=Paper=
{{Paper
|id=None
|storemode=property
|title=A Composite Indicator of K-society Measurement
|pdfUrl=https://ceur-ws.org/Vol-1356/paper_46.pdf
|volume=Vol-1356
|dblpUrl=https://dblp.org/rec/conf/icteri/IlchenkoP15
}}
==A Composite Indicator of K-society Measurement==
https://ceur-ws.org/Vol-1356/paper_46.pdf
A Composite Indicator of K-society Measurement
Kseniia Ilchenko1,2, Ivan Pyshnograiev1,2
1 World Data Center for Geoinformatics and Sustainable Development,
Peremohy av. 37, 03056 Kyiv, Ukraine
2 National Technical University of Ukraine „Kyiv Polytechnic Institute“,
Peremohy av. 37, 03056 Kyiv, Ukraine
{ilchenko, pyshnograiev}@wdc.org.ua
Abstract. The development of K-society theories leads to necessity of finding
an approach of measuring the progress of each country. The paper presents the
composite model which based on OECD and UN methodology. The hierarchy
model consists of three dimensions and 14 indicators and gives a possibility to
calculate K-society Index for 87 countries. The analysis of the results presents
country’s current rating and dynamics. The data for Top-20 countries, the last
twenty countries and North America are introduced in the paper. K-society
Index for Ukraine is described in details. The future state’s strategy can be
based on K-society measurement.
Keywords: MathematicalModeling, Knowledge, Methodology,
DecisionSupport.
1 Introduction
The fundamental concept of sustainable development requires the review of the
classic studies about the world. Knowledge as a higher value of informational process
forces the progress in sustainability. Also, the knowledge is one of the factors of
production in modern economy. That is why, the theory about knowledge-based
economy and society becomes wide shared among scientists. For example, knowledge
society is described as sustainability concept by N. Afgan and M. Carvalho [1]. M.
Kulin studies learning and knowledge influence as a factor of global competitiveness
[2], the impact of knowledge for society is the main focus of G. Bohme and N. Stehr
research [3]. Thus, the theoretical aspects of Knowledge society are well-studied.
At the same time, the questions about applied evaluation of knowledge in a country,
comparison of different countries and knowledge dynamics research are still open.
Taking into account the complex character of knowledge, it can be presented as the
set of indicators which are gathered in a hierarchy model.
Therefore, the main idea of the research is to draw out a composite indicator for
measurement knowledge as a sophisticated category with a purpose of country
development analysis.
2 K-society as a New Mode of the World Developing
Classic economic theory presents three factors of production that are used in a
production process, which leads to finished goods. These three basic resources are
land, labor and capital. Nowadays this fundamental approach was divided into several
complex theories that include additional factors of production, for example,
technological progress, human capital and social capital. Basically, those resources
can be aggregated into one category – knowledge. More than this, knowledge and
information become the most significant factors of production and form the basis for
new technological mode.
Knowledge society (K-society) is widespread concept, but scientists still
investigate its nature [4]. The mass production of knowledge changes the economy in
global world in quite short terms. However, this process is dissimilar in different
countries.
The research of K-society is undertaken by all developed countries for more than
40 years but there are still a lot of controversial question. First of all there is no
agreement about terminology. Such terms as “K-society”, “Informational society”,
“Technogeneous society” serve the purpose of science communication in this topic.
The term “K-society” was used by M. Zgurovsky to mean a where institutions and
organizations give possibilities to people and information to develop without any
barriers and open opportunities for mass production and mass usage of all kind of
knowledge in global scales. Therefore, the development of technologies is an
important part of K-society, but not the main purpose. Thus, the term
“Technogeneous society” doesn’t describe these processes in full measure.
The question about links between K-society and information society is more
complicated. The first one is based on definition of knowledge, the second one uses
information as a basic category. The development of new computing technologies has
not influenced to significancy of common paradigm, but the possibility to get, safe,
analyze and transfer knowledge was changed cardinally. That led to increasing
velocity of information circulation. Moreover, it is difficult to divide information and
knowledge. But in the purpose of this research it is assumed that knowledge includes
information, and it is a product of information processing.
According to theoretical research the concept of K-society is ambiguous. On the
one hand it is a philosophic theory, which has no practical meaning, on the other hand
it is the set of instruments and methods for providing sustainable development of
modern society [5]. In accordance to the second opinion K-society proclaims the
active usage of knowledge, which is the main asset.
