The pullout from Basra has begun

http://www.sandline.com/hotlinks/Economist-Baghdad.html
The Baghdad boom
Mar 25th 2004 | BAGHDAD
From The Economist print edition
British companies have been grousing about losing out to the Americans in Iraq. But in one area, British companies excel: security

THE sight of a mob of Iraqi stone-throwers attacking the gates to the Basra palace where the coalition has its southern headquarters is no surprise. What's odd is the identity of the uniformed men holding them off. The single Briton prodding his six Fijians to stand their ground are not British army soldiers but employees of Global Risk Strategies, a London-based security company.

Private military companies (PMCs)—mercenaries, in oldspeak—manning the occupation administration's front lines are now the third-largest contributor to the war effort after the United States and Britain. British ones are popular, largely because of the reputation of the Special Air Service (SAS) regiment whose ex-employees run and man many of the companies. They maintain they have twice as many men on the ground as their American counterparts. According to David Claridge, managing director of Janusian, a London-based security firm, Iraq has boosted British military companies' revenues from £200m ($320m) before the war to over £1 billion, making security by far Britain's most lucrative post-war export to Iraq.
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Established companies have expanded; new ones have sprung up. Control Risks, a consultancy, now provides armed escorts. It has 500 men guarding British civil servants. Global Risk Strategies was a two-man team until the invasion of Afghanistan. Now it has over 1,000 guards in Iraq—more than many of the countries taking part in the occupation—manning the barricades of the Coalition Provisional Authority (CPA). Last year it also won a $27m contract to distribute Iraq's new dinar. Erinys, another British firm, was founded by Alastair Morrisson, an ex-SAS officer who emerged from semi-retirement to win a contract with Jordanian and Iraqi partners to protect Iraq's oil installations. CPA officials say the contract is worth over $100m. Erinys now commands a 14,000-strong armed force in Iraq.

In industry jargon, these companies' manpower is split into Iraqis, “third-country nationals” (Gurkhas and Fijians) and “internationals” (usually white first-worlders). Iraqis get $150 a month, “third-country nationals” 10-20 times as much, and “internationals” 100 times as much. Control Risks still relies on westerners, but ArmorGroup, a British rival, employs 700 Gurkhas to shepherd America's primary contractors in Iraq, Bechtel and KBR. Erinys's corps of pipeline protectors is overwhelmingly Iraqi. The cheapness of the other ranks, compared with western soldiers, is one reason why PMCs are flourishing. “Why pay for a British platoon to guard a base, when you can hire Gurkhas at a fraction of the cost?” asks one.