Country_12_Czech Republic_EN

Czech Republic

Commitment to Development Index 2012

Czech Republic David Roodman and Julia Clark

The Commitment to Development Index (CDI) ranks 27 of the world’s richest countries based on their dedication to policies that benefit poor nations.

Looking beyond standard comparisons of foreign aid flows, the CDI measures national policies in seven areas that are important to developing countries: aid, trade, investment, migration, environment, security, and technology.

This report reviews the Czech Republic’s performance on the 2012 CDI. For more details, visit cgdev.org/cdi.

Denmark Norway Sweden Luxembourg Austria Netherlands Finland New Zealand United Kingdom Portugal Canada Germany Belgium France Spain Australia Ireland Switzerland United States Italy Greece Hungary Slovakia Czech Republic Poland Japan South Korea

Overall Score

Czech Republic’s 2012 CDI Performance n Overall rank 2012: 24 n Overall score 2012: 3.7 The Czech Republic ranks 24th overall in 2012.

The Czech Republic performs best in the environment component, due in part to high gas taxes and waning growth in greenhouse gas emissions compared with GDP. It also scores above average in the technology and trade components, with relatively low barriers to developing country imports and substantial subsidies for research and development.

However, the Czech government’s score is driven down by its small foreign aid program, barriers to migrants and students from developing countries, and limited support of peacekeeping and humanitarian missions.

Czech Republic’s CDI Performance, 2012 Aid Trade

Investment Migration Environment Security Technology Overall

0

www.cgdev.org/cdi

4

8

12

16

Czech Republic’s Country Report

Aid

Aid quality is just as important as aid quantity, so the CDI measures gross aid as a share of GDP 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 well-governed recipients, and penalizes overloading poor governments with many small projects.

n Score: 1.1 n Rank: 23

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.

n Score: 3.9 n Rank: 24 Strengths

Weaknesses - Low net aid volume as a share of the economy (0.13%; rank: 23) - Fails to report tied aid (rank: 24) - Large share of aid to less poor and worse-governed recipients (selectivity rank: 24) - Allows project proliferation; small average project size (rank: 21)

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.

- Employs bilateral tax treaties to prevent double taxation of corporate profits earned abroad - No restrictions on pension fund investment in emerging markets

Weaknesses - Political risk insurance agency does not screen projects for social impacts - Political risk insurance given to inefficient, import-substituting projects - Weak leadership in extractive industry transparency initiatives

Migration

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.

n Score: 5.5 n Rank: 17 Strengths - Low tariffs on textiles (6.4% of the value of imports; rank: 3) - Low tariffs on apparel (6.4% of the value of imports; rank: 3) - High level of manufactures imports from poorer countries (10.1% of GDP per capita; rank: 4)

Weaknesses - High agricultural subsidies (equivalent to a tariff worth 13.1% of the value of imports; rank: 19)

Center for Global Development

Investment

n Score: 1.3 n Rank: 25 Weaknesses - Small share of foreign students from developing countries (25.4%; rank: 25) - Bears small share of the burden of refugees during humanitarian crises (rank: 22) - Small number of immigrants from developing countries entering the Czech Republic (rank by share of population: 19)

Czech Republic Country Report

www.cgdev.org/cdi

Environment

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.

n Score: 7.2 n Rank: 7

Technology

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.

n Score: 5.3 n Rank: 12

Strengths - Low tropical timber imports ($7.15 per capita equivalent; rank: 4) - High gas taxes ($1.34 per liter; rank: 6) - GDP growth exceeded growth in greenhouse gas (GHG) emissions over the past decade (average annual GHG growth rate/GDP, -3.82; rank: 7)

Strengths - High tax subsidy rate to businesses for R&D (rank: 4) - Will force patent holders to license to meet social needs - Provides patent exceptions for research purposes

Weaknesses

Weaknesses - High greenhouse gas emissions and fossil fuel production rate per capita (20.5 tons of carbon dioxide equivalent; rank: 20)

Security

Since security is a prerequisite for development, the CDI rewards contributions to internationally sanctioned peacekeeping operations and forcible humanitarian interventions, military protection of global sea lanes, and participation in international security treaties. It also penalizes arms exports to poor and undemocratic governments.

n Score: 1.6 n Rank: 25

- Pushes to extend intellectual property rights in bilateral trade treaties (“TRIPS Plus� measures) that restrict the flow of innovations to developing countries - Offers patent-like proprietary rights to developers of data compilations, including those assembled from data in the public domain

For More Visit cgdev.org/cdi for the complete 2012 edition of the Commitment to Development Index. There, you can explore the numbers with our interactive graphing tool, view additional publications and background papers, and dive deeper into the CDI methodology by downloading our data and code.

