In this case, the resources available for defense depend not only whether the
countries meet the “magic two percent” but also how well their economy performs
overall. Alternatively, measuring defense spending only in terms of difference from the
pervious year does not give us a full picture. While we may have a negative number for
the year when the country has completed a certain phase (or stage) of its modernization
and, therefore, this country has spent spends much less than the previous year, in fact it
has developed new capabilities. Therefore, measuring defense spending in terms of the
actual amount in US dollars allows the most objective evaluation of the funding
opportunities.
The dependent variable in the model is capabilities. The capabilities of the
individual states should be analyzed from NATO’s perspective to coordinate efforts and
to increase the deployability and usability of its forces. The aim is to ensure that the
Alliance can fulfill its present and future operational commitments and fight new threats
such as terrorism and the spread of weapons of mass destruction (WMDs).
late 1990s and particularly after September 11, 2001, NATO has been reviewing its
defense and operations planning process and implementing a package of projects that was
initiated at the Prague Summit in 2002. It has created a NATO Response Force (NRF)
and streamlined its command structure and currently is working on an Alliance Ground
Surveillance system, defense against WMDs and theater missile defense. These
capabilities are particularly important for the new NATO missions such as those in
Afghanistan, Darfur and Iraq. The new missions require forces that reach further, faster,
38
For further information see the NATO Handbook:
,
accessed on March 12, 2006.
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