Aid
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What it measures
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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.
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Germany Overall
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Germany Strengths
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- Large amount of private charitable giving attributable to tax policies (rank by share of GDP: 9)
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Germany Weaknesses
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- Low net aid volume as a share of the economy (0.26%; rank: 14)
- Large share of tied or partially tied aid (28%; rank: 18)
- Contributes to project proliferation; small average project size (rank: 21)
- Selectivity: large share of aid to less poor and relatively less democratic governments (rank: 16)
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Trade
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What it measures
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International trade has been a force for economic development for centuries. The CDI measures trade barriers in rich countries against exports from developing countries.
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Germany Overall
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Germany Weaknesses
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- High tariffs on agricultural products (38.7% of the value of imports; rank: 17)
- High agricultural subsidies (equivalent to 14.6% tariff; rank: 18)
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Investment
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What it measures
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Rich-country investment in poorer countries can transfer technologies, upgrade management and create jobs. The CDI includes a checklist of policies that support healthy and productive investment in developing countries.
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Germany Overall
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Germany Strengths
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- Provides insurance against political risk for both domestic and foreign firms
- Employs tax-sparing arrangements 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
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Germany Weaknesses
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- Negligent in identifying bribery and corrupt practices on the part of home country firms abroad
- Does not provide support for outflows of portfolio investment
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Migration
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What it measures
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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.
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Germany Overall
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Germany Strengths
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- Bears large share of the burden of refugees during humanitarian crises (rank: 5)
- Large share of foreign students from developing countries (79%; rank: 9)
- No tuition fee for foreign students
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Environment
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What it measures
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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.
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Germany Overall
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Germany Strengths
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- High gas taxes ($1.28 per liter; rank: 4)
- Low fishing subsidies ($0.04 per person; rank: 4)
- High compliance with mandatory reporting requirements under multilateral environmental agreements relating to biodiversity (rank: 3)
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Security
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What it measures
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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.
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Germany Overall
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Germany Weaknesses
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- Small financial and personnel contributions to internationally sanctioned peacekeeping and humanitarian interventions over last decade (rank by share of GDP: 17)
- High arms exports to poor and undemocratic governments (rank by share of GDP: 17)
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Technology
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What it measures
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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.
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Germany Overall
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Germany Strengths
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- High government expenditure on R&D (rank by share of GDP: 6)
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Germany Weaknesses
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- Low tax subsidy rate to businesses for R&D (rank: 22)
- Does not issue compulsory licenses for purposes of expanding access to technology
- Offers patent-like proprietary rights to developers of data compilations, including those assembled from data in the public domain
- Imposes strict limitations on anti-circumvention technologies that can defeat encryption of copyrighted digital materials
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