Ideas to Action:

Independent research for global prosperity

Greece

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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.

Greece Overall
  • Score: 2.7
  • Rank: 13
Greece Strengths
  • Prevents project proliferation; large average project size (rank: 1)
Greece Weaknesses
  • Large share of tied or partially tied aid (77%; rank: 20)
  • Selectivity: large share of aid to relatively less poor and less democratic governments (rank: 20)
  • Small amount of private charitable giving attributable to tax policy (rank by share of GNI: 18)



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.

Greece Overall
  • Score: 5.9
  • Rank: 12
Greece Weaknesses
  • High protection of agricultural commodities (rank: 14)



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.

Greece Overall

  • Score: 4.0
  • Rank: 18
Greece Strengths
  • Employs foreign tax credits to prevent double taxation of corporate profits earned abroad
Greece Weaknesses
  • Limits political risk insurance eligibility to domestically owned firms
  • Does not provide political risk insurance for all sectors through national agency
  • Does not allow domestic investors to take advantage of developing country tax incentives
  • Does not participate in the Extractive Industries Transparency Initiative (EITI)
  • Imposes restrictions on pension fund investments in emerging markets



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.

Greece Overall
  • Score: 1.7
  • Rank: 19
Greece Strengths
  • Large share of foreign students from developing countries in 2003 (99%; rank: 1)
Greece Weaknesses
  • Only a small increase during the 1990s in the number of unskilled immigrants from developing countries living in Greece (rank by share of population: 20)
  • Small number of immigrants from developing countries entering Greece in 1998 (rank by share of population: 21)
  • Bears small share of the burden of refugees during humanitarian crises (rank: 15)



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.

Greece Overall
  • Score: 5.2
  • Rank: 15
Greece Weaknesses
  • High fishing subsidies (rank: 19)
  • Low gas taxes (rank: 15)



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.

Greece Overall
  • Score: 5.6
  • Rank: 10
Greece Strengths
  • No arms exports to poor and undemocratic governments
Greece 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.

Greece Overall
  • Score: 3.0
  • Rank: 20
Greece Strengths
  • Small share of government R&D on defense (0.4%; rank: 4)
  • Revokes patents that are not used by the filers so that others may use the ideas freely
Greece Weaknesses
  • Low government expenditure on R&D (rank by share of GDP: 21)
  • Low tax subsidy rate to businesses for R&D (rank: 19)