NATO and the Defence Production Challenge: A Policy Analysis of the Industrial Capacity Defence Pledge

Abstract

Six months ago, NATO announced its Industrial Capacity Expansion Pledge. In this paper, the authors raise the question of how effective this Pledge is expected to be and what challenges it is likely to encounter. The authors argue that NATO’s focus on bolstering its defence industrial base in response to vulnerabilities highlighted by the Russia-Ukraine conflict is a step in the right direction; however, implementation faces significant challenges that threaten progress toward adequate defence readiness in a world with increasing global threats.

By analyzing political, structural, and other conditions of the Industry Capacity Expansion Pledge, the authors show how the sovereignty of member nations over their defence spending decisions trumps the Alliance’s role in expanding defence industrial capacity. The authors illustrate that increasing production capacity and improving military readiness in response to evolving threats must first be addressed at the national level before being tackled as a collaborative initiative initiated by NATO. Collaborative efforts are likely to be more effective when conducted through a legally binding framework rather than voluntary participation; and member nations’ defence economies need to be relieved of unnecessary financial burdens and the complications of navigating complex bureaucratic procedures to achieve long-term interoperability goals.