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Capability approach

Normative approach to human welfare

  • 27 min read
  • 6 chapters

Related on Lably

Through Normativity, Welfare spending and Rights

In this approach, Amartya Sen and Martha Nussbaum combine a range of ideas that were previously excluded from (or inadequately formulated in) traditional approaches to welfare economics. The core focus of the capability approach is improving access to the tools people use to live a fulfilling life. Hence, the approach has a strong connection to intragenerational sustainability and sustainability strategies.

Assessing capability

Sen initially argued for five components to assess capability:

  1. The importance of real freedoms in the assessment of a person's advantage
  2. Individual differences in the ability to transform resources into valuable activities
  3. The multi-variate nature of activities giving rise to wellbeing
  4. A balance of materialistic and nonmaterialistic factors in evaluating human welfare
  5. Concern for the distribution of opportunities within society

Subsequently, in collaboration with political philosopher Martha Nussbaum, development economist Sudhir Anand and economic theorist James Foster, Sen has helped propel the capabilities approach to appear as a policy paradigm in debates concerning human development; his research inspired the creation of the UN's Human Development Index (a popular measure of human development that captures capabilities in health, education, and income). Additionally, the approach has been operationalized to have a high income country focus by Paul Anand and colleagues. Sen also founded the Human Development and Capability Association in 2004 in order to further promote discussion, education, and research on the human development and capability approach. Since then, the approach has been much discussed by political theorists, philosophers, and a range of social scientists, including those with a particular interest in human health.

The approach emphasizes functional capabilities ("substantive freedoms", such as the ability to live to old age, engage in economic transactions, or participate in political activities); these are construed in terms of the substantive freedoms people have reason to value, instead of utility (happiness, desire-fulfillment or choice) or access to resources (income, commodities, assets). An approach to wellbeing using utility can be found in utilitarianism, while access to resources is advocated by the Rawlsian approach.

Poverty is understood as capability-deprivation. It is noteworthy that proponents emphasize not only how humans function, but their access to capabilities "to achieve outcomes that they value and have reason to value". Everyone could be deprived of capabilities in many ways, e.g. by ignorance, government oppression, lack of financial resources, or false consciousness.

This approach to human well-being emphasizes the importance of freedom of choice, individual heterogeneity and the multi-dimensional nature of welfare. In significant respects, the approach is consistent with the handling of choice within conventional microeconomics consumer theory, although its conceptual foundations enable it to acknowledge the existence of claims, like rights, which normatively dominate utility-based claims (see Sen 1979).

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