Well, it's not like the government has a very good track record wrt human rights either.
1. said entrepreneur is likely to be from a similar background, eg having served in the same agency, and thus being exposed to the same culture, and from this might very well be a bit desensitized to human rights abuses.
2. a cheaper, but also more ethical, solution isn't necessarily available. An organization with fewer morals has more tools available to it, such as nonempty death threats, which ultimately lower costs. A cheaper solution has to cut somewhere else to compete.
3. sometimes an organization cannot completely keep tabs on employees, especially an intelligence organization.
Simply put, this is the wishful thinking wherein the thinker believes that the private sector will correct for any nastiness and then creates a fantasy to support this belief in the specific case being discussed.
Merely having a bunch of money in way qualifies you to bid for a large military contract.
Most if not absolutely all of the staff of private military contracting firms are ex-military of some sort. So you basically start out, for good or ill, with the ethos of the military and the baggage of the military. The only question is what kind of supervision will you give to more-or-less-the-same-guys. That's it. So the whole privatization theory is essentially a "let's do it faster with less supervision" equation. There's no way human rights enters into that equation.
Now let's consider the best case: these companies compete with each other for government contracts, which the people award. This type of system would compel the companies to maintain high levels of transparency, especially with the SEC and IRS now taking interest.
The reason the government is so inefficient is because they don't have any external auditing agencies. The SEC and the IRS, for example, will never put the CIA or FBI through the same rigorous audits that they would put private companies through.
or the guys who were pimping Afghan teenage boys to warlords?
yeah, that worked well.
Classified private companies today have pretty much carte blanche in similar fashion to the CIA or FBI.
A friend of mine was unable to resolve a labor dispute with his classified employer because he could only sue them using a lawyer with clearance (and then his manager coerced him into signing a termination agreement... using a baseball bat! Again, try and sue?)
This was not a small, fly-by-night operation either but one of the largest government contractors.
So what issues do you see? Oh right: the over-arching theme of corruption. However, I addressed that in my initial post; the only way we can get to a point where government efficiency is no longer questioned is by eliminating corruption.
I think one way to reduce corruption is to decrease the government's size, but that of course leads to situations like those we presently face. There will always be corrupt politicians who award contracts to their friends in return for some sort of illegal remuneration, but I think by reducing the number of politicians/government employees with the power to make those decisions, we will lower the amount of corruption present.
Any questions of classified operations is completely irrelevant; of course you won't be able to load profiles of all spies à la tv shows like '24'.
Sounds like the government is now outsourcing paying for private intelligence and security services as well as the work. I can see why 'small government' people would like this but from the oversight and human rights perspectives it seems like a really bad idea.