This Annex is organized into six sections, described below.

A. Data Notes.This section presents sources and notes pertaining to the data used in the Report and summarized in this Annex.

B. Country Summaries. This section provides summary information for responsibility sharing contributions on a country-by-country basis.

Military forces measures shown in these tables reflect a countryís share of total contributions relative to its share of ability to contribute. Thus, a ratio around 1 indicates that a countryís contribution is in balance with its ability to contribute. A ratio above 1 suggests that a country is contributing beyond its "fair share," while a ratio below 1 means contributions are not commensurate with ability to contribute.

Note: With the exception of cost sharing estimates, all dollar figures shown in the country summary charts are in 2000 dollars, using 2000 exchange rates. Cost sharing figures reflect 1999 contributions, and are calculated using 1999 dollars and exchange rates.

C. Selected Indicators. Data upon which many of the Reportís assessments are based involve a comparison of a countryís contributions relative to its ability to contribute. This section provides the data upon which this analysis is based. The analysis is conducted in three stages:

  • A countryís contribution is expressed as a share of the total contributions of all nations in the Report (e.g., share of total defense spending, share of total active-duty military personnel). These data are presented in Tables C-2 through C-5.
  • Similarly, a countryís ability to contribute is expressed as a share of the total of all nations in the Report (i.e., share of total GDP, share of total labor force). These data are shown in Table C-1.
  • By creating a ratio of the share of contribution divided by the share of ability to contribute, analysts can draw conclusions as to the extent and the equity of nationsí efforts. These ratios are provided in Tables C-6 through C-9.

When this analysis results in a ratio of around 1.0, a countryís contribution is judged to be in balance with its ability to contribute. Generally speaking, the Department gives a nation credit for "substantial contributions" relative to its ability to contribute when it achieves a ratio of 1.2 or greater. Ratios of 0.8 or less indicate very low effort relative to ability to contribute.

D. Bilateral Cost Sharing. This section presents detailed estimates of nationsí bilateral cost sharing support for the United States during 1999, the most recent year for which complete data are available.

E. Additional Statistics. This section provides data values upon which many of the Selected Indicators are based. Most of the tables in this section also provide information such as subtotals and shares. The subtotals and grand total in Tables E-2, E-5, E-9, and E-13 are actually weighted averages. For example, the raw data for defense spending is summed for each group of nations and then divided by the sum of GDP for the same group of nations. This provides a more accurate figure than calculating an average based on the percentages portrayed.

Note: In Tables E-10 through E-12, only shares can be presented since actual data values are classified.

F. Summary Assessment Based on Congressional Targets. This section presents the Departmentís assessment of country contributions under the terms originally specified in the FY 1997 Defense Authorization Act.





The assessments presented in this Report are only as good as the data upon which they are based. The Department has every confidence that the data used for the assessments in this Report are as complete, current, and comprehensive as they can be, given the deadlines established in the legislation.

Data Sources

    Defense spending data have been obtained from a variety of sources. NATOís 5 December 2000 Press Release: Financial and Economic Data Relating to NATO Defence (available on NATOís web site at is the primary source for past and current defense spending data for the NATO nations, including the United States. Sources of defense spending data for Japan, the Republic of Korea, and the GCC nations include U.S. embassies in these nations, recent national defense white papers (where available), and the International Institute for Strategic Studiesí (IISS) The Military Balance 2000-2001.

    For purposes of standardization and comparability, this Report presents defense spending figures using the NATO definition wherever possible. According to this approach, defense expenditures are defined as outlays made by national governments specifically to meet the needs of the armed forces. In this context, the term "national government" limits "defense expenditures" to those of central or federal governments, to the exclusion of state, provincial, local, or municipal authorities. Regardless of when payments are charged against the budget, defense expenditures for any given period include all payments made during that period. In cases where actual 2000 defense outlays are not available, final defense budget figures are substituted. War damage compensation, veteransí pensions, payments out of retirement accounts, and civil defense and stockpiling costs for industrial raw materials or semi-furnished products are not included in this definition of defense spending. Defense spending figures depicted in this Report for the United States are based on the NATO definition and therefore may differ somewhat from other U.S. defense spending figures provided to Congress or used within the Department of Defense. NATOís definition of defense spending includes spending on programs funded outside of the Department of Defense, namely, the Department of Stateís International Security Assistance Programs, and the defense-related portions of the Coast Guard and the Department of Energy.

