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Definition and Source Document – Cities of Opportunity 2011

Intellectual capital and innovation

Percent of population with higher education

Definition

Number of people who have completed at least a university-level education divided by the total population. A university-level education is set equivalent to a Bachelor’s degree or higher from a US undergraduate institution.

Sources

American Community Survey

Statistics Canada

Office of National Statistics, Regional Snapshot December 2009, United Kingdom

National Institute for Statistics and Economic Studies (INSEE), France

Stockholm Research and Statistics Office AB (USK)

Eurostat

United Nations Educational, Scientific, and Cultural Organization (UNESCO)

National Statistical Institute (INE), Spain

Beijing Statistical Yearbook 2009

Hong Kong Census and Statistics Department, Hong Kong Annual Digest of Statistics 2009

Seoul Statistics

Shanghai Municipal Government

Singapore Department of Statistics

Tokyo Metropolitan Government, Tokyo Statistical Yearbook

Australian Bureau of Statistics

Office of the Registrar General & Census Commissioner, India

Statistics South Africa: Community Survey 2007

National Institute of Statistics and Geography (INEGI), Mexico

National Institute of Statistics (INE), Chile

Brazilian Institute of Geography and Statistics (IBGE)

Statistics Center - Abu Dhabi (SCAD), Abu Dhabi Statistical Yearbook 2010

Turkish Statistical Institute (TUIK)

Math/Science skills attainment*

Definition

Top performers’ combined mean scores on the math and science components of an Organization for Economic Co-Operation and Development (OECD) assessment of 15 year-olds’ academic preparedness. Top performers are defined as those students who achieved in the top two proficiency levels (Level 5 and Level 6) on the math and science portions of the test. Comparable examinations are used wherever possible to place cities not included in the OECD assessment.

Sources

Organization for Economic Co-Operation and Development (OECD), Education at a Glance 2009: OECD Indicators Table A.4.1a

US Department of Education, National Center for Education Statistics, Trends in Mathematics and Science Study (TIMSS) 2007

UNESCO, Education for All Global Monitoring Report 2010, Reaching the Marginalized

Libraries with public access

Definition

Number of libraries within each city that are open to the public divided by the total population and then multiplied by 100,000.

Sources

PublicLibraries.com

Illinois Public Library System

Los Angeles Public Library

New York Public Library
Brooklyn Public Library

Queens Borough Public Library

San Francisco Public Library

Toronto Public Library

Department for Culture, Media and Sport; Museums, Libraries and Archives Council, United Kingdom

City of Paris

Stockholm Public Library

Solar Navigator

Caja Madrid Obra Social and Community of Madrid, Subdirectorate General of Libraries

China Internet Information Center

Hong Kong Public Libraries

Korea4Expats.com

Shanghai Central Library System

National Library Board Singapore

Tokyo Metropolitan Library

Public Libraries NSW Metropolitan Association

WebIndia123.com

City of Johannesburg

National Network of Public Libraries, Mexico

Directorate of Libraries, Archives and Museums; Subdirectorate of Public Libraries; Chile

City of São Paulo

Abu Dhabi Systems and Information Centre, Abu Dhabi Government Portal

MyMerhaba.com

Moscow City Government

Houston Public Library

Research performance of top universities

Definition

Sum of the scaled scores of a city’s universities that are included in the rankings of top performing research universities in the world. Scaled scores are based on the number of articles published, number of citations to published work, and the quantity of highly-cited papers. The scoring accounts for social sciences papers, but not humanities papers. The rankings favor large universities, universities with medical schools, and universities that focus predominantly on the "hard sciences" rather than social sciences and humanities.

Sources

Higher Education Evaluation and Accreditation Council of Taiwan, 2009 Performance Ranking of Scientific Papers for World Universities

Classroom size

Definition

Number of students enrolled in public primary education programs divided by the number of classes in these programs. Primary education programs usually begin at ages five to seven and last four to six years. Primary education is counted as the equivalent of kindergarten through grade 5 in the US education system wherever possible.

Sources

Illinois State Board of Education

Education Data Partnership, Los Angeles Unified School Districts

Education Data Partnership, San Francisco Unified School Districts

New York City Department of Education

Ontario Ministry of Education, Toronto District School Board, Toronto Catholic District School Board, City of Toronto

ONS, Regional Snapshot September 2010, United Kingdom

OECD, Education at a Glance 2009: OECD Indicators Table D2.1

Education Administration, City of Stockholm

USK

Education Bureau, Government of Hong Kong Special Administration District

Ministry of Education Singapore, Education Statistics Digest 2010

United Nations Statistics Division, UNData

Gauteng Department of Education, Annual Performance Plan 2007/08 to 2009/10

SCAD

Harris County Department of Education, Texas Education Agency

Footnotes:

Literacy and enrollment*

Definition

Measurement of a country's ability to generate, adopt and diffuse knowledge. The Knowledge Assessment Methodology (KAM) World Bank’s Knowledge Index (KI)is derived by averaging a country’s normalized performance scores on variables in three categories – Education and Human Resources, the Innovation System, and Information and Communications Technology (ICT). The variables that comprise education and human resources are adult literacy rate, secondary education enrollment and tertiary education enrollment.

Sources

The World Bank, Knowledge for Development, Knowledge Assessment Methodology 2009

Footnotes:

The Knowledge Assessment Methodology (KAM) World Bank’s Knowledge Index (KI) measures a country's ability to generate, adopt and diffuse knowledge. This is an indication of overall potential of knowledge development in a given country. The KI is derived by averaging a country’s normalized performance scores on the key variables in three Knowledge Economy pillars – education and human resources, the innovation system and information and communication technology (ICT). The variables that comprise education and human resources are adult literacy rate, secondary education enrollment and tertiary education enrollment.