Weaknesses - High level of arms exports to poor and undemocratic governments (rank by share of GDP: 25) - Low personnel and financial contributions to internationallysanctioned peacekeeping and humanitarian interventions over last decade (rank by share of GDP: 22) - Has not ratified the Convention on Cluster Munitions (CCM)

Center for Global Development

Czech Republic Country Report

www.cgdev.org/cdi

Commitment to Development Index 2012 Country Denmark Norway Sweden Luxembourg Austria Netherlands Finland New Zealand United Kingdom Portugal Canada Germany Belgium France Spain Australia Ireland Switzerland United States Italy Greece Hungary Slovakia Czech Republic Poland Japan South Korea

Rank 1 2 3 4 5 6 7 8 9 10 11 11 13 13 15 15 17 18 19 20 21 22 23 24 25 26 27

Aid 11.5 13.0 12.6 13.0 3.1 9.5 6.6 3.3 6.8 3.1 5.0 3.9 6.4 4.2 4.0 4.3 7.5 5.2 3.2 1.3 1.6 0.8 0.8 1.1 0.7 1.6 1.0

Trade 5.3 1.1 5.8 5.3 5.6 5.9 5.8 8.1 5.5 5.6 6.2 5.5 5.5 5.6 5.5 7.4 5.2 1.5 6.7 5.7 5.3 5.4 5.8 5.5 5.6 0.1 -1.3

Investment 4.7 6.1 5.3 4.2 4.8 6.3 5.1 4.3 6.3 5.2 6.1 6.3 5.3 6.1 5.9 6.1 2.9 4.4 5.0 5.4 4.0 3.6 2.9 3.9 4.1 5.2 5.6

Migration 6.2 9.9 7.8 6.8 11.7 5.5 4.4 6.4 4.7 4.0 7.0 6.9 5.0 4.0 5.4 4.2 2.8 8.6 5.2 4.7 6.4 1.7 0.6 1.3 0.6 1.9 1.3

Environment 6.8 3.2 7.3 5.5 6.2 6.7 7.4 6.2 7.2 7.2 2.5 6.9 7.0 6.9 6.4 3.8 6.5 5.8 4.3 6.7 5.9 7.9 8.3 7.2 7.4 4.5 4.2

Security 7.7 7.6 1.2 5.0 6.1 3.2 6.6 7.3 5.4 6.0 5.7 3.7 3.6 3.7 3.4 5.1 6.9 4.4 4.6 5.0 5.7 5.4 5.5 1.6 3.8 4.5 1.4

Technology 6.6 5.7 4.7 4.2 5.7 5.4 5.9 4.8 4.3 7.4 5.5 5.0 4.6 6.6 5.8 5.2 3.9 4.8 4.9 4.2 2.8 3.4 2.6 5.3 2.7 6.1 7.0

Overall Score 7.0 6.6 6.4 6.3 6.2 6.1 6.0 5.8 5.7 5.5 5.4 5.4 5.3 5.3 5.2 5.2 5.1 5.0 4.8 4.7 4.5 4.0 3.8 3.7 3.6 3.4 2.7

Change since 2003 -0.2

+0.7 -0.3

n/a +0.7 -0.1

+0.1 0.0 +0.7 +1.1 +0.3 +0.5 +0.5 +1.0 +0.7 +0.2 0.0 +0.2 +0.8 +0.7 +0.7 n/a n/a n/a n/a +1.3 n/a

The above table lists scores for each of the 27 CDI-ranked countries across seven policy areas. A country’s overall performance is the average of its seven component scores, each of which are scaled so that an average score in 2012 equals 5.0. The final column shows the change in each country’s overall score since the CDI began in 2003 (using 2012 methodology).

About The CDI The Commitment to Development Index has been compiled each year since 2003 by the Center for Global Development (CGD), an independent think tank that works to reduce global poverty and inequality through rigorous research and active engagement with the policy community. CGD senior fellow David Roodman is the chief architect of the CDI, and collaborators have included William R. Cline on trade; Theodore H. Moran on investment; Jeanne Batalova, Kimberly A. Hamilton, and Elizabeth Grieco on migration; Amy Cassara and Daniel Prager on environment; Michael E. O’Hanlon, Adriana Lins de Albuquerque, Mark Stoker and Jason Alderwick on security, and Keith Maskus and Walter Park on technology. The Index is supported by the CDI Consortium.

Center for Global Development

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