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View via Publisher. Save to Library. Create Alert. Share This Paper. Citations Publications citing this paper. Accounting for economic disparities in financing municipal infrastructure in South Africa: a case study using data from the Cape Winelands District Municipality Mervyn Jayaprakash Josie. What is Empowerment for Her? Towards a capability approach to mobility : An analysis of disparities in mobility opportunities among older people Jean Ryan.

Using the capability approach and organizational climate to study occupational health and safety Adriana Bernardi. The M 0 or MPI satisfies the ordinality property. This means that for any monotonic transformation of the ordinal variable and associated cutoff, overall poverty as estimated by M 0 will not change. Suppose there is a hypothetical society containing four people and multidimensional poverty is analyzed using four indicators: income, years of education, Body Mass Index BMI , and access to improved sanitation.

Person 1 has completed 14 years of schooling, whereas Person 2 has completed thirteen years of schooling. Person 3 is the only person who is malnourished of all four persons. Two persons in our example have access to improved sanitation. Thus, each row of matrix X contains the achievements of each person in each of the four indicators. The achievement matrix X has three people who are deprived see the underlined entries in one or more indicators. Person 1 has no deprivation at all. Based on the deprivation status, we construct the deprivation matrix g 0 , where a deprivation status score of 1 is assigned if a person is deprived in an indicator and a status score of 0 is given otherwise.

We then apply these weights to the deprivation matrix to obtain the weighted deprivation matrix.

The weighted sum of these status scores is the deprivation score C i of each person. For example, the first person has no deprivations and so the deprivation score is 0, whereas the third person is deprived in all indicators and thus has the highest deprivation score of 1. Similarly, the deprivation score of the second person is 0. The union identification approach identifies a person as poor if the person is deprived in any of the four indicators. In that case, three of the four people in this example are identified as poor i.

On the other hand, the intersection approach requires that a person is identified as poor if she is deprived in all indicators. In that case, only one of the four people is identified as poor i. This strategy identifies a person as poor if she is deprived in half or more of weighted indicators, which in this case means that two of the four people are identified as poor i. Once the poor have been identified, the weighted deprivation matrix is censored so that the measure can focus only on the deprivations of the poor — that is, deprivations of those identified as non-poor are replaced with a zero.

Note that there is one case where the censoring is not relevant: when the poverty cutoff corresponds to the union approach, then any person who is deprived in any dimension is considered poor, and the censored and original matrices are identical. As discussed above, the headcount ratio H is the proportion of people who are poor, which is two out of four persons in the above matrix. The intensity A is the average deprivation share among the poor, which in this example is the average of 0.

It is also straightforward to verify that M 0 is the average of all elements in the censored deprivation score vector c k , i. Following the explanations above, the analysis can be completed by computing decompositions by populations subgroups and dimensional breakdowns. One specific application of the AF method has been the Global MPI, which is an internationally comparable measure of acute poverty in over developing countries.

The aim of the Global MPI is to inform policy through comparable information on multidimensional poverty for the developing world. In this sense, the selection of dimensions, indicators and other parameters is guided by this purpose, as well as by the available information for this large number of countries.

This measure uses the household as the unit of identification, meaning that indicators are defined at the household level and all members share the same status of deprivations. Each dimension has equal weight and indicators within dimensions receive an equal weight. The most recent figures of the Global MPI were launched in They covered 5. A total of 1. This figure represents An interesting result is obtained when comparing the level of the MPI index in these regions with the traditional USD 1. In South Asia, In SubSaharan Africa, multidimensional poverty affects When the index is broken down by age groups, the findings indicate that a large share of the multidimensionally poor people is composed of children 0 17 years old , and that the MPI is especially high among them.

The most common deprivations children face are in cooking fuel, sanitation, flooring, malnutrition and electricity Figure 3. Since , a measure of destitution has been incorporated to the analysis. This measure identifies a subset of the MPI poor who are the poorest of the poor. As of , nearly half of all MPI poor people live in destitution. The same set of dimensions, indicators, weights and poverty cutoff are used to identify those who are destitute, but the destitution deprivation cutoffs are more extreme.

They include severe malnutrition, losing two or more children, having a child out of primary school, having no household member who has completed more than one year of schooling, using open defecation, fetching water that is unsafe or 45 or more minutes away, not owning even a mobile phone or radio, and cooking with wood or dung or straw only. Interestingly, there are pockets of destitution even in countries with low levels of MPI Figure 4.

