Capability approach

The capability approach (also referred to as the capabilities approach) is an economic theory conceived in the 1980s as an alternative approach to welfare economics. In this approach, Amartya Sen brings together a range of ideas that were previously excluded from (or inadequately formulated in) traditional approaches to the economics of welfare. The core focus of the capability approach is on what individuals are able to do (i.e., capable of).

Assessing capability

Initially, Sen argued for five components in assessing capability:

Subsequently, and in collaboration particularly with political philosopher Martha Nussbaum, development economist Sudhir Anand and economic theorist James Foster, Sen has helped to make the capabilities approach predominant as a paradigm for policy debate in human development where it inspired the creation of the UN's Human Development Index (a popular measure of human development, capturing capabilities in health, education, and income). In addition, the approach has been operationalised with a high income country focus by Paul Anand and colleagues. Furthermore, since the creation of the Human Development and Capability Association in the early 2000s, 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.