Switzerland

Aid

Aid quality is just as important as aid quantity, so the CDI measures gross aid as a share of GDP 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 well-governed recipients, and penalizes overloading poor governments with many small projects.

• Score: 5.7
• Rank: 9

• Small share of tied or partially tied aid (1.0%; rank: 5)
• Selectivity: large share of aid to poor and relatively well-governed recipients (rank: 8)
• Large amount of private charitable giving attributable to tax policy (rank as a share of GDP: 6)

Trade

International trade has been a force for economic development for centuries. The CDI measures trade barriers in rich countries against exports from developing countries.

• Score: 3.2
• Rank: 20

• Low barriers against apparel (4.8% of the value of imports; rank: 2)

• High tariffs on agricultural products (72% of the value of imports; rank: 19)
• High agricultural subsidies (equivalent to a tariff of 12.9% of the value of imports; rank: 17)
• High tariffs on textiles (29.9% of the value of imports; rank: 22)

Investment

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.

• Score: 4.6
• Rank: 18

• Employs tax treaties to prevent double taxation of corporate profits earned abroad
• Does not impose restrictions on pension fund investments in emerging markets

• Does not provide political risk insurance through a national agency
• Does not allow domestic investors to take advantage of developing country tax incentives
• Does not provide support for outflows of portfolio investment

Migration

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.

• Score: 7.9
• Rank: 4

• Large number of immigrants from developing countries entering Switzerland (rank by share of population: 2)
• Large increase during the 1990s in the number of unskilled immigrants living in Switzerland (rank by share of population: 4)
• Bears large share of the burden of refugees during humanitarian crises (rank: 4)

• Small share of foreign students from developing countries (39%; rank: 20)
• Tuition for foreign students higher than for nationals

Environment

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.

• Score: 6.3
• Rank: 17

• Low greenhouse gas emissions rate per capita (6.8 tons of carbon dioxide equivalent; rank: 6)
• Low fossil fuel production rate per capita (0.0 tons of carbon dioxide equivalent; rank: 1)
• No fishing subsidies (rank: 1)

• Greenhouse gas emissions grew almost as fast as GDP in 1999–2009 (average annual growth rate/GDP, –1.8%; rank: 15)
• Low gas taxes ($0.82 per liter; rank: 16)
• Poor compliance with mandatory reporting requirements under multilateral environmental agreements relating to biodiversity (rank: 16)

Security

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.

• Score: 2.7
• Rank: 18

• Small financial and personnel contributions to internationally sanctioned peacekeeping and humanitarian interventions over last decade (rank by share of GDP: 19)
• No protection of global sea lanes

Technology

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.

• Score: 5.0
• Rank: 14

• Small share of government R&D expenditure on defense (0.0%; rank: 8)

• Low tax subsidy rate to businesses for R&D (rank: 18)
• Offers patent-like proprietary rights to developers of data compilations, including those assembled from data in the public domain