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Regional natural resource management

How do you choose indicators to measure social & economic changes?

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Monitoring and evaluating NRM efforts involves more than just looking at biophysical outcomes—you also need to examine social and economic effects as a result of NRM investment.

There are many different types of indicators for measuring social and economic change. Each has its own advantages and disadvantages, and some may be more appropriate than others depending on the project.

What types of indicators are available?

Formal indicators such as population, income level and census data are usually accessible through existing data sources including Australian Bureau of Agricultural & Resource Economics, the Bureau of Rural Sciences and the Australian Tax Office.

While this data is usually readily available, it may not be the most relevant for your region or the characteristics you are interested in.

Informal indicators are often made up of data that you yourself collect. They can be tailored to your specific needs, but may require partnerships with other community groups.

For example, regional awareness of a particular topic may be best reflected by how often library books on that topic are taken out.

Objective indicators are based on statistical facts, such as income or population.

Data for objective indicators is generally considered to be more reliable, but may be too abstract or aggregated to describe 'real life' situations. 

Subjective indicators assess opinions, attitudes and values of the community, such as satisfaction with living standards, social trust or attitudes toward natural resource management.

They are often more relevant in 'real life' situations, but rely on subjective descriptions of events through observations, interviews or questionnaires.

Indicators can be a combination of the four types listed. For example, population data is considered objective and formal, while information about quality of life is more subjective and informal.

Types of indicators  Formal  Informal
Subjective 

Values survey data 

Community feedback

Staff evaluations

Quality of relationships 
Objective

Population

Demographics 

Website hits

Media coverage
How do you choose the right indicators?

You should choose the indicators that best reflect a change of characteristics in your region. But you also need to consider your reasons for monitoring and evaluating.

Do you need indicators to prove to your investors that your NRM activity is having an effect? Maybe you want to see if a particular communication strategy has increased participation in an NRM activity?

One indicator type is not necessarily more accurate than another, but a combination may provide a more comprehensive picture.

Your findings can be especially convincing if the information from two indicator types complement each other—a process known as triangulation. One way of doing this is to find a method of objectively testing subjective indicators. For example, compare subjective  information gathered through a focus group to objective census data.

Collecting the data for your chosen indicator

The method you choose for collecting data on your indicator will depend on the impact that you want to evaluate. For example, participation rates may be best monitored through direct observation than through phone interviews—what people say they do, and what they actually do, can be two different things.

If you are more interested in why people participated (or didn’t  participate), you will need to ask them.

10 examples of indicators
1. Population information

Demographics and population trends can inform you about the kinds of people in a region. The Australian Bureau of Statistics provides frequent reports and census information.

2. Environmental quality

The Australian Bureau of Agricultural and Resource Economics offers environmental information that relates to the agricultural, fishing, forestry, energy and minerals industries.

3. Infrastructure and services

The type, quality, and number of community resources can affect factors such as population and tourism growth.

4. Skills, experience, and knowledge

The capabilities of a regional population can inform you about their level of interaction with particular types of programs.

5. Administrative capacity

Government interaction with the community may be a limiting or enabling factor for some programs.

6. Farm debt-equity ratio

A measure of farm financial performance indicates the pressure on a farm, and its capacity to undertake NRM activities.

7. Community health

Effects on the health of the population can be measured as part of evaluating a program. For example, an improvement in drinking water quality may result in improved health conditions of a surrounding population.

8. Resource conditions

You may wish to measure the physical, chemical and biological conditions of resources such as waterways or agriculture, and the level of interaction by the local community.

9. Economic levels of investment

The rise or fall of certain types of investments can inform you about the confidence or attitude that the public has in particular areas.

10. Media coverage

Monitoring the media profile of a particular issue or program can give you an idea about public perception or familiarity.

Smart indicators

Once you have a list of indicators to choose from, use the SMART test to assess their suitability.

Simple  Is the indicator easily interpreted, monitored, and appropriate for community use? 
Measurable 

Can it be statistically verified, reproduced and compared? Is it able to be aggregated? Is it responsive to changes in management? Does it show trends over time? 
Accessible  Can it be regularly monitored? Is it cost-effective? Is it consistent with other data sources?
Relevant  Is it related to a valued natural resource management factor? Is it linked to regional NRM body goals and priorities?
Timely  Does it provide an early warning of potential problems and highlight future needs or issues?
Spiced indicators

Use the SPICED filter (Roche 1999) to ensure you are getting the most value from the indicators you choose.

Subjective  Informants have a special position or experience that gives them unique insights that may yield a high return on the investigator's time. In this sense, what may be seen by others as 'anecdotal' becomes critical data because of the source's value. 
Participatory Develop your indicators together with those best placed to assess them. This means involving a project's ultimate beneficiaries, but it can also mean involving local staff and other stakeholders.
Interpreted and communicable Locally defined indicators may not mean much to other stakholders, so you may need to explain them.
Cross-checked and compared The validity of assessment needs to be cross-checked by comparing different indicators and progress, and by using different informants, methods and researchers.
Empowering The process of setting and assessing indicators should be empowering in itself and allow groups and individuals to reflect critically on their changing situation.
Diverse and disaggregated Make a deliberate effort to seek out different indicators from a range of groups, especially men and women. Record this information in such a way that you can assess these differences over time.
Useful resources
Related topics

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Last updated 05 January 2009

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