Commitment to Development Index
The Commitment to Development Index ( CDI , German about: Index of use for development ), which annually by the Center for Global Development is published, evaluated the richest countries in the world on how their policy decisions the lives of five billion people living in poorer Countries live, influence. As there are many links between rich and poor countries, the index goes beyond typical benchmarks (such as development aid). Instead, it measures the " development-friendliness " of 27 of the richest countries, all of which are members of the Development Assistance Committee of the OECD . The CDI evaluates the efforts of the states in seven policy areas: development aid, trade, finance, migration, environment, security and technology. In doing so, the index demonstrates that development aid is not just about quantity, but also about quality and that development policy is more than just development aid. That is why countries that give with one hand - for example through development aid or investments - but take with the other - for example through trade barriers and environmental pollution - receive deductions.
In 2016, Finland ranked first, followed by Denmark , Sweden , France and Portugal . Poland , Japan and Switzerland took the last three places, in part because of their restrictive trade policies. Austria found itself in 7th place, but has room for improvement in the areas of finance, development aid and trade. Germany is listed in the middle of the field in 15th place, with migration and (in some cases) environmental policy having a positive effect and a lack of investment agreements having a negative impact.
History of the CDI
The CDI is the flagship initiative of the Center for Global Development (CGD), a not-for-profit think tank in Washington, DC, with a European office in London. The index was first published in Foreign Policy magazine in 2003 and aimed to stimulate discussion, fill knowledge gaps and press for political reform. The CDI was published together with Foreign Policy until 2006, after which the CGD published it alone. David Roodman, Senior Fellow at the Center for Global Development, is responsible for the construction of the index, drawing on the research of experts who specialize in the respective fields. Although the calculation of the CDI remains essentially unchanged, small methodological adjustments are made every year and the indicators are constantly updated.
Originally the index only contained 21 states. South Korea was added in 2008 and five European countries were added in 2012: the Czech Republic , Hungary , Luxembourg , Poland and Slovakia .
Components
Development Assistance
The first component of the CDI is development aid , whereby both the quantity (the percentage of the gross domestic product of the donor country) and the quality are assessed. Tied development aid, which obliges the recipient to buy products from the donor countries and thus increases project costs by between 15 and 30 percent, is assessed more negatively. On the other hand, there are pluses for aid to poor, well-governed countries: for example, payments to Equatorial Guinea - where corruption is widespread and the rule of law is weak - are valued at 15 cents per dollar, while aid to Ghana - which is poor but is relatively well governed - is included in the calculation at 94 cents per dollar. There is also a deduction if donor countries overwhelm functionaries in recipient countries with too many small aid projects. Last but not least, the indicator has a positive impact when governments allow their citizens to deduct donations from taxes, as some of these donations go to non-governmental organizations that are active in developing countries.
trade
International trade has been a driving force for economic development for centuries . But since the highly politicized trade agreements are heavily influenced by rich countries, there are high trade restrictions for some of the most important products of poorer countries (e.g. agricultural products). That is why it has a negative impact on the CDI's trade indicator when a rich country imposes restrictions on agricultural products, textiles and other goods from poor countries. In addition to import tariffs, this also includes subsidies for domestic agriculture, as they lead to overproduction and thus lower world market prices.
Finances
This component was previously called Investment . Rich countries whose policies encourage investment and financial transparency do better than those that do not. Two types of capital flows are relevant: Foreign direct investment and portfolio investment . The component is based on twenty questions, including: Do rich country governments offer political risk insurance that encourages companies to invest in poor countries whose political climate would otherwise be deemed too uncertain? Are there any tax regulations or treaties that prevent investors from paying taxes both at home and in the country they are investing in?
migration
Both the migration of trained and unskilled workers are included in the CDI, with the latter being given more weight. The index uses data on gross immigration from developing countries and the net increase in the number of unskilled migrants from these countries. In addition, the openness of the education system to students from poor countries and help for refugees and asylum seekers are relevant.
environment
Rich countries make disproportionate use of scarce resources, while poor countries are most exposed to the consequences of global warming and environmental pollution. The environmental component evaluates the activities of rich countries to reduce their disproportionate use of global commons . Falling greenhouse gas emissions, high mineral oil taxes, no subsidies for the fishing industry and import controls against illegal deforestation of tropical forests have a positive effect on a country's ranking.
safety
The security component of the CDI compares rich countries on military actions that affect developing countries. The financial and human contributions to peacekeeping operations and humanitarian interventions are taken into account, only counting actions that have been approved by an international body such as the UN Security Council or NATO . The security of sea routes also has a positive impact, as does participation in international security agreements such as the Nuclear Test Ban Treaty , the Ottawa Convention and the International Criminal Court . On the other hand, there are deductions for arms exports to undemocratic or heavily arming countries.
technology
The technological component of the CDI analyzes the measures taken by rich countries to support the development and diffusion of new technologies that can change life in developing countries. Subsidies for research and development (R&D) rated positively. On the other hand, laws protecting intellectual property, which hinder the international flow of innovation, are a negative factor. Examples are patent laws that weigh the interests of those who brought about the innovation too heavily against the interests of the users.