IFS Insights: Alliances and the arms industry in small states
Why do small states, despite their limited capabilities, invest in domestic arms industries?
Takeaways
- In asymmetric alliances, the nature of decision-making (coercive or liberal), shapes the possibilities for smaller states to develop their own defense industry.
- Liberal asymmetric alliances such as NATO create structural incentives for smaller states to invest in domestic arms industries by emphasizing interoperability, collaboration, and shared standards.
- Smaller states seeking to develop arms industries must navigate a complex interplay of international and domestic factors, balancing the opportunities provided by alliance membership with the challenges of competing in a globalized defense market.
- Smaller states must align domestic policies with alliance objectives to maximize the benefits of membership.
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