    GDP data for NATO members, the Republic of Korea, and Japan are taken from the Organization for Economic Cooperation and Development (OECD). GDP data for the GCC countries (which are not reported by OECD) are drawn from the World Bank and Standard and Poorís Data Resources, Inc. (DRI).

    Multinational peace operations data includes a) 1999 funding contributions to UN peacekeeping operations and b) contributions of personnel (troops, military observers and international police) to both UN and major non-UN peace operations as of November 2000. UN personnel contributions data have been obtained from the November 2000 Monthly Troop Contributors List prepared by the UNís Department of Peacekeeping Operations, while those for the NATO-led peace operations in Bosnia and Kosovo (i.e., SFOR and KFOR) are based upon classified sources provided by the Department of Defenseís Balkan Task Force. Due to the Congressional deadline for this Report, the Department provides funding estimates for 1999 instead of 2000. Funding data for UN peace operations have been obtained from the Status of Contributions as at 31 December 1999 produced by the United Nationsí Secretariat.

    Multinational reaction forces data portrays national contributions to NATOís Reaction Forces, and the Gulf Cooperation Councilís multinational Peninsular Shield Force. Ground forces contributions are quantified in combat maneuver brigade equivalents (excluding organic divisional combat support units), and naval contributions in numbers of aircraft carriers and principal surface combatants (cruisers, destroyers, frigates, and corvettes of more than 1,000 tons displacement). Air forces contributions are measured in terms of combat aircraft. Data for all NATO members that participate in the Allianceís integrated defense planning process were obtained from NATOís annual Defense Planning Questionnaire. Open sources such as Janeís Defense publications were employed in assembling data on Franceís reaction forces, while classified DoD sources were used to determine Peninsular Shield Force contributions.

    Active-duty military personnel data are taken from NATOís 5 December 2000 Press Release: Financial and Economic Data Relating to NATO Defence and IISSí The Military Balance 2000-2001.

    Military forces data (ground, naval, and air) are based on information provided by nations under the Conventional Forces Europe (CFE) data exchange (for those forces limited by CFE), supplemented with data from responses to NATOís Defense Planning Questionnaire (for those nations that participate in NATOís integrated defense planning process), open sources (such as Janeís Defense publications and magazines and IISSí The Military Balance 2000-2001), and DoD sources.

    Ground combat capability data includes major combat systems, including tanks, artillery, and attack helicopters for army and marine units. Armored vehicles, anti-tank weapons, mortars, small arms, and transport and combat service support assets are not included in this assessment. The quantity and quality of nationsí equipment holdings are assessed using widely accepted static measures. Estimates are normalized using the score of a United States armored brigade in order to express each nationís static ground force potential in terms of a standardized unit of measure.

    Naval tonnage data includes aircraft carriers, attack submarines (non-strategic), principal surface combatants (cruisers, destroyers, frigates, and larger corvettes), mine warfare ships and craft (including mine layers), patrol combatant ships, and amphibious warfare ships. Strategic submarines, patrol craft, amphibious craft, or service support craft are not included.

    Air forces data includes fixed-wing combat aircraft (air force, naval, and marine assets) in the following categories: fighter/interceptor, fighter/bomber, conventional bomber, and tactical fighter reconnaissance aircraft (including combat-capable trainer and electronic warfare aircraft). Not included are maritime patrol aircraft (MPA), anti-submarine warfare (ASW) aircraft, transports, air-to-air refueling aircraft, strategic bombers, or any support or special mission aircraft.

