Denmark

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: 12.3
• Rank: 1

• Strong on project proliferation (no Danish development projects cost under $100,000; rank: 1)
• Very high net aid volume as a share of GDP (0.92%; rank: 2)
• Strong on selectivity; large share of aid to poor recipients with democratic governments (rank: 1)

• Small amount of private charitable giving attributable to tax policy (rank as a share of GDP: 16)
• Large share of tied aid (29%; 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: 5.9
• Rank: 7

• Low barriers against textiles (rank: 3)
• Low barriers against apparel (rank: 3)

• NA

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: 5.5
• Rank: 11

• Wide official political risk insurance coverage
• Provides official assistance to developing countries to set up investment promotion agencies

• Does not allow domestic investors to take advantage of developing country tax incentives

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: 5.3
• Rank: 8

• Large increase during the 1990s in the total number of unskilled immigrants from developing countries living in Denmark (rank as a share of population: 8)
• Bears large share of the burden of refugees during humanitarian crises (rank: 4)

• Small number of immigrants from developing countries entering Denmark in 2003 (rank as a share of population: 14)

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: 6.5
• Rank: 6

• Large decline in greenhouse gas emission rate between 1999-2003 (average annual growth rate/PPP GDP, -4%; rank: 2)
• Policies to regulate illegal timber imports

• High greenhouse gas emission rate per capita (14 tons of carbon dioxide equivalent; rank: 14)
• High fishing subsidies ($11.48 per person; rank: 17)
• High coffee imports (7.7 kg per capita; rank: 15)

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: 7.2
• Rank: 4

• Significant financial and personnel contributions during interventions in Bosnia and Kosovo (overall contribution rank over last 10 years as share of GDP: 5)
• No arms exports to poor and undemocratic governments

• No protection of global sea lanes

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.

Denmark Overall

• Score: 4.4
• Rank: 18

• High business expenditure on R&D as a share of GDP (rank: 6)
• Low share of government R&D expenditure on defense (0.5%; rank: 5)

• Low tax subsidy rate to businesses for R&D (-1%; rank:15)
• Offers patent-like proprietary rights to developers of data compilations, including those assembled from data in the public domain
• Strict limitations on anti-circumvention technologies that can defeat encryption of copyrighted digital materials