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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Switzerland Overall
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Switzerland Strengths
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- High net aid volume as a share of the economy (0.37%; rank: 9)
- Small share of tied or partially tied aid (4%; rank: 7)
- Large amount of private charitable giving attributable to tax policy (rank as a share of GDP: 3)
- Selectivity: large share of aid to poor recipients with relatively democratic governments (rank: 8)
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Switzerland Weaknesses
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- Allows project proliferation; small average project size (rank: 18)
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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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Switzerland Overall
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Switzerland Strengths
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- Low barriers against apparel (4.6% of the value of imports; rank: 2)
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Switzerland Weaknesses
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- High tariffs on agricultural products (102.8% of the value of imports; rank: 20)
- High agricultural subsidies (equivalent to 12.3% tariff; rank: 11)
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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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Switzerland Overall
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Switzerland Strengths
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- Employs tax treaties to prevent double taxation of corporate profits earned abroad
- Provides support for outflows of portfolio investment
- Does not impose restrictions on pension fund investments in emerging markets
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Switzerland Weaknesses
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- Limits insurance against political risk to domestically owned firms
- Does not allow domestic investors to take advantage of developing country tax incentives
- Has yet to complete Phase 2 monitoring of implementation of the OECD Anti-Bribery Convention
- Does not participate in the Extractive Industries Transparency Initiative (EITI) or the Kimberley Initiative on blood diamonds
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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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Switzerland Overall
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Switzerland Strengths
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- Large increase during the 1990s in the number of unskilled immigrants living in Switzerland (rank by share of population: 4)
- Bears large share of the burden of refugees during humanitarian crises (rank: 2)
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Switzerland Weaknesses
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- Small share of foreign students from developing countries (37%; rank: 21)
- Tuition for foreign students higher than for nationals
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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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Switzerland Overall
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Switzerland Strengths
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- Low greenhouse gas emissions rate per capita (7.3 tons of carbon dioxide equivalent; rank: 3)
- No fishing subsidies (rank: 1)
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Switzerland Weaknesses
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- Greenhouse gas emissions grew almost as fast as GDP in 1996–2006 (average annual growth rate/GDP, –0.4%; rank: 17)
- Low gas taxes ($0.52 per liter; rank: 17)
- Has not ratified the UN Fisheries Agreement
- Large number of endangered species imports (rank: 20)
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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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Switzerland Overall
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Switzerland Weaknesses
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- Small financial and personnel contributions to internationally sanctioned peacekeeping and humanitarian interventions over last decade (rank by share of GDP: 19)
- No protection of global sea lanes
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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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Switzerland Overall
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Switzerland Strengths
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- Small share of government R&D expenditure on defense (0.0%; rank: 7)
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Switzerland Weaknesses
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- Low tax subsidy rate to businesses for R&D (rank: 17)
- Offers patent-like proprietary rights to developers of data compilations, including those assembled from data in the public domain
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