Costs of Operation Desert Shield/Desert Storm: a burden sharing perspective

Abstract

This thesis analyzes burden sharing issues of Operation Desert Shield/Desert Storm. Explanations of economic principles including public goods theory, disproportionality, free riding, marginalism, and opportunity cost prove a common base of knowledge necessary for an intelligent discussion of burden sharingin defense alliances. The thesis concentrates on the problems associated with quantifying benefits, costs and equity issues in multilateral force actions like Operation Desert Shield/Desert Storm. In particular, it analyzes the Persian Gulf oil supply security benefit and evaluates the efficacy of various oil benefit measures. Current cost estimates and reports focus on legitimizing supplemental funding. They do not capture all of the incremental costs appropriate for burden sharing. This thesis examines the critical differences between incremental burden sharing costs and the costs that were reported to satisfy congressional budget deliberation. Recommendations focus on ways for the U.S. to implement financial lessons learned from Operation Desert Shield/Desert Storm to be more prepared for similar burden sharing arrangements in the future.