Australia

2005 Results

 Aid

What it measures

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.

Australia Overall
  • Score: 2.5
  • Rank: 17
Australia Strengths
  • Large amount of private charitable giving attributable to tax policy (rank as a share of GDP: 5)
Australia Weaknesses
  • Small net aid volume as a share of GDP (0.24%; rank: 16)
  • Large share of tied aid (33%; rank: 16)
  • Weak on selectivity; large share of aid to less poor and less democratic governments (rank: 14)


 Trade

 
What it measures

International trade has been a force for economic development for centuries. The CDI measures trade barriers in rich countries against exports from developing countries.

Australia Overall
  • Score: 7.3
  • Rank: 2
Australia Strengths
  • Low total aggregate protection of agricultural commodities (rank: 2)
  • Low tariffs on agriculture (rank: 1)
  • Low agricultural subsidies (rank: 5)
Australia Weaknesses
  • High barriers against textiles (rank: 21)
  • High barriers against apparel (rank: 21)


 Investment

 
What it measures

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.

Australia Overall
  • Score: 6.5
  • Rank: 7
Australia Strengths
  • 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
Australia Weaknesses
  • Does not allow domestic investors to take advantage of developing country tax incentives


 Migration

 
What it measures

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.

Australia Overall
  • Score: 6.5
  • Rank: 5
Australia Strengths
  • Large increase during the 1990s in the total number of unskilled immigrants from developing countries living in Australia (rank as a share of population: 3)
  • Large share of foreign students from developing countries (79%; rank: 4)
Australia Weaknesses
  • Bears small share of the burden of refugees during humanitarian crises (rank: 13)


 Environment

 
What it measures

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.

Australia Overall
  • Score: 5.4
  • Rank: 14
Australia Strengths
  • Low consumption of ozone-depleting substances per person (13 ODP metric tons; rank: 3)
  • Low fishing subsidies ($1.83 per person; rank: 7)
  • Few imports of endangered species (rank: 2)
  • Low coffee imports (2.2 kg per capita; rank: 4)
Australia Weaknesses
  • High greenhouse gas emission rate per capita (28 tons of carbon dioxide equivalent; rank: 21)
  • Low gas taxes (rank: 19)
  • No ratification of Kyoto Protocol on climate change
  • No policy to regulate illegal timber imports


 Security

 
What it measures

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.

Australia Overall
  • Score: 8.5
  • Rank: 2
Australia Strengths
  • Significant financial and personnel contributions during interventions in East Timor, Papua New Guinea, and Solomon Islands (overall contribution rank over last 10 years as share of GDP: 3)
  • No arms exports to poor and undemocratic governments
Australia Weaknesses
  • No protection of global sea lanes


 Technology

 
What it measures

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. 

Australia Overall
  • Score: 5.0
  • Rank: 11
Australia Strengths
  • High tax subsidy rate to businesses for R&D (20%; rank: 5)
  • No attempt to incorporate “TRIPS-Plus” policies in bilateral free trade agreements with developing countries
Australia Weaknesses
  • Low business expenditure on R&D as a share of GDP (rank: 16)
  • Allows patents on plant and animal varieties
  • Allows patents on software programs
  • Strict limitations on anti-circumvention technologies that can defeat encryption of copyrighted digital materials