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Capability Approach and Human Development

The document discusses Amartya Sen's Capability Approach, emphasizing that true development focuses on expanding human freedoms rather than just income. It also explains the Human Development Index (HDI) as a measure of progress in health, education, and standard of living, and outlines Partha Dasgupta's principles of sustainable development and the concept of inclusive wealth. Key principles include inter-generational equity and the need to balance natural, human, and produced capital for sustainability.

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12 views2 pages

Capability Approach and Human Development

The document discusses Amartya Sen's Capability Approach, emphasizing that true development focuses on expanding human freedoms rather than just income. It also explains the Human Development Index (HDI) as a measure of progress in health, education, and standard of living, and outlines Partha Dasgupta's principles of sustainable development and the concept of inclusive wealth. Key principles include inter-generational equity and the need to balance natural, human, and produced capital for sustainability.

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talk2ishmeets
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Harjot Kaur

Roll No: 22330503078

Subject: Eco Basic Development Economics

Unit III: Capabilities, Human Development, and Sustainable Development

Q1. Amartya Sen's Capability Approach: Development as Freedom

Amartya Sen shifts the focus of development economics from income and wealth to human
freedom. Development is defined as the process of expanding the real freedoms that people enjoy.

Freedom: The End and Means of Development

- Constitutive Role (Freedom as the End): The expansion of freedom is the primary objective of
development itself. The true measure of development is whether people have the opportunity to live
the lives they have reason to value.

- Instrumental Role (Freedom as the Means): Various types of freedoms serve as the principal
means of development, reinforcing each other and contributing to overall progress.

The Capability Approach: Capability vs. Functioning

- Functionings: The actual doings and beings of a person (e.g., being educated, being
well-nourished).

- Capabilities: The set of real opportunities available to a person to achieve functionings. Poverty is
considered as capability deprivation rather than just lack of income.

Instrumental Freedoms (Five Types)

1. Political Freedoms

2. Economic Facilities

3. Social Opportunities

4. Transparency Guarantees

5. Protective Security

Summary: True development requires expanding human capabilities and reducing unfreedoms
such as poverty, illiteracy, and inequality.

Q2. Human Development Index (HDI)

The Human Development Index (HDI) measures progress in three dimensions:

- Health: Life expectancy at birth

- Education: Mean & expected years of schooling

- Standard of Living: GNI per capita (PPP)

HDI Calculation

Step 1: Convert each dimension to an index value (0 to 1).


Step 2: HDI = (Health Index × Education Index × Income Index)^(1/3)

Example: If health = 0.8, education = 0.6, income = 0.7 → HDI ≈ 0.69 (Medium Human
Development).

Q3. Partha Dasgupta: Sustainable Development and Inclusive Wealth

Sustainable development is meeting present needs without harming the ability of future generations
to meet theirs.

Key Principles:

- Inter-generational Equity

- Environmental Balance

- Economic, Social, Environmental Sustainability

Inclusive Wealth

Progress should be measured through Inclusive Wealth (total asset base):

1. Produced Capital

2. Human Capital

3. Natural Capital

For sustainability, inclusive wealth per capita should not decrease. If natural capital is depleted,
investment must be made in human or produced capital to balance losses.

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