Sem 5 Introductory Development Economics | Sec 1.5 Ch1 | Todaro & Smith | Amartya Sen's Functioning

Summary

In this insightful session, the speaker introduces Amartya Sen, a Nobel laureate economist, emphasizing his groundbreaking work on development and capability deprivation. Sen argues that income and wealth are not ends but means to achieve goals, and poverty should be viewed as a lack of capability to perform desired actions. The speaker illustrates this with examples of how the same commodity can serve different purposes for different individuals. The concept of 'functioning,' what a person can do with resources, is highlighted, distinguishing between simple and complex functionings. The session concludes with a thought-provoking homework question about personal functionings one would achieve with income.

Takeaways

• 😀 Amartya Sen is a highly respected economist known for his work in development and winning the 1998 Nobel Prize in Economics.
• 🎓 Sen completed his PhD in an unusually short time of one year, highlighting his intellectual prowess.
• 🌟 The speaker had a memorable experience meeting Sen and listening to his insights at a seminar.
• 💭 Sen's perspective is that income and wealth are not ends in themselves but means to achieve other ends.
• 🏆 Sen argues that poverty should be viewed as a form of capability deprivation, not just a lack of income.
• 🚀 The concept of 'functioning' introduced by Sen refers to what a person can do with the commodities they possess.
• 🍲 Sen uses the example of food to illustrate how the same commodity can have different utilities for different people based on their health or literacy.
• 🌱 Functionings are categorized into simple ones like nourishment and education, and complex ones like self-respect and community participation.
• 📚 The speaker encourages the audience to consider their top three functionings they would like to achieve with their income as a homework task.
• 🌐 Sen's ideas challenge conventional understandings of poverty and wealth, emphasizing the importance of capabilities and freedoms.

Q & A

Who is Amartya Sen according to the speaker?

Amartya Sen is described as an eminent personality, a renowned Economist in the field of development, who completed his PhD in one year and was the winner of the 1998 Nobel Prize in Economics.

What is the speaker's personal experience with Amartya Sen?

The speaker had the chance to meet Amartya Sen personally and listen to him in a seminar at the Delhi School of Economics, which was an amazing experience.

What does Amartya Sen believe about the concept of income and wealth?

Amartya Sen believes that income and wealth are not ends in themselves but are means to achieve something else. They are instrumental for other purposes.

How does the speaker illustrate the importance of the timing of acquiring wealth?

The speaker uses the example of a car, explaining that having a car in college life allows for adventures and enjoyment, whereas having the same car at the age of 40 might only provide comfort and utility for family use.

What is the conventional understanding of poverty that Amartya Sen challenges?

The conventional understanding of poverty is the lack of income, but Amartya Sen challenges this by suggesting that poverty should be seen as a capability deprivation.

What does 'capability deprivation' mean in the context of Amartya Sen's work?

Capability deprivation refers to the inability to do what one wants to do, which defines a person as poor if they lack certain essential freedoms or opportunities.

How does Amartya Sen define poverty in terms of functioning?

Amartya Sen defines poverty as a deficiency of capability and lack of freedom, where poverty is not just about the lack of income but also about the inability to achieve desired functioning in life.

What is the difference between simple and complex functionings according to the speaker?

Simple functionings are basic needs like nourishment and education, while complex functionings are more abstract concepts like self-respect and being part of a community.

What is the significance of the example of a book given to a literate and illiterate person?

The example illustrates that the same commodity can have different uses and values depending on the consumer's capabilities, emphasizing the importance of the individual's ability to utilize resources.

What homework does the speaker assign to the audience?

The speaker assigns the audience to think about their top three functionings they would like to achieve with their income.

What does the speaker emphasize as the key takeaway from Amartya Sen's perspective on economics?

The speaker emphasizes that the key takeaway is understanding that economic measures like income and wealth are means to achieve various functionings in life, and that poverty is more about capability deprivation than just a lack of income.

Outlines

00:00

🎓 Introduction to Amartya Sen's Views on Economics and Wealth

The speaker introduces Amartya Sen, a renowned economist known for his work in development economics. Sen completed his PhD in an unusually short time and won the 1998 Nobel Prize in Economics. The speaker shares a personal experience of meeting Sen and emphasizes his influential ideas. Sen's perspective is that income and wealth are not ends in themselves but means to achieve other goals. The speaker uses examples to illustrate that the value of money is tied to the freedom and opportunities it provides at the right time.

