Canada

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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.

Canada Overall
  • Score: 3.3
  • Rank: 11
Canada Strengths
  • Large amount of private charitable giving attributable to tax policy (rank as a share of GNI: 7)
Canada Weaknesses
  • Large share of tied or partially tied aid (43%; rank: 17)
  • Low net aid volume as a share of the economy (0.26%; rank: 13)



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.

Canada Overall
  • Score: 6.8
  • Rank: 3
Canada Strengths
  • Low protection agricultural commodities (rank: 4)
Canada Weaknesses
  • High barriers against textiles (rank: 20)
  • High barriers against apparel (rank: 20)
  • High agricultural subsidies (rank: 13)



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.

Canada Overall
  • Score: 7.7
  • Rank: 4
Canada Strengths
  • Provides wide official insurance against political risk
  • Employs tax-sparing arrangements to prevent double taxation of corporate profits earned abroad
  • Particularly active in the G-8 Anti-Corruption and Transparency Action Plan and in the Kimberley Initiative on blood diamonds
  • Provides official support for design of securities regulations and institutions in developing countries
  • Allows pension fund investments in emerging markets
Canada Weaknesses
  • 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 home.

Canada Overall
  • Score: 4.7
  • Rank: 10
Canada Strengths
  • Large number of immigrants from developing countries entering Canada in 2004 (rank as a share of population: 5)
Canada Weaknesses
  • Only a small increase during the 1990s in the number of unskilled immigrants from developing countries living in Canada (rank as a share of population: 11)
  • 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.

Canada Overall
  • Score: 4.5
  • Rank: 17
Canada Weaknesses
  • Low gas taxes (rank: 20)
  • High fishing subsidies (rank: 20)
  • High greenhouse gas emission rate per capita (23 tons of carbon dioxide equivalent; rank: 19)
  • 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.

Canada Overall
  • Score: 3.0
  • Rank: 17
Canada Weaknesses
  • Arms exports to poor and undemocratic governments (rank as share of GDP: 18)
  • 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.

Canada Overall

  • Score: 6.6
  • Rank: 2
Canada Strengths
  • No attempt to incorporate “TRIPS-Plus” policies in bilateral free trade agreements with developing countries
  • High tax subsidy rate to businesses for R&D (25%; rank: 3)