Chapter 2 – Introducing HDCA FOR COMMENTS ONLY. Not to be used without permission of the authors. Chapter 2: Introducing the Human Development and Capability Approach Sabina Alkire and Séverine Deneulin 1 The objective of development How would you define ‘successful’ development, that is, a process that is properly heading towards its fundamental purpose or objective? Let us start with two oversimplifications. Consider first an approach to development, in which the objective is to achieve and sustain high rates of economic growth. The overwhelming priority is economic growth. In this situation, the unit of analysis is evident: the economy. This may be the national economy, or the economy of a particular region or sector. The currency of assessment is clearly monetary - income. Trade-offs, such as between environment protection and employment creation, are in many cases resolved by market prices and exchange rates. Examples of success include China and India. Now consider an approach to development in which the objective is to expand what people are able to do and be – what might be called, people’s real freedoms. It puts people first. In this view, a healthy economy is one which enables people to enjoy a long healthy life, a good education, a meaningful job, family life, democratic debate, and so on. Notice two shifts: First, in this approach, the analysis shifts from the economy to the person. Second, the currency of assessment shifts from money to the things people can do and be in their lives, now and in the future. This approach also acknowledges trade-offs which engage value judgments about the most relevant objectives the development process should pursue. In reality, both perspectives are less extreme than these examples. Those who focus on people’s lives still are vitally concerned with economic growth, macroeconomic stability, and many other means to improve people’s lives. And for the ‘growth’ approach, what is far more commonly held is an assumption that if economic growth is achieved, then other things (nutrition, education, good jobs) will take care of themselves. Thus in practice what is required for holistic development is to realize economic growth. In 1991, the World Development Report of the World Bank, which outlined the ‘market-friendly’ approach to development that drove its work through the 1990s, still sketched the goal of development in rather broad terms: Economic development is defined in this Report as a sustainable increase in living standards that encompass material consumption, education, health and environmental protection. Development in a broader sense is understood to include other important and related attributes as well, notably more equality of opportunity, and political freedom and civil liberties. The overall goal of development is therefore to increase the economic, political, and civil rights of all people across gender, ethnic groups, religions, races, regions, and countries. This goal has not changed substantially since the early 1950s, when most of the developing world emerged from colonialism. (WDR 1991: 31) But whether the differences concern the ‘objective’ of development, or the ‘assumptions’ regarding economic growth, clearly divergent points of view exist and shape development thinking and action. In this chapter, we will learn about the second, people-focused approach to development, which we call human development. Human development has been pioneered by different 1 We would like to thank Adriana Velasco for helpful comments on an earlier draft. 1 Chapter 2 – Introducing HDCA FOR COMMENTS ONLY. Not to be used without permission of the authors. people under different names and times. A focus on people’s freedoms appears with ubuntu in Southern Africa, with Liberation Theology in Latin American and beyond, with Swaraj in Gandhi’s thought, and with many other ethical approaches to development. It is equally applicable in developed and developing countries. One of the leading voices is the economist and philosopher, Amartya Sen. In addition to writing on human development, he articulated the capability approach, which provides the philosophical foundation of human development. Later sections of this chapter will present his foundational work and its basic terms and concepts. However before moving to these building blocks of human development we start by giving a ‘birds-eye’ view. The easiest way to do this is to present some common themes from human development reports. Human Development Reports: A birds-eye view The idea of human development has circulated in policy circles and public debate. One vehicle of communication has been the annual Human Development Report produced by the United Nations Development Programme. The first report was published in 1990, and subsequent issues have sought to bring the human development perspective to bear on a range of issues. In addition to the annual ‘global’ report, today about a hundred different entities are producing their own National and Regional Human Development Reports, and some countries have state or provincial reports. These reports are intended to assess the state of a population from the perspective of people’s lives. Their analyses draw on data regarding people’s health, education, political freedoms, security, environment and other aspects of their lives. Through assessing the sate of a population from a human development perspective, these Reports have the political purpose to raise awareness and generate public debate regarding public issues and concerns which would not be on the political agenda otherwise. Box 2.1 Themes of Global Human Development Reports to date 2007/8: Fighting climate change: Human solidarity in a divided world 2006: Beyond scarcity: Power, poverty and the global water crisis 2005: International cooperation at a crossroads 2004: Cultural Liberty in today’s diverse world 2003: Millennium Development Goals: A compact among nations to end human poverty 2002: Deepening democracy in a fragmented world 2001: Making new technologies work for human development 2000: Human rights and human development 1999: Globalization with a human face 1998: Consumption for human development 1997: Human Development to eradicate poverty 1996: Economic growth and human development 1995: Gender and human development 1994: New dimensions of human security 1993: People’s Participation 1992: Global Dimensions of human development 1991: Financing human development 1990: Concept and Measurement of human development 2 Chapter 2 – Introducing HDCA FOR COMMENTS ONLY. Not to be used without permission of the authors. The Human Development Reports were the brainchild of Mahbub ul Haq, a Pakistani economist who wanted to see world’s economic and social progress assessed in a different way from usual income and economic growth considerations, which had been the case so far in the World Bank’s annual World Development Reports . He used to say that it is not normal that a country which sells weapons should be considered more ‘developed’ than a country which has chosen not to make weapons and export them, just because the production of weapons makes the Gross Domestic Product of that country higher. Box 2.2, below, presents his account of ‘the purpose of [human] development’. Box 2.2: The purpose of development From Mahbub ul Haq’s Reflections on Human Development (New York: Oxford University Press, 1995) with extracts reproduced in Sakiko Fukuda-Parr and A.K. Shiva Kumar (eds), Readings in Human Development (New Delhi: Oxford University Press, 2003), pp. 3-16. The basic purpose of development is to enlarge people’s choices. In principle, these choices can be infinite and can change over time. People often value achievements that do not show up at all, or not immediately, in income or growth figures: greater access to knowledge, better nutrition and health services, more secure livelihoods, security against crime and physical violence, satisfying leisure hours, political and cultural freedoms and a sense of participation in community activities. The objective of development is to create an enabling environment for people to enjoy long, healthy and creative lives. The human development paradigm covers all aspects of development – whether economic growth or international trade, budget deficits or fiscal policy, saving or investment or technology, basic social services or safety nets for the poor. No aspect of the development model falls outside its scope, but the vantage point is the widening of people’s choices and the enrichment of their lives. All aspects of life - economic, political or cultural – are viewed from that perspective. Economic growth, as such, becomes only a subset of the human development paradigm. On some aspects of the human development paradigm, there is fairly broad agreement: • Development must put people at the centre of its concerns. • The purpose of development is to enlarge all human choices, not just income. • The human development paradigm is concerned both with building up human capabilities (through investment in people) and with using those human capabilities fully (through an enabling framework for growth and employment). • Human development has four essential pillars: equality, sustainability, productivity and empowerment. It regards economic growth as essential but emphasizes the need to pay attention to its quality and distribution, analyses at length its link with human lives and questions its long-term sustainability. • The human development paradigm defines the ends of development and analyses sensible