state can effectively destroy a society's interests in humanities as money leads to a monopoly and/or oligarchy. A hollow state can be unreliable. When a government sector contracts out, there can be many problems. The hollow state is exemplified by increased reliance on third-party producers, which may result in a lack of oversight expertise in government. Contracting private organizations for warfare can lead to unethical methods and the hollow state can effectively destroy a society's interests in humanities as money leads to a monopoly and/or oligarchy. The problems of managing non-governmental, contracted organizations are extensive and severe. The number of degrees of separation between the source of funds and the implementation of those funds creates diminishing quality of returns with each new layer. Managers at every level are forced to deal with an uncertain budget cycle, long waits for payment for services rendered, financial crises, billing problems, frequently changing and contradictory rules and much more. Another thing to consider is the existence of the "principal-agent" issue, wherein the "principal" (the person giving the contract) can never have as much information about the requirements of the job than the "agent" (the one being contracted). This information disparity causes the principal to have unrealistic expectations and allows the agent to mislead the principle as to aspects such as cost, time, and human resources. Administrations that already exist within a country moving toward a Hollow State begin to be parsed in seemingly innocent fashion. In the name of "efficiency" government interests are delegated to private contractor, who will then often subcontract to other groups. For example, contractors hired to patch roofs with blue tarp for FEMA after Katrina received payment of "between $149 and $175 per (10ftx10ft square)." This price was comparable to installing entirely new roofs at the time. However; through a long string of subcontractors, the firms performing the final installations of the tarps "earned as little as $2 per 10ftx10ft square. Taxpayers end up paying exorbitantly as business interests takes complete control over the process of procurement. See also Government auction Vectigalia Tax farming References Political systems Forms of government