Gonzales de Olarte, Efraín (2009). "The Matrix of Capabilities and Functionings (CFM) and the Human Development algorithm (HDA)" Paper presented at the 6th annual conference of the HDCA, 10-12 September 2009, Lima, Peru.

Given that human development is a complex process involving multiple components and determining factors, multidimensional indicators are needed. On the basis of the extensive literature on the subject, we advance two new indicators: the Matrix of Capabilities and Functioning (MCF), and the Algorithm of Human Development (HDA). The MCF is composed of vectors of capabilities and functionings, based on Sen’s idea of Refined Functionings. It is based in a matricial framework. both static and dynamic The main purpose of constructing this index is to study how different sets of capabilities relate to alternative functionings, to produce diverse outcomes. The Human Development Algorithm (HAD) is a multidimensional index concerning the set of goods and services needed to complete a life cycle. The HDA is a socio-economic context indicator. It is composed of the main “satisfactors” or basic goods and services needed: food, health, education, housing, social security, decent employment and retirement programs, that might be available to all throughout of life cycle. This indicator shows the material progress reached by each country or region as well the institutional organization, private and public, and the degree of social cohesion and solidarity.