Free-Riding Problem in Alliance

Abstract

Long-term cuts in military expenditures of European allied countries caused growing differences within the Alliance which can be seen in uneven sharing of military burden and in behaviour called free-riding. The aim of this contribution is to define possible approaches to the freeriding identification and to analyse military expenditure development in relation to conclusions and recommendations declared at the NATO Summit in 2014. The results of military expenditure analysis identify only a small group of countries which, from a long-term point of view, follow the recommendations of the Alliance in the form of allocating a corresponding amount as percentage of GDP and in the form of a recommended structure of military expenditures.

Keywords

• Military Expenditures; Defence Budget; Free Rider