Percent of gross domestic expenditure on R&D*

Definition

Total gross domestic expenditure on research and development (GERD) in 2007 as a percentage of the gross domestic product (GDP).

Sources

UNESCO, Trends in Global Higher Education: Tracking an Academic Revolution

Intellectual property protection*

Definition:

Leading business executives’ responses to the question in the World Economic Forum’s Executive Opinion Survey 2010 that asks, “How would you rate intellectual property protection, including anti-counterfeiting measures, in your country? (1= very weak 7=very strong).” The survey covers a random sample of large and small companies in the agriculture, manufacturing industry, non-manufacturing industry, and service sectors.

Sources

World Economic Forum (WEF), The Global Competitiveness Report 2010–2011

Entrepreneurial environment*

Definition

Measurement of the entrepreneurial attitudes, entrepreneurial activity, and entrepreneurial aspirations in a country. The Global Entrepreneurship Index (GEINDEX) integrates 31 variables, including quantitative and qualitative measures and individual-level data.

Sources

Center for Entrepreneurship and Public Policy, George Mason University, The Global Entrepreneurship Index (GEINDEX)

Footnotes:

Technology readiness

Digital economy score*

Definition

Assessment of the quality of a country’s Information and Communications Technology (ICT) infrastructure and the ability of its consumers, businesses and governments to use ICT to their benefit.

Sources

Economist Intelligence Unit in Association with IBM Institute for Business Value, Digital Economy Rankings 2010: Beyond E-readiness

Footnotes:

The Economist Intelligence Unit (EIU) renamed this study this year. It was previously titled, “E-readiness.” Given the prevalence of internet-connected consumers, businesses and governments and the indispensable role that digital communications and services now play in most of the world’s economies, the EIU believes that the countries included in its study already have achieved at least some degree of e-readiness. The study’s new title, the “digital economy rankings,” captures the challenge of maximizing the use of ICT that countries face in the years ahead.

Software and multi-media development and design

Definition

Combined score for each city in fDi Magazine's "Best Cities for Software Development" and "Best Cities for Multi-Media Design Centres" indices. Both indices weight a city's performance 70% based on the quality of the location and 30% based on the cost of the location. The software design index is based on an assessment of 120 quality competitiveness indicators. These indicators include availability and track record in ICT, availability of specialized-skills professionals such as scientists and engineers, access to venture capital, R&D capabilities, software exports, quality of ICT infrastructure and specialization in software development. The multi-media design centre rankings are based on an assessment of 120 quality competitiveness indicators, including the size of the location’s leisure and entertainment sector, its specialization and track record, Information Technology (IT) infrastructure, quality of life and skills availability.

Sources

fDi Magazine, Global Outlook Rankings

Footnotes:

The index takes into account factors such as: education levels; size and track record of the ICT sector; quality of IT, air, port, road and railway infrastructures; quality of electrical supply; size of labor force; labor productivity; hiring and firing flexibility; labor relations; foreign ownership restrictions; business costs of terrorism; and cost of establishing a business.

Broadband quality score

Definition

Measurement of the quality of a broadband connection in a given country. The Broadband Quality Study (BQS) is an index that is calculated based on the normalized values of three key performance parameter categories: download throughput, upload throughput, and latency. A formula weights each category according to the quality requirements of a set of popular current and probable future broadband applications.

Sources

Saïd Business School University of Oxford and Universidad de Oviedo sponsored by Cisco, Broadband Quality Study

Internet access in schools*

Definition

Leading business executives’ responses to the question in the World Economic Forum’s Executive Opinion Survey 2010 that asks, "How would you rate the level of access to the Internet in schools in your country? (1 = very limited; 7 = extensive)." The survey covers a random sample of large and small companies in the agriculture, manufacturing industry, non-manufacturing industry, and service sectors.

Sources

World Economic Forum, The Global Competitiveness Report 2010–2011

Transportation and infrastructure

Licensed taxis

Definition

Number of officially licensed taxis in each city divided by the total population and then multiplied by 1,000.

Sources:

Chicago Breaking News Center

City of Los Angeles Taxi Services

New York City Taxi & Limousine Commission

San Francisco Bicycle Coalition

Toronto Star

Transport for London

Paris Convention and Visitors Bureau

The Local - Swedish News in English

Berlin Tourism visitBerlin.de

FeelMadrid.com

China Daily

Transport Department, Government of the Hong Kong Special Administration District

Korea Herald

eChinacities.com

Land Transport Authority, Singapore

EcoSeed

New South Wales Taxi Service

Chennaivision.com

iGuide: Interactive Travel Guide, Mexico City Guide

INE, Chile

Association of Taxi Fleet Companies in the City of São Paulo (ADETAX)

Centre for Regulation of Transport by Hire Cars in the Emirate of Abu Dhabi (TransAD)

Sundays Zaman

Greater Houston Convention and Visitors Bureau

Miles of mass transit track

Definition

Total miles of metro, tram and light rail track within a city divided by the total population and then multiplied by 100,000. Includes monorail and commuter rail that run within a city if they operate as metros in the city.

