The City Development Index, What is it?

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

16. Components of CDI by region

17. Cities with unexpectedly high or low indices

18. First two components