20 November 2024

NATO and Its Defense Industrial Base

Krystyna Marcinek

This summer's NATO summit marked 75 years of the transatlantic alliance, and ten years of its return to NATO's core business: deterring and defending against Russia, “the most significant and direct threat to Allies' security.” The summit was certainly a display of political unity, but to maintain such cohesion, NATO needs to increase its defense industrial base (DIB) capacity, as well as adopt an acquisition strategy that meets the growing demand for weapons and ammunition. And it needs to do both things in a way that navigates political sensitivities.

NATO's defense industrial base was one of the key topics of the summit, and its problems are well known. Years of falling demand and increases in technological sophistication of Western arms have led to a weakening of competition (PDF) and an increase in per-unit cost. Now, the United States (PDF), the European Union, and NATO have launched efforts to increase defense production. However, such an increase requires investment in facilities and workforce throughout the supply chain, which will take time and money. Both things are in short supply given the immediate needs in Ukraine, demands of rearming Europe, and domestic economic priorities.

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