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

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

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. 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)

8. Factor Analysis Results UIP 1993

9. 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 R 2 > 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