Question
Describe the capabilities approach to welfare economics.
Answer :
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The capabilities approach to welfare economics is a human-centered framework developed primarily by economist and philosopher Amartya Sen and later expanded by philosopher Martha C. Nussbaum. It shifts the focus of welfare economics from the possession of income, wealth, or resources to the real opportunities and freedoms that individuals have to lead the kind of life they value. This approach has significantly influenced social work, social development, public policy, and international development by emphasizing human well-being, social justice, and the removal of inequalities. Traditional welfare economics generally measures well-being through income levels, utility, or economic growth. However, the capabilities approach argues that these measures alone are insufficient because individuals with the same income may have different abilities to convert resources into meaningful achievements. Factors such as age, gender, disability, health, social discrimination, environmental conditions, and access to public services influence a person's ability to utilize available resources. Therefore, welfare should be evaluated in terms of people's capabilities rather than merely their economic possessions. The approach distinguishes between "functionings" and "capabilities." Functionings refer to the various states of being and activities that people value, such as being healthy, educated, adequately nourished, employed, respected, and participating in community life. Capabilities represent the genuine opportunities or freedoms available to individuals to achieve these
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