Australia

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2006 Results

Aid

What it measures

Aid quality is just as important as aid quantity, so the CDI measures gross aid as a share of GNI adjusted for various quality factors: it subtracts debt service, penalizes “tied” aid that makes recipients spend aid only on donor goods and services, rewards aid to poor but relatively uncorrupt recipients, and penalizes overloading poor governments with many small projects.

Australia Overall
  • Score: 2.5
  • Rank: 15
Australia Strengths
  • Large amount of private charitable giving attributable to tax policy (rank as a share of GDP: 5)
Australia Weaknesses
  • Low net aid volume as a share of the economy (0.24%; rank: 15)
  • Large share of tied or partially tied aid (23%; rank: 15)
  • Allows project proliferation; small average project size (rank: 21)
  • Selectivity: large share of aid to less poor and relatively less democratic governments (rank: 16)



Trade

What it measures

International trade has been a force for economic development for centuries. The CDI measures trade barriers in rich countries against exports from developing countries.

Australia Overall
  • Score: 6.4
  • Rank: 4
Australia Strengths
  • Low tariffs on agricultural products (rank: 1)
  • Low agricultural subsidies (rank: 5)
Australia Weaknesses
  • High barriers against textiles (rank: 21)
  • High barriers against apparel (rank: 21)



Investment

What it measures

Rich-country investment in poorer countries can transfer technologies, upgrade management and create jobs. The CDI includes a checklist of policies that support healthy investment in developing countries.

Australia Overall
  • Score: 6.9
  • Rank: 6
Australia Strengths
  • Provides wide official insurance against political risk
  • Employs tax sparing arrangements to prevent double taxation of corporate profits earned abroad
  • Provides official support for design of securities regulations and institutions in developing countries
Australia Weaknesses
  • Has yet to complete Phase 2 monitoring of implementation of the OECD Anti-Bribaery Convention
  • Does not provide official support for outflows of portfolio investment



Migration

What it measures

The movement of people from poor to rich countries provides unskilled immigrants with jobs, income and knowledge. This increases the flow of money sent home by migrants abroad and the transfer of skills when the migrants return.

Australia Overall
  • Score: 6.4
  • Rank: 4
Australia Strengths
  • Large increase during the 1990s in the total number of unskilled immigrants from developing countries living in Australia (rank as a share of population: 3)
  • Large share of foreign students from developing countries in 2003 (83%; rank: 4)
Australia Weaknesses
  • Bears small share of the burden of refugees during humanitarian crises (rank: 13)
  • Tuition for foreign students higher than for nationals



Environment

What it measures

Rich countries use a disproportionate amount of scarce resources, and poor countries are most vulnerable to global warming and ecological deterioration, so the CDI measures the impact of policies on the global climate, fisheries, and biodiversity.

Australia Overall
  • Score: 3.9
  • Rank: 19
Australia Strengths
  • Few imports of endangered species in 2002 (rank: 2)
  • Low consumption of ozone-depleting substances per person in 2003 (rank: 3)
Australia Weaknesses
  • High greenhouse gas emissions rate per capita (28 tons of carbon dioxide equivalent; rank: 21)
  • Low gas taxes (rank: 19)
  • No ratification of Kyoto Protocol on climate change
  • No policy to regulate imports of illegally cut timber



Security

What it measures

Since security is a prerequisite for development, the CDI rewards contributions to internationally sanctioned peacekeeping operations and forcible humanitarian interventions, rewards military protection of global sea lanes, and penalizes arms exports to poor and undemocratic governments.

Australia Overall
  • Score: 8.1
  • Rank: 1
Australia Strengths
  • Significant financial and personnel contributions to internationally sanctioned peacekeeping and humanitarian interventions (overall contribution rank over last 10 years by share of GDP: 3)
  • No arms exports to poor and undemocratic governments
Australia Weaknesses
  • No protection of global sea lanes



Technology

What it measures

Rich countries contribute to development through the creation and dissemination of new technologies. The CDI captures this by measuring government support for R&D and penalizing strong intellectual property rights regimes that limit the dissemination of new technologies to poor countries.

Australia Overall
  • Score: 4.6
  • Rank: 15
Australia Strengths
  • No attempt to incorporate “TRIPS-Plus” policies in bilateral free trade agreements with developing countries
Australia Weaknesses
  • Allows patents on plant and animal varieties
  • Allows patents on software programs