27 Who’s Hiding under Our Umbrella?

Students of the Cold War learn that, to deter possible Soviet aggression, the US placed a ‘strategic umbrella’

over NATO Europe and Japan, with the US providing most of their national security. Under President Ronald Reagan, the US spent 6 per cent of GDP on defence, whereas the Europeans spent only 2 to 3 per cent and the Japanese spent only 1 per cent, although all faced a common enemy. Thus the US taxpayer paid a disproportionate share of the overall defence spending, whereas NATO Europe and Japan spent more on consumer goods or saved.

Source: International Herald Tribune, 30 January 2008 a Explain the free-rider problem described in this news clip.

b Does the free-rider problem in international defence mean that the world has too little defence against aggression?

c How do nations try to overcome the free-rider problem among nations?