Measuring complexity

ON MEASURING THE
COMPLEXITY OF
URBAN LIVING

Lubna Hasan
Pakistan Institute of Development
Economics
31 Oct 2007

Measuring Complexity
 Cities are the prime agents of
development
 Cities face many challenges owing to
urbanization and globalization
 Need to measure and monitor cities

 City rankings are a useful tool to
monitor progress.

The ‘Stylized Facts’ of Urban
Economics

Cities are centers of economic,
social and cultural activities.
From being “isolated seats of
power from where to govern
rural holdings,” cities have
become the ultimate abode of
humanity”.

Economics

“As countries develop, urban
settlements account for a
larger share of national
income”.

The Economics of Cities
 New York, Los Angeles, Chicago, Boston,
and Philadelphia together constitute the
fourth largest economy in the world.
 Sao Paulo and Bangkok hold about 10%
of the total population but account for
about 40% of the GDP.
 Per capita income in African cities is
65% higher than the national average.


1. Frankfurt . . . . . . . . . . . 68,947
2. Karlsruhe . . . . . . . . . . . 64,903
3. Paris . . . . . . . . . . . . . 62,220
4. Munich . . . . . . . . . . . . 56,813
5. Dusseldorf . . . . . . . . . . 50,048
(In million dollars)

Cities are the “super markets for
employment, incubator of technology,
suppliers of social services and
shelter, portals to the rest of the
world, processors of agriculture
produce, adders of manufactured
value, places to make money through
trade, industry, finance, real state”

Urban Loads
 Congestion

 pollution

 Crime

Economics

Globalization of economic
activity has put cites in a new
set of relation vis-à-vis
capital.

City Competition - the New
Reality
City branding has become a ‘must do’
for cities. In today’s globalised,
networked world, every place has to
compete with every other place for
its share of the world’s consumers,
tourists, businesses, investment,
capital, respect and attention. Cities
are increasingly the focus of this
international competition.

City Marketing
 Zurich is the world’s best city to live in
(Mercer Consulting 2006).
 London, New York, Oslo, Tokyo and
Zurich are the most expensive cities,
while Swiss cities house the highest
earners in the world (UBS 2006).
 London and Paris are the best cities to
locate businesses (European Cities
Monitor 2005).

"Basel beats differently."
1. Basel is a city of research and
development, of science and
education.

2. Basel is one of Europe's leading
centres of the fine arts.

3. The people of Basel cultivate the
art of savoir vivre and love to share
the high quality of life with their
guests.

4. Basel is a place where innovative,
high-quality ideas, products, and
services are exchanged and traded.

Quality of life

 With a thriving economy, a stable political system, Austria's beauty
and cultural diversity all contribute to a high-quality of lifestyle for
locals and tourists alike.
 Austria's capital Vienna ranks as one of the most attractive cities
world wide. The feeling of well-being enjoyed by locals and tourists
has been repeatedly confirmed by leading international studies and
city rankings.

 Vienna - 4th place in a world wide quality of life survey

Visit Vancouver
Recognition & Awards

2004: Vancouver voted Top
City in Americas by Conde
Nast Traveler.

2003: Mercer Human Resource
Consulting rates Vancouver as
top city in North America for
quality of life.

2002: Vancouver ties with
Melbourne as the Top City to
live within the Economist
Intelligence Unit survey.

 Our 12th annual Hot
Cities report will give
you the lowdown on the
nation’s most dynamic
cities for
entrepreneurs.

 Whether you’re looking
to expand, relocate or
simply stay put, our
quick guide to the top
10

Developing World Cities in
Global Competition
 Shanghai most favorite destination for
European investors.
 Beijing, Mumbai and Mexico City
follow Suite.

