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You are only considering one issue, not all of them.
This is just one bill on privatizing the country's armed forces; what significance can it possibly have? We will simply get a bonus to our self-defense forces.
I and all organizations, industries are nationalized.
The thing is that these organizations could act as mercenaries and send soldiers to participate in military conflicts in other territories, like some organizations from the USA do.
However, when it comes time to defend the country against a serious external enemy, rather than raiding others, there will be no one left to protect it.