Capabilities and Human Well-Being: How to Bridge the Missing Link?

Abstract

The division of theoretical work into two broad areas of social and economic theory kept the social and economic domains separated from each other for a long time at the theoretical level. This division of social and economic theoretical realms is at odds with the everyday realities of life, where social activities are entwined with economic activities through a nested relationship. Sen’s major contribution in the field of economics is to resist the desocialization of economics and challenge the philosophical foundation of traditional economic theory. Sen contributed to shifting the focus in the field of economics and development studies from an exaggerated emphasis on growth towards issues of personal well-being, agency and freedom. In this line of argument, known as capability approach (CA), Sen has provided a broader definition of human welfare involving more complex motivations, like social concerns and the well-being of future generations, etc. However, despite having many promising features, Sen’s CA also has its own weaknesses when considered on its own. CA is often criticized for its underspecified nature and the lack of a definite list of capabilities raised some concerns regarding the practical application of this approach. Through an exhaustive review of relevant literature, this paper sets out to outline the main feature of Sen’s approach. The aim of this paper is to identify the potential as well as the limits of CA for the conceptualization and assessment of human well- being. The paper concludes that in order to use CA to construct an empirically grounded assessment of wellbeing, one needs to adopt carefully designed procedural methods for the selection of relevant capabilities.