Understanding Poverty: How Capability Can Measure the Lack of Resources

Understanding Poverty: How Capability Can Measure the Lack of Resources

Poverty is a complex issue that affects millions of people worldwide. Despite the efforts of governments and nonprofit organizations, it persists and continues to hinder the quality of life of many individuals. Poverty is often measured by material deprivation, but it extends beyond the lack of financial resources. Capability is a concept that allows us to understand poverty differently by measuring the lack of resources people need to lead a fulfilling life. In this article, we will explore the concept of capability and how it can help us measure poverty more effectively.

The Traditional Approach to Measuring Poverty

Traditionally, poverty is measured by assessing a household’s income or expenditure and comparing it to a threshold value that denotes the poverty line. The poverty line establishes the minimum level of income or expenditure necessary to satisfy basic needs such as food, clothing, and shelter. However, this approach has limitations as it fails to capture non-monetary aspects of poverty. Moreover, the poverty line is often arbitrary and varies between countries depending on the cost of living.

The Concept of Capability

Capability is defined as the ability of an individual to lead a fulfilling life by making choices that matter to them. It is a multidimensional concept that goes beyond basic needs and incorporates factors such as education, health, and social inclusion. Capability is derived from resources, which are the means individuals have to achieve their goals. Resources can be material, such as money or food, or non-material, such as social networks or knowledge. Capability measures poverty by assessing the resources individuals lack to lead a fulfilling life.

The Capability Approach to Measuring Poverty

The capability approach to measuring poverty focuses on identifying the resources individuals lack to lead a fulfilling life. It takes into account individual differences and acknowledges that poverty affects people differently depending on their circumstances. The capability approach avoids the limitations of the traditional approach to measuring poverty by incorporating non-monetary aspects and assessing poverty at the individual level. Moreover, the capability approach can be used to design policies that target the specific needs of each individual.

Examples of the Capability Approach in Practice

The capability approach has been applied in various contexts to measure poverty effectively. In India, the National Rural Employment Guarantee Act provides a minimum of 100 days of wage employment to rural households living below the poverty line. The program’s objective is to enhance the capability of rural households by providing them with the means to achieve their goals. In Brazil, the Bolsa Família program provides cash transfers to impoverished families on the condition that their children attend school and receive healthcare. The program aims to enhance the capability of families by improving their access to education and health.

Conclusion

Poverty is a multidimensional issue that goes beyond the lack of financial resources. The traditional approach to measuring poverty has limitations, and the poverty line fails to capture non-monetary aspects. Capability is a concept that allows us to measure poverty more effectively by assessing the resources individuals lack to lead a fulfilling life. The capability approach incorporates non-monetary aspects and takes into account individual differences. It can be used to design policies that target the specific needs of each individual, as demonstrated by the examples provided.

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