In Amartya Sen’s capability approach development is seen as a process of expanding the real freedoms that people enjoy. The capability to function is what matters the most and it goes beyond availability of commodities. Poverty is a situation where people lack the most basic capabilities to lead a good life.
Where should Development focus: GDP or people’s Well-being
Amartya Sen’s idea of capability theory can’t be properly understood without first revisiting the concept of “development”. In fact, long ago the agenda of ‘development’ was hijacked by economists. As a result, today when people talk of progress or development they are merely talking of “economic development” which simply means expansion of the economy in terms of GDP growth. People play the role of producer of goods and services and also the end consumers. It is basically a production/consumption oriented progress – produce more and consume more, and call yourself developed. People are supposed to be more “developed” if they consume more. Everything is seen in the context of consumption of goods and resources; it is an input driven ideology.
While economic expansion is useful as it adds to the material comfort people, the human well-being also depends upon non-material things – after all people are psychological, social and political beings. Therefore, the primary focus of development should be people as human beings, not mere expansion of the economy, measured as GDP growth. It means shifting from the narrow resource (input) driven “economic development” to a broader well-being (end-result) based “human development”.
Amartya Sen’s capabilities approach offers this broad based perspective of development where everything revolves around people’s well-being.
Capability Approach: A Comprehensive Development Paradigm
In the recent decades Amartya Sen’s Capability theory has emerged as a serious alternative model of progress and development. Rather than goods and resources (the inputs), the focus of Sen’s capability approach is people and their capabilities (the end-results). It also provides an alternative perspective on issues like poverty, inequality, gender bias, and social exclusion that are hardly touched by the economic perspective.
Sen’s approach is both comprehensive and flexible. It provides dignity to human race because the economic model of development has reduced people to the status of producers and consumers. If the GDP growth model dis-empowers them, the capabilities approach makes their empowerment a central issue. Rather than talking of some theoretical equality of people or seeing them in terms of numbers, the capability approach explicitly recognizes the differences among individuals. It also accepts that people’s abilities are affected by external factors coming from interaction with other people, social arrangements, access to infrastructure and public services, discriminations, opportunities to participate in social and political activities, freedom to speak and influence state policies, and so on.
Historical Roots of Capability Approach
The origin of the idea of functionings and capability can be traced back to Aristotle in the 4th century BC. In Politics, while discussing the idea of the “best political arrangement,” Aristotle argued that the aim of political planning is the distribution of the conditions for a good life to the people in the city. These conditions are understood by him as producing capabilities, that is, the possibilities of having a “flourishing life. He asserted that a good life is one in which a person can function not only in the biological sense but also by exercising choice and reason. Thinkers like Adam Smith and John Stuart Mill also gave similar ideas of good human life.
Then in the 19th century, Marx and Engels described a commendable human life as not only one in which the person’s material needs are satisfied, but also as one in which people are able to use reason. For Marx, the biological needs of eating, drinking, or procreation, are “genuinely human functions,” but without freedom of choice and freedom from immediate want, these will be performed in a merely animal way. Amartya Sen’s reasoning along such lines crystallized in the form of the capability approach of development.
The Capability Approach of Development
Amartya Sen’s capabilities approach revolves around people as human being and sees development as expansion of their capabilities – it is an enabling preposition. It aims to enhance people’s well-being by expanding their capabilities which is connected to freedom of choices. It explicitly recognizes presence of diversities and the multidimensional nature of human well-being. The emphasis is not only on how people actually function but also on their having the capabilities, which are practical choices, “to achieve outcomes that they value and have reason to value”. As opposed to accumulating commodities it construes capabilities in terms of the substantive freedoms people have. It provides a relatively universal grammar for understanding the elements of human well-being. The capability approach offers a way of thinking and analyzing issues in the light of people’s capabilities.
In the capabilities paradigm, poverty is understood as deprivation of basic capabilities. People may get deprived of such capabilities in several ways; for example, ignorance, oppressive state policies, lack of financial resources, ill health, lack of proper education, sudden accidents and so on. The scope of this approach is quite vast; all factors that can potentially affect people’s capabilities are relevant for consideration. Included in the domain of capability theory are all possible factors – social and political processes, gender, inequality, social exclusion, disability, environmental conditions, personal and psychological factors – that can possibly influence human capabilities, the prime measure of human well-being. In this sense, it is a complete human development model. The capability approach focuses on two things, freedoms to achieve and the capabilities to function.
Although Amartya Sen is commonly associated with welfare economics, but in recent years his theory has been increasingly used for analysis of social policies in economically advanced nations, for example France.
Functionings and Capabilities
Sen searched for measure to adequately represent people’s well-being and deprivation and found that neither income and command over commodities, nor happiness and fulfillment of desires constituted good enough indicator of human well-being or lack of it. Sen argues that people’s well-being depends upon what they are actually capable of doing and being. Thus, he focused on something more direct such as human functionings and capabilities in terms of which the quality of life is analyzed. In other words, a person’s capabilities offer a perspective in terms of which his advantages and disadvantages can be reasonably assessed – that makes it highly appropriate for analyzing poverty.
