BOOK REVIEW

on

“Collective Choice and Social

welfare”

by
Amartya Sen

To
Tanjot Singh
(Economics)

Submitted by:
Khushi Raghav
B.Com Prog. 200599

Amartya Sen is a prominent economist and philosopher who has made significant
contributions to the field of collective choice and social welfare. His work has challenged
traditional approaches to welfare economics and emphasized the importance of individual
rights and freedoms in promoting social welfare. In this book review, we will examine
Sen's ideas on collective choice and social welfare, and how they have influenced the
field of economics.

Collective choice refers to the process by which a group of individuals makes decisions
that affect the welfare of the entire group. In traditional welfare economics, the goal of
collective choice is to maximize the aggregate welfare of society. However, Sen has
argued that this approach is too narrow and fails to account for the diversity of
preferences and needs within society.

One of Sen's key contributions to collective choice theory is the concept of "social
choice." Social choice refers to the process by which the preferences of individuals are
aggregated to make decisions that affect the welfare of society as a whole. Sen has
emphasized the importance of considering the preferences of all individuals in society,
rather than just focusing on the preferences of a few powerful individuals or groups.

Sen has also argued that social choice must take into account the distribution of resources
and opportunities within society. In his view, a society in which a small elite holds all the
power and resources is unlikely to promote the welfare of the entire society. Instead, a
social choice must be based on a more egalitarian distribution of resources and
opportunities.

Another important concept in Sen's approach to collective choice is "capability."

Capability refers to an individual's ability to achieve what they value in life. According to
Sen, social welfare should be measured not just in terms of material goods or income, but
also in terms of an individual's capabilities to achieve their goals and aspirations.
Sen's approach to collective choice has important implications for policy-making.

Instead of focusing solely on maximizing aggregate welfare, policymakers should also

consider the distribution of resources and opportunities within society, and the
capabilities of individuals to achieve their goals and aspirations. Sen has argued that
policies that promote equality and expand opportunities for all individuals are likely to
promote social welfare more effectively than policies that focus solely on increasing
aggregate welfare.
Sen's work on social welfare has also challenged traditional approaches to measuring
welfare. In traditional welfare economics, welfare is often measured in terms of income
or material goods. However, Sen has argued that this approach is too narrow and fails to
account for the diversity of needs and preferences within society.

Instead, Sen has emphasized the importance of measuring welfare in terms of

capabilities. According to Sen, a person's welfare depends not just on their income or
material possessions, but also on their ability to achieve what they value in life. For
example, a person who is disabled may value the ability to move around independently
more than they value material possessions. In this case, policies that promote mobility
and accessibility may be more effective at promoting social welfare than policies that
focus solely on increasing income or material goods.

Sen's work on social welfare has also emphasized the importance of individual rights and
freedoms in promoting social welfare. In his view, social welfare cannot be promoted
solely through government intervention or redistribution of resources. Instead,
individuals must be empowered to make choices that are consistent with their values and
aspirations.

Sen has argued that individual rights and freedoms are important not just for promoting
social welfare, but also for promoting economic growth and development. In his view, a
society in which individuals have the freedom to pursue their goals and aspirations is
likely to be more innovative and entrepreneurial, and therefore more economically
prosperous.

One of Sen's most important contributions to the study of the collective choice is his
critique of the "social choice" theory developed by economists such as Kenneth Arrow
and Duncan Black. The social choice theory attempts to provide a framework for
understanding how individual preferences can be aggregated to form a collective
decision. However, Sen has argued that social choice theory is too focused on the formal
properties of decision-making procedures and does not adequately capture the complex
social and political realities of decision-making.

Instead, Sen has proposed an alternative approach to understanding collective choice that
emphasizes the importance of understanding the context in which decisions are made. He
has argued that decision-making is not simply a matter of following a formal procedure,
but is shaped by social norms, power relations, and other contextual factors. Thus, Sen
has advocated for a more interdisciplinary approach to understanding collective choice
that draws on insights from economics, sociology, psychology, and other social sciences.
One of Sen's most influential ideas in the study of social welfare is his concept of
"capabilities." Sen has emphasized the importance of understanding the diverse
capabilities that individuals may value and how social policies can promote or hinder
these capabilities.

Another important concept in Sen's work on social welfare is the idea of "entitlements."
Sen has argued that social welfare policies should be designed to ensure that individuals
have the entitlements they need to achieve their capabilities. Entitlements refer to the
resources and opportunities that individuals have access to, such as income, education,
and healthcare. Sen has emphasized the importance of ensuring that everyone has a basic
level of entitlements that allows them to achieve their capabilities.

Sen's work on social welfare has also emphasized the importance of understanding the
role of inequality in shaping well-being. He has argued that inequality can be a major
barrier to well-being, as it can limit individuals' access to resources and opportunities.
Sen has emphasized the importance of designing social policies that promote greater
equality and reduce the barriers that individuals face in achieving their capabilities.

At last, Sen has worked on many topics which had to be touched on while taking the
issue of a collective choice and creating a just opinion on the same.