook 2004: Armaments, Disarmament and International Security Executive Policing: Enforcing the Law in Peace Operations Edited by Renata Dwan SIPRI Research Report no. 16 paperback and hardback Military Expenditure Data in Africa: A Survey of Cameroon, Ethiopia, Ghana, Kenya, Nigeria and Uganda Wuyi Omitoogun SIPRI Research Report no. 17 paperback and hardback Confidence- and Security-Building Measures in the New Europe Zdzislaw Lachowski SIPRI Research Report no. 18 paperback and hardback Reducing Threats at the Source: A European Perspective on Cooperative Threat Reduction Ian Anthony SIPRI Research Report no. 19 paperback and hardback Technology and Security: A Perspective for the 21st Century Amitav Mallik SIPRI Research Report no. 20 paperback and hardback Budgeting for the Military Sector in Africa: The Process and Mechanisms of Control Edited by Wuyi Omitoogun Transparency in Nuclear Warheads and Materials: The Political and Technical Dimensions Edited by Nicholas Zarimpas The Use of Force in UN Peace Operations Trevor Findlay ISBN 0-19-927450-9 1 9 780199 274505 Business and Security Public–Private Sector Relationships in a New Security Environment Stockholm International Peace Research Institute SIPRI is an independent international institute for research into problems of peace and conflict, especially those of arms control and disarmament. It was established in 1966 to commemorate Sweden’s 150 years of unbroken peace. The Institute is financed mainly by a grant proposed by the Swedish Government and subsequently approved by the Swedish Parliament. The staff and the Governing Board are international. The Institute also has an Advisory Committee as an international consultative body. The Governing Board is not responsible for the views expressed in the publications of the Institute. Governing Board Ambassador Rolf Ekéus, Chairman (Sweden) Sir Marrack Goulding, Vice-Chairman (United Kingdom) Dr Alexei G. Arbatov (Russia) Dr Willem F. van Eekelen (Netherlands) Dr Nabil Elaraby (Egypt) Professor Helga Haftendorn (Germany) Professor Ronald G. Sutherland (Canada) The Director Director Alyson J. K. Bailes (United Kingdom) Stockholm International Peace Research Institute Signalistgatan 9, SE-169 70 Solna, Sweden Telephone: 46 8/655 97 00 Telefax: 46 8/655 97 33 Email: [email protected] Internet URL: http://www.sipri.org Business and Security Public–Private Sector Relationships in a New Security Environment Edited by Alyson J. K. Bailes and Isabel Frommelt OXFORD UNIVERSITY PRESS 2004 OXFORD UNIVERSITY PRESS Great Clarendon Street, Oxford OX2 6DP Oxford University Press is a department of the University of Oxford. It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide in Oxford New York Auckland Bangkok Buenos Aires Cape Town Chennai Dar es Salaam Delhi Hong Kong Istanbul Karachi Kolkata Kuala Lumpur Madrid Melbourne Mexico City Mumbai Nairobi São Paulo Shanghai Taipei Tokyo Toronto Oxford is a registered trade mark of Oxford University Press in the UK and certain other countries Published in the United States by Oxford University Press Inc., New York © SIPRI 2004 First published 2004 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of SIPRI or as expressly permitted by law, or under terms agreed with the appropriate reprographics rights organizations. Enquiries concerning reproduction outside the scope of the above should be sent to SIPRI, Signalistgatan 9, SE-169 70 Solna, Sweden You must not circulate this book in any other binding or cover and you must impose the same condition on any acquirer British Library Cataloguing in Publication Data Data available Library of Congress Cataloguing in Publication Data Data available ISBN 0-19-927450-9 Typeset and originated by Stockholm International Peace Research Institute Printed in Great Britain on acid-free paper by Biddles Ltd., King’s Lynn, Norfolk Contents Preface xi Acronyms xiii Introduction 1 Business and security: public–private sector interface and interdependence at the turn of the 21st century Alyson J. K. Bailes I. Introduction: interdependence old and new 1 II. 11 September 2001 as catalyst 5 III. Two years on: new agenda items, second thoughts? 8 IV. Other players, other interests 18 V. This book 23 Part I. The general framework: goals and norms Editors’ remarks 1. Security and the responsibilities of the public and private sectors 27 István Gyarmati I. Introduction 27 II. New threats, new thinking 28 III. The new role of the private sector 30 IV. Conclusions 31 2. Public–private sector cooperation 33 Erik Belfrage I. Introduction: the development of modern terrorism 33 II. The role of private corporations in the provision of security 34 3. What price values? 37 Daniel Tarschys I. The ambivalence of value and the obscurity of price 37 II. Values in public policy and in the European institutions 38 III. Envoi 44 Part II. Cutting off resources for terrorism and crime: the global and European dimensions Editors’ remarks 4. An international response to terrorism 47 Claes Norgren I. Introduction 47 II. Terrorism: a threat to the international community 48 vi BUSINESS AND SECURITY III. Countering terrorism 51 IV. Measures to counter terrorist financing 52 V. Success or failure? 54 VI. The way forward 56 VII. Conclusions 58 5. Counter-terrorism measures undertaken under UN Security 59 Council auspices Thomas J. Biersteker I. Introduction 59 II. The role of the UN Security Council in efforts to counter 60 terrorist financing after 11 September 2001 III. An assessment of the effectiveness of UN Security Council 63 measures IV. Legal issues, problems and challenges 67 V. Conclusions 73 6. Strategic export controls and the private sector 76 Evan R. Berlack I. Introduction 76 II. The US approach 76 III. The evolution of international approaches to export controls 78 after 1945
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