Netherlands Netherlands

Next Country: New Zealand

Overall score 2009: 6.6
Change since 2003: +0.3 (using 2009 methodology)

The Netherlands ranks 3rd overall in 2009. The Netherlands places in the top half of CDI countries in all components except for migration. It gives a large amount of aid as a share of its income, and the quality of its aid is high. The Netherlands also has policies that promote productive investment in poor countries as well as a relatively strong environmental record from the perspective of developing countries. Its score on the migration component is driven down by the relatively small number of immigrants from developing countries entering the Netherlands.

Netherlands Scores 2003-2007

2003: 11.3 2003: 6.1 2003: 5.2 2003: 5.8 2003: 5.5 2003: 7.5 2003: 5.5 2003: 6.7 2004: 10.0 2004: 6.1 2004: 5.2 2004: 6.8 2004: 6.7 2004: 7.2 2004: 5.5 2004: 6.8 2005: 10.5 2005: 6.6 2005: 5.4 2005: 6.0 2005: 6.9 2005: 6.9 2005: 5.5 2005: 6.8 2006: 10.3 2006: 6.1 2006: 6.0 2006: 5.4 2006: 7.1 2006: 6.6 2006: 5.3 2006: 6.7 2007: 11.8 2007: 6.1 2007: 6.1 2007: 5.1 2007: 6.9 2007: 6.1 2007: 4.8 2007: 6.7 2008: 11.4 2008: 5.9 2008: 6.1 2008: 4.9 2008: 7.2 2008: 6.1 2008: 5.1 2008: 6.7 Netherlands

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Netherlands' 2009 Country Reports

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.

Netherlands Overall

  • Score: 11.2
  • Rank: 4

Netherlands Strengths

  • Very high net aid volume as a share of the economy (0.75%; rank: 4)
  • Selectivity: large share of aid to poor recipients with relatively democratic governments (rank: 5)
  • Large amount of private charitable giving attributable to tax policy (rank as a share of GDP: 8)
  • Prevents project proliferation; large average project size (rank: 5)

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.

Netherlands Overall

  • Score: 6.0
  • Rank: 5

Netherlands Weaknesses

  • High tariffs on agricultural products (38.7% of the value of imports; rank: 8)

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.

Netherlands Overall

  • Score: 6.1
  • Rank: 6

Netherlands 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
  • Participates in the Extractive Industries Transparency Initiative (EITI) and the Kimberley Initiative on blood diamonds
  • Provides support for outflows of portfolio investment

Netherlands Weaknesses

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

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.

Netherlands Overall

  • Score: 4.6
  • Rank: 13

Netherlands Strengths

  • Large increase during the 1990s in the number of unskilled immigrants from developing countries living in the Netherlands (rank by share of population: 9)
  • Bears large share of the burden of refugees during humanitarian crises (rank: 8)

Netherlands Weaknesses

  • Small share of foreign students from developing countries (45%; rank: 20)
  • Tuition for foreign students higher than for nationals
  • Small number of immigrants from developing countries entering the Netherlands (rank by share of population: 16)

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.

Netherlands Overall

  • Score: 6.9
  • Rank: 7

Netherlands Strengths

  • Decline in greenhouse gas emissions in 1997–2007 (average annual growth rate/GDP, –2.8%; rank: 9)
  • High gas taxes ($1.38 per liter; rank: 1)

Netherlands Weaknesses

  • High greenhouse gas emissions rate per capita (12.7 tons of carbon dioxide equivalent; rank: 17)

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.

Netherlands Overall

  • Score: 6.5
  • Rank: 5

Netherlands Strengths

  • Significant financial and personnel contributions to internationally sanctioned peacekeeping and humanitarian interventions over last decade (rank by share of GDP: 6)
  • Military ships stationed in sea lanes that are important to international trade (rank by share of GDP: 2)

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.

Netherlands Overall

  • Score: 5.1
  • Rank: 8

Netherlands Strengths

  • High tax subsidy rate to businesses for R&D (rank: 9)
  • Small share of government R&D expenditure on defense (0.1%; rank: 10)

Netherlands Weaknesses

  • Offers patent-like proprietary rights to developers of data compilations, including those assembled from data in the public domain