City Development Index for Armenian Cities.

Created by: Sergey Avetisyan

Indexes simplify and communicate complex information and their primary purpose is to guide an evaluation process by helping policy-makers act and then assess, measure and monitor policy creation. This paper discusses the principles that determine firstly role of cities, we see how development spreads or distributes within the country. We observe how these principles impact the selection of location and how we can predict the future of developing cities. We describe which indicators are important for several reasons: the debate about what should be an indicator triggers discussion as to what is important to a city, it gives the city a goal and action plan by making explicit which target it wants to reach and so creat City Development Index es aspirations, it provides an opportunity to assess strengths and weaknesses and how these might be addressed. Finally, based on the principles discussed, we used Principal Components Analysis to calculate the City Development Index for Armenian cities.

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Sustainable urbanization is key to successful development. Understanding the key trends in urbanization likely to unfold over the coming years is crucial to the implementation of the 2030 Agenda for Sustainable Development, including efforts to forge a new framework of urban development. Armenia’s population peaked at 3,604,000 in 1991 and declined to 3,010,600 in the Jan 2015 state statistical estimate. This represents a 19.7% decrease in total population since the peak census figure. At last, example of urbanization: See Population of Cities in The Republic of Armenia (Fig 1). The City Development Index has separate sub-indices for Infrastructure, Waste Management, Health, Education, and City Product, which are averaged to form the CDI. Each sub-index is a combination of several indicators that have been normalized to give a value
between 0 and 1. Because the variables used to make up the CDI are strongly related to each other, there are a number of ways to calculate the CDI that give almost identical results. The weightings given to each indicator have been initially calculated by a statistical process.


called Principal Components Analysis and then simplified. This formulation of the index by and large uses the same formula as in UNDP Human Development Report (1999)
, for the Health, Education and City Product sub-indices. There are a number of concepts relating to cities and urban development that, although complex and multifaceted, are meaningful and desirableto measure. These include: development level, liveability, sustainability, relative disadvantage orpoverty, congestion and inclusiveness.The CDI is defined at the city level and couldalso be taken as a measure of average well-beingand access to urban facilities by individuals. Thehigh statistical significance and usefulness of theindex indicates that it is actually measuringsomething real. It appears that the CDI is actuallya measure of depreciated total expenditureover time on human and physical urban servicesand infrastructure, and it is a proxy for thehuman and physical capital assets of the city. In our calculating CDI include Higher education, Health Infrastructure, Efficiency of Municipal Budget and the number of registered commercial enterprises The main elements of a city or region are the population, a set of organisations,and the infrastructures—the buildings and, for example, the transport, communicationsand utilities networks. We have to locate each of these.There is always an immediate issue, perhaps often a difficulty, in deciding theappropriate levels of aggregation for system description. In an obvious sense, thefiner the level of detail, potentially the better, but this has to be set against feasibilityand, often, data availability. In 1995-07-05: Armenia re-organized into the current ten provinces and capital city (NUTS3). The current administrative division of RA: 10 regions and Yerevan city, was formed according to the RA laws on “On administrative and territorial division of RA” and “On References local self-Government in the city of Yerevan”. There are 49 cities/towns and 950 villages in the Republic of Armenia, 9 of which are included in the urban communities and the rest of villages – in 866 rural communities. Selection of cities: in our analyses we chose 41 cites. The data used in this study were collected from various sources, in particular: National Statistical Service of Republic of Armenia, The Minister of Territorial Administration and Emergency Situations (2012). Summary of the steps involved in the analysis is provided below: 1. Describe factors. 2. Calculate City Development Index.
To construct City Development Index we have used the following 18 indicators on city level.
Health Infrastructure: Gym Place per 1000 inhabitants, Hospitals per 1000inhabitants, Polyclinics per 1000 inhabitants, number of hospital beds per 1000 inhabitants, Pharmacies per 1000 inhabitants.
Employment variables: Pediatricians per 1000 inhabitants, Family doctors per 1000 inhabitants, Hospital Labour per 1000 inhabitants, Pharmacies labor per 1000 inhabitants.
Efficiency of Municipal Budget: Proceeds from disposal of land per 1000 inhabitants, Land tax income per 1000 inhabitants, Incomes per 1000 inhabitants, Subsidy per 1000
inhabitants, Actual income per 1000 inhabitants, Retained per 1000 inhabitants, Property tax 1000 inhabitants.
Commercial enterprises: The number of registered commercial enterprises normalized. Human capital: Pediatricians per 1000 inhabitants, Family doctors per 1000 inhabitants,
Hospital Labour per 1000 inhabitants, Pharmacies labour per 1000 inhabitants and the numbers of Higher educated people per 1000 inhabitants.


The research aimed at calculating the development level of Armenian cities a methodology for measuring performance success of urban development, which would be useful within the national as well as international comparable city sample. For the testing purposes, the selection of cities followed certain criteria: cites with have more than five thousand population. The determination of adequate measurement indicators, closely associated with evaluation of known methodological concepts and relevant databases, resulted in obtained useful tool: a system of 18 selected indicators by field measurement, meaningfully divided into four areas and added categories to enable ranking of comparable Armenian cities. Following the methodology of CDI where we have used for the weightings given to each indicator have been initially calculated by a statistical process called Principal Components Analysis and then simplified.In this context, urban policy makers, planners, property developers, and constructors need to see themselves as change-managers seeking innovative solutions to adapt and regenerate cities so as to support more sustainable lifestyles. For more effective urban policy Governments in developing countries need a measuring system, so CDI can help decision-makers and professionals.