NATO Enlargement: Cost Estimates Developed to Date Are Notional

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Report Type	Reports and Testimonies
Report Date	Aug. 18, 1997
Report No.	NSIAD-97-209
Subject	Cost analysis Cost sharing (finance) NATO enlargement Foreign governments Foreign military assistance International cooperation International organizations Military interoperability agreements NATO military forces NATO standardization Czech Federal Republic Hungary NATO NATO Partnership for Peace Program NATO Security Investment Program Poland Slovak Federal Republic Comparative analysis

Summary:

In July 1997, NATO invited Poland, Hungary, and the Czech Republic to become NATO members. If approved, this expansion will entail costs to NATO's current members and to the newly invited states. At the request of Congress, the executive branch prepared a study on NATO's enlargement, including its cost, which was released in February 1997. Other estimates have been developed by the Congressional Budget Office (CBO) and the RAND Corporation. This report (1) assesses the reasonableness of the executive branch study's key assumptions, (2) verifies the pricing of individual cost elements and identifies the basis for the pricing, (3) determines whether the estimate's major cost categories and elements should be ascribed to NATO's enlargement, (4) identifies factors that were omitted from the study's cost estimate that could affect the costs of enlargement, and (5) compares the executive branch's estimate with those of CBO and RAND.

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NATO Enlargement: Cost Estimates Developed to Date Are Notional