Sources:

Chicago Transit Authority

Los Angeles County MTA

New York City MTA

San Francisco Municipal Transportation Agency

Toronto Transit Commission

Transport for London

Trams in France

Stockholm Transport, Facts About SL and the County in 2009

Berlin Statistical Yearbook

Seoul Metro and Seoul Metropolitan Government Office of Subway Construction

Singapore Land Transport Authority, and Hitachi Asia Limited

City Rail, Australian Bureau of Statistics, Metro Transport Sydney

Metro Santiago

Istanbul Transport Corporation, Istanbul Electric Tram and Funicular Company

Moscow City Government

METRO, MTA of Harris County, Houston, Texas

Urban Rail

Aircraft movements

Definition

Count of air traffic movements at each of the major airports servicing a city including civil international and domestic passenger, cargo and non-revenue flights, but excluding military flights.

Sources:

Airports Council International

Berlin Airports

Greater Toronto Airport Authority

Port Authority of New York and New Jersey

Changi Airport

Chicago Department of Aviation

Civil Aviation Administration of China

Long Beach Airport and Los Angeles World Airports

Aéroports de Paris

Gimpo Airport and Incheon International Airport Corp, South Korea

Hong Kong International Airport

Narita National Airport Corp

Arlanda Airport

Aviation Centre of Excellence (Mumbai)

San Francisco International Airport

Sydney Airport

Abu Dhabi Airports Company

Airports Company South Africa

Infraero, Aeroportos Brasileiros

Dirección General de Aeronautica Civil (DGAC)

Turkish Statistical Institute, PwC, and General Directorate of State Airports Authority of Turkey

Houston Airport System

Spanish Airports and Airspace, Statistics

Incoming/outgoing passenger flows

Definition

Total number of incoming and outgoing passengers including originating, terminating, transfer and transit passengers in each of the major airports servicing a city. Transfer and transit passengers are counted twice. Transit passengers are defined as air travelers coming from different ports of departure who stay at the airport for brief periods, usually one hour, with the intention of proceeding to their first port of destination (includes sea, air, and other transport hubs).

Sources:

Airports Council International

Berlin Airports

Greater Toronto Airport Authority

Port Authority of New York and New Jersey

Changi Airport

Chicago Department of Aviation

Civil Aviation Administration of China

Long Beach Airport and Los Angeles World Airports

Aéroports de Paris

Gimpo Airport and Incheon International Airport Corp, South Korea

Hong Kong International Airport

Narita National Airport Corp

Arlanda Airport

Aviation Centre of Excellence (Mumbai)

San Francisco International Airport

Sydney Airport

Abu Dhabi Airports Company

Airports Company South Africa

Infraero, Aeroportos Brasileiros

Dirección General de Aeronautica Civil (DGAC)

Turkish Statistical Institute, PwC, and General Directorate of State Airports Authority of Turkey

Houston Airport System

Spanish Airports and Airspace, Statistics

Traffic congestion

Definition

Measure of traffic congestion and congestion policies for each city scored on the level of congestion as well as the modernity, reliability and efficiency of public transport.

Sources

Mercer Quality of Living Survey

IBM Commuter Pain Index

INRIX National Traffic Scorecard

Footnotes:

The traffic congestion variable is taken from the 2009 Mercer Quality of Life Reports and adjusted using two additional sources. This reflects not only traffic congestion but also the modernity, reliability and efficiency of public transport—measures of a city’s active management of the issue.

Cost of public transport

Definition:

Cost of the longest mass transit rail trip within a city’s boundaries. The cost of a bus trip is used in the cities where there are no rail systems.

Sources:

Transit Chicago

New York City Transit

Los Angeles County Metropolitan Transportation Authority

Bay Area Rapid Transit

Toronto Transit Commission

Transport for London

Visitparis.com

Urban Rail

Stockholm Public Transport

The Berlin Public Transport

Consorcio Transportes Madrid

Singapore Public Transport Council

Tokyo Metro

MTR Corporation, Hong Kong

Beijing MTR Corporation Limited

LifeinKorea.com

Mumbai Local Trains

Johannesburg Metropolitan Bus Services (Pty) Ltd

Metro de la Cuidad de Mexico

Transport CityRail, New South Wales

UAE Interact

METRO, MTA of Harris County, Houston, Texas

Footnotes:

Cost of public transport data refers to the cost for the longest mass transit rail trip within the city boundaries. However, bus trips are used for cities without rail systems.

Skyscraper construction activity

Definition

Count of skyscraper construction projects in each city underway as of September 26th, 2010. A skyscraper is defined as any building 12 stories or greater in height.

Sources

SkyScraperPage

Footnotes:

A skyscraper is defined as any building 12 stories or greater in height.

Mass transit coverage

Definition

Ratio of kilometers of mass transit track to every 100 square kilometers of the developed and developable portions of a city's land area. A city's developable land area is derived by subtracting green space and governmentally-protected natural areas from total land area.

