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How Many Indicators Do We Need?
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"Trying to run a complex society on a single indicator like the Gross National Product
is literally like trying to fly a 747 with only one gauge on the instrument panel..."
Hazel Henderson, Paradigms of Progress
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Talking Points
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We are part of a very complex system
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Complex systems need complex measures
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Composite indicators don't provide enough information to make decisions
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Narrative
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Hazel Henderson said that "Trying to run a complex society on a single
indicator like the Gross National Product is literally like trying to
fly a 747 with only one gauge on the instrument panel..." Think of
how many gauges there are in the cockpit of a airplane. What if there was
just one gauge that said "good plane or bad plane?" An airplane is a
very complex machine, but not nearly as complex as a society.
Imagine if you went for your annual checkup and the only thing the
doctor looked at was your blood pressure! Your body is also a very
complex system and you expect that your doctor will look at a number
of different indicators of your health.
Yet we somehow believe that
there is one number like the GNP that tells us how the country is
doing. How many people feel better when you hear that the Consumer
Price Index went down? In fact, a composite indicator like the GNP
does not really give us enough information to make decisions. What
would you do differently if the GNP went down instead of up?
We need more than one gauge to fly a plane. We need more than one number
to measure community progress toward sustainability.
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