05:00

🌟 Redefining Poverty Beyond Income: Capability Deprivation

The speaker elaborates on Sen's concept of poverty as capability deprivation, which goes beyond the traditional view of poverty as merely a lack of income. Sen argues that poverty should be understood as an inability to do what one wants to do, which is a form of freedom deprivation. The speaker explains that the well-being is not solely dependent on the commodity itself but on what the consumer can do with it. Examples are given to show how the same commodity can have different uses and values for different people, leading to the introduction of the term 'functioning,' which refers to what a person can do with a given commodity.

10:01

🏆 Understanding Functionings and Capabilities in Poverty Alleviation

The speaker continues to discuss the concept of 'functionings,' which are the actions a person can perform with a commodity. Sen differentiates between simple functionings, such as nourishment and education, and complex functionings, like self-respect and community participation. The speaker emphasizes that poverty is associated with a deficiency of capabilities and a lack of freedom to control one's life. The speaker concludes by assigning a homework task to identify three top functionings one would want to achieve with their income, highlighting the importance of understanding and applying Sen's theories to personal and societal development.

Keywords

💡Eminent Personality

The term 'eminent personality' refers to a person who is distinguished by their achievements and recognized for their significant contributions in a particular field. In the video, Amartya Sen is described as an eminent personality in the field of development economics. His recognition as a Nobel laureate and his ability to complete his PhD in an unusually short time further exemplify his eminence.

💡Development Economics

Development Economics is a branch of economics that deals with improving economic conditions in low-income countries through economic growth and structural change. The video script mentions Amartya Sen as a renowned economist in this field, highlighting his work's focus on understanding and addressing economic development issues.

💡PhD

A PhD, or Doctor of Philosophy, is the highest academic degree awarded by universities in many countries. The script emphasizes Amartya Sen's exceptional academic prowess by noting that he completed his PhD in just one year, a feat that typically takes much longer for others.

💡Nobel Prize in Economics

The Nobel Prize in Economics, officially known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, is an award for outstanding contributions to the field of economics. The video mentions that Amartya Sen was a recipient of this prestigious award in 1998, underscoring his significant impact on economic science.

💡Income and Wealth

Income and wealth are central concepts in economics, referring to the money earned and accumulated by individuals or households. The video discusses Sen's view that income and wealth are not ends in themselves but means to achieve other objectives. This perspective challenges the conventional focus on income and wealth as ultimate goals.

💡Capability Deprivation

Capability deprivation is a concept introduced by Amartya Sen, which suggests that poverty should be understood not just as a lack of income but as a lack of capabilities to achieve what one values doing or being. The video script uses the example of a person who cannot enjoy the benefits of a car due to age or health, illustrating the idea that capability deprivation is a form of poverty.

💡Functioning

Functioning, in the context of Sen's work, refers to what a person is able to do or be with the resources at their disposal. The video explains that functioning is valued and is about the activities and states that a person can achieve, such as being well-nourished or being mobile. It contrasts with mere possession of commodities, emphasizing the importance of what one can do with them.

💡Freedom

Freedom, as discussed in the video, is the ability to control one's own life and make choices. It is closely tied to the concept of capability, as freedom to achieve one's goals is essential for well-being. The script uses the example of a woman's freedom to work outside the home to illustrate how lack of such freedom can contribute to poverty.

💡Poverty

Poverty, in the video, is redefined beyond the traditional measure of income. It is discussed in the context of capability deprivation, where a person is considered poor if they are unable to do what they want to do. This broadens the understanding of poverty to include lack of freedom and opportunities to achieve one's potential.

💡Well-being

Well-being, in the script, is not just about the possession of commodities but about what a consumer can do with them. It is a measure of a person's quality of life, including their health, education, and the ability to participate in society. The video uses the example of a book's different uses for a literate and illiterate person to illustrate how well-being is influenced by the capability to utilize resources effectively.

