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Capability Approach

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Business Macroeconomics

Definition

The capability approach is a theoretical framework that focuses on individuals' abilities to achieve well-being and quality of life, rather than just the resources they possess or their economic output. It emphasizes the importance of assessing people's capabilities, freedoms, and opportunities to lead fulfilling lives, offering a broader perspective on economic well-being beyond traditional measures like income or GDP.

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5 Must Know Facts For Your Next Test

  1. The capability approach was developed by Amartya Sen in the 1980s as a response to limitations of traditional economic measures, such as GDP, which do not capture individual well-being.
  2. It emphasizes that economic growth alone does not guarantee improvements in quality of life; instead, it focuses on enhancing people's capabilities to live the lives they value.
  3. The approach encourages policymakers to consider social justice and equity when assessing economic well-being, aiming for inclusivity in development efforts.
  4. Capability assessments can vary widely between individuals based on personal circumstances, societal contexts, and cultural values, making it a flexible tool for analysis.
  5. Many countries and organizations have adopted the capability approach in their development policies and programs to ensure more comprehensive assessments of human welfare.

Review Questions

  • How does the capability approach differ from traditional economic measures like GDP in assessing well-being?
    • The capability approach differs from traditional economic measures like GDP by focusing on individuals' abilities to achieve well-being rather than just their economic output. While GDP measures a nation's economic performance based on total production and income, it fails to account for disparities in wealth distribution or individual freedoms. The capability approach highlights the importance of personal choices, opportunities, and the overall quality of life experienced by individuals, providing a more nuanced understanding of economic well-being.
  • Discuss the implications of adopting the capability approach for policy-making and social justice.
    • Adopting the capability approach has significant implications for policy-making as it shifts the focus from mere economic growth to enhancing individual freedoms and opportunities. This framework encourages policymakers to address issues of inequality and social justice by prioritizing programs that improve people's capabilities, such as access to education and healthcare. As a result, policies can become more inclusive and aim to empower marginalized groups, ultimately fostering a more equitable society where all individuals can thrive.
  • Evaluate how the capability approach can inform discussions on global poverty reduction strategies in today's world.
    • The capability approach offers valuable insights into global poverty reduction strategies by emphasizing that tackling poverty requires more than just increasing income levels. It encourages an evaluation of what people can actually do with their resources, highlighting the need for investments in education, healthcare, and social infrastructure. By focusing on enhancing capabilities, strategies can be designed to address root causes of poverty, promote sustainable development, and ensure that individuals have the means to lead fulfilling lives. This holistic perspective is essential in creating effective interventions that resonate with diverse populations facing various challenges worldwide.
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