HDI and Human Happiness Index DR. DESHMUKH V.V. DEPARTMENT OF ECONOMICS, Rayat Shikshan Sanstha’s S.M.JOSHI COLLEGE HADAPSAR, PUNE

HUMAN DEVELOPMENT CONCEPT & APPROACH

LEARNING OUTCOMES Understand reasons for emergence of HD approach Define Human Development (HD) Understand Functionings, Capabilities and Agency HD, Human Rights and Human Security HD and Economic Growth HD and other approaches- Human Resource Development, Basic Needs Characteristics and Principles of HD

DEFINING DEVELOPMENT How do we define development? Identify three defining characteristics World bank. movie

DEFINING HUMAN DEVELOPMENT "The basic purpose of development is to enlarge people's choices. In principle, these choices can be infinite and can change over time. The objective of development is to create an enabling environment for people to enjoy long, healthy and creative lives.“ Mahbub ul Haq Human achievements – key indicators of progress - not merely per capita income which is not a reliable indicator People may value non-income parameters like peace and security, gender equality, satisfying leisure hours, sense of participation Hd and eco growth are related …complementary

WHAT IS DIFFERENT IS AOUT THE HD APPROACH? Gives centrality to people’s choices, functionings, capability and freedom Focus is on what people are what people can be or do and the opportunity set available to people Multiple dimensions of human attainments and deprivations recognized

MAIN CONTRIBUTORS Amartya Sen proposed the Capability Approach to development in his seminal Tanner Lectures ‘Equality of What?’ in 1974 Mahbub ul Haq- Pioneered the Human Development approach based on Capability Approach’s theoretical framework in 1990 Martha Nussbaum – Applied the Capability and Human Development approach to analyze issues related to Gender Ingrid Robeyns – Explored philosophical dimensions Des Gasper – Elaborated on Human Rights, Human Security and linkages to HD approach Sabina Alkire – Devised measure for Multi Dimensional Poverty based on the Capability Approach

FUNCTIONINGS AND CAPABILITIES Capabilities and functionings form conceptual foundations of the HD Approach Functionings - valuable ‘beings and doings’ of people Elementary functionings –being healthy and nourished Complex functionings – ability to contribute to community life, achieving self respect, ability to ‘appear in public without shame’ Difference is focus on what these tangible things do to people Example - when people’s basic need for food (a commodity) is met, they enjoy the functioning of being well-nourished Developmental Goal: to enhance people’s potential ‘to be & to do’

UNPACKING CAPABILITY Capability is then a set of functioning that each person chooses for herself/himself Choice is of importance – choice will reflect the functioning that people value or have reason to value. Capability approach does not consider the functioning that a person has achieved as the ultimate norm that is measured. What is important is the capability or freedom to achieve a vector of functionings Functionings are defined as ‘the various things a person may value doing or being’ (Sen 1999, p75). In other words, functionings are valuable activities and states that make up people’s well-being – such as being healthy and well-nourished, being safe, being educated, having a good job, being able to visit loved ones. They are also related to goods and income but describe what a person is able to do or be with these. For example, when people’s basic need for food (a commodity) is met, they enjoy the functioning of being well-nourished. Capability refers to the freedom to enjoy various functionings. In particular, capability is defined as ‘the various combinations of functionings (beings and doings) that the person can achieve. Capability is, thus, a set of vectors of functionings, reflecting the person’s freedom to lead one type of life or another . . . to choose from possible livings’ (Sen, 1992, p40). Put differently, capabilities are, ‘the substantive freedoms [a person] enjoys to lead the kind of life he or she has reason to value’ (Sen, 1999, p87). Agency is the ability to pursue goals that one values and has reason to value. An agent is ‘someone who acts and brings about change.’ (Sen, 1999, p19 A., Sen 1999, Development as Freedom, OUP

UNPACKING CAPABILITY The term capability is often understood in common parlance to mean ‘skills of people’. However under the capability approach the term has a specific meaning Necessary to distinguish between 3 understandings of the concept of capability P capability- inborn potential S capability- trained potential - skills, abilities O capability- opportunity capability Sen implies capability in the O capability sense Personal characteristics and environmental factors influence translation of capability into functionings The bicycle example The term capability is often understood as the capabilities of people – a term that is used to indicate the skills of people – this is often used in this common sense manner – and Martha Nussbaum also uses it to identify essential capabilities. The way to distinguish between them is to understand the various connotations of the term. Gasper provides a neat summary – it can be understood in any of the 3 different ways Inborn potentials – P capability Trained potentials – skills, abilities – similar to human resource development – S capabilities Attainable outcomes – O capabilities – opportunity set Sen’s use – attainable capabilities which are influenced by environmental factors and person’s capabilities. The capability set is the range of favourably valued life opportunities which are attainable for a person. The person’s freedom is required for attaining the opportunity set – Freedom is implied in the choice of functionings to constitute a capability set. Freedom comprises two aspects; opportunity freedom and process freedom. In his book ‘Development as Freedom’ Sen repositioned capability as opportunity freedom. He emphasizes 5 instrumental freedoms that are important for human development: Political freedom Economic facilities Social opportunities Transparency guarantees Protective security – the opportunity freedoms is what is referred to in the capability approach. Process freedom refers to the individual’s role in making decisions - this is strictly not included in the capability approach but is in the supporting framework. The capability approach apart from being a subjective and normative approach is also essentially an evaluative approach. Once freedoms are included into the picture, it moves beyond evaluation – as of now this is a special variant of the capability approach. The capability approach focuses on preferences and not on entitlements. Though some listings of capabilities include what are considered as essential entitlements – e.g. Martha Nussbaum’s list of essential capabilities or even Sen’s own listing of essential freedoms.

