The City Development Index, What is it?

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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.

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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

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Urban Governance Index components

• UGI Summary measure of urban governance
• Measures the average achievements in five
  dimensions of urban governance

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 Signs  or indicators
Urban Governance Index
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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

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Principal Components

• Highly correlated variables
• Core underlying concepts or unobserved variables
• Gives orthogonal components

Development level
Inequality
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The Global Urban Indicators Database

• GUID 1
• 1996 (1993 data)
• 46 key indicators
• 237 Cities

• GUID 2
• 2001 (1998 data)
• 23 key indicators
• 300 Cities

Also ADB Cities Data Book (19 cities)
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Factor Analysis Results UIP 1993
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URBAN INDICES

• PRINCIPAL COMPONENTS
• CITY DEVELOPMENT INDEX
• ACCESSIBILITY INDEX
• INEQUALITY INDEX
• CONNECTIVITY INDEX

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SIMPLIFIED INDEX METHOD

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

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City Development Index
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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

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CDI for selected cities
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Components of CDI by region
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Cities with unexpectedly high or low indices
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First two components