The capability approaches

 The 1998 Nobel winner economist Prof. Amartya Sen has been the pioneer of the capability approach. He worked
extensively on this approach during the 1980s and 1990s which stimulated considerable interest across the world.
His capabilities approach provided the theoretical foundation to the UNDP’s annual Human Development Reports
published since in 1990.
 The capabilities approach is a people-focused approach. It focuses on enhancing people’s wellbeing by expanding
their capabilities so that they can look after themselves and lead the life they value. It is a comprehensive human
development approach and connects the problem of poverty with the broader issue of human development. It does
not encourage welfare programs, but advocates the empowerment initiatives. It firmly believes that “people are
responsible for their own lives” and development should offer them the right opportunities and choices to do so.
 The capability approach consists of two indispensable elements:
i. Functioning’s (what people are capable of doing or being)
The functioning’s are defined as “the various things a person may value doing or being.” They are more
directly related to, and are, different aspects of living conditions. Functioning’s include working, resting, being
literate, being healthy, being part of a community, being respected, and so on.

Goods, resources and facilities are important because they enable functioning. For example, having a bike
enables the functioning of mobility and an Internet connection enables the functioning of connectivity, and so
on. Of course, how best you make use of the bike or the Internet facility depends upon you. Therefore, not all
persons will have the same functioning’s from the same commodities or facilities. Recognition of this
individual diversity is an important feature of the capability approach.
ii. Freedom.
Freedom points to the ability to choose and prioritize different functioning – or freedom to choose a particular
way
=
=5900+406.5+ 66.625
=6373
Total cost produced for Q=125 in USD

=1000x5.9+ (1000x50)/125+ 1.3(6000-1000) x ((125/ (2x6000))

=5900+400+ 67.7
=6368