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International Development Cooperation
Development
Indicators
Pestalozzi 7/2012
International Development Cooperation
Pestalozzi 7/2012
International Development Cooperation
Nilometer
Pestalozzi 7/2012
Situation to be verified
Determine the optimal tax level
Criteria
Water level of Nile
Causality
The level of water of the Nile determines the yield of crops.
The tax level depends largely on the yields
(Hypothesis)
Indicator
Cubits (measure of length, 45.75 cm; Elle) on the
Nilometer indicating the water level
Target
Between 13 and 16
12 hunger
13 enough; 14 joy; 15 security; 16 abundance
17 floods, disaster
Comparison
Average measures over years (benchmarks)
Method
Observation on Nilometer by qayas (officials)
Responsability
Ruler (Pharao, Wesir)
Use for steering
(decision-making)
To determine the tax level according to crop yield
International Development Cooperation
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Introduction to Indicators
• An indicator is a variable that allows the verification of changes in
the development intervention or shows results relative to what was
planned (DAC/OECD)
• Indicators should provide
- key information to guide implementation
- Signals of change that show the extent of progress
International Development Cooperation
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Why are indicators important?
• To improve performance
 feedback mechanism with indicators allows to make appropriate
management decisions to improve performance
• To enhance external accountability
– indicators should provide the basis for transparent communication with
external stakeholders – to whom the development intervention is more or
less accountable
• To improve wider learning
– with managed exchange within and between organisations reduce
costs and increase effectiveness of development actions
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How to measure development?
• Initially, the level of
“development” of one country
was measured through its
average income, so called
“gross domestic product”
(GDP).
• Financial means alone cannot
cover all aspects of
“development”
• Around 1990, a new index was
created
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Human Development Index (HDI)
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5 groups
Countries* with
Very high level of development
High level of development
Medium level of development
Low level of development
Countries not included, due to lack
of data
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What does the HDI tell us?
The HDI was created to
emphasize that people and
their capabilities should be the
ultimate criteria for assessing
the development of a country,
not economic growth alone.
The HDI can also be used to
question national policy
choices, asking how two
countries with the same level of
income per capita can end up
with such different human
development outcomes.
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An example
The Bahamas and New Zealand
have similar levels of income
per person, but life expectancy
and expected years of
schooling differ greatly between
the two countries, resulting in
New Zealand having a much
higher HDI value than the
Bahamas.
• These differences can start
debate about government
policy priorities.
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The HDI should allow a
measurement of the level of
development, which is closer
to people's needs and takes
into account many aspects of
development.
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Development should increase the
possibilities of people.
Development objectives should
include values such as (for
example)
 better nutrition
 health, education
 recreation
 opportunities for participation of
the people
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All data are included in the yearly
publication of the
Human Development Report
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Cumulative Impacts of Poverty
Lack of collateral
collateral/access to
credits for business or
housing
Limited or no
safety (social,
economic) net
Inability to afford
adequate
housing
Sense of insecurity,
isolation, and
disempowerment
Lack of legal
protection/rule of
law and citizen
rights
Inability to have a
regular job, lack of
regular income and
social security
Poor health, poor
education*
Tenure insecurity,
evictions, loss of small
savings invested in
housing
Lack of infrastructure;
un-hygienic living
conditions, low quality
public services
(based on IIED, WB)
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Protective
Capabilities enabling
people to withstand:
• economic shocks
• natural disasters
• conflicts
Political
Economic
Capabilities
including:
• human rights
• voice
• political freedom
• participation
Capabilities to:
• earn income
• consume
• have assets
(based on OECD
2001)
Core Dimensions
of Poverty and Wellbeing
Human
Socio-cultural
Capabilities, based on:
• health
• education
• membership
• shelter
Capabilities concerning:
• dignity
• valued membership of
society
• social status
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Another culture – another procedure
Bhutan
Gross national happiness
an attempt to define an indicator that
measures quality of life or social
progress in more holistic and
psychological terms than only the
economic indicator of gross
domestic product (GDP).
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Assessment of socioeconomic development by tracking seven
development areas
(1) Economic Wellness: Indicated via direct
survey and statistical measurement of
economic metrics such as consumer
debt, average income to consumer
price index ratio and income distribution
(2) Environmental Wellness: Indicated via
direct survey and statistical
measurement of environmental metrics
such as pollution, noise and traffic
(3) Physical Wellness: Indicated via
statistical measurement of physical
health metrics such as severe illnesses
(4) Mental Wellness: Indicated via direct
survey and statistical measurement of
mental health metrics such as usage of
antidepressants and rise or decline of
psychotherapy patients
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(5) Workplace Wellness: Indicated via
direct survey and statistical
measurement of labor metrics such as
jobless claims, job change, workplace
complaints and lawsuits
(6) Social Wellness: Indicated via direct
survey and statistical measurement of
social metrics such as discrimination,
safety, divorce rates, complaints of
domestic conflicts and family lawsuits,
public lawsuits, crime rates
(7) Political Wellness: Indicated via direct
survey and statistical measurement of
political metrics such as the quality of
local democracy, individual freedom,
and foreign conflicts.
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Multidimensional Poverty Index (MPI)
database: household surveys in 104 countries
deprived if:
• no household member
has completed five year
of schooling
• any school-aged child is
not attending school in
years 1 to 8
• any adult or child for
whom there is nutritional
information is
malnourished
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• sanitation facility not
improved or improved
but shared
• ……
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