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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.
Austria’s aid performance
Large amount of private charitable giving attributable to tax policy (0.01% of GDP; rank 8)
Large share of tied or partially tied aid (50.4%; rank: 21)
Low net aid volume as a share of the economy (0.26%; rank: 18)
International trade has been a force for economic development for centuries. The CDI measures trade barriers in rich countries against exports from developing countries. It also penalizes costly importation processes and restrictions against purchasing services from foreigners.
Austria’s trade performance
As a member state of the European Union, Austria imposes low tariffs on agricultural products including wheat, dairy, some meats, textiles and apparel
Few documents required for importation (8 documents; rank: 10)
Few limitations on the importation of services (Services Trade Restrictions Index score: 17.5; rank: 10)
Relatively high cost to import a shipping container ($1,180 per container; rank: 20)
As a member state of the European Union Austria imposes high tariffs on rice, sugar and beef.
Rich-country investment in poorer countries can transfer technologies, upgrade management and create jobs. Conversely, policies that permit financial secrecy of companies and banks can facilitate illicit activities and financial flows abroad. The CDI rewards policies that support healthy investment in developing countries and promote transparency in financial transactions at home.
Austria’s finance performance
Political risk insurance agency provides wide coverage and screens potential projects for violations of human, labor and environmental rights
Scores below average in the Financial Secrecy Index for having few regulations in place to prevent illicit financial transactions within its jurisdiction (rank: 22)
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.
Austria’s migration performance
Bears large share of the burden of refugees during humanitarian crises (rank: 3)
Large number of immigrants from developing countries entering Austria (rank by share of population: 6)
Small share of foreign students from developing countries (34.1%; rank: 22)
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.
Austria’s environment performance
Low fossil fuel production rate per capita (0 tons of carbon dioxide equivalent; rank: 1)
GDP growth exceeded growth in greenhouse gas (GHG) emissions over the past decade (average annual GHG growth rate/GDP, -1.14%; rank: 26)
Low gas taxes ($0.95 per liter; rank: 19)
Since security is a prerequisite for development, the CDI rewards contributions to internationally sanctioned peacekeeping operations and forcible humanitarian interventions, military protection of global sea lanes, and participation in international security treaties. It also penalizes arms exports to poor and undemocratic governments.
Austria’s security performance
Participates in major international security treaties and regimes
Significant personnel contributions to UN peacekeeping and humanitarian interventions over last decade (rank by share of GDP: 6)
No protection of global sea lanes
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.
Austria’s technology performance
Significant government support for R&D (rank: 8)
Revokes unused patents
Provides patent exceptions for research purposes
Allows patents on plant and animal varieties
Imposes strict limitations on anti-circumvention technologies that can defeat encryption of copyrighted digital materials
Pushes to extend intellectual property rights in bilateral trade treaties (“TRIPS Plus” measures) that restrict the flow of innovations to developing countries