    Defense modernization spending data portrays the percentage of NATO membersí 2000 defense budgets that were devoted to major system procurement and research-and-development. These are derived from information provided by NATO.

    Cost sharing data have been obtained from U.S. embassies and DoD components, including the military departments and commands. DoD components also provide estimates of U.S. stationing costs by country. Cost sharing data and stationing cost estimates for a given year are collected by the Department during the spring of the following year, and are then evaluated and published as budget exhibits. Due to the Congressional deadline for this Report, the Department provides estimates for 1999 instead of 2000. Cost offset percentages cannot be calculated for Hungary, Oman, and the United Arab Emirates due to lack of information regarding U.S. stationing costs in those countries.

    Bilateral cost sharing is divided into two categories, according to whether the costs are borne by the host nation on-budget (direct cost sharing), or as imputed values of forgone revenues (indirect cost sharing). Direct cost sharing includes costs borne by host nations in support of stationed U.S. forces for rents on privately owned land and facilities, labor, utilities, and vicinity improvements. Indirect cost sharing includes forgone rents and revenues, including rents on government-owned land and facilities occupied or used by U.S. forces at no or reduced cost to the United States, and tax concessions or customs duties waived by the host nation.

    Since this report uses multiple sources for cost sharing data, there is variability in some of the data collected, resulting in high and low range figures for several nations. Using the example of labor cost, the low figure is based on data collected by DoD components and only includes costs for personnel who support appropriated fund activities. The high figure is based on cost data collected by U.S. Embassies and includes all labor costs under U.S - host nation agreements.

    Charts I-3, III-19, and III-20 generally display the more conservative low range figures for analysis. For Japan, the high range figure is considered to be a better measure and thus is depicted.

    Foreign assistance data have been obtained from the OECD. The OECDís Development Assistance Committee (DAC) encourages commitments of international aid, coordinated aid policies, and consistent aid reporting. The DACís definition of official development assistance (ODA) is recognized as the international standard for reporting aid provided to developing countries and multilateral institutions. This is immensely useful, since "aid" is an extremely broad term, and encompasses many different types of assistance, which can make contributions from various nations very difficult to compare directly.

    The OECD has a 29-nation membership including all NATO countries, Japan, and the Republic of Korea. The OECD establishes economic and political conditions that nations must meet before receiving assistance (e.g., demonstrated commitment to political reform, and free and fair elections). Subsidies are provided in the form of trade and investment credits, grants, and loan guarantees, and are directed into areas such as food aid, medical supplies, and technical assistance in management training, privatization, bank and regulatory reform, environmental projects, market access/trade, nuclear reactor safety, and democratic institution building. The OECD is also coordinating nuclear safety assistance to the New Independent State of the former Soviet Union (NIS).

    Aid to 12 of the 22 emerging economies of Central Europe (including the Czech Republic, Hungary, and Poland) and the NIS does not qualify as official development assistance for OECD purposes, but instead is categorized as official aid (OA). Both categories, ODA and OA, cover identical types of assistance, with the only difference being the recipient nations. Other OA recipient nations include more advanced developing countries (e.g., Kuwait, Qatar, and the United Arab Emirates). Recipient nations move from one aid category to the other depending on their development status. Total foreign assistance evaluated in this Report is the sum of all ODA and OA.

    Foreign assistance data in this Report cover the period 1990 through 1999. At this time, complete and reliable foreign assistance data are available only through 1999 due to complexities and delays in the OECD collection and reporting process, and data are still not complete for some countries for 1990, and 1995-1999. Assistance data are not available for the Czech Republic in any years prior to 1994, and after 1998, and data for Poland are only reported after 1998. This is to be expected since these nations, along with Hungary, are primarily recipients of foreign assistance. This is also the case with Bahrain, Oman, and Qatar, for which no foreign assistance contributions are reported. Turkish authorities did not report 1999 assistance efforts to the OECD.



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