Qualifications of an Indicator

Indicators are quantifiable statistical markers which are used as proxies or substitutes for measuring conditions that are so complex that there is no direct measurement. They are used to describe the circumstances of societies, to monitor how well development outcomes are being achieved, and to set goals that reflect societal values. They disclose negative and positive trends in society. Indicators serve to measure policy and program progress and to increase accountability.

Effective indicators are relevant, reliable, easy to understand, universal, timely and cost effective. Relevant indicators are ones that directly reflect the goals of policies and programs. Indicator measurement must be accurate, reliable, and comparable across geographical areas. Ideally, the indicator should be simple and easy to understand by the general public. Most importantly, information on it must be collectible at a reasonable cost and be available while there is still time to intervene.

To summarize, a good indicator for an ADB rural development project needs to be 1) relevant to the development objectives of the project, 2) reliably measured through surveys or other empirical instruments, 3) available at minimal cost and comparable across nations and across geographical areas, 4) sensitive to change within the timeframe of the project, and 5) routinely collected by governments and widely accessible to ADB.

Very few indicators fit the all the criteria and each indicator has its strengths and weaknesses. The next two sections discuss the most widely used indicator, income indicator and poverty lines.

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Comment(s)

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1. Choco
   (posted 01 May 2010 / 02:19:03 AM)
   
   is poverty line:
   -less that $1.25/day per adult, or
   -less than $1.25/day per person in the household (including children), or
   -less than $1.25/day per household?
   
   What a loophole in the definition! Clarity required please!
2. naveen
   (posted 17 December 2008 / 08:35:28 PM)
   
   This information explain clearly about the malnutrition and poverty,
   Most poor people who battle hunger deal with chronic undernourishment and vitamin or mineral deficiencies, which result in stunted growth, weakness and heightened susceptibility to illness.
   
   Poor children are the most prone to this and are often the victims to malnutrition, deficiencies, diseases and ultimately deaths caused by hunger.
   
   Today our world is home to 6.6 billion people. The United States is a part of the high-income group of nations which has a population of around 30 crores
3. ms.gilor araneta -tino
   (posted 02 April 2008 / 05:39:12 AM)
   
   Conditions tagged as underweight or underheight has been a problem for a longtime. If we dig further poverty is one cause. I am glad that the schools here in the Province of Albay are recipients of the Food for the School program. In its simple way, this is a BIG solution, RICE ON THE TABLE of every family. I'mm sure that this will help increase the nutritional status of our schoolchildren.