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The concept of a war economy was first alluded when Kazuhira Miller described its concept to Naked Snake in 1974. After the fall of MSF the use of Private Forces (PFs) became widespread in ethnic conflicts. Cipher saw this change in the industry as favorable since ongoing conflicts against an everlasting enemy allowed them to take attention away from themselves and redirect the public's animosity outside of their borders thus unifying them against their enemies. PFs also provided them with a source of income and by controlling the PFs they could create an environment of everlasting war and provide themselves with an infinite source of income as a result. Over time war became a permanent tool for manipulating the public mind and thus the "War Economy" was born.

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