The main accent is education, which forms a human capital and guarantees the
access to information. But the measurement of educational level cannot give a
complete picture of knowledge in society. Therefore, K-society must be formalized
more manifold system of indicators. Likely, such system includes the description of
current situation in economy, perspectives and information transactions. It is obvious
that the development of model for describing K-society is a nontrivial issue.
3 Methodology
According to the UNO methodology, the index of K-society should be based on
three dimensions: Assets, Advancement and Foresightedness [6]. The first one
describes the level of education, especially, among young people, and the
development of information streams. These two main directions include such
indicators as: expected schooling, proportion of young people, the diffusion of
newspapers, the Internet, main phone lines and cellular phones. The second
dimension represents human and informational resources, which are indicated by
public health expenditure, research and development expenditure, military
expenditure, pupil/teacher ratios in primary education, and a proxy of the “freedom
from corruption” indicator. The last dimension shows the external influence on K-
society dynamics in the state. This dimension consists of low child mortality rates,
equality in income distribution (GINI Index), protected areas as percentage of a
country’s surface, and CO2 emissions per capita indicators. This approach was
officially accepted for approximately 45 countries in 2005.
Taking into account the existent basic specification of the main categories, it
becomes possible to continue this research in terms of current informational mode.
Thus, new hierarchical model for K-society measurement should be built.
Therefore, it is necessary to clarify the approaches for drawing out this model. The
OECD presented methodology and user guide on constructing composite indicators
[7]. According to this, there are several obligatory steps in models’ creation.
Firstly, the full understanding of processes that can have influence on K-society
needs to be represented in theoretical framework. This step concludes with the
number of selection criteria. As referred to listed above, the framework is based on
UN model.
Secondly, the very important step is data selection. It includes the availability and
quality data checking. In addition, the question about strengths and weaknesses of
indicators must be resolved. Not least important is to find the reputable source for
each data set. Theoretically, all data must be provided by international world-known
organizations.
In view of these two steps the UN approach has some disadvantages that are
caused by following reasons. On the one hand, last ten years have brought significant
changes in informational development. As a result of this process some of indicators
lost their relevance. On the other hand, not all data sets are still gathered by
authoritative organizations. That is why the original model needs revision and
modernization.
Thirdly, the modeling needs complete data sets. Thus, the problem of empty cells
that usually appears after the data selection requires imputation of missing data. The
various kinds of methods for working with complex models are established in World
Data Center for Geoinformatics and Sustainable Development [8]. Therefore, the
recommendation for this case is to augment the empties by previous period
information.
The step includes multivariate analyses. This phase gives the possibility to double
check the starting hypothesis about the set of indicators. The significance of sampling
should be checked. Other important question is to evaluate relations between
indicators. That is why the elements of principal components analysis and cluster
analysis influence the final decision about model structure. This step identifies
statistically similar indicators. Thus, the additional explanation of internal relations or
model’s rebuilding can be required. As a result of this issue the model can be
amplified by additional explanation.
Taking into account the miscellaneous nature of indicators the next step is
normalization. There are more than ten typical approaches to its implementation. It is
necessary to underline that there is no goal to make the estimation more complex. For
this reason, the standardization is the optimal variant for this step. The formula of this
type of normalization is as below:
Valuenorm = (Value – Valuemin)/( Valuemax - Valuemin) . (1)
In case when it is necessary to represent the inverse coupling this formula converts
to:
Valuenorm =1 - (Value – Valuemin)/( Valuemax - Valuemin) . (2)
As a result, all indicators values lie in interval from 0 to 1.
To express the theoretical framework and relations underlined at the previous
stages, the sixth step includes finding out the way of indicators aggregation and their
weights establishment. For instance, the model’s hierarchy is constructed.
Each dimensions’ index consists of several indicators and can be presented as the
average value of its components. In the same manner K-society Index equals to the all
dimensions indices aggregation.
At the next step uncertainty and sensitivity analysis emphasize the reasons of the
differences between results of using variety of aggregation, imputation and
normalization methods. This step identifies all possible sources of uncertainty and
determines what sources have more influence to the overall score.
