ABSTRACT
In Chapter 1, it was noted that a shift in thinking occurred in the 1990s away from seeing poverty as purely an economic phenomenon to viewing poverty as multi-dimensional and complex, with wide-ranging perceptions and experiences. As part of this shift, other concepts have come to the fore. The concept of capability is one of these. Capability underlies the key concepts that are the focus of this chapter: livelihoods and wellbeing. Capability in this application draws on the capabilities approach of Amartya Sen (1984). This approach challenged reliance on economic indicators, such as level of income, to reflect people's wellbeing and sought a deeper understanding of what people are able to do and be – their capability. The approach recognizes diversity in what individuals may be able to achieve, even given the same resources, to contribute to a more nuanced understanding of people's wellbeing and potential for improvements in this.