Functionings: Functionings are what people really “do and are”. They are achievements of people: they are ‘doings’ or ‘beings’. Taken together, these doings and beings – achieved functionings – give value to life. The functioings may include being well-nourished, having shelter, able to work, rest; or being literate or healthy; being part of a community or group; being respected, and so on.
Achieving a functioning (for example, being adequately nourished) with a given bundle of commodities (say, bread or rice) depends on a range of personal and social factors (e.g. age, gender, activity levels, health, access to medical services, nutritional knowledge and education, climatic conditions, and so on). A functioning therefore refers to the use a person makes of whatever is at his/her command.
Capabilities: Capabilities are different combinations of functionings that a person can achieve; it also reflects his freedom to choose. So, capabilities refer to the set of valuable functionings that a person has effective access to. They are best thought to be the equivalent of a person’s opportunity set. In nutshell, capabilities are made up of two things: functionings and the freedom to choose from them.
Difference between Functionings and Capabilities
The distinction between functionings and capabilities is that between the realized and the effectively possible, in other words, between achievements, on the one hand, and freedoms or opportunities, on the other. Capabilities are a person’s real freedoms or opportunities to achieve functionings. For example, while travelling is a functioning, the real opportunity to travel is the corresponding capability.
Functionings refer to what people really ‘do and are’; capabilities denote what people potentially ‘can do and can be’. The achieved functionings are the realized achievements and the capabilities are potentially possible. Functionings are, in a sense, more directly related to living conditions, since they are different aspects of living conditions. Capabilities are notions of freedom, in the positive sense: what real opportunities a person has regarding the life he can potentially lead. Take away the freedom to choose, the two things become same.
The difference between functioning and capability can be best clarified with an example. Consider two persons who are not eating. One is a victim of a famine in Ethiopia and the other decided to sit on a ‘fast’ in front of the US embassy in London to protest against its troops in Afghanistan. What distinguishes the two is the freedom, or availability of option. The first person is badly constrained in freedom and lacks the capability to achieve the functioning to be well-fed; the second person has this capability though he decided not to use it.
Likewise, you are capable of driving a car – ie, you have the ability to drive a car. It becomes a capability if you have the freedom (having the driving license, road connectivity, availability of fuel, as well as the motivation) to use it to do things you value. So, merely having a car or being able to drive it, by itself, does not add value to your life. You also lose this capability if, say, you are a female and the State law doesn’t allow female to drive. Now take the functioning of being educated. In Afghanistan/Pakistan, the Talibans regularly issue decrees (or threats) to prevent girls from going to schools.
Development is Enhancing People’s Freedom
Sen proposes that people lose capabilities when they lack freedom. Having freedom provides the space to develop capabilities. Therefore, all development, according to Sen, is development of human capabilities in the enabling environment of freedom.
Sen proposes that expansion of individual freedom is the goal of development; freedom is also the principal means of development. Therefore, development also means removing the major sources of constraint (lack of freedom) such as all forms of discriminations – racial, religious, gender or community based; unreliable public facilities and poor infrastructure; lack of economic opportunities; social exclusion and political marginalization; and policies limiting human rights; and so on. In many societies where there is ethnic tension, we can also include the fear of violence or terror attacks, as freedom restricting factor.
Freedom provides the necessary space to make choices to make one’s life better the way one wanted. It is particularly relevant for the poor for its enabling and empowering impact.
Capability Approach and Poverty
In the capability perspective, poverty is seen in terms of a shortfall of ‘basic capabilities’ – a kind of ‘basic capability failure’. Such failure involves the inability to achieve certain minimally adequate levels of crucially important functionings, such as being nourished and being sheltered.
Poverty experts can point out that this definition of poverty is based on the ancient Aristotelian notion that a poor person is not free to carry out the important activities that he want to. In other words, poverty can be seen as living in a state of restricted freedom. In his book, Development as Freedom, Sen has talked about various types of freedoms necessary to increase people’s capabilities (or reducing poverty) and defined development as increasing these freedoms. The freedom of a person is understood as the ability (or opportunity) to choose what one values.
Let’s compare Amartya Sen’s capability approach with resources based approaches. Sen argues that the resource centric approaches don’t distinguish between means and ends. How the available resources are converted to end use depends upon personal factors as well as on the environment in which people live – social and political. For example, a disabled person needs more resources to do a task, say moving, than a normal person. Another example is presence of racial bias in the society or extreme bureaucracy in the system; these things affect different people to different extents. It is non material factor that hardly ever show up in the GDP model of development or poverty.
Income Poverty Vs Capability Poverty
The traditional income poverty and Sen’s capabilities poverty are not entirely distinct from each other. In general, increasing income improves the capabilities of people and vice versa. Basic essentials like education and health directly improve the quality of life and capabilities; they also improve the ability to earn more.
