NATO’s Two Percent Guideline: A Demand for Military Expenditure Perspective

One of the outcomes 2014 North Atlantic Treaty Organization (NATO) Summit held in Wales was recommendation that allies should strive towards spending at least 2% their Gross Domestic Product (GDP) on military expenditure by 2024. This has recent years put debate burden sharing within Alliance limelight. Within Alliance, interpretation guidelines is different. partly because U.S.A, especially under President Trump, consistently viewed 2-% guideline as a binding agreement. Some have, however, indicated will not increase to recommended threshold set deadline. Critics have also identified several shortfalls associated with it and consequently dismissed it. Those who support emphasize for instance contributes addressing grievances about free riding Alliance. paper this discussion literature demand assessing how NATO’s two percent can be from perspective. It proposes estimates dynamic panel model purpose. Empirical evidence presented suggests fiscal conditions require attention guideline.