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Critically examine the proposition that small allies have ‘exploited’
large allies in the North Atlantic Treaty Organisation. ...
Submitted by mcell7 on May 17, 2005
Category: Miscellaneous
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Critically examine the proposition that small allies have ‘exploited’ large allies in the North Atlantic Treaty Organisation. Comment on the proposition that prospective gains for producer groups prove more important than assessment of gains to nation states when explaining international collaboration?
The North Atlantic Treaty Organisation (NATO) expanded by three new members in 1999 and thus now has nineteen members. Although most people view this to be a benefit for the future of NATO as it should enhance their strength and credibility there are those who view that it will lead to further exploitation in defence budget sharing and an allocative efficiency. It is thought that due to issues such as Globalisation the world is becoming more interlinked with organisations such as NATO and the UN comprising of more and more members. It is feared that this expansion will lead to problems with free riders taking advantage of the ever-increasing availability of the public goods offered by organisations such as NATO. There is also a case that producer groups within member countries benefit more than the actual nation states as the benefits to them are much more assured and accessible. Politicians are an example of a group, which can benefit greatly from international collaboration, as it is a tool, which can help them, gain re-election.
The first real concerns over the economics of alliances were raised in Mancur Olson and Richard Zeckhauser their writings in 1966. This raises the point that in international institutions such as NATO the smaller allies are relying on the larger allies to pay the vast amount of the defence budget and thus free riding, this became known as the exploitation hypothesis. Sandler and Hartley point out a clear example of this exploitation, as in 1970 the USA contributed 75% on NATO’s defence spending with the next closest allies which included the UK, France and Germany only contributing 6%. The...
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