Description: Composite indices are increasingly recognized as a useful tool for measuring complex and multidimensional phenomena, such as development, poverty, quality of life, well-being, globalization, competitiveness, freedom, and so on. Technically, a composite index is a mathematical combination of a set of indicators representing the different dimensions of a phenomenon to be measured. The idea of summarizing a complex phenomenon into a single number is not straightforward, as it implies both theoretical and methodological assumptions that must be carefully evaluated to avoid producing results of dubious analytic rigor. One of the main criticisms of composite indices is that their simple "big picture" results may lead users to draw simplistic analytical or policy conclusions. Methods for constructing composite indices are proposed, taking into account appropriate methodologies for different areas of application.
Description: This side-event will provide heads of National Statistical Offices (NSOs) and other participants of the 55th session of the United Nations Statistical Commission (UNSC) with insights into the Productive Capacities Index (PCI), which was developed by UNCTAD, as well as details of its statistical or methodological rigor and policy relevance for economic and social development. It will provide further information on the relevant background and underlying concepts related to the PCI. The event will also deliver updates on the outcomes of the Statistical and Technical Advisory Group on the PCI (STAG) meeting held in February 2023, highlighting the progress and challenges encountered in the maintenance and updates of the PCI. Attendees are encouraged to provide feedback and guidance on the PCI in the lead up to the next meetings of the STAG, as well as the High-level Advisory Board, which oversees the conceptual framework underpinning the PCI.