Ranking the Rich: Commitment to Development Index Is First to Rank Rich Countries' Efforts to Help the World's Poor"

4/28/2003

From: Mike Boyer of Foreign Policy, 202-939-2345 or mboyer@ceip.org; Andrew Stober of the Center for Global Development, 202-416-0705 or astober@cgdev.org WASHINGTON, April 28 -- The Netherlands is the most development-friendly of 21 rich nations ranked in a groundbreaking new index released today by the Center for Global Development and FOREIGN POLICY magazine. The unique CGD/FP Commitment to Development Index ranks 21 of the world's richest countries based on their dedication to policies that benefit the 5 billion people living in poorer nations worldwide. The United States ranks first in the openness of its trade policy but in the overall index finishes at the bottom with Japan, in 20th and 21st place, respectively (see index at the end of this release). Moving beyond all-too-common assessments of foreign aid flows, the CGD/FP Commitment to Development Index also considers countries' openness to developing-country exports and performance in peacekeeping, investment, migration, and environmental policies. The CGD/FP Commitment to Development Index rewards generous and selective aid giving, hospitable immigration policies, sizable contributions to peacekeeping operations, and hefty foreign direct investment. It also penalizes financial assistance to corrupt regimes and policies that harm shared environmental resources. Three small nations top the index. The Netherlands, Denmark, and Portugal score high thanks to their development-friendly aid, investment, and environmental policies. New Zealand, which is not known for generous foreign aid giving, comes in 4th thanks to a strong showing in migration and peacekeeping policies. Norway, which is often regarded as a model global citizen, finishes 10th, mainly due to protectionist trade policies. The United States and Japan bring up the rear, despite being the world's largest foreign aid contributors. The United States offers the world's best access for developing-country exports but suffers poor marks in environmental policy and "tied" aid -- 80 percent of U.S. foreign aid forces recipients to purchase American goods and services. Japan's poor performance in the foreign aid and migration categories help consign it to last place. Germany, which ranked 6th, is the only member of the Group of Seven (G-7) industrialized nations to rank in the top half of the index. Nancy Birdsall, president of the Center for Global Development, said, "Developing countries have been ranked for years, on all kinds for measures -- from their spending on girls' education to their level of corruption. The index finally puts the spotlight on the rich world's policies, and on the rich world's responsibilities in a global economy." "Seven nations -- Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States -- account for two thirds of the world's economic output," said FOREIGN POLICY Editor and Publisher Moises Naim. "But our new index is the first to demonstrate that even as the forces of global integration give the G-7 nations immense economic power and the greatest potential to help the world's poorest citizens, these countries aren't necessarily committing themselves to policies that truly help the developing world. This is an important conclusion that I hope will spur debate on the policy decisions shaping our world today -- a central part of FP's mission." The index builds upon contributions from experts at the Center for Global Development, FOREIGN POLICY, the Institute for International Economics, the Brookings Institution, and the Migration Policy Institute and benefits from the generous support of the Rockefeller Foundation. To read a complete version of the CGD/FP Commitment to Development Index, including all relevant charts and source data, and a look at how the index was calculated, visit http://www.foreignpolicy.com and http://www.cgdev.org. ------ Commitment to Development Index Complete Rankings 1. Netherlands 2. Denmark 3. Portugal 4. New Zealand 5. Switzerland 6. Germany 7. Spain 8. Sweden 9. Austria 10. Norway 11. United Kingdom 12. Belgium 13. Greece 14. France 15. Italy 15. Ireland 17. Finland 18. Canada 19. Australia 20. United States 21. Japan ABOUT THE CENTER FOR GLOBAL DEVELOPMENT The Center for Global Development is an independent, nonpartisan, nonprofit think tank dedicated to reducing global poverty and inequality through policy-oriented research and active engagement on development issues with the policy community and the public. http://www.cgdev.org ABOUT FOREIGN POLICY Founded in 1970, FOREIGN POLICY is the premier, award-winning magazine of global politics, economics, and ideas. Readers include some of the most influential leaders in business, government, and other professional arenas in the United States and more than 90 other countries. In addition to the flagship English-language edition and Web site, http://www.foreignpolicy.com, FP is published in Arabic, Greek, Italian, Spanish (three editions), and Turkish. FP is published by the Carnegie Endowment for International Peace (http://www.ceip.org) in Washington, D.C. For syndication permission, contact Spencer Kehe, phone: 202-939-2241; e-mail: skehe@ceip.org.