North Atlantic Treaty Organization Nato Enlargement Costs

On July 8,1997, the North Atlantic Treaty Organization (NATO) invited Poland, Hungary, and the Czech Republic to become NATO members. If approved by the current membership, the alliance's expansion will entail costs to NATO, its current members, and the newly invited states. Several efforts have been made to estimate these costs. At the request of Congress, the executive branch prepared a study on NATO enlargement issues, including cost, which was released in February 1997. Other estimates have been developed by the Congressional Budget Office (cBO) and the RAND Corporation. In response to your request, we have evaluated the executive branch's estimate. Our specific objectives were to (1) assess the reasonableness of the study's key assumptions, (2) verily the pricing of individual cost elements and identity the basis for the pricing, (3) determIne whether the estimate's major cost categories and elements should be ascribed to NATO enlargement, (4) identily factors that were not included in the study's cost estimate that could affect enlargement costs, and (5) compare the executive branch's estimate with the CBO and RAND estimates. As agreed with your offices, we did not independently estimate the cost of enlarging NATO.

On October 23, 1997, we testified before your Committee on a cost study that had been developed independently by the Department of Defense (DOD) regarding the enlargement of the North Atlantic Treaty Organization (NATO). We also provided you with NATO'S schedule for preparing its own studies regarding the requirements and costs associated with the alliance's enlargement. This report responds to your request that we evaluate the basis for NATO'S cost estimate for enlarging its membership. You also asked for our views on DOD'S assessment of NATO'S estimate. At the Madrid Summit in July 1997, NATO invited three countries, Poland, Hungary, and the Czech Republic, to enter into negotiations to become NATO members. At the summit, the NATO heads of state and government also directed NATO'S managing body, the North Atlantic Council (NAC), to prepare an analysis of the commonly funded costs of enlargement.

On July 8,1997, the North Atlantic Treaty Organization (NATO) invited Poland, Hungary, and the Czech Republic to become NATO members. If approved by the current membership, the alliance's expansion will entail costs to NATO, its current members, and the newly invited states. Several efforts have been made to estimate these costs. At the request of Congress, the executive branch prepared a study on NATO enlargement issues, including cost, which was released in February 1997. Other estimates have been developed by the Congressional Budget Office (cBO) and the RAND Corporation. In response to your request, we have evaluated the executive branch's estimate. Our specific objectives were to (1) assess the reasonableness of the study's key assumptions, (2) verily the pricing of individual cost elements and identity the basis for the pricing, (3) determIne whether the estimate's major cost categories and elements should be ascribed to NATO enlargement, (4) identily factors that were not included in the study's cost estimate that could affect enlargement costs, and (5) compare the executive branch's estimate with the CBO and RAND estimates. As agreed with your offices, we did not independently estimate the cost of enlarging NATO.

This work evaluates the pros and cons of NATO enlargement. It explains why NATO offered membership to three of its Cold War adversaries and makes recommendations about which countries, if any, should be offered membership in the future.

The North Atlantic Treaty Organization (NATO) has declared its intent again to admit new members. At a summit in Madrid this coming July, NATO's 16 heads of state and government plan to invite specific states from among the new democracies of Central and Eastern Europe to start accession talks to join the Alliance. President Clinton and NATO have stressed their support for admitting the first new members by 1999 as part of a broad strategy to foster a peaceful, undivided and democratic Europe. This report, submitted to Congress pursuant to Section 1048 of the Fiscal Year 1997 Defense Authorization Act, describes the rationale, benefits, costs and other considerations related to NATO's enlargement. This report also reflects the administration's commitment to work closely and in a bipartisan manner with Congress as it pursues this policy. Adding new members to NATO requires ratification by the United States Senate and requires both chambers of Congress to approve the resources needed to implement this initiative. If the security guarantees that will be extended to the new members are to be meaningful, they must represent an expression of informed national will. It is therefore essential that NATO enlargement proceed with the active participation and support of the American people and their representatives of both parties in Congress.