Aid
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What it measures
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Aid quality is just as important as aid quantity, so the CDI measures gross aid as a share of GNI 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 uncorrupt recipients, and penalizes overloading poor governments with many small projects.
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Netherlands Overall
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Netherlands Strengths
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- Very high net aid volume as a share of the economy (0.76%; rank: 3)
- Selectivity: large share of aid to poor recipients with relatively democratic governments (rank: 1)
- Large amount of private charitable giving attributable to tax policy (rank as a share of GDP: 10)
- Prevents project proliferation; large average project size (rank: 6)
- Small share of tied or partially tied aid (4%; rank: 6)
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Trade
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What it measures
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International trade has been a force for economic development for centuries. The CDI measures trade barriers in rich countries against exports from developing countries.
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Netherlands Overall
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Netherlands Weaknesses
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- High tariffs on agricultural products (38.7% of the value of imports; rank: 8)
- High agricultural subsidies (equivalent to 8.0% tariff; rank: 4)
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Investment
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What it measures
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Rich-country investment in poorer countries can transfer technologies, upgrade management and create jobs. The CDI includes a checklist of policies that support healthy investment in developing countries.
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Netherlands Overall
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Netherlands Strengths
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- Provides insurance against political risk for both domestic and foreign firms
- Employs foreign tax credits to prevent double taxation of corporate profits earned abroad
- Participates in the Extractive Industries Transparency Initiative (EITI) and the Kimberley Initiative on blood diamonds
- Provides support for outflows of portfolio investment
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Migration
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What it measures
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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.
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Netherlands Overall
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Netherlands Strengths
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- Large increase during the 1990s in the number of unskilled immigrants from developing countries living in the Netherlands (rank by share of population: 9)
- Bears large share of the burden of refugees during humanitarian crises (rank: 6)
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Netherlands Weaknesses
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- Small share of foreign students from developing countries (46%; rank: 19)
- Tuition for foreign students higher than for nationals
- Small number of immigrants from developing countries entering the Netherlands (rank by share of population: 15)
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Environment
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What it measures
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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.
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Netherlands Overall
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Netherlands Strengths
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- Decline in greenhouse gas emissions in 1996–2006 (average annual growth rate/GDP, –3.1%; rank: 7)
- High gas taxes ($1.07 per liter; rank: 3)
- Low fishing subsidies ($0.03 per person; rank: 5)
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Netherlands Weaknesses
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- High greenhouse gas emissions rate per capita (12.8 tons of carbon dioxide equivalent; rank: 15)
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Security
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What it measures
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Since 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.
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Netherlands Overall
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Netherlands Strengths
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- Significant financial and personnel contributions to internationally sanctioned peacekeeping and humanitarian interventions over last decade (rank by share of GDP: 7)
- Military ships stationed in sea lanes that are important to international trade (rank by share of GDP: 4)
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Technology
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What it measures
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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.
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Netherlands Overall
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Netherlands Strengths
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- High government expenditure on R&D (rank by share of GDP: 9)
- Small share of government R&D expenditure on defense (0.2%; rank: 10)
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Netherlands Weaknesses
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- Offers patent-like proprietary rights to developers of data compilations, including those assembled from data in the public domain
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