Transcript The Capabilities Framework: an overview

The Capabilities Framework:
theory and applications
Tania Burchardt
London School of Economics
Why capabilities?
• Conceptual advance in welfare economics
and political philosophy
• Applications in international development,
measurement of welfare, inequality
• Many problems remaining...
– which functionings? how to choose?
– how to measure capabilities?
– which version of equality?
– who cares?
...so a fruitful area for further research
Rejection of welfarism
1. Income is a poor proxy for utility
(a) differential rates of conversion
(b) non-income sources of SWB
2. Utility is the wrong ‘object of value’
(a) adaptive preferences
(b) agency goals, not just individual well-being
(c) freedom to achieve, not just achievement
Framework(s)
Sen
• functionings
• capability sets
Nussbaum
• list of basic capabilities
• reflective equilibrium
Applications (1):
international development
UNDP Human Development Index
• to replace GDP per capita
• life expectancy + knowledge (literacy, schooling) +
standard of living (GDP): basic capabilities
• UK ranked 13th, behind Scandinavia, Canada, Japan
• eg South Africa, Saudi Arabia do much worse on HDI
than GDP
• eg Cuba, Georgia do much better on HDI than GDP
• how to combine? HDI, HPI 1 & 2
• distribution? Gender-Related Development Index
Applications (2):
gender and race inequality
(i)‘Missing women’
Women expected minus actual women
eg China, gender ratio 0.94 = 48 million missing women
eg Kerala (in India), gender ratio 1.04, cf all India 0.93
 Policy and culture are important factors in determining
individual capability sets.
(ii) Black and White mortality rates in the US
• black male mortality 1.8 x white male
• black female mortality 2.9 x white female
• even adjusting for income, differentials are 1.2 and 2.2
• by age late-30s, Black Harlem male survival rates fall
below Bangladeshi male and way below Chinese male
Applications (3):
income and well-being
Different rates of conversion of income into well-being. Eg
extra costs of disability.
 extension of equivalisation
Per cent below 60% median income
Poverty rates, using three different income distributions
70
60
50
I Unadjusted
40
II Minus benefits
30
III Equivalised
20
10
0
Non-disabled
Disabled
All
Potential and limitations
• Opportunity for all
• Capacity-building
• New lens through which to view inequality
BUT
• Normative issues to be resolved
• Technical difficulties
• Consensus or controversy
Some key references and websites