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As the global trade powerhouses lurch towards protectionism, CGD’s Commitment to Development Index, released today, reveals which advanced economies have trade policies that support—or fail to support—lower-income countries.
Think tanks and international organisations publish a lot of indices that rank countries or institutions by their policies. We ourselves here at CGD we have recently published the fifteenth edition of the Commitment to Development Index (CDI), which ranks 27 rich countries by how their policies affect the lives of people in poorer countries. As we embark on a review of the CDI, here we start by looking other across country-level indices to see if the CDI is still distinct.
Germans have given Chancellor Angela Merkel a fourth term as chancellor, but once again without a parliamentary majority. It seems likely that Merkel will now try to negotiate a black-green-yellow “Jamaica coalition” (referring to the parties’ colors) with the Greens and the pro-business Liberals replacing the Social Democrats as coalition partners. Despite the gain in vote for nationalists, our analysis suggests the Jamaica coalition could actually strengthen Germany’s role in accelerating global development, as well as benefitting Germany.
The level of challenge faced by Jordan and Moldova on refugees and migration is remarkable: while Jordan has welcomed over a million Syrian refugees, Moldova has a migration outflow equivalent to a quarter of its population. Without the option of closing their borders, the scale of these movements not only puts the challenge for developed countries into context, but provides important insights on the importance of planning, and of innovation in policy.
Today, we published this year’s Commitment to Development Index (CDI), which ranks 27 of the world’s richest countries in how well their policies help to spread global prosperity to the developing world.
On September 5, we launched the results of the 2017 Commitment to Development Index (CDI), which scores 27 countries on how development-friendly their policies are. This year, we include two new indicators assessing how rich-country “tariffs” (taxes on imports) and “subsidies” (payments to domestic producers) inhibit development. But which is more damaging, and therefore deserves a greater weight in the Index?
Using the approach embedded in previous CDI calculations, we calculate that tariffs may be over three times as damaging as agricultural subsidies in inhibiting developing country trade. Below, we look at how tariffs and subsidy inhibit development, and assess their respective impact.