Composite indicators (CIs) which compare country performance are increasingly recognised as a useful tool in policy analysis and public communication. The number of CIs in existence around the world is growing year after year (for a recent review see Bandura, 2006, which cites more than 160 composite indicators). Such composite indicators provide simple comparisons of countries that can be used to illustrate complex and sometimes elusive issues in wide-ranging fields, e.g., environment, economy, society or technological development.
It often seems easier for the general public to interpret composite indicators than to identify common trends across many separate indicators, and they have also proven useful in benchmarking country performance (Saltelli, 2007). However, composite indicators can send misleading policy messages if they are poorly constructed or misinterpreted. Their “big picture” results may invite users (especially policy-makers) to draw simplistic analytical or policy conclusions. In fact, composite indicators must be seen as a means of initiating discussion and stimulating public interest. Their relevance should be gauged with respect to constituencies affected by the composite index.
