Germany

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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.

Germany Overall
  • Score: 3.3
  • Rank: 12
Germany Strengths
  • Small share of tied or partially tied aid (8%; rank: 7)
  • Large amount of private charitable giving attributable to tax policies (rank by share of GNI: 8)
Germany Weaknesses
  • Low net aid volume as a share of the economy (0.29%; rank: 11)



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.

Germany Overall
  • Score: 5.9
  • Rank: 12
Germany Weaknesses
  • High protection of agricultural commodities (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 and productive investment in developing countries.

Germany Overall

  • Score: 6.8
  • Rank: 8
Germany Strengths
  • Provides wide official insurance against political risk
  • Employs tax-sparing arrangements to prevent double taxation of corporate profits earned abroad
Germany Weaknesses
  • Negligent in identifying bribery and corrupt practices on the part of home country firms abroad
  • 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.

Germany Overall
  • Score: 6.2
  • Rank: 5
Germany Strengths
  • Bears large share of the burden of refugees during humanitarian crises (rank: 2)
  • Large number of immigrants from developing countries entering Germany in 2004 (rank by share of population: 6)
  • Large share of foreign students from developing countries in 2003 (76%; rank: 8)
  • No tuition fee for foreign students



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.

Germany Overall
  • Score: 6.7
  • Rank: 5
Germany Strengths
  • Large decline in greenhouse gas emissions rate in 1999–2003 (average annual growth rate/PPP GDP, –2.4%; rank: 7)
  • High gas taxes (rank: 5)
  • Low fishing subsidies (rank: 6)
  • Policy to regulate imports of illegally cut timber
Germany Weaknesses
  • Large number of endangered species imports (rank: 17)



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.

Germany Overall
  • Score: 3.7
  • Rank: 14
Germany Strengths
  • Few arms exports to poor and undemocratic governments
Germany Weaknesses
  • Small financial and personnel contributions to internationally sanctioned peacekeeping and humanitarian interventions (overall contribution rank over last 10 years 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.

Germany Overall
  • Score: 4.3
  • Rank: 19
Germany Strengths
  • High government expenditure on R&D (rank by share of GDP: 6)
Germany Weaknesses
  • Low tax subsidy rate to businesses for R&D (-2.4%; rank: 21)
  • Does not issue compulsory licenses for purposes of expanding access to technology