In general, destitution rates tend to be lower than the USD 1. This finding highlights the importance of measuring and fighting poverty in all its forms and dimensions. All in all, the last Global MPI figures provide a comprehensive description of deprivations in multiple dimensions for the developing world. Around a quarter of the population in these countries are multidimensionally poor, almost half of all MPI poor are children, there is a positive association between disability status and multidimensional poverty, and nearly half of all MPI poor people face severe deprivations.

The Capability Approach developed by Nobel Laureate Amartya Sen implied a paradigm shift in the understanding of human development, poverty and inequality, and deeply impacted the way in which we have analyzed and measured these phenomena in the last two decades. The concept of development turned into human development, measures of development, poverty and inequality shifted from one dimension to multiple dimensions, and policy making changed drastically in the direction of improving several dimensions to advance human development and not just increasing the income level of the economy.

Following the launch of the Human Development. Index HDI in , several new indices have been created following this shift to a broader understanding of human development. This chapter provided a description of the concepts of human development, poverty and inequality under this new conceptualization — intrinsically linked but describing different characteristics of well-being.

It then presented recently developed indices that are widely used to measure these phenomena and discussed several methodological considerations of their implementation. In particular, the chapter focused on the Multidimensional Poverty Index MPI , a measure that complements more traditional monetary measures of poverty by recognizing that this phenomenon has many forms and dimensions. First, it provided details on the Alkire and Foster methodology for measuring multidimensional poverty.

Then, it discussed the more recent figures of the Global MPI, a specific application of the Alkire and Foster method which provides a comprehensive description of deprivations in multiple dimensions for the developing world. The Global MPI is an internationally comparable measure of acute multidimensional poverty.

Following the structure of the HDI, it is composed by three dimensions — education, health and living standards, and 10 indicators. All dimensions are equally weighted, and indicators within dimensions receive an equal weight.

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A person needs to be deprived in a third of weighted indicators to be identified as multidimensionally poor. Findings also revealed that there is a positive association between disability status and multidimensional poverty, and that nearly half of all MPI million poor people are destitute facing severe deprivations. All these findings provide valuable information to shape policy responses in the context of the Agenda. The SDGs adopted by world leaders represent a general acknowledgement of the broader understanding of human development presented in this chapter.

They urge countries to fight poverty all its dimensions. They set a premise that countries should leave no one behind in their efforts for progress. They emphasize the need for a better understanding of the interlinkages across many indicators, which is key to design multisectoral-coordinated policy interventions.

The SDGs will most likely lead to the implementation of new metrics that allow going beyond the traditional measures and can guide interlinked responses across many sectors. These new tools, used jointly with existing ones like the HDI and MPI, could lead to more effective and precise targeted policies that improve the living conditions of those who are still facing severe challenges in their lives.

Alkire, S. Valuing freedoms. Background paper for the Human Development Report. Alkire S. Foster Foster, S. Seth, M. Santos, J. Roche and P. Ballon Journal of Economic Inequality , 9 3 , pp. Robles Briefing Santos World Development , 59, pp. Bourguignon, F. Background paper for European Report on Development London: Allen Lane. Foster, J. Greer and E. Thorbecke Econometrica 52, — Nussbaum, M. Creating capabilities: the human development approach. Pinilla-Roncancio, M. Sen, A. In Sterling M. McMurrin ed.

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Cambridge: Cambridge University Press. Commodities and Capabilities. Oxford: Elsevier Science Publishers. Journal of Philosophy , 82 4 , pp. Journal of Development Planning , 17, pp. Inequality re-examined.

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What is the Capability Approach to development?

Oxford: Oxford University Press. Development as freedom. New York: Knopf. New York: Oxford University Press. New York: Hoechstetter Printing Co. UNDP The first cell, [1,1], would represent the level of achievement of household 1 in indicator 1; the second cell in the first row, [1,2], would represent the achievement of household 1 in indicator 2, and so on. In the traditional incidence rate this is not verified. We use our own and third-party cookies to offer you a pleasant experience and display to users advertising related with your preferences, based on analysis of your browsing habits.

The Capability Approach: Concepts, Measures and Applications

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David Crystal. Writer, speaker and commentator, Holyhead, Reino Unido. Latest book. Towards a New Enlightenment? A Transcendent Decade. Economy Global Economy. Equality Labour Market Perplexity Women. Adriana Conconi. Mariana Viollaz. Estimated reading time Time 23 to read. This chapter begins by describing the concepts of human development, poverty and inequality under this new conceptualization —intrinsically linked but describing different characteristics of well-being.

It then presents recently developed indices that are widely used to measure these phenomena and discusses several methodological considerations of their implementation. In particular, the chapter focuses on the Multidimensional Poverty Index MPI , a measure that complements more traditional monetary measures of poverty by recognizing that this phenomenon has many forms and dimensions.