Composite Indicators: When and How To Use Them
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Transcript of Composite Indicators: When and How To Use Them
Composite Indicators: When and How To Use
Them
Jon Hall Global Project, OECD
Composite Indicators
• A powerful tool for advocacy• A way to promote debate
• But they can be controversial
Potential Users
• Civil Society• Bureaucrats• Politicians• Media• Citizens
Potential Users – Potential Uses
If I was from Civil Society ……
How would I use acomposite indicator?
Potential Users – Potential Uses
If I was from Civil Society ……• To lobby government, the media,
the public about issues of concern• To focus debate within my
organisation on issues of concern
Potential Users – Potential Uses
If I was from a Bureaucrat……
How would I use acomposite indicator?
Potential Users – Potential Uses
If I was from a Bureaucrat……• To portray issues of concern to
ministers - to galvanise action and keep focus
• To demonstrate that policies are having an effect
• To encourage joined up government• NOT to design detailed policy proposals
Potential Users – Potential Uses
If I was from a Politician……
How would I use acomposite indicator?
Potential Users – Potential Uses
If I was from a Politician……• To demonstrate to voters the need
for new – perhaps difficult – policies• To demonstrate to voters that
policies are working
The political economy of reform
Potential Users – Potential Uses
If I was from the Media……
How would I use acomposite indicator?
Potential Users – Potential Uses
If I was from the Media……• To tell an exciting story – the public
like composite indicators• To communicate complicated issues
in a simple way• The Happy Planet Index
A Happy Planet Index
• Launched by nef in July 2006• HDI style rank order of nations• Measure of the “Ecological
efficiency with which human well-being is delivered”
• Over 1,000,000 downloads to date
What HPI measuresHuman system
Ecosystem
Resource
demand
Ecosystem well-being
Human well-being
Culture
Social Capital
Governance
Economy
EducationHealthcar
e
Natural Capital
Biodiversity
CO2 emissions
Soil erosion
Water quality
Air quality
What HPI measures
Human system
Resource
demand
Happy and Long Lives
Resource Use
(divided by)
Human well-being
What HPI measures
Human system
Resource
demand
(Life Sat) * (Life Exp)
Eco Footprint
(divided by)
Human well-being
Potential Users – Potential Uses
• If I was from a Citizen……
How would I use acomposite indicator?
Potential Users – Potential Uses
If I was from a Citizen……• To participate more effectively in
democratic debate? Lobby my government, write to my member of parliament? Decide on who to vote for?
• Change my behaviour…. Consume less resources? Move to another country?
But ….• Potential Uses are many – and can be very
important• Vital that we are transparent about the
limitations of composite indicators• Vital that we are transparent about the
assumptions within them• Be clear about what they explain and do not
explain• Great as a tool for simplifying a complex story• Great as a way to initiate a debate
But don’t oversimplifyBut they seldom tell the whole story
“Everything should be as simple as it is, but not simpler.”
- Albert Einstein