Features of financing NATO's armed forces

Nataliia Tkachenko,Petro Kurmaiev,Liudmyla Seliverstova,Maria Pozhydaeva

doi:10.34069/ai/2020.26.02.13

Abstract

The aim of the article is to investigate the peculiarities of financing NATO's armed forces. The following methods were used in the study process: comparative analysis method, correlation analysis, content analysis. The current state of defense financing in the world and in NATO countries has been clarified. Sources of funding for civilian and military budgets and NATO security investment programs are highlighted. The civilian budget covers staff costs, operational costs, capital expenditures and expenses for the International Secretariat's programs at NATO Headquarters. The military budget covers the costs of operating and maintaining the structure of NATO military management bodies. The procedure for the payment of direct and indirect contributions to NATO content by the Allies is disclosed. The tasks of the bodies responsible for financial control over the formation and use of NATO finances are described: the North Atlantic Council, the Resource Policy and Planning Council, the Budget Committee, the Investment Committee, the NATO Independent International Audit Board. Shares of financing of civilian and military budgets, as well as NATO programs by NATO member countries, the ratio of defense expenditures to GDP in NATO countries, the share of capital expenditures in the structure of defense expenditures of NATO countries are analyzed. The volumes and structure of defense financing expenditures in Ukraine are compared with NATO countries. It is revealed that during 2014-2018 Ukraine significantly increased the amount of defense financing, at the same time the share of capital expenditures in the structure of defense spending in Ukraine remains insignificant. It is proposed to increase the share of expenditures on military investments and innovations, purchase of armaments and military equipment, construction of military facilities and, at the same time, limit the share of current expenditures on the maintenance of the armed forces.

Highlights

The acceleration of globalization, together with its positive consequences, causes threats in the social and military-political spheres
If we look at the military budgets of NATO member states (Fig. 1), we can see that the US spends more on arms than all other countries in the Alliance ($684.4 million in 2018)
Given that the military capabilities of each NATO member state have a significant impact on the perception of the global North Atlantic Treaty Organization, a NATO Action Plan for Improvement in Combat Readiness (NATO, 2014) was adopted in 2014, according to which all NATO member countries in the decade (2014-2024) should provide a gradual increase in defense spending of 2% of GDP

Summary

Introduction

The acceleration of globalization, together with its positive consequences, causes threats in the social and military-political spheres. Effective counteraction to the threats and minimization of these negative effects is possible as a result of the integration of countries. One of such integration forms is the North Atlantic Treaty Organization militarypolitical alliance, the members of which are 29 countries. In the conditions of aggravation of the world military-political situation, the problem of financial support for military expenditures becomes especially relevant. Since March 10, 2018, Ukraine has acquired the status of a postgraduate student of the North Atlantic Treaty

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Conclusion