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<classification authority="sudocs">GA 1.13:NSIAD-98-172</classification>
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 <subject>International relations</subject>
 <subject>Foreign policies</subject>
 <subject>Cost sharing (finance)</subject>
 <subject>Military budgets</subject>
 <subject>International organizations</subject>
 <identifier>NATO Security Investment Program</identifier>
 <identifier>France</identifier>
 <identifier>Spain</identifier>
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 <title>NATO: History of Common Budget Cost Shares</title>
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<abstract>Pursuant to a congressional request, GAO reviewed how the North Atlantic
Treaty Organization&apos;s (NATO) apportionment of cost shares has changed
over the years and how NATO determines what the members&apos; cost shares
will be for its three common budgets.&lt;p/&gt;GAO noted that: (1) NATO does not routinely evaluate members&apos; cost
shares for any of its three commonly funded budgets; (2) rather, NATO
has adjusted the shares based on comprehensive reviews occurring at no
specific interval and in response to discrete events, such as entry of a
new member; (3) cost shares for the NATO Security Investment Program
(NSIP) budget, most recently reviewed in 1990, have been subject to
comprehensive reviews more frequently than the civil budget--last
reviewed in 1955, or the military budget--last reviewed in 1966; (4)
NATO has adjusted cost shares due to discrete events infrequently--in
1966, when France withdrew from NATO&apos;s military structure; in 1982, when
Spain joined NATO; and in 1994, when Canada sought to decrease its NSIP
share; (5) NATO has used various methods to adjust cost shares; (6) for
example, in 1955, NATO used expenditures to comprehensively review and
adjust shares for its civil and military budgets; (7) in contrast,
changes to NSIP cost shares in 1990 were based on negotiations among
members that considered factors such as each nation&apos;s capacity to pay
and the expected benefits from NSIP-funded projects; (8) NATO has also
relied on negotiations to adjust cost shares in response to discrete
events; (9) for example, when Spain joined NATO in 1982, its share was
determined through high-level negotiations and the other members&apos; shares
were adjusted on a prorated basis; and (10) in 1997, the United States&apos;
actual cost-share across all the common budgets was 28.45 percent.</abstract>
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<note>Letter Report</note>
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<subject>
 <topic>International relations</topic>
 <topic>Foreign policies</topic>
 <topic>Cost sharing (finance)</topic>
 <topic>Military budgets</topic>
 <topic>International organizations</topic>
 <topic>NATO Security Investment Program</topic>
 <topic>France</topic>
 <topic>Spain</topic>
 <topic>Canada</topic>
 <topic>NATO</topic>
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