Time indicator of the Human Development Index

The Human Development Index, computed by the United Nations, has been challenged since it does not measure the real development of a country. It needs to be combined with other indexes and ratios (poverty, Gini index). Using the same data as the United Nations, an additional dimension (time) is added to create a Time Human Development Index (THDI) where the weights differ for each cluster of countries. Fisher discriminant functions classify countries in each period of time, allowing different weights of the variables for the same country each year. Results suggest that when the Literacy and gross enrolment rates decrease in the four countries occupying the lower positions in the THDI, the THDI falls. In those countries where the THDI increases, gross domestic product and life expectancy rates do not seem to be positively correlated to the THDI, while the gross enrolment rate also increases. Thus, gross enrolment and literacy rates are variables related to the evolution of THDI; while, surprisingly, gross domestic product and life expectancy has few influence in its evolution.