Eighthly, detecting dominant and critical indicators for objects or their groups
provides the information about the levels of influence for the assessed system. It is
also very important for policy making problems.
Then, for modeling results validation developed index is compared to others that
describe the phenomenon of similar nature. The comparison base consists of well-
known indices that authoritative organizations and institutions provide. Thus, two
indices were chosen for purposes of final analysis: Fragile State Index [9] and Index
of Economic Freedom [10].
Finally, the last step is to present the results in a clear and accurate manner. That is
why visualization is the part of this algorithm. It is necessary to choose the correct
tools that provide total understanding of the obtained results. Thus, the final step of
modeling becomes the element of a decision making support system.
Taking into consideration the UN approach and OECD methodology the new
model was drawn out. The indicators, data providers and data sources are presented in
Table 1.
Table 1. List of indicators
Type of
Indicator Institution Source
influence
UNESCO
School life
Institute for http://www.uis.unesco.org Positive
expectancy
Statistics
School enrollment, http://data.worldbank.org/indica
World Bank Positive
secondary (% net) tor/SE.SEC.NENR
Internet http://www.itu.int/en/ITU-
subscriptions per ITU D/Statistics/Pages/stat/default.a Positive
100 inhabitants spx
Main phone http://www.itu.int/en/ITU-
subscriptions per ITU D/Statistics/Pages/stat/default.a Positive
100 inhabitants spx
Cellular http://www.itu.int/en/ITU-
subscriptions per ITU D/Statistics/Pages/stat/default.a Positive
100 inhabitants spx
Gov’t Health
World Health http://apps.who.int/gho/data/?th
Expenditures (% of Positive
Organization eme=main
total gov’t exp)
UNESCO
R&D expenditure
Institute for http://www.uis.unesco.org Positive
as % of GDP
Statistics
Military
expenditures (% of SIPRI http://www.sipri.org/ Negative
GDP)
Pupils per teacher http://data.worldbank.org/indica
World Bank Negative
in primary school tor/SE.PRM.ENRL.TC.ZS
Corruption Transparency http://www.transparency.org/re
Positive
perception International search/cpi/overview
Child mortality
(children under 5 http://data.worldbank.org/indica
World Bank Negative
years per 1000 tor/SH.DYN.MORT
births)
http://data.worldbank.org/indica
Gini Index World Bank Negative
tor/SI.POV.GINI
Terrestrial and
marine protected http://data.worldbank.org/indica
World Bank Positive
areas (% of total tor/ER.PTD.TOTL.ZS
territorial area)
CO2 emissions
http://data.worldbank.org/indica
(metric tons per World Bank Negative
tor/EN.ATM.CO2E.PC
capita)
Data for 87 countries were gathered and complemented in the process of model
development. Thus, the results of estimations are described in the next paragraph.
4 Results
According to the algorithm each of the dimensions were counted based on their
components. It is necessary to mention that it gives the possibility to measure Assets,
Advancements and Foresightedness as separate indices. Such evaluation brings an
opportunity to additional comparison of countries in terms of the dimensions. But in
accordance with the main purpose of the research the K-society Index has to be
measured. That is why the procedure of linear convolution is implemented twice.
Collected data give a possibility to provide the calculations for period from 2008 to
2013.
The results for 2013 year show that the Top 10 countries for K-society Index
consists of Switzerland, Denmark, Netherlands, Sweden, Slovenia, France, Austria,
New Zealand, Japan and Finland. The values for the final index and three dimensions
are presented in Table 2.
Table 2. Top 10 countries by K-society Index 2013
The Assets The Advancement The Foresightedness KS Rank
Index Index Index Index
Switzerland 0,801 0,827 0,780 0,803 1
Denmark 0,758 0,794 0,785 0,779 2
Netherlands 0,764 0,757 0,789 0,770 3
Sweden 0,722 0,809 0,766 0,766 4
Slovenia 0,670 0,642 0,949 0,754 5
France 0,789 0,636 0,792 0,739 6
Austria 0,703 0,749 0,765 0,739 7
New Zealand 0,744 0,737 0,711 0,731 8
Japan 0,719 0,777 0,687 0,728 9
Finland 0,692 0,773 0,722 0,729 10
The analysis of representatives shows that Top 10 involves high-developed countries
with sustainable economic, ecological and social conditions. The variance between
the first and the last states from the list described above equals to 0,074. Moreover,
the gap between top possible value of the index, and the value for Switzerland is
0,197.