Sources

Chicago Transit Authority

Los Angeles County MTA

New York City MTA

San Francisco Municipal Transportation Agency

Toronto Transit Commission, City of Toronto

Transport for London; Open Spaces Annual Report

Trams in France; Paris Tourism Website

Stockholm Transport, Facts About SL and the County in 2009; Stockholm Statistics; and Stockholm Statistical Yearbook 2010

Berlin Statistical Yearbook; Berlin Facts and Figures; and City of Berlin

Madrid Department of the Environment

UNEP Beijing Olympic Sports Report

Hong Kong Tramways, Limited, Hong Kong Environmental Report 2008; Agriculture, Fisheries, and Conservation Department

Seoul Metro; Seoul Metropolitan Government Office of Subway Construction, Seoul Municipal Government

Shanghai Statistical Yearbook 2009

Singapore Land Transport Authority; Hitachi Asia Limited; and National Parks

Tokyo Statistical Yearbook 2008

City Rail; Australian Bureau of Statistics; Metro Transport Sydney; New South Wales State of the Environment 2003, NSW Department of Environment, Climate Change and Water; and City of Sydney

Municipal Corporation of Greater Mumbai

City of Johannesburg

Secretary of the Environment

Metro Santiago; Parque Metropolitano de Santiago

Government Tourism website

Istanbul Transport Corporation; Istanbul Electric Tram; and Funicular Company

Moscow City Government; PwC Russia

METRO; MTA of Harris County, Houston, Texas; 2010 City Park Facts report

Urban Rail

Trust for Public Lands

Footnotes:

Kilometers of mass transit track for every 100 square kilometers of developed and developable land area.

Airport to CBD access

Definition

Measure of the ease of using public transit to travel between a city’s central business district and the international terminal of its busiest airport in terms of international passenger traffic. Cities are separated into categories according to whether a direct rail link exists between the city center and the airport, if so the number of transfers required, and if not whether there is a public express bus route to the airport. Cities with direct rail links are preferred to those with express bus services. Cities with rail links with fewer transfers are ranked higher than those with more. Cities are ranked against other cities in the same category according to the cost of a single one-way, adult weekday trip and the length of the trip, with each factor weighted equally.

Sources

Chicago Transit Authority

Los Angeles World Airports

Los Angeles County MTA

New York City MTA

San Francisco International Airport

Bay Area Rapid Transit

Transamerica

Toronto Transit Commission

Greater Toronto Airports Authority

British Airports Authority

Heathrow Express

Aéroports de Paris

Rail Europe

Arlanda Express

City of Berlin

Berlin Airports

Metro Madrid

Go Madrid

Beijing Capital International Airport

ChinaAirlineTravel.com

Airport Authority Hong Kong

MTR Corporation Limited

Korea Tourism Organization

Korail Airport Railroad

Seoul Metropolitan Rapid Transit Corporation

Jongno-Gu

Shanghai Metro

Explore Shanghai

Explore Metro

Changi Airport

SMRT Corporation

MapSingapore.com

Keisei Electric Railway

East Japan Railway Company

Narita International Airport Corporation

Airport Link Company

Mumbai International Airport Pvt. Ltd.

Gautrain

Metro de la Ciudad de Mexico

Aeropuerto Internacional

Benito Juarez

Frommer's

SCL Aeropuerto de Santiago

Metro de Santiago

City of Sao Paulo - Sao Paulo Turismo

Abu Dhabi Airports Company

Abu Dhabi Department of Transportation

Istanbul Ulasim

Istanbul Ataturk Airport

Urban Rail

Committee for Tourism of Moscow City

International Airport Sheremetyevo

Houston Airport System

Footnotes:

Measure of the ease of using public transit to travel between a city’s central business district and the international terminal of its busiest airport in terms of international passenger traffic. Cities with direct rail links are preferred to those with express bus services. Cities with rail links with fewer transfers are ranked higher than those with more.

Demographics and livability

Working age population

Definition

Proportion of a city’s population aged 15-64 to the total population of the city.

Sources

American Community Survey

Statistics Canada

ONS

Institut National de la Statistique et des etudes economiques

Statistics Sweden

Instituto de Estadistica

Berlin Statistical Yearbook 2009

eBeijing; Beijing International

Hong Kong Government Statistics

Seoul Government Statistics

Shanghai Statistical Yearbook

Singapore Department of Statistics

Tokyo Metropolitan Government

Australia Bureau of Statistics

Government of India Census

Statistics South Africa Community Survey

Consejo Nacional de Poblacion

Fundação Sistema Estadual de Análise de Dados

Abu Dhabi Statistical Yearbook 2010

INEGI Instituto Nacional de Estadisticas Census

Turkish Statistical Institute Regional Statistics

GKS

Housing

Definition

Measure of availability, diversity, cost and quality of housing, household appliances and furniture; as well as household maintenance and repair.

Sources

Mercer Quality of Living City Survey 2009

Quality of living

Definition

Score based on over 30 factors across 5 categories: socio-political stability, healthcare, culture and natural environment, education, and infrastructure. Each city receives a rating of either acceptable, tolerable, uncomfortable, undesirable or intolerable for each variable. For qualitative indicators, ratings are awarded based on the EIU analysts’ and in-city contributors’ judgments. For quantitative indicators, ratings are calculated based on cities’ relative performances on a number of external data points.

Sources

The Economist Intelligence Unit's Liveability Survey 2010

Thermal comfort

Definition

Measure of the average deviation from optimal room temperature (72 degrees Fahrenheit) in a city. January and July heat indices were calculated for each city using an online tool that integrates average temperature and average morning relative humidity during each month. A final thermal comfort score was derived by first taking the difference between a city’s heat index for each month and optimal room temperature, and then averaging the absolute values of these differences.

Sources

World Travel Guide

Weather base

National Atmospheric and Oceanographic Association

Worsley School

Footnotes:

Measure of the average deviation from optimal room temperature (72 degrees Fahrenheit). January and July heat indices were calculated for each city using an online tool that integrates average temperature and average morning relative humidity during each month. A final thermal comfort score was derived by first taking the difference between a city’s heat index for each month and optimal room temperature, and then averaging the absolute values of these differences.

Natural disaster risk

Definition

Risk of natural disasters occurring in or near a city. Counted hazards include hurricanes, droughts, earthquakes, floods, landslides, and volcanic eruptions.

