The world we live in is exceedingly complex. We use indicators to simplify things. Indicators work in the same way as a map. They are meant to be a guide, a representation of reality, which help us to understand the lie of the land. The scale of the map and what it is trying to measure will determine how accurately and completely it approximates reality.
It is the same with indicators. Some indicators are high level, global estimates; others are detailed, local measures. Some focus on economic activity; others on social welfare. They help us to understand ‘where we’re at’ and how things have changed over time. Checked against our objectives, indicators tell us whether things are good or bad, better or worse. In this episode we look at:
- Limitations of GDP
- Alternatives to GDP
- Community-Based Indicators