NATO burden sharing policy and Covid 19 implications on defence expenditures

Gjoreski, Igor (2020) NATO burden sharing policy and Covid 19 implications on defence expenditures. Contemporary Macedonian Defence, 20 (39). pp. 69-92. ISSN 1409-8199 e-ISSN 1857-887X

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Abstract

The aim of the paper is to evaluate the implementation of NATO policies, recommendations and guidelines in the field of defence expenditures in accordance with the Declarations and the accompanying documents from 2014 Wales Summit. The pledge to share
2% of GDP for defence expenditures and at least 20% of them on major new equipment
aims to increase the Alliance’s ability to meet the three core tasks arising from the 2010
Strategic Concept. At the same time, research and development (R&D) of new capabilities
to respond to the rapidly changing threats and risks in the Euro-Atlantic area is a challenge
not only for each Ally, but also for NATO as a whole entity. The paper provides an analysis
of the implementation of the “2/20 pledge” policies and recommendations of the Alliance
from the 2014 Wales Summit in view of meeting the guidelines to spend a minimum of 2%
of GDP on defence by 2024 and 20% of it on major new equipment, including related R&D
of new capabilities. A parallel of defence expenditures distribution by main categories has
been made for the period 2013-2020. The main categories include operational expenditures (personnel, operations and maintenance) and capital investments in defence (equipment and modernization, and infrastructure). At the same time, the distribution of defence
expenditures by main categories for the period 2013-2020 for the Republic of North
Macedonia was analyzed in accordance with NATO methodology and data provided by the
Ministry of Defence of North Macedonia. In addition, expert analyses related to COVID 19
implications and impact on the economic and GDP growth are presented. This COVID 19
implication is expected to have a certain positive or negative impact on defence expenditures in 2020, as well as in the following years. No matter which scenario prevails, experts
agree that defence expenditure needs to maintain an upward trend not only as a percentage
of GDP, but also in real terms. This is necessary not only for dealing with modern, rapidly
growing and unpredictable threats to citizens’ security and safety, but also for the economic
recovery of the Allies from the COVID 19 effects.

Item Type:	Article
Subjects:	Social Sciences > Other social sciences Social Sciences > Political Science
Divisions:	Military Academy
Depositing User:	Igor Goreski
Date Deposited:	01 Jul 2022 10:29
Last Modified:	01 Jul 2022 10:29
URI:	https://eprints.ugd.edu.mk/id/eprint/29931

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