Sources

Center for International Earth Science Information Network (CIESIN) and the Center for Hazards and Risk Research at Columbia University (CHRR)

Jimmy Ardis of Civitas, LLC and Geoff Pallay researched and analyzed the data and maps from CHRR to score cities.

Commute time

Definition

Assessment of the average commute time for workers commuting into or within a city across all modes of transport, measured in minutes.

Sources

PayScale

Footnotes:

Average commute time for workers commuting into or within the city.

Life satisfaction*

Definition

Average score in robust international surveys of country populations in response to the question, “All things considered, how satisfied are you with your life as a whole these days?” The (Un)Happy Planet Index 2.0 predominantly drew its data from the 2006 Gallup World Poll, with the 2000 and 2005 World Values Surveys being used to fill in values for countries excluded from the Gallup survey. Responses are scored on a numeric scale from 0 to 10, where 0 is dissatisfied and 10 is satisfied.

Sources

The (Un)Happy Planet Index 2.0.

Footnotes:

Based on an international survey of country populations in response to the question, “All things considered, how satisfied are you with your life as a whole these days?”

Economic clout

Number of Global 500 headquarters

Definition

Number of Global 500 headquarters located in each city.

Sources

CNN Money, Fortune Global 500 list 2010

Financial and business services employment

Definition

Proportion of employees working in businesses located within a city in the financial and business services sectors to the total employed workforce in the city. Where industry data were disaggregated, included the equivalents of “finance and insurance” and “real estate and rental and leasing” were included in financial services; and the equivalents of “professional and technical services” and “management of companies and enterprises” were included in business services.

Sources

US Census Bureau, Quarterly Workforce Indicators

California Employment Development Department, Quarterly Workforce Indicators and Quarterly Census of Employment and Wages

New York State Department of Labor, Quarterly Census of Employment and Wages

City of Toronto

ONS Economic & Labor Market Review

INSEE

Stockhoms Stad

Berlin Statistical Yearbook

Directorio de unidades de actividad económica, Instituto de Estadística de la Comunidad de Madrid

eBeijing, Beijing International

Census and Statistics Department, Government of Hong Kong

Seoul Statistics

Shanghai Statistical Yearbook

Singapore Government, Manpower Research & Statistics Department, Ministry of Manpower

Tokyo Statistical Yearbook

ABS 2006 Census Data

Census India 2001

Statistics South Africa

Instituto Nacional de Estadísticas y Geografía, Mexico

Instituto Nacional de Estadísticas de Chile

IBGE: Government of Brazil Statistics Division

Abu Dhabi Statistical Yearbook 2010

Turkish Statistical Institute Regional Statistics

Domestic market capitalization

Definition

Total number of issued shares of domestic companies listed at a city’s stock exchange(s) multiplied by their respective prices at a given time. This figure reflects the comprehensive value of the market at that time in millions of USD.

Sources

Abu Dhabi Statistics Centre

Chicago Stock Exchange

World Federation of Exchanges

Footnotes:

Total number of issued shares of domestic companies multiplied by their respective prices at a given time. This figure reflects the comprehensive value of the market at that time in millions of USD. Cities with no stock exchange receive a score of 0. The remaining cities are ranked and assigned a score from 22 (reflecting the reduced number of cities in the ranking) to 1.

Level of shareholder protection

Definition

Measurement of the strength of minority shareholder protection against misuse of corporate assets by directors for their personal gain. The Strength of the Investor Protection Index is the average of indices that measure “transparency of transactions,” “liability for self-dealing” and “shareholders’ ability to sue officers and directors for misconduct.”

Sources

World Bank “Doing Business”: Strength of Investor Protection Index

Footnotes:

The level of shareholder protection index is the average of “transparency of transactions,” “liability for self-dealing” and “shareholders’ ability to sue officers and directors for misconduct.”

Inflation

Definition

Ranking according to how far a country deviates from a +2% inflation rate, with inflation that is closer to +2% being favored over inflation or deflation that is further from this rate. A +2% inflation rate is used as the benchmark because it is widely regarded as a target or healthy inflation rate by large international banks. A country’s inflation rate is based on a projection of how much it’s Consumer Price Index (CPI), which measures the rise in prices of goods and services, is expected to rise during the course of 2010.

Sources

The Economist

CIA The World Factbook

Footnotes:

Strength of currency (SDRs per currency unit)*

Definition

Currency value of the Special Drawing Right, or the SDR per currency unit. The currency value is determined by summing the values of a basket of major currencies (USD, Euro, Japanese yen and pound sterling) in USD based on market exchange rates and the amount that can be bought by a given currency unit.

Sources

International Monetary Fund

CoinMill.Com

Attracting FDI: Number of greenfield projects

Definition

Number of greenfield (new job-creating) projects in a city that are funded by foreign direct investment. Data cover the period from January 2003 through May 2010.

Sources

fDiIntelligence.com

Attracting FDI: Capital investment

Definition

Total value of greenfield (new job-creating) capital investment activities in USD in a city that are funded by foreign direct investment. Data cover the period from January 2003 through May 2010.

Sources

fDiIntelligence.com

Cost

Cost of business occupancy

Definition

Annual gross rent divided by square feet of Class A office space. Gross rent includes lease rates, property taxes, maintenance and management costs.

Sources

CBRE Global Office Rents 2010

Cost of living

Definition

Measure of the comparative cost of over 200 items in each city. Counted items include housing, transport, food, clothing, household goods and entertainment.

