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United Kingdom

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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.

United Kingdom Overall
  • Score: 4.6
  • Rank: 8
United Kingdom Strengths
  • High net aid volume as a share of the economy (0.37%; rank: 10)
  • No tied or partially tied aid (rank: 1)
  • Prevents project proliferation; large average project size (rank: 3)
  • Selectivity: large share of aid to poor recipients with democratic governments (rank: 4)
United Kingdom Weaknesses
  • Small amount of private charitable giving attributable to tax policy (rank as a share of GNI: 12)



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.

United Kingdom Overall
  • Score: 5.9
  • Rank: 12
United Kingdom 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.

United Kingdom Overall

  • Score: 8.6
  • Rank: 1
United Kingdom Strengths
  • Does not provide official insurance against political risk to inefficient, import-substituting projects
  • Employs foreign tax credits to prevent double taxation of corporate profits earned abroad
  • Particularly active in the Extractive Industries Transparency Initiative (EITI) and in the G-8 Anti-Corruption and Transparency Action Plan
  • Provides official support for design of securities regulations and institutions in developing countries
  • Provides official support for outflows of portfolio investment
United Kingdom Weaknesses
  • Limits official insurance against political risk to domestically owned firms



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.

United Kingdom Overall
  • Score: 2.6
  • Rank: 16
United Kingdom Strengths
  • Bears large share of the burden of refugees during humanitarian crises (rank: 8)
United Kingdom Weaknesses
  • Only a small increase during the 1990s in the number of unskilled immigrants living in the United Kingdom (rank by share of population: 16)
  • Small share of foreign students from developing countries (53%; rank: 13)
  • Small number of immigrants from developing countries entering the United Kingdom in 2004 (rank by share of population: 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.

United Kingdom Overall
  • Score: 7.8
  • Rank: 1
United Kingdom Strengths
  • Low greenhouse gas emissions rate per capita (11 tons of carbon dioxide equivalent; rank: 8)
  • Large decline in greenhouse gas emissions rate in 1994–2004 (average annual growth rate/PPP GDP, –3.8%; rank: 3)
  • High gas taxes (rank: 2)
  • No fishing subsidies (rank: 1)
  • Small number of endangered species imports (rank: 6)
  • 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.

United Kingdom Overall
  • Score: 1.6
  • Rank: 19
United Kingdom Strengths
  • Significant financial and personnel contributions to internationally sanctioned peacekeeping and humanitarian interventions (overall contribution rank over last 10 years by share of GDP: 2)
  • Military ships stationed in sea lanes important to international trade (rank by share of GDP: 3)
United Kingdom Weaknesses
  • Arms exports to poor and undemocratic governments (rank as share of GDP: 21)



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.

United Kingdom Overall
  • Score: 4.5
  • Rank: 16
United Kingdom Strengths
  • High tax subsidy rate to businesses for R&D (rank: 11)
  • High government expenditure on R&D (rank by share of GDP: 10)
United Kingdom Weaknesses
  • Large share of government R&D expenditure on defense (32%; rank: 20)
  • Allows patents on plant and animal varieties
  • Offers patent-like proprietary rights to developers of data compilations, including those assembled from data in the public domain