ABSTRACT

In this chapter, we address the choice of indicators for developing a system that measures the progress of a region. A large number of indicators have been proposed by standards associations, special interest groups, and researchers. We begin with a discussion on the different types of indicators that are being used, outlining the differences and commonalities between them. Next, we classify the indicators proposed by several significant international evaluation systems into the factors suggested by the political, economic, social, technological, environmental, and legal (PESTEL) analysis. Using this classification, we identify the indicators that are more commonly used for monitoring progress and could be considered in designing a measurement system for any community. We find that there is an over-representation of indicators monitoring environmental factors, and this is particularly the case with older evaluation systems. Newer evaluation systems have a more balanced set of indicators across the PESTEL factors, perhaps because they use a broader definition of sustainability. We also use the analysis to identify the gaps in measurement and discuss options for closing these gaps. In particular, we highlight the gaps in measuring the progress in governance, technology, and innovation of a city and the need to better understand the engagement of its citizens.