The last 10 countries of the ranking for 2013 year are presented in following table
(Table 3).
The last one, Nigeria, has a high level of Fragile States Index, which is caused by
alert meaning of such indicators as Demographic Pressure, Group Grievance, Uneven
Economic Development, State Legitimacy, Public Services, etc. Even more, the
conflict barometer, which is counted by HIIK [11], shows that this country has the
value 5. That means the existence of the war in Nigeria.
According to the same sources Pakistan is under the inter-ethnic violence and
conflict with India that were classified as limited war and violent crisis. Also the
problems with Demographic Pressure, Refugees, Group Grievance, State Legitimacy
Human Rights, Security Apparatus, etc. exist in the state. Moreover, the situation,
described by Fragile States Index, is even worse than in Nigeria.
Table 3. Last 10 countries by K-society Index 2013
The Assets The Advancement The Foresightedness KS Rank
Index Index Index Index
Paraguay 0,280 0,359 0,569 0,402 78
Senegal 0,145 0,432 0,633 0,403 79
India 0,278 0,327 0,589 0,398 80
Madagascar 0,133 0,334 0,543 0,337 81
Gambia 0,145 0,359 0,455 0,320 82
Kenya 0,206 0,249 0,492 0,315 83
Ethiopia 0,052 0,284 0,637 0,324 84
Mozambique 0,183 0,260 0,494 0,312 85
Pakistan 0,107 0,182 0,578 0,289 86
Nigeria 0,074 0,304 0,433 0,270 87
The next one is Mozambique. In accordance to the Fund for Peace methodology
the state’s current pressure assessment is “Very High Warning”. The more dangerous
indicators are: Demographic Pressure, Uneven Economic Development, Economy
and Public Services.
Ethiopia is in a group of countries, which have “alert” status. The greatest
problems of Ethiopia are Social and Economic Fields, External Intervention and
Factionalized Elites. Such tendency has been continuing since 2009.
Kenya has a limited war, which is connected with inter-ethnic violence. In addition
this state is 18 from 178 countries in Fragile States Index. The problems with Political
and Military, Social and Economic fields lead to high negative rating.
The next country is Gambia. It has growing tendency from stable to very high
warning assessment in Fragile States Index.
India is the neighboring country for Pakistan. Thus, problems with conflicts, which
were described above, also concern India. Furthermore, India has to worry about
Demographic Pressure, Group Grievance, Uneven Economic Development and
Security Apparatus. The less number of problems gives India higher value of K-
society Index. The fact of common knowledge is that India tries to develop IT sphere.
But it seems that it is not enough for building K-society.
Senegal has stable, very high warning assessment since 2006. The long-term
tendencies show that the situation in the country becomes more and more dangerous.
Madagascar is near Senegal in rating and the common tendencies almost the same,
except the reduction of Group Grievance and Refugees. Such situation has been
occurred since 2008. However, Paraguay is the only country from the bottom part of
the rating that has been increasing in Fragile States Index in terms of improving
situation.
This analysis shows that K-society Index reflects much more information than IT
or science alone. It correlates with current political and economic situation in the
country. Moreover, it is impossible to build K-society in unsustainable environment.
It is essential to discover the relations between K-society Index and other well-
known indices. Fig. 1 shows the correlation between Fragile States Index and K-
society Index.
Fig. 1. Correlation between Fragile States Index and K-society Index
It describes high linear relation between indices. Thus, it is an additional proof of
state instability influence to knowledge establishment.
Fig. 2. Correlation between Economic Freedom and K-society Index
Probably, more interesting results were obtained from K-society Index and
Economic Freedom relations. Fig. 2 shows that the economic component is not
fundamental for processes in K-society. The truth is that economy is rather important.
The results of the research show that K-society can be unequal in neighboring
countries. Also there is no dependence between the leading positions in the world and
absolute success in K-society creation. For instance, the comparison of Mexico, USA
and Canada is a good illustration of mentioned above thesis (Fig. 3).
The graph illustrates the North America countries’ values. The first place has
Canada. The USA shows almost the same tendency but with lower score. Both
countries have falling K-society Index tendency in 2012-2013. It is noteworthy that
Mexico’s tendency corresponds to others but the values of index are much lower on
all period of research.
