The Hunt is on

Right-Click and save the picture on your PC and then look at it. The size is actually much bigger. I have made it smaller to fit it into the center column.
Lets take an example. Consider MALI. Expand each of the letters of MALI to produce Malaysia Australia Lesotho and India, now do the same step again e.g.: India becomes Indonesia Nepal Denmark Italy Angola and so on. Now, you have to do the process in reverse. Given above is a square spiral with country names and some capitals. You have to compress the spiral by forming country names and capitals out of the letters obtained in the previous step. In the end, you will get one word, which will be the magic word for this clue. Note: This word is an ordinary English word, not the name of a country or a capital.

The NATO phonetic alphabet is a common name for the international radiotelephony spelling alphabet which assigns code words to the letters of the English alphabet so that critical combinations of letters (and numbers) can be pronounced and understood by those who transmit and receive voice messages by radio or telephone regardless of their native language.