Aid

Aid remains an important source of foreign finance for many countries. The CDI takes account of both aid quantity through their share of national income given as ODA; and of aid quality through their scores in the Quality of Official Development Assistance – QuODA exercise.

United States’ aid performance

• Rank: 20

Strengths

• Membership in the International Aid Transparency Initiative
• Strong commitment to evaluation and learning

• Large share of tied aid 
• Low aid volume as a share of the economy
• Low contribution to global public goods facilities  

Trade

International trade has been a force for economic development for centuries. The CDI measures trade barriers in rich countries against imports from developing countries. It also penalizes costly importation processes and restrictions against purchasing services from foreigners.

United States’ trade performance

• Rank: 3

Strengths

• Low tariffs on agricultural products 
• Low tariffs on beef 
• Low tariffs on other meats 
• Few documents required for importation

• High tariffs on textile 
• High tariffs on clothing

Finance

Rich-country investment in poorer countries can promote economic growth, help spread technologies, skills, and create jobs. Conversely, policies that permit secrecy can facilitate illicit activities and financial flows abroad. The CDI rewards policies that support healthy investment in developing countries and promote transparency in financial transactions at home as well as globally.

United States’ finance performance

• Rank: 23

Strengths

• Vigorous prosecution of home-country bribe payers
• Active participation and leadership in extractive industries transparency initiatives such as the Extractive Industries Transparency Initiative (EITI) and the Kimberley Process on blood diamonds

• Political risk insurance only available to national firms
• Political risk insurance agency imposes inappropriate national economic interest tests on investment projects
• Scores below average in the Financial Secrecy Index for regulations in place to promote transparent financial transactions within its jurisdiction

Migration

Allowing people to move from poor to rich countries provides unskilled immigrants with jobs, income and knowledge. It also increases the flow of money migrants send home and the transfer of skills when the migrants return. The CDI also rewards countries for enabling students from developing countries to study at their universities, and for sharing the burden of refugees and asylum seekers.

United States’ migration performance

• Rank: 19

Strengths

• Large share of foreign students from developing countries 

Weaknesses

• Bears small share of the burden of refugees during humanitarian crises 
• Small number of immigrants from developing countries entering the United States 

Environment

Rich countries use a disproportionate amount of scarce resources while poor countries are most vulnerable to global warming and ecological deterioration. The CDI measures the impact of policies on the global climate, fisheries, and biodiversity, all of which affect the lives of those far beyond one country’s borders.

United States’ environment performance

• Rank: 22

Strengths

• Low tropical timber imports 

Weaknesses

• High greenhouse gas emissions rate per capita 
• High fossil fuel production rate per capita 
• Low gas taxes 
• Has not ratified the Kyoto Protocol on climate change 
• Poor compliance with mandatory reporting requirements under multilateral environmental agreements relating to biodiversity 

Security

Since security is a prerequisite for development, the CDI rewards contributions to internationally sanctioned peacekeeping operations and forcible humanitarian interventions, military protection of global sea lanes, and participation in international security treaties. It penalizes arms exports to poor and undemocratic governments.

United States’ security performance

• Rank: 11

Strengths

• Significant personnel contributions to internationally-sanctioned peacekeeping and humanitarian interventions over last decade
  Positions naval fleet to protect sea lanes vital for international trade 
   

Weaknesses

• Has not ratified the Convention on Cluster Munitions (CCM), Comprehensive Nuclear Test Ban Treaty, Mine Ban Treaty, and is not a party to the International Criminal Court
• High level of arms exports to poor and undemocratic governments 

Technology

Rich countries contribute to development through the creation and dissemination of new technologies. The CDI accounts for this by rewarding government support for research and development (R&D), and penalizing strong intellectual property rights regimes that limit the dissemination of new technologies to poor countries.

United States’ technology performance

• Rank: 19

Strengths

• High government expenditure on R&D 
• Restricts copyrighting of databases

• Large share of government R&D expenditure on defense 
• Allows patents on plant and animal varieties
• Allows patents on software innovations
• Pushes to extend intellectual property rights in bilateral trade treaties (“TRIPS Plus” measures) that restrict the flow of innovations to developing countries
• Imposes strict limitations on anti-circumvention technologies that can defeat encryption of copyrighted digital materials
• Does not force patent holders to license to meet social needs