Country_12_Greece_EN

Greece

Commitment to Development Index 2012

Greece

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 Greece’s performance on the 2012 CDI. For more details, visit cgdev.org/cdi.

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Overall Score

Greece’s 2012 CDI Performance n Overall rank 2012: 21 n Overall score 2012: 4.5 n Change since 2003: +0.7 (using 2012 methodology) Greece ranks 21 overall in 2012.

Greece scores well on the migration component due to admissions of a large number of immigrants from poor countries and a large share of foreign students.

The Greek government also contributes to international peacekeeping efforts and plays a role in protecting sea lanes that are vital to international trade. However, Greece scores below average in three components: foreign aid, investment, and technology. The Greek government engages in poor donor practices, lacks strong policies to promote investment in poor countries, and provides little support for research and development.

Greece’s CDI Performance, 2003–12 2003

Aid

2012

Trade Investment

st

www.cgdev.org/cdi

Migration Environment Security Technology Overall

0

4

8

12

16

Greece 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: 1.6 n Rank: 20

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 investment in developing countries.

n Score: 4.0 n Rank: 23 Strengths - Employs foreign tax credits to prevent double taxation of corporate profits earned abroad

Weaknesses - Large share of tied or partially tied aid (46%; rank: 21) - Low net aid volume as a share of the economy (0.17%; rank: 20) - Large share of aid to less poor and relatively worse-governed recipients (selectivity rank: 18)

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.

Weaknesses - Does not allow domestic investors to take full advantage of developing country tax incentives - Imposes restrictions on pension fund investments in emerging markets - Weak participation and 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: 5.3 n Rank: 22 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 of 15.7% on the value of imports; rank: 26)

n Score: 6.4 n Rank: 9 Strengths - Large share of foreign students from developing countries (95.4%; rank: 1) - Large number of immigrants from developing countries entering Greece (rank by share of population: 1)

Weaknesses - Only a small increase during the 1990s in the number of unskilled immigrants from developing countries living in Greece (rank by share of population: 22)

Center for Global Development

Greece 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: 5.9 n Rank: 19

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: 2.8 n Rank: 25

Strengths - Low consumption of ozone-depleting chemicals per capita (rank: 1) - High gas taxes ($1.39 per liter; rank: 4) - Low tropical timber imports ($7.15 per capita equivalent: rank: 4)

Strengths - Small share of government R&D on defense (0.47%; rank: 8)

Weaknesses

Weaknesses - High fishing subsidies ($5.04 per person; rank: 25) - Poor compliance with mandatory reporting requirements under multilateral environmental agreements relating to biodiversity (rank: 27)

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.

- Low overall government support for R&D (rank: 25) - Offers patent-like proprietary rights to developers of data compilations, including those assembled from data in the public domain - Imposes strict limitations on anti-circumvention technologies that can defeat encryption of copyrighted digital materials

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.

n Score: 5.7 n Rank: 8 Strengths - Significant personnel contributions to internationally-sanctioned, non-UN peacekeeping and humanitarian interventions over last decade (rank by share of GDP: 6) - Military ships stationed in sea lanes that are important to international trade (rank by share of GDP: 9)

Weaknesses - Small personnel contributions to UN peacekeeping operations over last decade (rank by share of GDP: 23) - Has not ratified the Convention on Cluster Munitions (CCM)

Center for Global Development

Greece 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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