The rise of non-state actors has resulted in increased risks from terrorism and organised crime. To the ever-present threat of natural disasters, we must now add the risk from nuclear plants. To begin with, NATO has to address improvements to our defence capabilities. Military capability is the heart and soul of this Alliance. Kosovo was merely another reminder that while NATO's management of the crisis and its application of force was ultimately effective, it was by no means perfect.
Effectiveness is achieved in several ways.
First, by ensuring that our forces remain interoperable, and secondly that forces of PfP members, with whom we increasingly operate in crisis management, achieve higher levels of interoperability. Imbalances in abilities between Allies are undoubtedly posing a challenge to interoperability as some countries invest more quickly in new technology. So, we need to ensure that we take advantage of technology to enhance our teamwork, rather than letting it get between us. The purpose of the Defence Capabilities Initiative is to address these imbalances and we have identified 58 specific areas of NATO's capabilities that need improvement. Additionally, the demands of recent operations have placed an increased premium on the need to minimise unwanted damage and human casualties leading to an increased requirement for precision guided munitions, early and precise intelligence and more efficient battle damage assessment.