Ranking the Rich: Ranking the Rich: CGD/CGD/FP FP Commitment to Commitment to

Development Index (CDI)Development Index (CDI)

Center for Global DevelopmentCenter for Global Development

May 26, 2003May 26, 2003

Caveats ““Effort” not impact Effort” not impact Precision vs. simplicityPrecision vs. simplicity

Better to be simple and simplistic Better to be simple and simplistic than complex and simplistic. than complex and simplistic.

But policies are complexBut policies are complex Lots not measured—Lots not measured—yetyet Exact numbers and ranks not too Exact numbers and ranks not too

meaningful, but horserace is attractivemeaningful, but horserace is attractive

Components AidAid TradeTrade InvestmentInvestment EnvironmentEnvironment MigrationMigration PeacekeepingPeacekeeping

Aid

QuantityQuantity relative to GDP, adjusted relative to GDP, adjusted for for qualityquality::

Debt service received and Debt service received and administrative costs netted outadministrative costs netted out

Tied aid discounted 20%Tied aid discounted 20% Adjustment to reflect selectivityAdjustment to reflect selectivity

Aid Selectivity - Examples

$100 million to Tanzania are $100 million to Tanzania are booked at full value because it is booked at full value because it is a a poorpoor country with relatively country with relatively good governancegood governance

$100 million to Russia count as $100 million to Russia count as $50 million because it is a $50 million because it is a relatively richrelatively rich country with high country with high levels of levels of corruptioncorruption

Aid Results

0 1 2 3 4 5 6 7 8 9

United StatesJapan

ItalyGreece

New ZealandCanada

AustraliaGermanyPortugal

SpainIrelandAustriaFinland

U.K.France

SwitzerlandBelgiumNorway

NetherlandsSweden

Denmark

Trade

Aggregate measure of Aggregate measure of protection in protection in tariff equivalenttariff equivalent terms:terms:

TariffsTariffs Non-tariff barriers Non-tariff barriers SubsidiesSubsidies

0 1 2 3 4 5 6 7 8

NorwaySwitzerland

JapanCanadaIrelandGreece

BelgiumAustria

DenmarkGermany

FranceFinland

SpainUnited

SwedenPortugal

ItalyNetherlandsNew Zealand

AustraliaUnited States

Trade Results

Investment

Quantity of FDI in developing Quantity of FDI in developing countries relative to GDP:countries relative to GDP:

Discounted by corporate Discounted by corporate corruption abroad (TI index)corruption abroad (TI index)

0 1 2 3 4 5 6 7 8 9

GreeceDenmarkGermanyBelgium

ItalyAustralia

FranceFinlandSweden

U.S.Canada

N. ZealandIrelandAustriaJapan

U.K.Norway

NetherlandSwitzerland

SpainPortugal

Investment Results

Environment Mainly: depletion of shared Mainly: depletion of shared

commons (greenhouse emissions, commons (greenhouse emissions, ozone-depleting substances, ozone-depleting substances, fishing subsidies)fishing subsidies)

Minor part: contributions to Minor part: contributions to international efforts (ratifying international efforts (ratifying treaties, $ to multilateral treaties, $ to multilateral environmental funds)environmental funds)

Minor part: support for clean Minor part: support for clean technologies developmenttechnologies development

Environment Results

0 1 2 3 4 5 6 7 8

United StatesIreland

CanadaAustralia

NorwayNew Zealand

JapanBelgiumGreeceFrance

United KingdomDenmarkPortugal

ItalyAustriaFinland

NetherlandsGermany

SpainSweden

Switzerland

Migration

Mainly: flow of legal Mainly: flow of legal immigrants / populationimmigrants / population

Minor part: refugee Minor part: refugee assistanceassistance

Migration Results

0 1 2 3 4 5 6 7 8 9

FrancePortugal

ItalyFinland

JapanGreece

SpainU.S.U.K.

AustraliaSweden

DenmarkIreland

NetherlandBelgiumNorwayCanadaAustria

GermanyN. Zealand

Switzerland

Peacekeeping

Financial contributions to Financial contributions to U.N. peacekeeping, relative U.N. peacekeeping, relative to GDPto GDP

Personnel contributions to Personnel contributions to multilateral (U.N. and NATO) multilateral (U.N. and NATO) peacekeepingpeacekeeping

Peacekeeping Results

0 1 2 3 4 5 6 7 8 9

SwitzerlandJapan

SwedenU.S.

CanadaAustria

AustraliaFinland

SpainBelgium

NetherlandsU.K.

IrelandGermany

FranceItaly

PortugalN. Zealand

DenmarkNorwayGreece

Overall Scores

                                          

0 1 2 3 4 5 6

NetherlandsDenmarkPortugal

New ZealandSwitzerland

GermanySpain

SwedenAustriaNorway

United KingdomBelgiumGreeceFrance

ItalyIrelandFinlandCanada

AustraliaUnited States

Japan

Aid Trade Investment Environment Migration Peacekeeping

www.cgdev.org

Effect of Aid Proposals and Private and

Charitable Contributions

Amount billion $

% of

GDPAid

Rank Rank

Net ODA 11.4 0.11“Quality Adjusted Aid” 7.1 0.07 21 20

Add: Bush MCA proposal 2004 8.2 0.08 21 20Add: Proposals AIDS Fund 2004 10.8 0.11 20 20Add: Private Contributions 20.1 0.20 13 20