NATO’s Approach to Multi-Domain Operations: From the Perspective of the Economics of Alliances

This study presents a model that incorporates the characteristics of multi-domain operations (MDO) and analyzes the impact of the North Atlantic Treaty Organization’s (NATO) approach to MDO on the behavior of its member countries from the perspective of the economics of alliances. NATO is wary of authoritarian states and prepared for the great power competition with them, as shown in its current strategic concept. To prepare for a possible future war against peer competitors, NATO is strengthening its capabilities to conduct MDO, in which cross-domain synergy is a key factor. The model presented in this study relates the cross-domain synergy in MDO and the complementarity between the defense activities in multiple domains using organizational and public economics methods. The implication of this model is that if the defense activities in different domains are complementary, one member country’s increasing defense activities in one domain can increase another’s defense activity in another domain that is complementary to that domain. It is particularly crucial for NATO’s future military buildup: NATO’s approach to MDO will make defense burden-sharing fairer because one member’s military buildup will motivate other members to build up theirs.