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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Italy Overall
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Italy Weaknesses
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- Low net aid volume as a share of the economy (0.13%; rank: 21)
- Small amount of private charitable giving attributable to tax policy (rank as a share of GDP: 20)
- Large share of tied or partially tied aid (23%; rank: 17)
- Selectivity: large share of aid to less poor and relatively undemocratic governments (rank: 18)
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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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Italy Overall
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Italy Strengths
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- Low barriers against textiles (5.4% of the value of imports; rank: 6)
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Italy Weaknesses
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- High tariffs on agricultural products (38.7% of the value of imports; rank: 6)
- High agricultural subsidies (equivalent to 11.2% tariff; rank: 6)
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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 investment in developing countries.
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Italy Overall
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Italy Strengths
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- Provides insurance against political risk for both domestic and foreign firms
- Employs tax treaties to prevent double taxation of corporate profits earned abroad
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Italy Weaknesses
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- Does not actively participate in the Extractive Industries Transparency Initiative (EITI) or the Kimberley Initiative on blood diamonds
- 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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Italy Overall
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Italy Strengths
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- Tuition for foreign students the same as for nationals
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Italy Weaknesses
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- Only a small increase during the 1990s in the number of unskilled immigrants living in Italy (rank by share of population: 17)
- Bears small share of the burden of refugees during humanitarian crises (rank: 18)
- Small number of immigrants from developing countries entering Italy (rank by share of population: 16)
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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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Italy Overall
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Italy Strengths
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- Low greenhouse gas emissions rate per capita (7.9 tons of carbon dioxide equivalent; rank: 4)
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Italy Weaknesses
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- Greenhouse gas emissions grew almost as fast as GDP in 1996–2006 (average annual growth rate/GDP, –0.4%; rank: 19)
- Large number of endangered species imports (rank: 22)
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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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Italy Overall
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Italy 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: 14)
- 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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Italy Overall
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Italy Strengths
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- Small share of government R&D expenditure on defense (0.1%; rank: 9)
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Italy Weaknesses
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- Low government expenditure on R&D (rank by share of GDP: 17)
- Small tax subsidy rate to businesses for R&D (rank: 21)
- 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
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