The Concept

This chapter explains in detail the notions of ‘functionings’ and ‘capabilities’. It discusses the multi-layered phenomena of capabilities in the form of as threshold, internal, external, and complex capabilities. It analyses how they provide valuable understanding about the conversion factors that are involved in the translation of resources to capabilities and capabilities into functionings. It critically evaluates the capabilities approach and emphasises the importance of the role of endowments and entitlements as factors influencing and contributing to human flourishing and well-being. The unique feature of the chapter is the presentation of an integrated analytical framework that traces the pathways to human development through equity, sustainability, empowerment, and productivity processes. In addition, the chapter discusses the Human Development Index (HDI) and the challenges relating to its computation.

Economic Growth and Human Development

Unravelling the linkages between economic growth and human development has assumed urgency in the current era where development processes no longer follow historical patterns. This chapter juxtaposes the relationship between them in the light of the globalization process and the varying outcomes of human development across countries. The analysis of linkages between GDP and HDI over the past three decades across countries shows that the process is extremely dynamic in nature and that human development outcomes do not follow a defined trajectory. This is particularly evident in the analysis of backlogs in human progress, where we find the dominance of joblessness, impoverishment, displacement, and migration. The chapter concludes that economic growth and human development cannot be viewed as disconnected processes as they influence each other in multiple ways.

Introduction

This chapter traces the historical context within which the conceptual evolution of the human development and capabilities approach took place. It highlights the fact that the human development paradigm brought back to development a value-based concept that focused on the Aristotelian notion of human flourishing, thereby transcending the narrow interpretation dominated by economic growth. This chapter also compares the human development approach with other people-centric approaches, such as Human Resource Development (HDR), Basic Needs, Human Rights, and Human Security. The human development paradigm assumes renewed relevance for the twenty-first century world that is at the crossroads, plagued by the multidimensional challenges of inequality, environmental degradation, and increased vulnerabilities.

Gender and Human Development

The chapter presents an intersectional analysis of women’s human development outcomes through the lens of gender and social relations on the one hand, and the nature of public policies implemented on the other. Against the backdrop of women’s movements, this chapter explains women’s marginalization process, wherein critical gaps in the formation of basic capabilities across men and women in the society are identified. Differences in human development outcomes are not only due to differences in access and opportunity freedoms, but also in endowments and entitlements. Thus, real concerns about women’s human development achievements are regarding capability deprivation and inequalities in access to labour markets, social opportunities, political participation, and social protection. It is argued that purely entitlement transfers through state policy will not be able to resolve the issue. The numerous efforts to assess human development outcomes of both women and men in terms of quantitative and qualitative dimensions have been able to capture only some part of this multi-layered phenomenon.

Deprivation and Distribution

The chapter argues that the analysis of poverty and inequality cannot be conducted in independent silos as they have numerous interconnections. The human development approach requires the adoption of a multidimensional lens to poverty and inequality, as deprivations go beyond income and dimension and encompass non-income aspects such as basic capabilities. It further elaborates that poverty emanates from socio-cultural differentiations and the resultant horizontal and vertical inequalities could cause capability losses. Policies to address such inequalities would need to pay heed to the differing initial conditions and recognize ethnicity, class, women’s agency, and spatial concerns.

Social Sectors in Human Development

This chapter critically examines the role of social sector policies in enhancing human freedoms against the backdrop of the globalization process and the SDGs that are anchored in the human development ethos. We argue that the agenda of human development policy-making is of identifying and promoting ‘public goods’ that enhance basic capabilities and thereby human well-being. Drawing from the empirical experience of countries, four stylized facts that contribute to the effectiveness of social sector policies are presented. The stylized facts emphasize the role of initial conditions, redistributive measures, and reaping the synergies of integrated policies. Select innovative measures across countries that address human development challenges are discussed with a view to identifying unique policy initiatives. The chapter highlights the need to distinguish between the pathways of policy-making that enhance comprehensive outcomes vis-a-vis those that lead only to culmination outcomes.

Measuring Human Progress

This chapter discusses the methodological issues pertaining to human development analysis. It critically reflects on the role of GDP as a measure of human progress and points to the shift in the discourse from unidimensional to multidimensional measures. In the light of significant efforts towards deriving alternate measures of well-being that include multiple dimensions, the issues relating to composite indices, such as indicator selection, weightage given, and numerous dimensions being combined in one index, are examined. A key perspective highlighted in the chapter is the challenge posed by ‘empty indicators’ as well as missing and unreliable data. Cautioning researchers on these issues, the chapter points to the need for better data reporting. Additionally, it argues in favour of the human development approach being extended to the process of data generation itself using participatory methods, particularly at a time when the SDG mandate extends over 230 indicators, many of which are also necessary to monitoring at the local level.

Human Flourishing and Well-Being

This chapter reflects on the meta questions of human flourishing, well-being, and justice, and critically looks at ideas of choices, well-being, and freedom from a human development standpoint. Freedom is the pivot around which human development revolves, where freedoms are of two kinds, personal freedom and process freedom, each of which has different public policy implications. The chapter discusses both process and opportunity freedoms and distinguishes them from other conventional notions of freedom. It also deals with the process of choice and the act of choice at the individual level and its relationship with human flourishing. Further, the role of agency is highlighted, where both individual as well as collective agency are established as important to bring about a change in the society.

Sustainability

This chapter explains the importance of broadening the purview of sustainability to include environmental, economic, and social dimensions. The rationale for this more comprehensive view lies in the fact that people face multiple vulnerabilities due to disaster-related risks, macro-economic shocks, political turmoil, and ever-expanding social inequalities. Therefore, this chapter argues for the need to anchor all actions in the pathway of strong sustainability as sustaining ecosystems and their services and ensuring environmental rights for present and future generations are important from the point of view of intergenerational equity. This can be achieved through adopting an ‘institutionally integrated view’ of a freedom-centred approach that strengthens the foundations of sustainable human development through promotion of basic capabilities, collective freedoms, and social cohesion.

Epilogue

Discussing human development issues at the national level, without being mindful of the global architecture that can enable or hinder the same, is an exercise in futility. In recognition, this chapter reflects on the broader engagement of global policy-making in influencing pathways to human progress. The chapter puts forth the argument that the ‘unequal world’ today is gearing towards fostering notions of equity and justice, which are key to the human development paradigm. The rejuvenation of the global architecture is imperative as the onslaught of economic crisis, environmental fragility, and worsening of social inequities are cutting across economies in both the developed as well as the developing world. In such a milieu, it may be worthwhile to revive the dialogue process beyond the SDG mandate to encompass economic and political issues—a la the North–South Roundtables platform of yore.