Australia Australia

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Overall score 2009: 5.6
Change since 2003: +0.2 (using 2009 methodology)

Australia ranks 7th overall in 2009. Australia’s score is driven by its leading role in peacekeeping efforts, low trade barriers against developing country agricultural exports, and policies that promote productive investment in poor countries. On the negative side, Australia bears a small share of the burden of refugees during humanitarian emergencies and has the highest greenhouse gas emissions rate per person.

Australia Scores 2003-2007

2003: 3.4 2003: 7.0 2003: 5.3 2003: 4.5 2003: 4.5 2003: 9.8 2003: 5.1 2003: 5.7 2004: 3.3 2004: 7.2 2004: 5.3 2004: 3.9 2004: 4.3 2004: 9.3 2004: 5.0 2004: 5.5 2005: 3.6 2005: 7.2 2005: 5.0 2005: 4.0 2005: 4.4 2005: 8.8 2005: 5.1 2005: 5.5 2006: 3.2 2006: 7.8 2006: 5.2 2006: 4.2 2006: 4.3 2006: 8.3 2006: 4.8 2006: 5.4 2007: 3.4 2007: 7.3 2007: 5.7 2007: 4.2 2007: 4.4 2007: 7.5 2007: 5.1 2007: 5.4 2008: 3.1 2008: 6.9 2008: 6.1 2008: 4.0 2008: 5.6 2008: 7.5 2008: 5.2 2008: 5.5 Australia

CDI site with animation

 

Australia's 2009 Country Report

2009 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.
Australia Overall

  • Score: 3.6
  • Rank: 13

Australia Strengths

  • Large amount of private charitable giving attributable to tax policy (rank by share of GDP: 5)
  • Small share of tied or partially tied aid (4.7%; rank: 6)

Australia Weaknesses

  • Allows project proliferation; small average project size (rank: 22)

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.

Australia Overall

  • Score: 7.4
  • Rank: 1

Australia Strengths

  • Low tariffs on agricultural products (0.5% of the value of imports; rank: 1)

Australia Weaknesses

  • High barriers against textiles (14.8% of the value of imports; rank: 22)
  • High barriers against apparel (21.7% of the value of imports; rank: 22)

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.

Australia Overall

  • Score: 6.2
  • Rank: 3

Australia Strengths

  • Provides insurance against political risk for both domestic and foreign firms
  • Employs foreign tax credits to prevent double taxation of corporate profits earned abroad

Australia Weaknesses

  • Political risk insurance also given to inefficient, import-substituting projects
  • 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.

Australia Overall

  • Score: 3.6
  • Rank: 15

Australia Strengths

  • Large share of foreign students from developing countries (87%; rank: 4)

Australia Weaknesses

  • Small increase during the 1990s in the number of unskilled immigrants from developing countries living in Australia (rank by share of population: 12)
  • Bears small share of the burden of refugees during humanitarian crises (rank: 15)
  • Tuition for foreign students is higher than for nationals

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.

Australia Overall

  • Score: 4.2
  • Rank: 19

Australia Weaknesses

  • High greenhouse gas emissions rate per capita (26.0 tons of carbon dioxide equivalent; rank: 22)
  • Low gas taxes ($0.43 per liter; rank: 20)
  • High fishing subsidies per capita ($3.20 per person; rank: 19)

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.

Australia Overall

  • Score: 8.9
  • Rank: 1

Australia Strengths

  • Significant financial and personnel contributions to internationally sanctioned peacekeeping and humanitarian interventions over last decade (rank by share of GDP: 1)
  • Few arms exports to poor and undemocratic governments (rank by share of GDP: 4)

Australia Weaknesses

  • Provides little protection of global sea lanes that are important to international trade (rank by share of GDP: 15)

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.

Australia Overall

  • Score:5.0
  • Rank: 10

Australia Strengths

  • No attempt to incorporate into bilateral free trade agreements “TRIPS-Plus” measures that would restrict the flow of innovations to developing countries
  • Low government expenditure on R&D (rank by share of GDP: 19)

Australia Weaknesses

  • Allows patents on plant and animal varieties
  • Allows patents on software programs