The CGD Podcast – CDI 2015: How Do Rich Countries’ Policies Affect Development?

Host: Rajesh Merchandani
Guest: Owen Barder, CGD Vice President and Director of the Europe Programme
Date: December 7, 2015

Overview of the Episode's Main Theme

This episode explores how the policies of wealthy nations impact global development, especially concerning the world’s poorest countries. The centerpiece is the Center for Global Development’s Commitment to Development Index (CDI) 2015, which ranks 27 of the world’s richest countries based on their policies in seven areas: aid, trade, migration, finance, environment, technology, and security. As the world embraces the Sustainable Development Goals (SDGs), the podcast discusses how the CDI acts as both a diagnostic tool and an incentive for nations to reform policies—not just through aid, but across the broad spectrum influencing development outcomes.

Key Discussion Points & Insights

1. Broadening the Development Agenda

• The SDGs represent a more holistic development framework than the previous Millennium Development Goals, encompassing issues beyond aid, like trade, climate, and security ([01:15]).
• Development-friendly policies benefit both developing and rich countries; open markets, for example, help consumers and taxpayers globally ([01:56]).

"This is not a long list of sacrifices that we want rich countries to make for the world's poor. This is a set of reforms and better policies that would make the world a better place." – Owen Barder ([01:56])

2. CDI Rankings: Who Performs Best and Why

• Top Performers: Scandinavian countries (Denmark, Sweden, Norway, Finland) lead due to well-rounded policies across the CDI’s assessed areas ([02:56]).
  • They have generous and effective aid programs, transparent trade policies, openness to migration, and significant contributions to peacekeeping.
• Room for Improvement: Even high-ranking countries like the Nordics have domains in which they can learn from lower-ranked nations ([03:49]).
• Lowest Performers: South Korea and Japan are typically at the bottom, though both are improving. Issues include restrictive trade policies (notably on rice, wheat, and beef) and minimal engagement in international peacekeeping ([03:57]).

"Japan also has a very low level of commitment to international peacekeeping, for example... that's partly because they've been largely unmilitarized since the Second World War." – Owen Barder ([04:36])

3. How G7 Countries Fare

• United Kingdom: 6th overall, best among the G7. Recognized for both the quantity and quality of their aid ([05:14]).
  • The CDI assesses both generosity and effectiveness, adjusting for country size and national income ([05:43]).
• United States: Though the largest donor in dollar terms, the US ranks 21st due to limited aid relative to its national income and weaker performance in several areas ([06:14]).

"It's almost an honorary Scandinavian... The UK does well, especially on having a good aid program. It's both generous and has very effective aid." – Owen Barder ([05:14])

4. CDI Methodology: Depth and Transparency

• Covers seven dimensions—each evaluated through dozens of indicators, pulling from over 10 million data points ([06:45]).
• Relies exclusively on objective, publicly available data, not expert opinion panels ([06:45]).
• Each of the seven dimensions is weighted equally in the overall index ([07:25]).

5. Learning Across Borders: Policy Lessons

• Policy inspiration flows in all directions:
  • South Korea: Though low overall, excels in technology transfer thanks to strong investment in R&D and more flexible intellectual property rules, facilitating innovation sharing ([08:03]).
  • Sweden: Excels in foreign assistance but scores poorly on arms sales to impoverished and undemocratic nations. Positive policy shifts are underway ([08:03]).
• The index highlights areas for improvement, stimulating debate and policy action in countries like Canada (on environment) and the Netherlands (on technology transfer and IP policy) ([10:40], [11:23]).

"We could learn from what [South Korea is] doing because it's obviously good for South Korea and it's good for the rest of the world, what they're doing." – Owen Barder ([08:03])

"Being able to say to policymakers, look, you're lagging behind the rest of the world in this respect does actually help stimulate the conversation." – Owen Barder ([10:40])

6. Impact and Utility of the CDI

• While being high on the index may not yet be a “sufficient incentive” for countries to change policies, it provides an accountability framework and spurs public debate ([10:10]).
• CGD’s rankings prompt self-reflection, legislative reviews, and policy reforms (Canada’s environmental stance, Dutch review of IP rules from Brussels) ([11:17], [11:23]).

Notable Quotes & Memorable Moments

• "The development agenda has shifted... The SDGs are a much broader agenda than the MDGs... It's about how we deal with global problems like climate change."
  — Owen Barder ([01:15])

• "The team that does best is Team Scandinavia... They are good at accepting migrants from the developing world... contribute to peacekeeping and security operations."
  — Owen Barder ([02:56])

• "South Korea invests in R and D more than other countries, and it has relatively low intellectual property rights protection that enables those ideas to be taken up and used elsewhere."
  — Owen Barder ([08:03])

• "I personally don't think that scoring well on the index is enough of an incentive for a country to change its policies one day. But it does help identify what the issues are and it forces a conversation..."
  — Owen Barder ([10:10])

Timestamps for Important Segments

• 00:04–01:15: Introduction to the CDI and its role in the context of the SDGs
• 02:56–03:49: Discussion of top-ranked countries and their strengths
• 03:57–05:02: Analyzing low-ranked countries and specific areas for improvement
• 05:14–06:14: UK and US positions and rationale
• 06:45–07:25: Explanation of CDI methodology and data volume
• 08:03–09:57: Examples of cross-country policy learning
• 10:10–11:23: The CDI’s influence on accountability, policy discussion, and real-world debates

Conclusion

The 2015 Commitment to Development Index provides a nuanced and expansive look at how the world's richest nations are contributing—or not—to global development through their overarching policies, far beyond aid. Across this conversation, Owen Barder underscores the importance of multi-dimensional strategies for development, the value of transparent data, and evidence-informed dialogue, offering actionable insights for policymakers seeking to improve both their country’s ranking and real development outcomes.