US wants to build network of friendly militias to combat terrorism
Is this a form of privatization? I'd say so:

The Pentagon has urged Congress to authorize 500 million dollars for building a network of friendly militias around the world to purge terrorists from "ungoverned areas" -- and warned Muslim clerics against providing "ideological sanctuary" to radicals.

Deputy Defense Secretary Paul Wolfowitz, a key architect of the Iraq war, told the House Armed Services Committee Tuesday the money would be used "for training and equipping local security forces -- not just armies -- to counter terrorism and insurgencies."