2. Amartya Sen
Born in West Bengal, India to Bangladeshi
parents
Schooled in Calcutta and Cambridge –
economics & philosophy
Best known for his work on causes for famine &
famine prevention
1998 Nobel Memorial Prize in Economic Studies
“Mother Theresa of Economics”
3. Let’s Talk About Poverty
What is poverty?
What is wealth?
Why are poor people poor?
How do we change this?
“How far would wealth go to get them
what they want?”
4. It’s More than Money
“Wealth is evidently not the good we are seeking; for it
is merely useful and for the sake of something else.” –
Aristotle
“The usefulness of wealth lies in what we want it to
do.”
“Development has to be more concerned with
enhancing the lives we lead and the freedoms we
enjoy.”
Development approach: “a process of expanding
substantive freedoms that people have”
5. What is freedom?
Availability of food, health care, sanitation, clean
water, gender equality, functional
education, employment, social security, political
liberty, & basic civil rights
“Greater freedom enhances the ability of people to
help themselves and also to influence the world, and
these matters are central to the process of
development.”
“Functionings”
Capabilities
6. Poverty as Capability
Deprivation
What affects capability?
Age, gender & social roles, location, epidemiological
atmosphere, etc.
Either income deprivation or adversity in converting
income into functionings
Relative deprivation vs. Absolute deprivation
7. Mortality, Inequality, &
Relative Deprivation
African Americans in the US have lower survival
rates, especially in old age, than much poorer
communities of Kerala, India and China.
8. Development & Culture
Is it better to be “rich & happy” or “impoverished and
traditional”?
If the traditional way of life has to be sacrificed to
escape grinding poverty or miniscule longevity, the it is
the people directly involved who must have the
opportunity to participate in deciding what should be
chosen.”
Conflict: value that people should be allowed to
decide freely which traditions to follow vs. established
traditions are always followed
9. Economics of Freedom
Development
From the beginning the study of economics was the
study of freedom expansion
Economics has shifted more toward
utilities, income, & wealth
Promotion of an open market
The market mechanism opens the door for provision
of basic education, the presence of elementary
medical facilities, the availability of resources, and
much more.
10. Famines & Other Crises
“Hunger relates not only to food production and
agricultural expansion, but also to the functioning of
the entire economy…”
Cause of famine: lack of ability to provide one’s own
food or lack of availability of food in a market setting
Hunger limits labor assets and production possibilities
Hunger and fear of hunger can destroy an economy
Production, diversification, and growth
11. Population, Food, &
Freedom
Population control through public policy
Empowering women reduces fertility rate
Why reduce fertility rates?
Economically and emotionally beneficial for young
women
“The solution of the population problem calls for more
freedom, not less”
12. The Importance of
Democracy
Economic & political incentives
“The process of preventing famines and other crises is
significantly helped by the use of instrumental
freedoms…”
“An adequate approach of development cannot really
be so centered only on those in power…”
13. Social Choice &
Individual Behavior
We have to anticipate the unintended but predictable
consequences – at the end of the day human beings are self-
centered and want to serve themselves primarily
The success of capitalism has to reach beyond self-
centeredness
Avoid assumptions: high-minded and low-minded
sentimentality
“Central to this approach is the idea of the public as an active
participant in change, ather than as a passive and docile
recipient of instructions or of dispensed assistance.”
14. Individual Freedom as a
Social Commitment
A variety of social institutions contribute to the process
of development by enhancing and sustaining
individual freedoms
There is no “formula” for development
15. Freedom has a thousand
charms to show,
That slaves, howe’er
contented, never know.
- William Cowper
Editor's Notes
“Economic growth cannot sensibly be treated as an end in itself. Development has to be more concerned with enhancing the lives we lead and the freedoms we enjoy. Expanding the freedoms that we have reason to value not only makes our lives richer and more unfettered, but also allows us to be fuller social persons, exercising our own volitions, and interacting with – and influencing – the world in which we live.”Quality over quantityMoney plays a role in what we can & cannot do“Low income can be a major reason for illiteracy and ill health as well as hunger and undernourishment, and conversely, better education and health help in earning of higher incomes.”
Quite often economic insecurity can relate to the lack of democratic rights and liberties.No famine has ever taken place in the history of the world in a functioning democracy, whether rich (contemporary Western Europe & North America) or relatively poor (postindependence India, Botswana, & Zimbabwe)While famines are common throughout much of the dictatorial world, the leaders of the so-called “famine league” are North Korea & SudanFunctionings: various things a person may value doing or beingCapabilities: alternative combinations of functionings that are feasible to achieveRealized functionings: what a person is actually able to doCapability set: real opportunities
Being relatively poor in a rich country can be a great capability handicap, even when one’s income is high by the world’s standards. In a generally opulent country, more income is needed to buy enough commodities to have the same social functioning. Ex. Social interactions; Post-abolition agricultural labor in U.S.
Has to do with medical coverage, public health care, school education, law & order, prevalence of violence, and so on. African Americans are lower than the Asian groups despite having a significantly higher average income.But we need more than just survival. We’re striving after a higher quality of life.
Wealth vs. Tradition polarityDecisions regarding cultural change shouldn’t be made by political figures, religious leaders, or sentimental historians – it should be made by the people. Basic education is requiredIs this practical?
Economics is the assessment of what it takes for people to have a good living“Development should be assessed in terms of removing the unfreedoms from which the members of society may suffer.”A denial of opportunities of transaction, through arbitrary controls, can be a source of unfreedom in itself
“The challenge of development includes both the elimination of persistent, endemic deprivation and the prevention of sudden, severe destitution.”– even more broadly – the operation of the political and social arrangements that can, directly or indirectly, influence people’s ability to acquire food and to achieve health and nourishment.”Sen states that government policy should be prepared to handle famine by integrating the role of government with efficient functioning of other economic and social institutions (trade, commerce, markets, political parties, NGOs, media, and institutions dedicated to public discussion)
“ connection public policies that enhance gender equity and the freedom of women (particularly education, health care, and job opportunities for women) and individual responsibility of the family (though decisional power of potential parents, particularly the mother).”
“The process of preventing famines and other crises is significantly helped by the use of instrumental freedoms, such as the opportunity of open discussion, public scrutiny, electoral politics, and uncensored media.“An adequate approach of development cannot really be so centered around only those in power. The reach has to be broader, and the need for popular participation is not just sanctimonious rubbish. Indeed, the idea of development cannot be dissociated from it.”
It is not correct to conclude that capitalism as an economic system depends on self-interested behavior, rather than on a complex and sophisticated value system that has many other ingredients, including reliability, trust, and business honesty.High-minded/low-minded polarity
Billions of people throughout the world are enslaved to low standards of living, low access to opportunity, and low expectation. They are content with living far below their potential because they have no idea how powerful they can be. Development and changing the world isn’t about putting money in their hands, but it’s giving them the opportunity to pursue their dreams.
