Measuring capabilities: Taking people’s values seriously

Tadashi Hirai

World Development, 2021, vol. 148, issue C

Abstract: People’s values are fundamental to development and ‘the capability approach’ in particular. Nonetheless, values have not been considered when capabilities have been measured with a focus on achievements along established dimensions. The main purpose of this article is thus to introduce two new measures: the Capability Index and the Gap Index. By combining two existing scales, the OCAP-18 from the capability approach and the Aspirations Index from positive psychology, the new measures reflect not only the level of attainment but also the value level of each capability dimension. Thus, the Capability Index can be calculated by weighting the attainment level according to the value level, while the Gap Index can be calculated by subtracting the attainment level from the value level. In line with the methods of the original Human Development Index, the mathematical formulation is kept as simple as possible in order to facilitate public discussion. By using data from BRIC countries, the present study not only demonstrates the possibility of measuring capabilities in a more precise but less complicated manner; it also reveals significant gaps between the levels of value and attainment along some capability dimensions, leading to challenge the concept of adaptive preferences. While the new Capability Index can be used as a more accurate way of measuring capabilities than was possible with existing measures, the new Gap Index can be used as an effective way of targeting the dimensions of capability that would otherwise lead people to become frustrated with their lives. Accordingly, the study underlines the significance of the capability approach to development and, more broadly, makes policymaking more human-centred by taking people’s values seriously.

Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:148:y:2021:i:c:s0305750x21002722

DOI: 10.1016/j.worlddev.2021.105657

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