Proxy indicator

Proxy indicator is used to identify bottlenecks that hamper expansion of coverage levels. The identification of bottlenecks is performed in the following five broad categories: gaps in physical accessibility, human resources, suppliers and logistics, demand and use, and technical and organizational quality. Proxy indicators are used so that each intervention package can be adequately represented by a proxy intervention, which in turn has a proxy indicator for each corresponding constraint ( or bottleneck).

Sometimes, it is not possible to associate an indicator to a criterion. When this happens, a proxy indicator should be used, i.e. variable in a logical relationship with the criterion and related to the effects of the alternatives through a functional, objective and potentially quantifiable link, even if, in reality, this relationship is not quantified. The proxy indicator thus assumes the role of an indirect ordinal estimator of the criterion and the degree of satisfaction of such a criterion can be evaluated through the value assumed by the proxy indicator.

Types of indicators

For a number of issues that are hard to address directly with an adequate indicator (e.g., missing data, insufficient knowledge of interactions), proxy or substitute indicators are widely used. Two broad kinds of proxy indicators can be identified:

• Proxies as representations of complex system ( e.g., number of bird species instead of local ecosystem biodiversity)
• Proxies as metaphors (e.g., treaty signature instead of degree of implementation).

The first type can be very useful for communicating complex issues, the second type of proxy indicator is prone to oversimplification and value-laden assessments. For instance, bird presence has been used as proxy for certain insect populations or even for biodiversity as a whole ( in the United Kingdom), suicide rates serve as proxy for a series of social issues, and used as a proxy for welfare. None of the indicators comprehensively represents the issue it is a proxy for, but each one should at least move in the same direction as that issue and thereby usefully detect and signal general changes. However, proxy indicators are much less suitable for identifying the precise dynamics of change and possible policy intervention levers.

Proxy indicators for agri-environmental public goods

Proxy indicator is membership in various natural conservation movements and the purchased areas for conservation. Increasing number of land trusts and purchased areas indicate there is demand for agri-environmental public goods. Individuals can participate in environmental and land trust that contribute to the conservation of natural resources associated with agriculture.

If we can understand the trends of these proxy indicators, it may be possible to find how public perceptions of agri-environmental public goods has changed over the years, although they do not necessarily show to what extent the public demands each agri-environmental public good. Some categories of proxy indicators are too general . Even within the same category of an agri-environmental public good, preferences are diverse. For example, regarding agricultural landscapes. Environmental preferences are different depending on social and demographic characteristics of population, such as age, income, place of residence and different scales (local, national, or global), but most proxy indicators do not reflect these differences. Furthermore, proxy indicators are not always statistically robust, and groups and visits to national parks may represent non-agri-environmental issues such as population density issue, and may not reflect the demand of agri-environmental public goods that much.

Examples of Proxy indicator

• Distance to health facility: This is a measure of the physical accessibility of a health facility. It is calculated by the distance between a given population and the nearest health facility.
• Availability of trained personnel: This is a measure of the availability of human resources for health care. It is calculated by the number of trained personnel per 1,000 population.
• Availability of medical supplies: This is a measure of the availability of medical supplies. It is calculated by the number of medical supplies available per 1,000 population.
• Use of preventive services: This is a measure of how preventive services are used by a population. It is calculated by the number of people who have utilized preventive services in the last year.
• Quality of care: This is a measure of the technical and organizational quality of care. It is calculated by the number of clinical guidelines and protocols being followed in the health facility.

Advantages of Proxy indicator

Proxy indicators have a number of advantages. These include:

• The ability to identify bottlenecks quickly, as it is a measure of the effectiveness of an intervention package.
• It can be used to measure a range of variables, such as physical accessibility, human resources, suppliers and logistics, demand and use, and technical and organizational quality.
• It is useful for monitoring and evaluating the effectiveness of interventions, allowing for timely course corrections.
• It is a cost-effective way of measuring progress, as it requires fewer resources than traditional methods.
• It has the potential to inform decision makers about the impact of interventions on the target population.

Limitations of Proxy indicator

Proxy indicators are useful tools that help identify bottlenecks hindering the expansion of coverage levels. However, there are several limitations associated with proxy indicators. These include:

• Lack of accuracy: Proxy indicators may not provide accurate results, as they rely on assumptions and estimations.
• Limited coverage: Proxy indicators are often limited to a few indicators, which may not be sufficient to properly identify all bottlenecks.
• Limited information: Proxy indicators often provide only limited information on the bottlenecks, making it difficult to accurately assess the situation.
• Time consuming: Proxy indicators can be time consuming to develop and analyse, as they require extensive data collection.
• Expensive: Developing and maintaining proxy indicators can be costly.
• Inadequate representation: Proxy indicators may not accurately represent the true nature of the bottleneck, as they are limited to a few indicators.

Other approaches related to Proxy indicator

• Benchmarking: It is a process of measuring the performance of an organization or process against another organization or process that is considered a leader or benchmark in the particular field.
• Outcome Mapping: This approach focuses on the outcomes of an intervention, rather than the activities and processes that lead to those outcomes. It is used to assess the impact of an intervention.
• Balanced Scorecard: It is a performance management system that is used to measure the performance of an organization in terms of multiple performance indicators.
• Performance Monitoring: This approach involves the systematic collection, analysis and use of data to track the performance of a given intervention.
• Logic Model: It is a tool used to represent an intervention by mapping the causal relationships between inputs, activities, outputs and outcomes.

In summary, proxy indicators are used to identify bottlenecks that hamper expansion of coverage levels. Other approaches related to proxy indicator include benchmarking, outcome mapping, balanced scorecard, performance monitoring, and logic model. These approaches can be used to assess the impact of an intervention and measure the performance of an organization in terms of multiple performance indicators.

Footnotes

Proxy indicator — recommended articles

Activity measure — Capacity analysis — Descriptive model — Rating process — Contingent valuation — Qualitative data — Structural productivity — Analysis of preferences — Impact of information on decision-making

References

• Hák T., Moldan B., Dahl A.L., (2012), Sustainability Indicators: A Scientific Assessment, Island Press, London.
• Public Goods and Externalities Agri-environmental Policy Measures (2015), OECD Publishing, Paris.
• Soncini-Sessa R., Weber E., Castelletti A., (2007), Integrated and Participatory Water Resources Management, Elsevier, Milano.
• Wagstaff A., (2014), The Millennium Development Goals for Health, World Bank Publications, Washington.

Author: Michał Duch