This section presents the Department’s assessment of country contributions under the terms originally specified in the FY 1997 Defense Authorization Act.

The 1997 Defense Authorization Act established the following responsibility sharing ‘targets’ for our allies and security partners:

• Increase defense spending as a share of GDP by 10 percent over the previous year, or to a level commensurate with the U.S.;
• Increase military assets contributed or pledged to multinational military activities a) national contributions to NATO’s Reaction Forces and other multinational formations; and b) funding or personnel contributions to UN/non-UN peacekeeping operations);
• Increase offsets for U.S. stationing costs to a level of 75 percent by September 30, 2000; and
• Increase foreign assistance by 10 percent over the previous year, or to a level equal to at least one percent of GDP.

Chart F-1 presents an overview assessment of our NATO and Pacific allies’, and Gulf Cooperation Council (GCC) security partners’ performance in relation to these targets. This is based on the most recent, complete, and reliable data available; that is, through 2000 for defense spending and multinational military activities, and through 1999 for cost sharing and foreign assistance. The chart shows that all but four of the countries covered in this Report met at least one of the Congressional responsibility sharing targets listed above, and nearly half the countries meet at least two of them. It must be emphasized that all nations make contributions in the wide range of responsibility sharing indicators outlined in Chapter One including aggregate resources for defense (e.g., total defense spending), defense modernization spending, military forces (ground, naval and air), and contributions to multinational peace operations, cost sharing, and foreign assistance. National strengths are clearly evident, as are areas of concern – such as relatively low shares of GDP allocated to defense for a number of nations – where more clearly needs to be done.

• NATO Allies. Fewer than half of our NATO allies experienced real reductions in their defense budgets in 2000, and, as a group, their real defense spending remained virtually unchanged from the 1999 level. Greece and Turkey were the only NATO allies to achieve the Congressional defense spending target in 2000. Both nations spent roughly five percent of their GDP on defense, while the United States spent three percent. Belgium, the Czech Republic, Denmark, France, Germany, Greece, Hungary, Italy, Norway, Poland, Portugal, Spain, and Turkey achieved the multinational military activities target in 2000 by increasing their personnel or funding contributions to peacekeeping operations and/or increasing reaction forces contributions. Three NATO Allies met the Congressional foreign assistance target. Two of these: Portugal and Poland, did so by making 1999 contributions that were at least 10 percent higher than the 1998 level. Denmark did not substantially increase its contributions, but met the target nonetheless by spending over one percent of its GDP on foreign assistance in 1999. For further information on the evolution of NATO Allies’ military capabilities, refer to the classified Defense Capabilities Initiative (DCI) Report, delivered to Congress in January, 2001 in response to section 1039 of the National Defense Authorization Act for Fiscal Year 2000.

• Pacific Allies. Neither Japan nor the Republic of Korea achieved the Congressional defense spending target in 2000. Japan and the Republic of Korea both met the multinational military activities target in 2000. Japan increased funding for UN peacekeeping missions over 1998 levels and the Republic of Korea increased personnel. Finally, Japan also met the Congressional foreign assistance target by contributing roughly 25 percent more foreign assistance funding in 1999 than it had in 1998. The Republic of Korea appears to have met the Congressional foreign assistance target by contributing roughly 75 percent more foreign assistance funding in 1999 than it had in 1998 due largely to a 37 percent increase in official development assistance combined with a reversal of the 1998 negative net official aid disbursements. And, of all the nations covered in this report, Japan was the only one that achieved the Congressional cost sharing target in 2000 -- offsetting 79 percent of the costs for U.S. forces stationed on its territory.
• Gulf Cooperation Council (GCC). All six GCC nations met the Congressional defense spending objective, since the shares of GDP they spent on defense during 2000 were all greater than United States’ 3.0 percent. Saudi Arabia spent almost 13 percent of GDP on defense, while the remaining GCC nations had shares in the 5 to 10 percent range. Moreover, Bahrain’s 2000 defense spending as a share of GDP was about 17 percent higher than in 1999 and Oman’s was over 21 percent higher. Kuwait, Qatar and Saudi Arabia achieved the Congressional multinational military activities target by increasing their levels of funding for UN peace operations during 1999. The United Arab Emirates achieved the target by increasing its level of personnel. Only Kuwait met the foreign assistance target by spending over one percent of its GDP on foreign assistance.