Commitment to Development Index

Center for Global Development

To draw attention to the many ways in which rich countries can positively influence development.

Rockefeller Foundation and 11 donor governments which are part of the Center for Global Development Consortium.

Widely quoted as a measure of donor policies’ impact on developing countries.

 Varied. Mostly administrative data is used. Almost no perception data is used.

21 countries (Members of the OECD Development Assistance Committee except Luxembourg)

cgd@cgdev.org
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The index is formed from 7 components. Each uses the best available data and weights it according to the prevailing wisdom concerning aid and policy effectiveness. The overall index is a simple average of the scores for each component.

The final results are produced in the form of scores where the average (for each component across all countries assessed) is constrained to 5. A higher score is desirable. There are no fixed ends to the scale used and negative values are possible.

This is an unusual indicator in that it brings together so many aspects of policies and expenditures which can affect development. As such it makes a useful advocacy tool for a ‘joined up’ approach to development.

The index has some weaknesses, the greatest being uncertainty about the relative importance of various policies.

The index is compiled based upon a series of assumptions. The key ones by component are:
 

Aid: This component assumes that the best situation is targeted (poor but well governed countries), untied aid given in large chunks (small projects being less efficient and more burdensome on the recipient). The value of aid given to countries is discounted using the World Bank KKZ governance indicators. This assumes that the quality of national governance affects the quality of aid.

Trade: Agricultural subsidies of EU members are assumed to be in proportion to their contribution to the Common Agricultural Policy fund. Investment in developing countries is assumed to be related to government policies which insure, screen, prevent double taxation, prevent corrupt practices abroad and have open policies concerning pension fund investment in developing countries.

Migration: Migration is assumed to be good for development through access to labour markets and remittances of migrant labour to their home country. Immigrant numbers are 65% of the resulting migration score, foreign students 15% and 20% for aid to refugees.

Environment: Now assessed as 50% global climate, 10% sustainable fisheries, 40% biodiversity and global ecosystems.

Security: This component is assessed by a variety of costs which relate to peace and security operations. It is assumed that only those endorsed by the UN Security Council, NATO or the African Union are for development purposes. All other costs are excluded. Any late UN endorsement (as in Iraq) will substantially boost countries’ CDI score.

Technology: Investment in research and development for military purposes is assumed to have 50% of the value of non-military purposes. Overall Index: Each of the above components is assumed to be equally important in the final commitment measure.