Opinion / Budget, Strategy

Bad Idea: Demanding Allies Spend Two Percent of GDP on Defense

It’s time we ditch the two percent (or any percent) of GDP metric for allied defense spending and focus on what really matters—capability, capacity, readiness, and interoperability. In the end, it’s not about how much of our allies’ economic output is directed to defense, and this metric does little to incentivize the results we want to see.

Analysis / Budget, Strategy

Counting Dollars or Measuring Value: Assessing NATO and Partner Burden Sharing

Discussion over transatlantic security spending has increasingly focused on whether NATO members are spending 2% of their GDP on defense and the merits of 2% as a metric for assessing burden sharing. In addition to analyzing current NATO metrics, this report examines several alternatives that provide a broader understanding of collective security contributions and could improve the rigor of security spending analysis.

Analysis, Data / Budget, Strategy

Counting Dollars or Measuring Value: Defense Expenditure as a Share of GDP

The official 2 percent threshold, while mandated at the 2014 Wales Summit, has long been understood as an unofficial spending target for NATO members. According to 2017 estimates illustrated in the graphic, only four of the 28 NATO member states meet the 2 percent spending level while 15 are expected to meet it by 2024..

Analysis, Data / Budget, Strategy

Counting Dollars or Measuring Value: Distribution of Defense Expenditure by Main Category

NATO breaks defense expenditure into four main categories: equipment, personnel, infrastructure, and other. In addition to the commitment to spend 2 percent of GDP on defense, NATO heads of state pledged at the 2014 Wales Summit to spend 20 percent of their defense budgets on major equipment.