Canada

Aid

Aid quality is just as important as aid quantity, so the CDI adjusts gross aid as a share of GDP for various quality factors: it subtracts debt service, penalizes "tied" aid (making recipients spend aid money only on donor goods and services), rewards aid to poor but relatively un-corrupt recipients (and vice versa), and penalizes overloading poor governments with many small projects.

• Score: 2.9
• Rank: 13

• Large amount of private charitable giving attributable to tax policy (rank as a share of GDP: 6)

• Large share of tied aid (47%; rank: 18)
• Low net aid volume as a share of GDP (0.24%; rank: 15)

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: 7.3
• Rank: 3

• Low total aggregate protection of agricultural commodities (rank: 4)
• Low tariffs on agriculture (rank: 4)
• Low agriculture subsidies (rank: 3)

• High barriers against textiles (rank: 20)
• High barriers against apparel (rank: 20)
• High barriers against dairy products (rank: 19)

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 and productive investment in developing countries.

• Score: 7.6
• Rank: 2

• Wide official political risk insurance coverage
• Employs tax sparing arrangements to prevent double taxation of corporate profits earned abroad
• Provides official support for design of securities regulations and institutions in developing countries

• NA

Migration

The movement of people from poor to rich countries provides unskilled immigrants with jobs, income, and knowledge. All of this increases the growth and flow of remittances while abroad and the transfer of training and skills when the migrants return home.

• Score: 4.9
• Rank: 11

• Large number of immigrants from developing countries entering Canada in 2003 (rank as a share of population: 5)

• Small increase during the 1990s in the total number of unskilled immigrants from developing countries living in Canada (rank as a share of population: 11)

Environment

Rich countries use a disproportionate amount of scarce resources and poor countries are most likely to be hurt by global warming and ecological deterioration, so the CDI measures the impact of environmental policies on the global climate, sustainable fisheries, and biodiversity.

• Score: 4.3
• Rank: 18

• Few tropical wood imports (rank: 1)

• High greenhouse gas emission rate per capita (23 tons of carbon dioxide equivalent; rank: 19)
• Low gas taxes (rank: 20)
• High fishing subsidies ($25.63 per person; rank: 20)
• No policy to regulate illegal timber imports

Security

Based on the notion that 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: 3.5
• Rank: 17

• NA

• No protection of global sea lanes
• Arms exports to poor and undemocratic governments (rank as share of GDP: 18)

Technology

Rich countries can contribute to development through the creation and dissemination of new technologies. The CDI captures this by measuring government support for R&D and analyzing the strength of intellectual property rights regimes.

Canada Overall

• Score: 6.3
• Rank: 1

• High tax subsidy rate to businesses for R&D (25%; rank: 3)
• No attempt to incorporate “TRIPS-Plus” policies in bilateral free trade agreements with developing countries

• NA