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The City Development Index, What is it?

Explore the City Development Index (CDI) as a holistic urban policy indicator system designed to assess the health of cities across various sectors. Learn how the CDI fosters dialogue and informs urban strategies by measuring effectiveness, equity, accountability, participation, and security in urban governance.

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The City Development Index, What is it?

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  1. The City Development Index, What is it? • The CDI is a broad policy-based indicator system, it is holistic, or intended to look at the health of cities or sectors as a whole, inclusive, covering areas beyond the realm of a single management structure, and pluralist, intended to foster or inform a dialogue between the different parties involved in urban development. It is largely driven or integrated with the process of establishing urban strategies and policies.

  2. Why? INDICES – ADDING APPLES AND ORANGES • Total measures of activity • Total market activity (eg GDP) • System wide change (eg CPI, “Sea level” • Complex or abstract concepts • Freedom. • Good governance • Poverty, Slums • Development • Intelligence • Race Purpose • Measuring system change with complex outputs • Comparison between jurisdictions • “Blurry edges”

  3. 1. Effectiveness 2. Equity 3. Accountability 4. Participation 5. Security URBAN GOVERNANCE Urban Governance Index components • UGI = Summary measure of urban governance • Measures the average achievements in five dimensions of urban governance

  4. Under 5 Mortality SECURITY Environmental Action Plan ACCOUNTABILITY Close LG Literacy Remove councillors PARTICIPATION Crime Prevention Policy Poor households Voters Participation EQUITY Access to water Elected Mayor LG revenue Associations/ pop EFFECTIVENESS Inaccessible areas to Police Expenditures basic services Access to sanitation Councilors Share of transfers Participation in projects/ budgets Travel time Domestic Violence policy Women councilors Publications Victims of Violence Pgs « Signs » or indicators Urban Governance Index

  5. How? INDICES – ADDING APPLES AND ORANGES • Pricing and value • Market or exchange value • Direct preference and indifference curves • Input cost (labour theory of value) • Unobserved variables • Proxies • Principal components • Econometrics Signs and opinion • Ad-hoc weighting • Subjective opinion or identity

  6. Principal Components • Highly correlated variables • Core underlying concepts or unobserved variables • Gives orthogonal components Development level Inequality

  7. GUID 1 1996 (1993 data) 46 key indicators 237 Cities GUID 2 2001 (1998 data) 23 key indicators 300 Cities TheGlobalUrbanIndicatorsDatabase Also – ADB Cities Data Book (19 cities)

  8. Factor Analysis Results UIP 1993

  9. URBAN INDICES • PRINCIPAL COMPONENTS • CITY DEVELOPMENT INDEX • ACCESSIBILITY INDEX • INEQUALITY INDEX • CONNECTIVITY INDEX

  10. SIMPLIFIED INDEX METHOD Many different linear combinations will give same answer. • 1. Principal component • 2. Normalise variables (linear method) • 3. Stepwise regression until R2 > 90% • 4. Approximate with integer weights • 5. Check that correlation still high.

  11. City Development Index

  12. INTERPRETATION OF CDI • Social welfare function • represents either social preference or social utility • Depreciated social investment • total investment in aspects of development • supported by weightings ULTIMATE PROOF • matches subjective perception of development

  13. CDI for selected cities

  14. Components of CDI by region

  15. Cities with unexpectedly high or low indices

  16. First two components

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