Finland—Commitment to Development Index

The Commitment to Development Index ranks 27 of the world’s richest countries on policies that affect people living in poorer nations. This is the country report for Finland. For results of all countries, visit the main CDI page.

Overall

Finland leads this year’s Commitment to Development Index, with the most development friendly policies. Finland performs above average in all components except migration, with a leading position in finance and technology.
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Aid

On aid policies, Finland ranks among the top 10 of all CDI countries. It performs slightly stronger in aid quantity: in 2014 Finland provided 0.59% of its GNI for development assistance. However, it is still below the international commitment of 0.7% GNI. The quality of Finland’s foreign aid is especially good in promoting transparency, learning, and its emphasis on fostering institutions in the recipient countries. However, it could improve in reducing the administrative requirements it has put in place for the recipient countries.
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Finance

Finland has role-model financial policies, with the best policies of all CDI countries. Finland has efficient tax and financial regulations and a high degree of international cooperation on tax and financial matters. However, it could improve its policies regarding company ownership. Finland also has good international investment agreements, accounting for the public policy goals of its investment partners. With regards to its institutional commitments, Finland also receives a good score due to its compliance with the OECD anti bribery convention and by being a member of the relevant institutional frameworks.
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Technology

Finland’s performance in the technology sector is very good. Its current 6th rank is mainly because of relatively high government support to research and development and provision of adequate incentives for business R&D; in 2014 the Finnish government provided 0.98% of its GDP to research and development. Finland provides substantial financial support to all R&D sectors reflected in the CDI. Out of the different sectors, it provides high governmental support to R&D at universities and to industrial production and technology. On the contrary, Finland doesn’t play a leading role in the diffusion of technology to developing countries and it has only a low score on intellectual property rights. It could do more to facilitate knowledge sharing, especially by putting in place less strict database protection rights.
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Environment

Finland has very good environmental policies, appearing in the top 10. Finland has a role-model commitment to combatting climate change through its low rate in greenhouse gas emissions. Finland also reported the third biggest reduction of greenhouse gas emissions of all CDI countries. Finland is further rewarded for not paying a big amount of fishing subsidies and for having low imports of tropical timber (overall score for all European countries). By increasing its commitment to biodiversity treaties obligations, Finland could further improve its score.
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Trade

The performance of Finland’s trade policies is average. Finland imposes relatively few restrictions on imports. However, Finland could do more to facilitate services in trade by imposing less restrictions on service providers from other countries. The rest of the trade component reflects EU tariffs and quotas for products from developing countries–in this case all EU countries have essentially the same performance–above South Korea, Japan, Norway, and Switzerland, which impose high tariffs on selected imports (esp. South Korea and Japan), and below New Zealand, Australia, and the United States which all have significantly smaller (if any) tariffs on imports from developing countries.
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Security

Ranked #4, Finland has a top position in the security component, despite not having signed the Convention on Cluster Munitions. Finland contributes significantly to international peacekeeping efforts, both financially and with personnel and is active in patrolling global sea lanes. Furthermore, Finland’s security policies are development friendly because of its low arms exports.
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Migration

Despite being a leader on integration polices, Finland ranks average on migration policies. After Sweden and Portugal, its integration policies are third best out of all CDI countries. Finland also scores above average by accepting many students from developing countries. However, Finland could increase its commitment to international burden sharing by accepting a larger share of immigrants and refugees. Furthermore, Finland has room for improvement in its commitment to international frameworks by ratifying the Migration for Employment Convention and the Convention on the Treatment of Migrant Workers.
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