4.8.3—Composite development indicators
- Syllabus
- First assessment 2022
- Objective
- 4.8.3
- Level
- SL
Composite indicators combine dimensions using explicit choices
Composite indicators combine dimensions using explicit choices.
A composite index aggregates several indicators, often after normalization and weighting; the result is convenient but hides construction decisions.
Example
An index can improve because schooling rises while inequality worsens if its weights favour education; inspect components before interpreting the score.
Unpack the dimensions, normalization and weights, then test whether the index matches the question.
A higher composite score does not prove every component improved.
Know what the named composites emphasize. HDI combines health, education and income dimensions; GII captures gender disadvantage across reproductive health, empowerment and labour participation; IHDI discounts HDI achievements for inequality within the population; the Happy Planet Index relates experienced well-being and life expectancy to ecological footprint. These indices answer different questions and are not interchangeable rankings. Compare components, normalization, weights, missing dimensions and data quality before drawing a development conclusion.