Human Development Index Based on ELECTRE TRI-C Multicriteria Method: An Application in the City of Recife

Abstract

The Human Development Index (HDI) is an indicator that measures individuals’ welfare through three dimensions: health, education and income. Since its conception, the HDI has been a focus of attention for various segments of society such as politicians, professionals in the media, policy makers, academics and ordinary citizens. The index, however, has received several criticisms over the years, the compensatory effect between the dimensions being the main one. In this context, this paper puts forward an alternative approach for calculating the Municipal Human Development Index, thereby mitigating some criticisms of the index and supporting public decision making. For this purpose, the ELECTRE TRI-C multicriteria method was used, in order to attenuate the compensatory effect, to reduce calculation problems and to allow comparison year by year. An application was conducted in the city of Recife, Pernambuco, in order to demonstrate the benefits of the proposed approach. As a result, a more adequate classification of the regions in four levels of human development was obtained.