Sources

Mercer Consulting Cost of Living Survey, 2010

Purchasing power

Definition

Measure of the comparative relationship between prices and earnings calculated by dividing net hourly income by the cost of a basket of 122 goods and services including rent.

Sources

Prices and Earnings - A comparison of purchasing power around the globe / 2010 update

Footnotes:

Domestic purchasing power is measured by an index of net hourly pay (where New York = 100) including rent prices. Net hourly income is divided by the cost of the entire basket of commodities including rent. The basket of goods relates to 122 commodities.

Total tax rate

Definition

Total amount of taxes and any mandatory contributions required by local, state and national law payable by a business as a percent of its profit. Does not include employer contributions to healthcare coverage.

Sources

The World Bank Group: Doing Business, Measuring business regulations

City of Chicago Department of Revenue, and Illinois Department of Revenue

City of Los Angeles, State of California Franchise Tax Board, and Los Angeles Municipal Code

State of California Franchise Tax Board, and City and County of San Francisco Office of the Treasurer and Tax Collector

Federal Central Tax Office, and Germany Trade & Invest

City of Houston, Harris County Tax Office, Texas Comptroller of Public Accounts, Statutes of Texas - Tax Code

Business trip index

Definition

Weighted index of the cost of a business trip to a city including such measures as taxi cab rates, lunch prices, and quality of entertainment and infrastructure. The business travel index comprises the following five categories: stability, healthcare, culture and environment, and cost.

Sources

The Economist Intelligence Unit's Business Travel Rankings 2008

Footnotes:

Lifestyle assets

Cultural vibrancy

Definition

Weighted combination of city rankings based on: the quality and variety of restaurants, theatrical and musical performances, and cinemas within each city; which cities recently have defined the "zeitgeist," or the spirit of the times; and the number of museums with online presence within each city. The zeitgeist rankings take into account cultural, social, and economic considerations.

Sources

Mercer Quality of Living Survey, Hub Culture 2010 Zeitgeist Ranking, Artcyclopedia

Footnotes:

Sport and leisure activities

Definition

The quality and variety of sports and leisure activities available to residents within each city including, but not limited to, types of health and fitness centers, number of sporting opportunities and accessibility of facilities.

Sources

Mercer Quality of Living Survey

Hotel rooms

Definition

Count of all hotel rooms within each city.

Sources

Official Visitors Site for Chicago

Los Angeles Business Journal, no hotel rooms

nycgo.com

San Francisco Convention & Visitors Bureau

toronto.ca

Visit London

Eurostat

Event Stockholm

Telegraph

HK Tourism Board

Korean Tourism Statistics, Ministry of Culture, Sports and Tourism

Shanghai Basic Statistics

Singapore Tourism Board

Tokyo Tourism Info

Australian Bureau of Statistics

Ministry of Tourism, India

City of Johannesburg Tourism Strategy

Mexico City Convention & Tourism Bureau

Sao Paulo Convention & Visitors Bureau

The National, Abu Dhabi

Istanbul Convention and Visitors Bureau

Moscow Times

Colliers PKF Consulting USA

Skyline impact

Definition

Measure of the visual impact of completed high-rise buildings on their skylines, accounting for the height and the breadth of a skyline. Cities are given scores based on the number of buildings located within them that are above 90 meters tall, with taller buildings receiving more points than smaller ones.

Sources

The World's Best Skylines

International tourists

Definition

Annual international tourist arrivals for 100 cities collected by Euromonitor International. Euromonitor’s figures include travelers that pass through a city as well as actual visitors to the city.

Sources

Euromonitor International

Green space as a percent of city area

Definition

Proportion of a city’s land area designated as recreational and green spaces to the total land area. Excludes undeveloped rugged terrain or wilderness which is either not easily accessible or not conducive to use as public open space.

Sources

Trust for Public Lands

City of Toronto

Open Spaces Annual Report, City of London

Paris Tourism Website

Stockholm Statistics

Berlin Facts and Figures

Department of the Environment, Madrid

UNEP Beijing Olympic Sports Report

Hong Kong Planning Department and Hong Kong Agriculture, Fisheries and Conservation Department

Seoul Municipal Government

Shanghai Statistical Yearbook 2009

National Parks, Singapore

Tokyo Statistical Yearbook 2008

New South Wales State of the Environment 2003

NSW Department of Environment, Climate Change and Water, City of Sydney

MCGM

City of Johannesburg

Secretary of the Environment, Mexico City

Parque Metropolitano de Santiago

Government Tourism website, Sao Paulo

Istanbul Metropolitan Municipality, Administration of Park and Gardens.

Moscow Housing Maintenance and Utilities Board

PwC Abu Dhabi

Health, safety and security

Crime

Definition

Amount of reported crimes in a city such as petty and property crimes, violent crimes, and street crimes.

Sources

Mercer Quality of Living Reports 2009

Hospitals

Definition

Ratio of all hospitals within each city accessible to international visitors to every 100,000 members of the total population.

Sources:

Consulate General of the United States

Embassy of the United States

Chicago Neighborhood and City Guide

American Hospital Directory

New York State Department of Health

City of San Francisco; Yahoo Regional Directory

City of Toronto

Singapore Ministry of Health

BCL Sydney city life

Texas Hospitals area website

Political environment

Definition

Measure of a nation’s relationship with foreign countries, internal stability, law enforcement, limitations on personal freedom and media censorship.

