Territory development index
A territory development index (TDI) has been used for the assessment of development of different territorial units for ten years already in Latvia. Its calculation methodology has been developed by the Latvian Statistical Institute in 2000.
TDI is a generalised indicator which is calculated with determined weight coefficients by summing up standardised values of the most important basic indicators of statistics which characterise the development. It demonstrates higher or lower development of the territories from the average social economic development level of the state in the relevant year.
The initial data for calculations of development index shall be taken from the Central Statistical Bureau, Treasury, State Land Service, State Employment Agency and Office of Citizenship and Migration Affairs using the statistical indicators accumulated during a year (GDP, amount of personal income tax, non-financial investments) and statistical indicators of the moment (demographic indicators) in accordance with the status in the beginning of the year to be reviewed.
A traditional methodology for calculation of annual territory development index is described in Chapter five of the survey "Development of Regions in Latvia 2009” in which few changes are introduced due to administratively territorial reform, as well as a proposal of the Ministry of Environmental Protection and Regional Development and the State Regional Development Agency regarding territory development index (annual index) and development level change index (chain index) is explained.
The development level index characterises the development level in the relevant year demonstrating higher or lower development of the territories from the average level in the state, but development level change index characterises changes of the development level in comparison to the previous year, showing falling behind or overtaking development of the territories from the average development level in the previous year.
In the Annex to survey it is possible to get familiar with the development level indexes of the planning regions, republic cities and counties according to data of 2009 and with the development level change indexes calculated in compliance with the data of 2009 (comparing to average indicators of 2008).
Report „Development of Regions in Latvia 2009” is available HERE.
In compliance with Section 14 of the Regional Development Law and Cabinet Regulation No. 482 of 25 May 2010, Regulation Regarding Procedures for the Calculation of the Territorial Development Index and Values Thereof, SRDA shall, each year until 15 February, calculate TDI for a previous year, and the Minister for Environment and Regional Development shall, until 1 April of the relevant year in accordance with the specified procedures, submit to the Cabinet draft regulation regarding amendments to Annexes 2, 3 and 4 of this regulation.
Territorial development index shall be applied to:
- elaboration up of the regional development state support programme;
- differentiating of support within the framework of measures co-financed by the European Union Funds;
- the assessment of impact of EU, state support and other financial instruments on the territorial development and assessment of economic efficiency;
- the comparison, assessment, forecasting of the development of different territories and to the analysis of territorial development of other type; and
- the determination of territories to be specially supported.
