The article “Composite indices for governing digitalization: Methods for construction”
The HSE scientific journal “Public Administration Issues” published an article “Composite indices for governing digitalization: Methods for construction” by Ivan Makarov, Research Assistant at HSE’s International Laboratory for Digital Transformation in Public Administration.
The article examines methods for calculating indices that assess various aspects of digital transformation of society and public administration. Such indices allow the use of quantitative methods of data analysis in public administration in the digital sphere – including for decision-making, goal setting, and risk assessment – which helps make governance more effective and objectively justified.
However, when calculating such indices, methodological problems often arise, which make index-based analysis less accurate, and also give rise to scientific discussions regarding which methods of constructing indices are preferable. The article emphasizes that there is no single ideal approach to calculating such indices. Instead, one should choose methods that (despite the inevitable limitations) are best suited to solving specific public administration or research tasks.
The article demonstrates this principle on the example of choosing between several possible data aggregation methods when calculating indices. The methods under consideration are based on extraction of principal components (which helps to overcome duplication between the original indicators) and allow for their secondary aggregation. The goal of the calculation is to rank the countries of the world and identify their strengths and weaknesses in the digital sphere based on 21 digital development indicators. The study shows and proves that for each of these two different tasks – building ranking and assessing strengths and weaknesses – different aggregation methods are preferable.
The practical applicability of these methods is showcased on the example of the Russian Federation. Its digital development profile was analyzed and recommendations were given for the time period covered by the data used (a similar analysis using more recent data is feasible too). The obtained results can also become the basis for further development of the methodology of indicative analysis, which is of practical value for analyzing digital transformation in public administration.
The study was conducted with the support of the International Laboratory within the framework of the Basic Research Program at HSE University. Its preliminary results were previously presented at the Sixth International Conference on Development and Governance in the BRICS and at a seminar of the Laboratory. The full text of the article (in Russian) is available on the “Public Administration Issues” journal’s website.