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Germany—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 Germany. For results of all countries, visit the main CDI page.

Overall

Germany ranks 5th on the Commitment to Development Index. Germany is leading on the migration component and performs above average on aid, technology, trade, and environment.
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Aid

With this year’s 8th position ranking, Germany confirms the positive upward trend in its commitment to foreign aid. It has a slightly stronger performance in aid quantity. In 2016, Germany reached the international commitment of 0.7% GNI for ODA for the first time. The quality of Germany’s foreign aid is above average on most of the indicators forming the Quality of Official Development Assistance (QuODA) subcomponent. Germany places only low administrative burdens on recipient countries, making aid more efficient, and has role-model policies on technical knowledge transfers.
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Finance

Germany is a laggard on the finance component, ranking 23rd. There is room for improvement in Germany’s international investment agreements, by taking more into account the public policy goals of its investment partners and by including a more sustainable development approach. With regard to its institutional commitments, however, Germany has a good score due to its compliance with the OECD anti-bribery convention and the broader institutional investment framework. On the financial secrecy subcomponent, Germany has one of the lowest scores. Of all the CDI countries, only Japan, the United States, and Switzerland have less transparent financial jurisdictions. Germany could significantly improve its corporate transparency regulations and work toward more efficient tax and financial regulations.
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Technology

As in the previous year, Germany’s performance in the technology sector is slightly above average. Its current 9th place ranking is mainly due to its relatively high governmental support for research and development and its provision of adequate incentives for business R&D; in 2016, the German government provided 0.88% of its GDP for research and development (weighted value) and offered relatively high incentives for business R&D. Germany provides substantial financial support to all R&D sectors reflected in the CDI. On the other hand, Germany could increase its efforts for the diffusion of technology to developing countries through less stringent database protection provisions and anti-circumvention rules.
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Environment

Germany ranks and scores slightly above average on the environment component. Germany scores relatively high due to its role-model commitment to biodiversity treaty obligations. It also scores well by ratifying the Paris agreement and by having relatively low imports of tropical timber (overall score for all European countries). Germany could step up its efforts to combat climate change, however, by increasing the reduction rate of its greenhouse gas emissions.
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Trade

Germany has improved its performance on the trade component significantly, resulting in its first top 3 ranking. Germany is a leader on openness toward trade in services (tied with Ireland), imposing fewer restrictions on service providers from other countries than in previous years. In addition, Germany imposes relatively few restrictions on imports by requiring only a few documents for the importation of goods. Trading across borders is further facilitated by a relatively low cost of importing and by efficient border and customs procedures compared to other CDI countries. Germany is penalized for providing a relatively large number of agricultural subsidies to its producers.
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Security

Germany ranks 19th on the security component. It is party to all international security agreements taken into account in the CDI. Germany exports a substantial number of arms to poor and undemocratic countries, however. Furthermore, it offers only limited support to international peacekeeping and international sea lanes protection compared to other countries in the CDI.
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Migration

Germany has the most development-friendly migration policies, leading on this year’s migration component. Its climb to the top is not only a reflection of the exceptional influx of migrants to Germany in 2015 and 2016 but also its sound performance on all indicators in this component. Germany is highly committed to international solidarity, as reflected in its high share of asylum seekers and refugees. It reports the second largest inflow of migrants (weighted by a selectivity factor based on countries of origin), after Luxembourg. Germany has room for improvement, however, in accepting more students from developing countries and improving access to health and education services for all migrants.
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