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 and Martha Nussbaum bring 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).Well-being has several dimensions of which monetary factors are only one. They are nevertheless an important one, since richer economies are better placed to create and maintain other well-being-enhancing conditions, such as a clean environment, the likelihood that the average person will have a right to 10 years or more of education, and lead a comparatively long and healthy life. Well-being will also be increased by institutions that enable citizens to feel that they control their own lives, and that investment of their time and resources will be rewarded. In turn, this will lead to higher incomes in a virtuous circle. 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 and Martha Nussbaum bring 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).