City Development Index

CDI = (Infrastructure index + Waste index +
Education index + Health index + City
product index) /5

 Infrastructure = 25 x Water connections +
25 x Sewerage + 25 x Electricity + 25 x
Telephone
 Waste = Wastewater treated x 50 +
Formal solid waste disposal x 50
 Health = (Life expectancy – 25) x 50/60 +
(32 – Child mortality) x 50/31.92
 Education = Literacy x 25 + Combined
enrolment x 25
 Product = (log City product -4.61) x
100/5.99

CDI Value
St
oc
kh

100
120

20
40
60
80

0
ol
m
M
ad
ri
d
Pr
ag
ue
Sa
nt Bu D
o en oh
A os a
nd
re A
/ ir
S es
ao
Pa
ul
Bu o
la
Po wa
rt yo
of
Sp
ai
n
H
ar
ar
Ja e
ka
rt
a
Ce
D bu
am
as
cu
s
La
ho
re
Co
lo
Ca m
bo
sa
bl
an
ca
A
su
City Developemnt Index

nc
io
Ba n
gh
da
d
Ga
Ch za
i
tt
ag
on
Ki g
ns
ha
sa
CDI

Ranking of World Cities by GUO City Development Index
120

100

80
CDI Value

60

40

20

0
0 20 40 60 80 100 120 140 160

CDI Rank

CDI

H
on
g

100
120

0
20
40
60
80
K
on
g

S
eo
ul
M
el
bo
un
e
B
an
ga
lo
r e

H
an
K oi
at
hm
an
du

C
eb
u

D
ha
M ka
an
da
lu
yo
ng

M
ed
an
C
ol
o m

Connectivity
bo

La
ho
re
Connectivity Index

S
uv
a
B
is
hk
P e k
hn
om
P
en
U h
la
a nb
a at
ar

N
ag
a
H
oh
h ot

0
100

10
20
30
40
50
60
70
80
90
D
ha
ka

S
e
ou
B l
a
ng
a
lo
re

La
h
M o
re
a
nd
a
lu
yo
n
H g
on
g
K
o
ng

H
oh
h
ot
C
ol
o
m
bo

M
e
da
n

H
an
P o
h i
no
m

Congestion
P
e
n
K h
a
th
m
an
d
U u
la
a
Congestion Index

nb
a
a
ta
r

C
eb
u
B
is
hk
e
k

N
ag
a

S
u
va
M
e
lb
o
un
e

 Jamal, Khan, Toor and Amir (2003) rank
districts of Pakistan on the basis of
deprivation indices. These indices are
based on education, housing quality and
congestion, residential housing services
and employment sectors and are
constructed from Population and Housing
Census data of 1998.

 Pasha et al (1998) develop a district
ranking system for Pakistan based on
economic and social development. The
social development indicator includes
education, health and water supply.
Whereas, the economic development
indicators includes income and wealth,
agriculture, housing conditions, transport
and labor.

 Hussain (2003) has also calculated
Human Development Index at the
district level for Pakistan, following the
same methodology as used in the
construction of cross country HDI.

Measuring Pakistani Cities
 At present, there is no country-wide
system for measuring cities and city
life in Pakistan.
 The only efforts at measuring cities –
UN-Habitat’s Global Urban Indicators
Program and ADB Cities Data Book -
have limited scope.

 They are restricted to a maximum of
two cities
 These exercises are not carried out
on yearly basis
 They have their own agenda.

 Other efforts at measuring
performance are district based

 Make city as the relevant unit of
analysis
 Develop a city ranking system for
Pakistan
 Extend GUIP to major cities of
Pakistan

Dimensions
Demographic City Population

Health and Person per Hospital
Bed/Doctor/Nurse
Education
School Enrollment Rates
Tertiary Graduates
School Children per Classroom
Urban Productivity City Product
Employment by Industry
Unemployment
Household Expenditure
Housing House Price to Income Ratio
House Cost to Income Ratio

Dimensions
Infrastructure Water Connections
Investment/ expenditure per capita
Electricity Connections
Investment/ expenditure per capita
Solid Waste Collection Household
Number
Investment/ Generation per capita
Solid Waste expenditure
Urban
Environment Sewage Disposal
Waste Water treated
Energy Usage
Noise Complaint
Pollution

Dimensions
Urban Transport Travel Time
Expenditure on Roads
Road Congestion
Automobile Ownership
Culture News apers/Media
Cultural Events/Attendance
Museums/Attendance
Public Safety Crimes

New Technology Telephone Connections
Internet Connections

Dimensions
Urban Land Vacant Government Land
Vacant Land with Planning Permission
Public Open Space
Prime Commercial Land Price
Prime Rental Cost

Urban Governance Functions of Local government
Annual Plans

Voters Participation

Measuring complexity

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Editor's Notes