Analysis Instead of Summation: Why Indices Are Not Enough for ICT Policy and Regulation

26 Pages Posted: 29 Sep 2017 Last revised: 3 Oct 2017

See all articles by Steve Esselaar

Steve Esselaar

Research ICT Africa; Research ICT Solutions Ltd.

Alison N. Gillwald

Research ICT Africa; University of Cape Town

Christoph Stork

Research ICT Solutions

Date Written: September 27, 2017

Abstract

This paper demonstrates that analysing ICT indicators, based on benchmarking through the application of a dynamic diagnostic approach with context relevant indicators, provides a far more valid evidence-base for ICT policy and regulation than using the ranking of a country on one of the global ICT indices. Both approaches - composite indices and benchmarking - use the same data but differ in how the data is analysed. Both approaches have shortcomings. However, the benchmarking approach used in this paper is seen as the starting point for further analysis, showing clearly the linkages between individual indicators. Global ICT indices, as they are currently formulated, disguise these linkages by providing a composite measure, encouraging the perception that the index is the end result of the analysis, rather than the beginning. Ranking all countries, from poorest to the richest, leads to an automatically high correlation of an index to GDP per capita, making the latter the best predictor for the index score.

Keywords: Benchmarking, Indices, Global Competitiveness Ranking, Pricing

Suggested Citation

Esselaar, Steve and Gillwald, Alison Norah and Stork, Christoph, Analysis Instead of Summation: Why Indices Are Not Enough for ICT Policy and Regulation (September 27, 2017). Available at SSRN: https://ssrn.com/abstract=3043719 or http://dx.doi.org/10.2139/ssrn.3043719

Steve Esselaar

Research ICT Africa ( email )

414 The Studios, Old Castle Brewery
6 Beach Road
Cape Town, 7925
South Africa

HOME PAGE: http://www.researchictafrica.net

Research ICT Solutions Ltd.

890 Ruckle Court
North Vancouver, BC V7H 2P6
Canada

Alison Norah Gillwald

Research ICT Africa ( email )

414 The Studios, Old Castle Brewery
6 Beach Road
Cape Town, 7925
South Africa

University of Cape Town ( email )

Private Bag X3
Western Cape
+27214476332 (Phone)
+0866707594 (Fax)

HOME PAGE: http://www.researchICTafrica.net

Christoph Stork (Contact Author)

Research ICT Solutions ( email )

36 Chandos Close
Woodbridge Island
Cape Town, Western Cape 7441
South Africa
+27849990002 (Phone)

HOME PAGE: http://www.researchictsolutions.com

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