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Tricks in the composite indexes

Composite Indexes…

A way to measure development on social and economic issues.

Let’s look how indexes are developed.

There are indictors being determined first. The number and subjects are free to select unless it is relevant. To aggregate every indicator’s value, all are turned an index. Then, all the values can be summed up through geometric mean.

And the index is ready!

Generally every index has its own methodology but the logic is the same.

Isn’t it weird all western countries standing on the top?

Yes it is weird enough.

There are three main reasons explain this weird situation:

1- Index developers focus on where the "developed world" is good at. For example you can find several indexes which measures well-being. But you can’t find racism, Islamophobia, hate crimes or colonial indexes. Why they do not develop indexes on those topics?

2- Some exactly relevant indicators are selected or eliminated intentionally. Assume there are 5 indicator in an index and you are good at 3 of them, 3/5 (% 60). But there are 3 other relevant indicators more you are good at which are not included by the developer. If those 3 were included, you would be roughly ranked 6/8 (% 75) better.

To understand let’s have a look on HDI; Human development Index. There are 3 indicators; GNI per Capita, Life Expectancy and Education. Just only 3 indicators? How about Racism? Discrimination? Hate crimes? Aren’t those important enough to be picked as indicators to measure human development?

I don’t think so... And I am % 100 sure that you don’t!

3- Indexes are the best tools to meddling in domestic affairs. When a country ranked low through an index, domestic policy directly get affected. A bad ranking puts pressure on governments and strengthens opposition party. So that might change the ruling party, which means someone meddling in indirectly to that country

At conclusion, Indexes are really important to diagnose main obstacles against social and economic development. But their methodologies should be updated or revised. Especially indicators should be picked carefully to have adequate results. Besides, the number and of indexes should be increased too with other different topics.