The issue of unemployment offers an insightful comparison between income and capability poverty approaches. If unemployment only meant loss of income, it could be compensated by some form of income support (say, unemployment allowance), but in reality lack or loss of job has much deeper impact on a people’s life than mere economic loss. It might include psychological damage, loss of motivation and self confidence, stress, depression, increase in ailments and morbidity, etc. The income poverty approach is blind towards such “human sufferings” which are clearly picked up by the capability approach through their adverse impact on the capabilities.
Conversion of income into capabilities is an important issue, particularly for the poor. For example, alcoholism is widespread in some poor communities and if the income earner habitually spends it on drinking he is doing nothing to improve his or family’s capabilities. On the contrary, he might be degrading his capabilities. A better use would be to raise the nutrition level of family members (but that needs awareness and information, which the poor often lack).
Similarly there are other situations where good income does not automatically ensure better capabilities. For example, in the discriminated sections of society, say for instance, the lowest caste community in India even good enough income does not automatically ensures social or political equality. In such cases, belonging to a discriminated community becomes a disability (and a cause for reduced freedom).
Gender inequality is another hurdle when the income distribution within families is considered. In patriarchal societies male members always have the first right, leaving the females members rather deprived in everything. This deprivation ultimately shows up in the data for mortality rates, morbidity, literacy, undernourishment, medical-neglect, etc.
Poverty Reduction involves more than Economic Growth
The fact that higher per capita GDP does not automatically translate into lowered poverty, is clearly observed in the development status of different states of India. Kerala is a unique state in India; it has only a moderately developed economy but has achieved significant poverty reduction. It did so through the expansion of basic education, healthcare facilities and equitable land distribution to counter poverty. In comparison, Punjab with much higher per capita GDP also has higher poverty. Therefore, people’s well-being is not directly related with economic growth.
Likewise, though the economic reforms in India have opened up the economy throwing new opportunities but majority of the population failed to reap the benefits because the enabling condition of high literacy level, quality basic education, good healthcare facilities, etc proved simply far too inadequate.
Why There is Poverty in the Rich Countries
A country can be very rich in conventional economic terms (say, per capita GDP) and yet has large percentage of people with poor quality of human life. How to account for low well-being of people (poor people) in rich countries?
Human well-being depends upon several things other than wealth or income. A country obsessed with GDP growth alone may not provide basic infrastructure of education, healthcare, housing, transport, clean drinking water, sanitation and so on. Today, it is a proven fact that economic growth inherently favors the rich and hence wealth gets increasingly concentrated in few hands. It means rising inequalities, which leads to social exclusion of the poor class. Social exclusion is a not only a present concern, but also has future consequences. It works to sustain and promote poverty.
A rich country can only eliminate poverty if it frames policies that focus on increasing people’s capabilities, in place of the fetish for GDP growth.
How Democracy Protects People’s Well-Being
For Sen, democracy is not mere voting and elections. Rather, he sees democracy as ‘government by discussion’, namely people’s participation and public reasoning. Analyzing past famines, Sen underlined the importance of democracy and freedom of the speech, and argues that “no major famine has ever occurred in a functioning democracy with regular elections, opposition parties, basic freedom of speech and a relatively free media (even when the country is very poor and in a seriously adverse food situation)”. The prevalence of famines, which had been a persistent feature of the long history of the colonial India, ended abruptly with the establishment of a democracy after independence. Another historical example he cites is the massive famine in China during 1958-61 during the failed ‘Great Leap Forward’, which claimed close to 30 million of lives.
Applications of the Capability Approach
Many attempts have been made to apply the CA. For instance, it has been used to investigate poverty, inequality, well-being, social justice, gender, social exclusion, health, disability, child poverty and identity, as well as for designing policies. It has been related to human needs, human rights and human security as well as development in general. It has also been seen as a theory of social justice – seeking to reduce social exclusion and inequalities.
There have been numerous attempts to apply the CA to the measurement of poverty and well-being. The CA is perhaps best known for having inspired the creation of the Human Development Index (HDI) in 1990 by the United Nations Development Program (UNDP) in order to gauge countries’ level of human development or people’s well-being. The HDI offered an alternate measure of human progress in terms other than GDP growth and has played a key role in advancing alternative ideas about development and welfare. The HDI covers dimensions of material well-being, health, and education. The multidimensional poverty index (MPI) is another comprehensive tool for evaluating poverty.
The message is clear.
The well-being of people depends upon many things other than increased income or resources. All such things get sidelined when the GDP alone is used as proxy for development. The basic objective of development should be to create an enabling environment for people to live long, healthy, and creative lives. This goal is lost when the immediate concern becomes accumulation of commodities and financial wealth. In reality, they are only means to expand people’s capabilities and freedom of choices, not ends in themselves.
The capability approach is more fundamental and comprehensive in nature as it shifts the focus from the means (resources) to the ends (human well-being), by putting the people in the center. Anti-poverty programs must not focus on reduction of income poverty alone. Enhancement of human capabilities must also go hand in hand with the economic growth for it to be sustainable.
You may also like to explore for another perspective on the capability theory here: Amartya Sen’s Capability Perspective of Development and Well-being