Everything about Private Defense Agency totally explained
A
private defense agency (PDA) is a conceptualized agency that provides personal protection and
military defense services voluntarily through the
free market. A PDA isn't a
private contractor of the state and isn't
subsidised in any way through
taxation or
immunities, nor does it rely on
conscription and other involuntary methods.
As proponents of
mutualist economic theory,
Benjamin Tucker and
Gustave de Molinari first explicitly proposed for-profit private defense agencies.
The concept later was advanced and expanded upon by anarcho-capitalists and other
libertarians who consider the state to be illegitimate and therefore believe defense is something that individuals should provide or decide for themselves. The
Mises Institute published a book of essays entitled
The Myth of National Defense: Essays on the Theory and History of Security Production.
Murray N. Rothbard in and
David D. Friedman in
The Machinery of Freedom expand substantially on the idea. Both hold that a PDA would be part of a
privatized system of
law,
police,
courts,
insurance companies and
arbitration agencies responsible for dealing with
contractual disputes and
tort damages, as from
assault,
burglary or
pollution. This concept is similar to
Polycentric law. Within
economics, discussion of the concept largely has been confined to the
Austrian School, as in
Hans Hoppe's article "The Private Production of Defense" published by the
Mises Institute.
These authors emphasize that PDAs have different motives than existing
statist defense agencies. Their survival depends on quality of service leading to a wide customer base, rather than the ability to extract funds via the force of law, as is true of
states. Customers and markets would thus dictate that PDAs minimize offensive tendencies and
militarization in favor of a pure defense. Anarcho-capitalists believe such privatization and
decentralization of defense would eliminate the credibility of, and popular support for, the
state.
As a private firm offering individually determined defense, the PDA provides an
anarcho-capitalist model for how an entirely private defense would work in practice. Anarcho-capitalists such as Juan L. Madrigal argue that the need for large-scale defense is minimized in direct inverse proportion to the extent of domestic control by the state. Since the greater number of
proprietors makes
surrender more costly to an aggressor than a relatively authoritarian region,
vulnerability to attack is less likely. Furthermore, since individuals minding their own business pose little threat to neighboring regions, official or
ideological justification by those neighbors for attacking them is also proportionately diminished.
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