Fig. 3. K-society Index for Mexico, USA and Canada
The challenging issue is to find out Ukraine’s situation with K-society
development. Ukraine had good infrastructure, science and educational bases but it is
necessary to clarify it is still competitive or not in the international area.
The first step in this direction is to compare Ukraine with neighboring countries.
Taking into account that all neighbors are from post-Soviet area, this sample is
congeneric. Thus, the results in the index form should describe the Ukrainian success
in K-society development. In addition, the qualitative information about neighbors
gives a possibility to verify calculations. The existence data let to find values of index
for Poland, Russia, Moldova and Hungary. The dynamics of K-society Index for these
countries and Ukraine is introduced on one graph. This approach allows
demonstrating the differences obviously (Fig. 4).
Fig. 4. K-society Index for Ukraine’s neighbors
Firstly, it is necessary to mention that Russia confirms the significant fall of index’
values in 2012-2013, that USA and Canada showed. Secondly, two countries,
Hungary and Poland, have almost equal dynamics of index’ values. Ukraine shown
higher estimations than Moldova and Russia in 2008 and outstripped those countries
until 2012. The situation was changed in 2013 when Ukraine got lower position than
Moldova. In general, Ukraine takes the 40th place from 87 countries in 2013. Its value
of K-society Index equals to 0,546. It is to be recalled that the value for Switzerland is
0,803.
It is useful to discover the components of index for Ukraine to define the weak part
of it. Fig. 5 illustrates the Assets, Advancement, Foresightedness and K-society
Indices’ dynamics from 2008 to 2013.
Fig. 5. Ukraine’s values of K-society Index and its components
In the purpose of this analysis all components are described by places rating. This
gives the opportunity to show relative measures and ranking. The Advancement
dimension shows the worst values in all period. Thus, let’s consider from what
indicators this dimension consists of. Obviously, Ukraine has a great problem with
freedom from corruption indicator. In addition, research and development
expenditures, pupil/teacher ratios in primary education and public health expenditure
are lower than generally accepted (for example, in Europe) norms. This issue can be
an opportunity to significant development of K-society in future. Accordingly, these
fields need to be modernized and get all possible funding for improving the situation.
Thuswise, this analysis shows the preconditions of strategic planning and decision
making in Ukraine in case it is necessary to reach the leading countries. The last
hypothesis is based on the fact that the leaders in K-society Index are the most
developed countries.
5 Conclusions
In paper it was shown that K-society is a probable next mode of economy
development that leads to changes in institutional and organization structure inside
each country and over the world.
K-society is a complex category, which can be considered as a strategy goal for
country. Therefore, it needs to be measured in quantitate form. The analysis of
existence approaches shows that it is possible to use OECD methodologies for
creating composite indices and UN methodology for K-society Index. The
improvement and combination those two sources give the base for model of K-society
Index.
The K-society Index was drawn out as a combination of three dimensions and 14
indicators. The values of index were calculated for 87 countries that provide all
necessary information.
The analysis of results shows that there is no direct dependence between K-society
development and the country leadership in the world.
The situation for Ukraine was analyzed deeply. Firstly, Ukraine has lower meaning
of index than it’s neighbor countries Moldova, Poland, Hungary. Secondly, the less
developed dimension is “Advancement”. Thus, the strategy of its extension must be
provided.
Some common tendencies were found for all countries. The index decreased
rapidly its value in 2008. The values of index have high correlation with Fragile State
Index and Economic Freedom.
References
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Paradigm. Cadmus. Volume 1. Issue 1 (2010)
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Economy: Knowledge and Learning in European Educational Research (2006)
3. Gernot Bohme, Nico Stehr. The Knowledge Society: The Growing Impact of Scientific
Knowledge on Social Relations. Springer Science & Business Media (1986)
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Knowledge Societies. New York: UNPAN (2005)
6. Understanding Knowledge Societies. Department of Economic and Social Affairs, United
Nations, New York (2005)
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Organization for Economic Co-Operation and Development, France (2008)
8. World Data Center for Geoinformatics and Sustainable Development, http://wdc.org.ua/
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Freedom: Promoting Economic Opportunity and Prosperity. The Heritage Foundation, New
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