Australia

2012 Results

Aid

Aid quality is just as important as aid quantity, so the CDI measures gross aid as a share of GDP 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 well-governed recipients, and penalizes overloading poor governments with many small projects.

Australia’s aid performance

Score: 4.3
Rank: 12

Strengths

Large amount of private charitable giving attributable to tax policy (0.017% of GDP; rank: 4)
Small share of tied or partially tied aid (2.0%; rank: 6)

Weaknesses

Large share of aid to less poor and worse-governed recipients (selectivity rank: 16)
Low net aid volume as a share of the economy (0.32%; rank: 15)

Trade

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’s trade performance

Score: 7.4
Rank: 2

Strengths

Low tariffs on agricultural products (0.4% of the value of imports; rank: 2), including no tariffs on rice, wheat, corn or beef.
Low agricultural subsidies (equivalent to a tariff worth 7.7% of the value of imports; rank: 5)
High level of manufactures imports from poorer countries (11.3% of GDP per capita; rank: 3)

Weaknesses

High tariffs against apparel (14.2% of the value of imports; rank: 26)
High tariffs against textiles (10.1% of the value of imports; rank: 25)

Investment

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’s investment performance

Score: 6.1
Rank: 4

Strengths

Particularly active in Extractive Industries Transparency Initiative (EITI), the Kimberley Process on blood diamonds, and the International Tropical Timber Organization (ITTO)
No loopholes in domestic legislation to circumvent the OECD Convention on Bribery
Employs foreign tax credits to prevent double taxation of corporate profits earned abroad

Weaknesses

Political risk insurance given to inefficient, import-substituting projects
Does not provide official support for outflows of portfolio investment

Migration

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 home.

Australia’s migration performance

Score: 4.2
Rank: 18

Strengths

Large share of foreign students from developing countries (89%; rank: 3)

Weaknesses

Bears small share of the burden of refugees during humanitarian crises (rank: 17)
Small number of immigrants from developing countries entering Australia (rank by share of population: 16)
Tuition for foreign students higher than for nationals

Environment

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’s environment performance

Score: 3.8
Rank: 25

Strengths

No fishing subsidies (rank: 1)

Weaknesses

High greenhouse gas emissions and fossil fuel production rate per capita (77.8 tons of carbon dioxide equivalent; rank: 26)
High tropical timber imports ($17.3 per capita equivalent: rank: 26)
Low gas taxes ($0.34 per liter; rank: 25)

Security

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’s security performance

Score: 5.1
Rank: 13

Strengths

Significant personnel contributions to internationally-sanctioned peacekeeping and humanitarian interventions over last decade (rank by share of GDP: 2)

Weaknesses

Has not ratified the Convention on Cluster Munitions (CCM)
Relatively small contribution to the UN Peacekeeping Operations budget (rank by share of GDP: 17)
Fails to report arms exports

Technology

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’s technology performance