Sources

Mercer Quality of Living Reports 2009

End-of-life care*

Definition

Ranking of countries according to their provision of end-of-life care. The Quality of Death Index scores countries across four categories: Basic End-of-Life Healthcare Environment; Availability of End-of-Life Care; Cost of End-of-Life Care; and Quality of End-of-Life Care. These indicator categories are comprised of 27 variables, including quantitative, qualitative and “status” (whether or not something is the case) data. The indicator data are aggregated, normalized, and weighted to create the total index score.

Sources

Economist Intelligence Unit Quality of Death Index

Footnotes:

The end-of-life care variable measures the provision of care for its citizens at the end of their lives using data across four areas including basic healthcare environment, availability, cost and quality of care.

Health system performance*

Definition

Measurement of a country’s health system performance made by comparing healthy life expectancy (HALE) with healthcare expenditures per capita in that country, adjusted for average years of education (years of education is strongly associated with the health of populations in both developed and developing countries). Methodology adapted from the 2001 report "Comparative efficiency of national health systems: cross national econometric analysis".

Sources

Health System Value (Efficiency) Calculations

Comparative efficiency of national health systems: cross national econometric analysis 2001

Footnotes:

Ease of doing business

Ease of hiring

Definition

Ranking based on restrictions and regulations employers must follow when taking on new staff.

Sources

World Bank ‘Doing Business’ 2010

Footnotes:

The Ease of hiring, Rigidity of hours, and Ease of firing variables have several components and all take values between 0 and 100, with higher values indicating more rigid regulation. The ease of hiring index measures whether fixed term contracts are prohibited for permanent tasks, the maximum cumulative duration of fixed term contracts and the ratio of the minimum wage for a trainee or first time employee to the average value added per worker. An economy is assigned a score of 1 if fixed term contracts are prohibited for permanent tasks and a score of 0 if they can be used for any task. A score of 1 is assigned if the maximum cumulative duration of fixed term contracts is less than 3 years; 0.5 if it is 3 years or more but less than 5 years; and 0 if fixed term contracts can last 5 years or more. Finally, a score of 1 is assigned if the ratio of the minimum wage to the average value added per worker is 0.75 or more; 0.67 for a ratio of 0.50 or more but less than 0.75; 0.33 for a ratio of 0.25 or more but less than 0.50; and 0 for a ratio of less than 0.25. Averaging the scores and scaling the result to 100 gives a final index. Higher values indicate more rigid regulation.

Rigidity of hours

Definition

Ranking based on the flexibility in scheduling of nonstandard work hours and annual paid leave for a business.

Sources

World Bank ‘Doing Business’ 2010

Footnotes:

The rigidity of hours index has 5 components: (i) whether night work is unrestricted; (ii) whether weekend work is unrestricted; (iii) whether the workweek can consist of 5.5 days; (iv) whether the workweek can extend to 50 hours or more (including overtime) for 2 months a year to respond to a seasonal increase in production; and (v) whether paid annual vacation is 21 working days or fewer. For each of these questions, if the answer is no, the economy is assigned a score of 1; otherwise a score of 0 is assigned. Averaging the scores and scaling the result to 100 gives a final index. Higher values indicate more rigid regulation.

Ease of firing

Definition

Ranking based on notification and approval requirements for termination of a redundant worker or a group of redundant workers, obligation to reassign or retrain and priority rules for redundancy and reemployment.

Sources

World Bank ‘Doing Business’ 2010

Footnotes:

The ease of firing index has 8 components: (i) whether redundancy is disallowed as a basis for terminating workers; (ii) whether the employer needs to notify a third party (such as a government agency) to terminate 1 redundant worker; (iii) whether the employer needs to notify a third party to terminate a group of 25 redundant workers; (iv) whether the employer needs approval from a third party to terminate 1 redundant worker; (v) whether the employer needs approval from a third party to terminate a group of 25 redundant workers; (vi) whether the law requires the employer to reassign or retrain a worker before making the worker redundant; (vii) whether priority rules apply for redundancies; and (viii) whether priority rules apply for reemployment. For the first question an answer of yes for workers of any income level gives a score of 10 and means that the rest of the questions do not apply. An answer of yes to question (iv) gives a score of 2. For every other question, if the answer is yes, a score of 1 is assigned; otherwise a score of 0 is given. Questions (i) and (iv), as the most restrictive regulations, have greater weight in the construction of the index. Averaging the scores and scaling the result to 100 gives a final index. Higher values indicate more rigid regulation.

Ease of entry: Number of countries with visa waiver*

Definition

Number of nationalities able to enter the country for a tourist or business visit without a visa. Excludes those nationalities for whom only those with biometric, diplomatic, or official passports may enter without a visa.

Sources

US State Department and US Embassy in Ottawa

Citizenship and Immigration Canada

UK Border Agency

Ministry of Foreign and European Affairs, France

Immigrations Service, Sweden

Federal Foreign Office, Germany

Ministry of Foreign Affairs and Cooperation, Spain

Embassy of the People's Republic of China

Hong Kong Immigration Department

Ministry of Foreign Affairs and Trade, Republic of Korea

Immigration and Checkpoints Authority, Singapore Government

Ministry of Foreign Affairs, Japan

Australian Department of Immigration and Citizenship

Bureau of Immigration, India

South African Department of Home Affairs

National Migration Institute of Mexico

Ministry of Foreign Affairs of Chile

Consulate General of Brazil in New York

UAE Interact Website and the Arabic German Council

Consulate General of Turkey, London

Russian National Tourist Office

Footnotes:

Count of visa exemption only includes tourist and business visits.

