Applying the capabilities approach in economic development

Abstract

Economists working in the field of development have highlighted the need to examine fully that is the ultimate aim of their work. The capabilities approach (CA) of Amartya Sen (1999) provides a perspective that concentrates on this enlargement of people's choices by focusing on the expansion of human freedoms and capabilities as a measure of appraising success in development. On the macro scale, work has been completed within this perspective to develop indicators such as the Human Development Index to quantify development in terms of capabilities. However, little has yet been done on the micro scale in applying the CA to evaluating particular development and poverty reduction projects. This research explores the usefulness of the CA for appraising a particular self-help development project in a small Pacific Island Nation, Samoa and in a poverty alleviation programme in the developed nation context of Christchurch, New Zealand.

Traditional appraisal techniques for development projects have typically concentrated on looking at the amount spent, the goods provided or the extra income earned. While these traditional studies of income levels are acknowledged as important in the appraisal process, this thesis argues that the CA provides a more comprehensive and meaningful analysis through the examination of functionings and capabilities. In formulating means of appraising the projects using the CA, the expectations of the participants, with respect to what they see as valuable, is central. Finding out the ambitions and aspirations that are important to participants before the projects begin is an important part of this. In any such appraisal, it is also important to incorporate the extent to which existing capabilities have been developed and the extent to which participants have been engaged in expanding their own choices. In the groups interviewed in Samoa these increased choices ranged from being able to pay fees for further education for children to being able to be seen as more generous donors to local churches. Also noted was the ability to be responsible for the generation of sufficient income to upgrade sanitation facilities, the ability to improve the fortunes of the family, the ability to engage other members of the family in the project and being able to be involved in the revival of traditional crafts. In the interviews in the Community Gardens in Christchurch there was a similarly diverse range of increases in choices. Some participants noted that they now had a much greater level of confidence and social skills and this gave them much greater opportunities in what they could do in their daily lives. For some this meant the prospect of employment while others had a much greater opportunity for an activity that they valued highly - social interaction. Another significant area mentioned by the respondents as a consequence of their involvement in the Community Gardens' programmes was the increased range of activities they could undertake to promote their own health and well being including physical exercise and growing and cooking their own produce.

The main result reached in this thesis is that a capabilities-based focus group analysis represents a useful means of appraising development projects in both a developing nation context and in a developed country situation. An important policy implication for organisations involved in development is that it is important that project appraisal criteria recognise that poverty involves deprivation of capabilities rather than just lack of income. Thus effective development initiatives can be more fully appraised by the extent to which capabilities of those involved are enhanced in the programmes. Furthermore, appraisal of the type carried out in this research should take place on an ongoing basis through all the stages of the Project Cycle of a development initiative so that the focus group process is an integral part of the programme design. In this way, the opportunities for participation of those involved in the programmes can be enhanced at all stages rather than being seen as a form of appraisal that occurs just once in the project. A further implication of this research is that the aim of development projects should be to expand people's choices and to help individuals and communities uncover and develop capabilities they already have. Rather than being seen as simply a means by which participants can be given goods and income, development projects should open up capabilities that people already have, and so expand the freedoms and choices of communities and individuals.