Ideas to Action:

Independent research for global prosperity

Spain

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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.

Spain Overall
  • Score: 2.5
  • Rank: 16
Spain Strengths
  • Prevents project proliferation; large average project size (rank: 6)
Spain Weaknesses
  • Low net aid volume as a share of the economy (0.23%; rank: 18)
  • Small amount of private charitable giving attributable to tax policy (rank as a share of GNI: 15)
  • Large share of tied or partially aid (32%; rank: 16)
  • Selectivity: large share of aid to less poor and relatively undemocratic 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.

Spain Overall
  • Score: 6.0
  • Rank: 10
Spain Strengths
  • Low barriers against textiles (rank: 2)
  • Low barriers against apparel (rank: 3)



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.

Spain Overall

  • Score: 6.7
  • Rank: 9
Spain Strengths
  • Provides wide official insurance against political risk
  • Employs tax-sparing arrangements and foreign tax credits to prevent double taxation of corporate profits earned abroad
  • Provides official support for design of securities regulations and institutions in developing countries
Spain Weaknesses
  • Does not provide official support for outflows of portfolio investment
  • Does not participate in the Extractive Industries Transparency Initiative (EITI)
  • Negligent in identifying bribery and corrupt practices on the part of home country firms abroad



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.

Spain Overall
  • Score: 5.2
  • Rank: 6
Spain Strengths
  • Large increase during the 1990s in the number of unskilled immigrants from developing countries living in Spain (rank by share of population: 7)
  • Large number of immigrants from developing countries entering Spain in 2003 (rank by share of population: 2)
  • Tuition for foreign students the same as for nationals
Spain Weaknesses
  • Bears small share of the burden of refugees during humanitarian crises (rank: 19)
  • Small share of foreign students from developing countries (47%; rank: 18)



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.

Spain Overall
  • Score: 3.8
  • Rank: 20
Spain Strengths
  • Low greenhouse gas emissions rate per capita (11 tons of carbon dioxide equivalent; rank: 6)
Spain Weaknesses
  • Only a small decrease in greenhouse gas emissions rate in 1994–2004 (average annual growth rate/PPP GDP, –0.4%; rank: 20)
  • Large number of endangered species imports (rank: 20)
  • High fishing subsidies (rank: 20)



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.

Spain Overall
  • Score: 3.5
  • Rank: 15
Spain Strengths
  • Few arms exports to poor and undemocratic governments (rank by share of GDP: 10)
Spain Weaknesses
  • Small financial and personnel contributions to internationally sanctioned peacekeeping and humanitarian interventions (overall contribution rank over last 10 years by share of GDP: 19)
  • 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.

Spain Overall
  • Score: 6.1
  • Rank: 5
Spain Strengths
  • High government expenditure on R&D (rank by share of GDP: 5)
  • High tax subsidy rate to businesses for R&D (rank: 1)
Spain Weaknesses
  • High share of government R&D expenditure on defense (20%; rank: 17)
  • Offers patent-like proprietary rights to developers of data compilations, including those assembled from data in the public domain