Flexibility of visa travel*

Definition

Ranking based on the number of visa waivers available for tourist or business visits and the length of time for which the visa waiver is granted. Ranking is based on the number of those countries that can stay for at least 90 days, excluding those countries whose residents can only enter without a visa if they have a biometric, diplomatic, or official passport.

Sources

US State Department and US Embassy in Ottawa

Citizenship and Immigration Canada

UK Border Agency

Ministry of Foreign and European Affairs, France

Immigrations Service, Sweden

Federal Foreign Office, Germany

Ministry of Foreign Affairs and Cooperation, Spain

Embassy of the People's Republic of China

Hong Kong Immigration Department

Ministry of Foreign Affairs and Trade, Republic of Korea

Singapore Embassy Ireland (by telephone)

Ministry of Foreign Affairs, Japan

Australian Department of Immigration and Citizenship

Bureau of Immigration, India

South African Department of Home Affairs

National Migration Institute of Mexico

Ministry of Foreign Affairs of Chile

Consulate General of Brazil in New York

UAE Interact Website and the Arabic German Council

Consulate General of Turkey, London

Russian National Tourist Office

Footnotes:

Ibid.

Foreign embassies or consulates

Definition

Number of countries that are represented by a consulate or embassy in each city.

Sources

GoAbroad.com Embassies and Consulates

Ease of starting a business

Definition

Assessment of the bureaucratic and legal hurdles an entrepreneur must overcome to incorporate and register a new firm. Accounts for the number of procedures required to register a firm; the amount of time in days required to register a firm; the cost – as a percentage of per capita income – of official fees and fees for legally-mandated legal or professional services; and the minimum amount of capital – as a percentage of per capita income – that an entrepreneur must deposit in a bank or with a notary before registration and up to 3 months following incorporation.

Sources

World Bank ‘Doing Business’ 2010

Operational risk climate*

Definition

Quantitative assessment of the risks to business profitability in each of the countries. Assessment accounts for present conditions and expectations for the coming two years. The operational risk model considers ten separate risk criteria: security, political stability, government effectiveness, legal and regulatory environment, macroeconomic risks, foreign trade and payment issues, labor markets, financial risks, tax policy, standard of local infrastructure. The model uses 66 variables, of which about one third are quantitative.

Sources

Economist Intelligence Unit's Risk Briefing

Footnotes:

A quantitative assessment of the risks to business profitability in each of the countries in the present and projection out two years into the future.

Workforce management risk

Definition

Ranking based on staffing risk in each city associated with recruitment, employment, restructuring, retirement, and retrenchment. Risk was assessed based on 25 factors grouped into five indicator areas: demographic risks associated with labor supply, the economy and the society; risks related to governmental policies that help or hinder the management of people; education risk factors associated with finding qualified professionals in a given city; talent development risk factors related to the quality and availability of recruiting and training resources; and risks associated with employment practices. A lower score indicates a lower degree of overall staffing risk.

Sources

Aon Consulting 2010 People Risk Index

Sustainability

Air pollution

Definition

Measurement of the quality of a city’s air based on the degree of pollution from sources such as vehicles and power plants.

Sources

Mercer Quality of Living, 2009

Recycled waste

Definition

Percentage of municipal solid waste diverted from the waste stream to be recycled.

Sources:

Waste and Recycling News, Municipal Recycling Survey

New York City Department of Sanitation - Mayor's Management Report

San Francisco Department of the Environment

City of Toronto

Mayor's Vision for London's Waste 2010

Paris Environmental report

Stockholm: European Green Capital 2010

Berlin Statistics

Madrid City Annual Statistics - Infrastructure

World Resources Institute report

Hong Kong Statistical Yearbook 2009

Seoul Government Website

City Waste Management Department, Shanghai

Ministry of the Environment and Water Resources, Singapore

Tokyo Statistical Yearbook 2008

City of Sydney

City of Johannesburg

Washington Times

Santiago Times

Sao Paulo Municipality

Abu Dhabi Statistical Yearbook 2010

Turkish Statistical Institution

International Association for Energy Economics

Moscow Housing Maintenance and Utilities Board

City carbon footprint

Definition

Annual amount of CO₂ emissions in metric tons divided by the city population. Supplemental national reports on data and policies on greenhouse gas emissions were used when city-level data was not available.

Sources

Chicago Climate Actions Plan 2030

Green Los Angeles

New York City Greenhouse Gas Emissions Inventory

California Commission on the Environment

The City of Toronto Greenhouse Gas and Air Pollutants Inventory

The Mayor's Climate Change Action Plan, London

State of the World’s Cities 2008/2009 - Harmonious Cities

Berlin Statistics

Hong Kong Greenhouse Gas Per Capita Emission & Emission Intensity

PwC Seoul

Shanghai Academy of Environmental Sciences

Ministry of Environment and Water, Government of Singapore

Bureau of the Environment, Tokyo

City of Sydney

State of the Environment, City of Johannesburg

Global Development Finance, World Bank

Comisión Nacional del Medio Ambiente, Santiago

Climate Change Performance Index - 2009 - German Watch

Renewable energy consumption*

Definition:

Percentage of total energy consumption in a nation that comes from renewable sources. Renewable energy sources include geothermal, solar thermal, solar voltaics, hydro, wind, and combustible renewable sources and waste (comprised of solid biomass, liquid biomass, biogas, industrial waste, and municipal waste). Non-renewable sources include coal and peat, crude oil, petroleum products, gas, and nuclear.

Sources:

International Energy Agency

*Country level data