ABSTRACT

Aims of the chapter

To introduce the key concepts and principles of human development and the capability approach.

To understand the contribution of the approach to development thinking and policy.

To identify the implications of the human development and capability approach for development at the micro and macro level.

Key points

The capability approach contains three central concepts: functioning, capability and agency. A functioning is being or doing what people value and have reason to value. A capability is a person’s freedom to enjoy various functionings – to be or do things that contribute to their well-being. Agency is a person’s ability to pursue and realize goals she values and has reason to value.

The human development and capability approach is multi-dimensional, because several things matter at the same time. Well-being cannot be reduced to income, or happiness or any single thing.

The human development and capability approach combines a focus on outcomes with a focus on processes. Four key principles are: equity, efficiency, participation and sustainability.

Improvements or progress are assessed in terms of capabilities, hence policies should promote capabilities.

The selection of relevant capabilities depends on the situation. Public debate can be useful. Considering standard ‘lists’ also help groups not to overlook key areas unintentionally.