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The Capabilities Framework: theory and applications

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...

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The Capabilities Framework: theory and applications

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  1. The Capabilities Framework: theory and applications Tania Burchardt London School of Economics

  2. 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

  3. Rejection of welfarism • Income is a poor proxy for utility • differential rates of conversion • non-income sources of SWB • Utility is the wrong ‘object of value’ • adaptive preferences • agency goals, not just individual well-being • freedom to achieve, not just achievement

  4. Framework(s) Sen • functionings • capability sets Nussbaum • list of basic capabilities • reflective equilibrium

  5. 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

  6. Applications (2): gender and race inequality • ‘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

  7. Applications (3): income and well-being Different rates of conversion of income into well-being. Eg extra costs of disability. • extension of equivalisation

  8. 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

  9. Some key references and websites

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