Ranking the Rich: CGD/FP Commitment to Development Index (CDI) Center for Global Development May 26, 2003
Caveats “Effort” not impact Precision vs. simplicity Better to be simple and simplistic than complex and simplistic. But policies are complex Lots not measured—yet Exact numbers and ranks not too meaningful, but horserace is attractive
Components Aid Trade Investment Environment Migration Peacekeeping
Aid Quantity relative to GDP, adjusted for quality: Debt service received and administrative costs netted out Debt service received and administrative costs netted out Tied aid discounted 20% Tied aid discounted 20% Adjustment to reflect selectivity Adjustment to reflect selectivity
Aid Selectivity - Examples $100 million to Tanzania are booked at full value because it is a poor country with relatively good governance $100 million to Tanzania are booked at full value because it is a poor country with relatively good governance $100 million to Russia count as $50 million because it is a relatively rich country with high levels of corruption $100 million to Russia count as $50 million because it is a relatively rich country with high levels of corruption
Aid Results
Trade Aggregate measure of protection in tariff equivalent terms: Tariffs Tariffs Non-tariff barriers Non-tariff barriers Subsidies Subsidies
Trade Results
Investment Quantity of FDI in developing countries relative to GDP: Discounted by corporate corruption abroad (TI index) Discounted by corporate corruption abroad (TI index)
Investment Results
Environment Mainly: depletion of shared commons (greenhouse emissions, ozone-depleting substances, fishing subsidies) Mainly: depletion of shared commons (greenhouse emissions, ozone-depleting substances, fishing subsidies) Minor part: contributions to international efforts (ratifying treaties, $ to multilateral environmental funds) Minor part: contributions to international efforts (ratifying treaties, $ to multilateral environmental funds) Minor part: support for clean technologies development Minor part: support for clean technologies development
Environment Results
Migration Mainly: flow of legal immigrants / population Mainly: flow of legal immigrants / population Minor part: refugee assistance Minor part: refugee assistance
Migration Results
Peacekeeping Financial contributions to U.N. peacekeeping, relative to GDP Financial contributions to U.N. peacekeeping, relative to GDP Personnel contributions to multilateral (U.N. and NATO) peacekeeping Personnel contributions to multilateral (U.N. and NATO) peacekeeping
Peacekeeping Results
Overall Scores
Effect of Aid Proposals and Private and Charitable Contributions