{"id":68059,"date":"2022-06-07T05:49:31","date_gmt":"2022-06-07T09:49:31","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=68059"},"modified":"2022-06-16T17:53:56","modified_gmt":"2022-06-16T21:53:56","slug":"amartya-sen-poverty","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/amartya-sen-poverty\/","title":{"rendered":"Amartya Sen: Poverty Is About More Than Just Income"},"content":{"rendered":"\n<p>What is poverty, according to Amartya Sen? How can we approach poverty as a social problem?<\/p>\n\n\n\n<p>In <em>Development as Freedom<\/em>, Nobel Prize-winning economist Amartya Sen argues that economic development is about more than increasing wealth\u2014it must be about expanding freedom. Poverty shouldn&#8217;t be just about the amount of income you make; it&#8217;s also about the lack of rights you have.<\/p>\n\n\n\n<p>Learn more about this ethical approach by Amartya Sen, poverty as capability deprivation, and development as freedom.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-amartya-sen-on-poverty-and-economic-development\"><strong>Amartya Sen on Poverty and Economic Development <\/strong><\/h2>\n\n\n\n<p>In redefining development as freedom, Amartya Sen takes a holistic view of poverty and characterizes it as impeding people\u2019s ability to lead the lives they want.<\/p>\n\n\n\n<p>Most definitions of poverty are based only on the level of income. However, poverty has a much more nuanced definition, according to Amartya Sen. Poverty isn&#8217;t solely defined by income, and doesn&#8217;t tell the whole story of well-being. <\/p>\n\n\n\n<p>Sen contends that income and wealth are only important as a<em> means<\/em> to something else, not for their own sake<strong>. <\/strong>As such, poverty is about more than low income; it\u2019s about a lack of opportunity. Conversely, development is about more than simply increasing wealth; it\u2019s about <em>increasing <\/em>opportunity.<\/p>\n\n\n\n<p>Sen contends that <strong>poverty is harmful and unjust because it deprives people of the ability to lead the lives they want<\/strong>, and development is valuable because it allows people to improve their lives as <em>they<\/em> see fit.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-sen-and-the-human-development-index\"><strong>Sen and the Human Development Index<\/strong><\/h3>\n\n\n\n<p>Sen\u2019s work on redefining poverty has had practical implications for policy-making. With Sen\u2019s help, the United Nations established the <a href=\"https:\/\/hdr.undp.org\/en\/content\/human-development-index-hdi\">Human Development Index<\/a>, which provides a more comprehensive metric of welfare than just income. The index is composed of three parts:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Life expectancy at birth<\/li><li>Years of schooling per adult and expected schooling of children<\/li><li>Gross National Income per capita<\/li><\/ol>\n\n\n\n<p>Each part is indexed on a scale from 0 to 1, and the three scores are then averaged to get a single score from 0 to 1. The UN believes this \u201ccapabilities approach\u201d to development offers a more useful metric than GDP or GNI because health and education affect development as well.<\/p>\n\n\n\n<p>By utilizing the Human Development Index, Sen hopes to provide a clearer picture of advances in developing nations, as well as to identify the areas that still require improvement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Poverty as \u201cCapability Deprivation\u201d<\/strong><\/h3>\n\n\n\n<p>Amartya Sen defines poverty as \u201ccapability deprivation,\u201d<strong> <\/strong>(he also refers to it as \u201cunfreedom\u201d)<strong>\u2014 <\/strong>which means<strong> <\/strong>hindering people\u2019s chances to improve their station in life.<strong> <\/strong>There are two main benefits to viewing poverty in this way:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>It considers the <em>intrinsic<\/em> importance of freedom, which Sen says all people value.<\/li><li>Other factors besides low income contribute to a lack of capability, which makes the income approach inadequate.<\/li><\/ol>\n\n\n\n<p>Sen explains that forms of capability deprivation and unfreedom include the processes and opportunities that affect a person\u2019s welfare. For example, violations of human rights and civil liberties are one form of unfreedom because they disrupt the <em>process<\/em> of free <a href=\"https:\/\/www.shortform.com\/blog\/methods-of-decision-making-crucial-conversations\/\">decision-making<\/a>. Famines, poor sanitation, and the threat of disease are other forms because they diminish <em>opportunities<\/em>.<\/p>\n\n\n\n<p>(Shortform note: Sen takes issue with all definitions of poverty that use income as the sole metric. There are multiple income-centered definitions:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The World Bank <a href=\"https:\/\/datatopics.worldbank.org\/world-development-indicators\/themes\/poverty-and-inequality.html\">defines extreme poverty<\/a> as $1.90 or below per day.<\/li><li>For developed nations, <a href=\"https:\/\/data.oecd.org\/inequality\/poverty-gap.htm#:~:text=The%20poverty%20line%20is%20defined%20as%20half%20the,people%20aged%2018-65%20years%20and%20people%20over%2065.\">the OECD defines poverty<\/a> as half the median household income.<\/li><li>The <a href=\"https:\/\/www.census.gov\/topics\/income-poverty\/poverty\/guidance\/poverty-measures.html\">US Census Bureau\u2019s poverty line<\/a> varies by the size of the family unit.<\/li><\/ul>\n\n\n\n<p>Sen argues all of these ignore factors that affect a person\u2019s capabilities, such as <a href=\"https:\/\/www.shortform.com\/blog\/access-to-college\/\">access to education<\/a> and health care.)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Development as Freedom<\/strong><\/h3>\n\n\n\n<p>Sen defines development as <em>the process of expanding the freedoms that people can exercise<\/em>.&nbsp;<\/p>\n\n\n\n<p>In contrast, most modern economic literature takes the \u201cincome-centered approach\u201d to poverty and economic development. Most analyses by economists and policymakers view per-capita income and GDP growth as the keys to prosperity. However, Sen argues this approach is a deviation from a more holistic approach to development.<\/p>\n\n\n\n<p>Aristotle stated that <strong>wealth is only valuable insofar as it could be used to achieve other objectives<\/strong>, such as \u201ccapacity\u201d and \u201cflourishing.\u201d Adam Smith, considered the founder of economics, often prioritized living conditions rather than mere income. The pioneering work of economists and mathematicians like Sir William Petty and Joseph-Louis Lagrange paid similar attention to what could be achieved with income.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is poverty, according to Amartya Sen? How can we approach poverty as a social problem? In Development as Freedom, Nobel Prize-winning economist Amartya Sen argues that economic development is about more than increasing wealth\u2014it must be about expanding freedom. Poverty shouldn&#8217;t be just about the amount of income you make; it&#8217;s also about the lack of rights you have. Learn more about this ethical approach by Amartya Sen, poverty as capability deprivation, and development as freedom.<\/p>\n","protected":false},"author":14,"featured_media":31195,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[81,20,24],"tags":[636],"class_list":["post-68059","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economics","category-ethics","category-society","tag-development-as-freedom","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Amartya Sen: Poverty Is About More Than Just Income - Shortform Books<\/title>\n<meta name=\"description\" content=\"What is poverty, according to Amartya Sen? Poverty isn&#039;t just about how much money you make. 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