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Although based in national governments, intelligence agencies in the global era interact and share information on a transnational level. Intelligence agencies are formal organizations that support the executive branch of a government in the gathering and analysis of intelligence, defined as information relevant to formulate and implement a state's foreign and security policy, and in handling threats to its national interest. Intelligence services are agents that compete for scarce and often clandestine information and whose actions are characterized by a high degree of secrecy.

Brief History

The activity of intelligence gathering dates back at least to ancient Greece. Roman armies employed speculators, who collected military intelligence, and in the 15th and 16th centuries, diplomats usually intercepted dispatches and performed other tasks of espionage. By the 18th century, Great Britain maintained a network of diplomats and/or agents that closely observed French and Spanish naval bases as well as internal “Catholic threats” to the monarchy.

The first professional intelligence agency was established in 1863 by the Union forces in the American Civil War (1861–1865). The Bureau of Military Intelligence prepared evaluations of the Confederate army's strength and activities but was dissembled after the war. In the United Kingdom, permanent naval and military intelligence departments were established in the 1870s and 1880s, and in 1909 the British administration founded the Secret Service Bureau, which later became the Secret Intelligence Service, commonly known as MI6. Almost 40 years later (1947), the National Security Act under U.S. President Harry Truman established the Central Intelligence Agency (CIA), now the world's largest national intelligence system with an annual spending of approximately $30 billion. Today, nearly all members of the international state system employ intelligence-gathering capabilities, who are commonly subdivided into several national agencies. The most prominent intelligence agencies are the American CIA, the British MI6, the Russian FSB, and the Israeli Mossad.

The Cold War provided the backdrop for a steady rise in intelligence activities of the superpowers and a simultaneous increase in budgets. The downfall of the Soviet Union, however, led to a temporary reduction in intelligence spending and a shift toward economic intelligence, foremost by the United States, Great Britain, and France. Since the terrorist attacks of September 11, 2001, intelligence agencies have been perceived to play a more central role in foreign policy implementation through covert and paramilitary actions against terrorists and rogue states.

Functions

Intelligence agencies execute four main functions, which can be differentiated along two dimensions: the nature of the activity (informing vs. conducting) and their locality (national vs. abroad). These functions are (1) the collection of intelligence, (2) its analysis, (3) counterintelligence, and (4) covert action.

Collection of Intelligence

An intelligence agency's main purpose is to obtain information and expertise for its respective national government. Such information is provided by three sources: open sources, human intelligence (humint), and technical intelligence (technint).

The greatest amount of intelligence is collected through open (i.e., public) sources, such as books, newspaper articles, or other publications regarding military, political, economic, and social data. However, as Bruce D. Berkowitz points out, the raison d'ětre of intelligence agencies consists in their capacity to collect information that the private sector is either unable or unwilling to assemble because of unprofitability, technological advancement, legal constraints, or risks but which is deemed necessary for administration officials. Such information may consist of the political, economic, and military developments in hostile nations; transnational threats such as arms transfer, terrorism, or proliferation of weapons of mass destruction; and issues such as drug trafficking and HIV/AIDS.

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