UNPACKING CAPABILITY Formulations of capability have two parts:  functionings and opportunity freedom Sen’s significant contribution has been to unite the two concepts. Capability is the freedom to enjoy valuable functionings Concept of Agency is important Agency is the ability to pursue goals that one values and has reason to value – important that goals should be ‘reasonable’ An agent is ‘someone who acts and brings about change’

Unfreedoms The constraints to ever expanding freedoms are termed "un-freedoms" - barriers that could exist in economic, social or political realms of society. Thus poverty, malnutrition, poor sanitation, tyranny, poor economic opportunities, social deprivations, poor public facilities, intolerance, communalisation, ethnic centricity, repressive state apparatuses, lack of education, absence of health care, lack of security, and corruption can all be termed un-freedoms. They are all regarded equally relevant.

DEVELOPMENT AS FREEDOM Freedom to choose functionings is crucial People as ‘Agents’ – not recipients of welfare and benefits Amartya Sen - Development as Freedom Freedom has intrinsic value valuable in itself Freedom has instrumental value as a means to other things Freedom ‘from’ is as important as freedom ‘to’

DEVELOPMENT AS FREEDOM In ‘Development as Freedom’ Sen repositioned capability as opportunity freedom and emphasized 5 instrumental freedoms that are important for human development. These are political freedom economic facilities social opportunities transparency guarantees protective security

HUMAN RIGHTS AND HUMAN SECURITY Human Security - ‘Freedom from Want and Freedom from Fear’ – HDR 2000 Beyond concerns of national security to focus on 7 components at individual level Economic Food Health Environmental Personal Community Political

LINKAGES BETWEEN HD AND CAPABILITY APPROACH The capability approach is the foundation on which the HD approach is built Both the approaches are subjective, normative and evaluative Capability approach emphasizes opportunity freedoms The human development approach includes both opportunity and process freedoms – and the concept of Development as Freedom The capability approach is the foundation on which the HD approach is built. In addition to the capability approach which emphasizes the opportunity freedom, the human development approach also includes the process freedoms – and the concept of Development as Freedom. In fact, Sen proposes the capability approach as the space within which the issue of justice can be examined. So it provides the analytical space for other related issues. The analysis of entitlements and human security is an essential component of the human development approach. Human Development Approach Opportunity freedom Agency freedom Capability Approach Human Security Evaluative Framework Entitlement Framework This brings us to the relationship between human rights and human development

Human Development Approach Entitlement Framework THE HD FRAMEWORK Human Development Approach Opportunity Freedom Capability Approach Human Security Agency Freedom Entitlement Framework Evaluative Framework

APPLYING THE HD APPROACH Is there a list of essential capabilities? Amartya Sen averse to listing out what constitutes essential capability set Martha Nussbaum however, considers it imperative to list out the essential capabilities Nussbaum’s list consists of the following dimensions: Life Bodily Health Bodily Integrity Senses, Imagination, and Thought Emotions Practical Reason Affiliation – Being able to live with and toward others Concern for other Species Play - Being able to laugh, to play, to enjoy recreational activities Control over one's Environment

HD AND HUMAN RIGHTS Emphasis in HR Both guarantee basic freedoms Compatible and complementary – both required to enhance well being Emphasis in HD enhancement of choices & capabilities - focus on duty bearers and public policies Emphasis in HR entitlements of claim holders – emphasis on legal change, social movements to generate demand Human Rights initially viewed as political rights- now includes social, cultural and economic rights

HD AND HUMAN SECURITY Human Development Report 1994 defined human security as ‘Freedom from Want and Freedom from Fear’ Human Security concept goes beyond concerns of national security and threats of conflicts to focus on the individual Not merely physical security but ability to secure minimum requirements 7 components of human security Economic Food Health Environmental Personal Community Political Acts as a bridge between concepts of human rights and human development

ECONOMIC GROWTH AND HD Growth advocates believe: HD advocates believe: Expanding income is an end in itself Growth does trickle down HD advocates believe: income a means- end is enhancing people’s capabilities Simultaneous expansion of choices in dimensions other than economic– social, cultural, political,environmental No automatic link –trickle down cannot be relied upon

HD IS ABOUT… People- “how” and for “whom” not just “what” to do Emphasis from “are we doing things right” to “are we doing the right things” Go beyond income to ensure growth is not jobless, voiceless, rootless, ruthless, futureless -1996 Global HDR

WHAT HD IS NOT…. HD and Human Resource Development Evolved in 1960s from Schultz’s concept of human capital Powerful implications – human beings resources/inputs in production process – not ends in themselves Education and health means of enhancing human capital Rates of return important Basic Needs Approach Evolved in 1970s from ILO focus on providing basic needs for poor – food, shelter, clothing, health care, water etc Focus on provision of goods Ignores choices and underplays freedom Ignores ‘agency’ aspect of individuals – people treated more as beneficiaries

COMPARING APPROACHES ` Human Development Economic Growth Human Resource Development Basic Needs Approach People Instrumental and intrinsic value-agency Instrumental Factor of Production - instrumental Beneficiaries End-goals Formation of human capabilities and use of acquired capabilities Creation of wealth Maximizing human productivity Welfare Indicators Human liberty and choices GDP per capita Labor productivity Eradication of Poverty Orientation Ethical Economic Utilitarian Protectionist

Human Happiness Index

CHARACTERISTICS OF HD Under Construction Multidimensional Inter-disciplinary Pragmatic

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