Commitment to Development Index

It measures "development-friendliness" of 40 of the world's richest countries, all member nations of the OECD's Development Assistance Committee.

The CDI assesses national effort in seven policy areas: aid, trade, investment, migration, environment, security, and technology.

The CDI is a flagship initiative of the Center for Global Development (CGD), a non-profit think-tank based in Washington, DC.

David Roodman, Senior Fellow at the Center for Global Development, is the chief architect of the Index with research and support from key collaborators for technical work on components.

Although the formulas and analysis at the heart of the CDI remain the same, slight methodological changes occur every year and indicators are constantly updated.

The trade component of the CDI penalizes countries for erecting barriers to imports of crops, clothing, and other goods from poor nations.

It looks at two kinds of barriers: tariffs (taxes) on imports, and subsidies for domestic farmers, which stimulate overproduction and depress world prices.

The CDI strives to reward rich countries that pursue policies that encourage investment and financial transparency that is good for development.

It looks at two kinds of capital flows: foreign direct investment, which occurs when a company from one country buys a stake in an existing company or builds a factory in another country; and portfolio investment, which occurs when foreigners buy securities that are traded on open exchanges.

It rewards government subsidies for research and development(R&D), whether delivered through spending or tax breaks, while discounting military R&D by half.

U.S. trade negotiators, for example, have pushed for developing countries to agree never to force the immediate licensing of a patent even when it would serve a compelling public interest, as an HIV/AIDS drug might if produced by low-cost local manufacturers.

Together, they constitute the majority membership of the OECD's Development Assistance Committee which is the official organization of aid donors, along with one DAC observers (Hungary).

Data for the CDI come from official sources such as the World Bank, the Organisation for Economic Co-operation and Development, and the United Nations, or from academic researchers.

The Commitment to Development Index has received much media attention over the years and has sparked criticism and discussion among a wide range of audiences.