💡Homework

Homework, in the context of the video, is an assignment given to the audience to think about their own top functioning goals if they had income. This exercise is meant to encourage the audience to apply Sen's concepts of functioning and capability to their own lives, reflecting on what they value and what they would like to achieve.

Highlights

Introduction to Amartya Sen, a renowned Economist known for his work in development economics and winner of the 1998 Nobel Prize in Economics.

Sen's unique achievement of completing his PhD in one year, a feat that typically takes four to six years.

The speaker's personal experience of meeting Sen and the profound impact of listening to him speak at a seminar.

The importance of listening to Sen's lectures and the availability of his videos on YouTube for educational purposes.

Sen's perspective that income and wealth are not ends in themselves but means to achieve other goals.

The concept that money has value only when it is used at the right time for the right purpose.

The idea that poverty should be seen as a capability deprivation, not just a lack of income.

Sen's definition of poverty as the inability to do what one wants to do, highlighting the importance of freedom and capability.

The distinction between simple and complex functionings, with examples of each to illustrate the concept.

The significance of functioning in determining well-being, as opposed to just the characteristics of a commodity.

The example of how the same commodity can have different uses and values to different people based on their capabilities.

Sen's concept of 'functioning' as what a person does or can do with a commodity, and its importance in measuring poverty.

The role of freedom in determining poverty, where lack of freedom equates to a form of poverty.

The homework assignment to identify three top functionings one would want to achieve with their income.

The call to expand the horizon of thinking about poverty beyond just income to include capability and freedom.

Transcripts

hello bet good evening everyone before I

start this session can anyone tell me

picture the picture that I'm showing you

who is this eminent

personality he is none other than

Amia Amara s is one of the very very

very

renowned Economist in the field of

development he

he completed his entire PhD in one year

this people take four years 5 years six

years he did his PhD only in one year at

a very early age huh and he was the

winner of 1998 Nobel prize in

economics

and Z renowned Economist and as I have

always been telling you

I had this chance of meeting amaras

personally and listening to him in a

seminar in dehi school of Economics it

has been an it has been amazing

experience try to listen to him a lot of

his videos are on YouTube

also try to just listen to him you will

be

amazed you will be his big fan I can

tell

you we will try to understand what AM

has

said the first thing that he went ahead

and he said is that income and wealth

are not the end in them themselves but

instrumented for other purpose income or

wealth end it is a means to achieve

something so just imagine suppose I tell

you K beta I will give you one CR rupees

but from now on I will go ahead and put

you in a room and lock you in

room will you want that you will not

right

so in just having money or having we

imagine I become very

very will you be able to enjoy anything

no

so money at right time is also important

everything has a value attached to it

this is what I always did so imagine two

people but when he turned 40 now this

person who got car in his college

life he can go ahead he can go to 10

places just Delhi pass there is this

place mual and you can go to mual you

can enjoy your car drive if you're in

Bangalore you can drive till pondi you

can do different things time but if you

have the same car at the age of 40 you

may not be able to enjoy those

Adventures huh car benefit you will be

taking it to office you will be going

ahead and taking your family in the car

it will give you comfort but Jo

Adventure

everything has everything has um

importance when you get it at the right

time same thing is with income and

wealth income is not the

end it is a means to achieve something

you want to go ahead and you want to

achieve something through

money so income and and wealth are not

end in them themselves they are

instrumented for other purpose they are

used they are means to achieve the end

end is different right and I going to

talk about this in a separate completely

separate topic better that I will be

talking about and that topic is chapter

that is called as poverty as capability

deprivation

so poverty as capability deprivation

actually goes ahead and says the same

thing that we need to expand our Horizon

of thinking of

poverty it has always been thought that

the person who lacks income is

poor of course that is true but even if

you have money but you don't have

certain essential things

freedom to

enjoyy then I am equally poor so poverty

should be seen as a capability

deprivation what I can and cannot do

will define whether I am poor or

Rich what I can do and what I cannot do

that will determine whether I am rich or

poor okay let's read this out bet

according to

S poverty cannot be measured by income

or utility as conventionally

understood we don't want to go ahead and

see poverty as lack of income of

course but we don't want to see poverty

as lack of income we want to go ahead

and see people as poor if they are not

able to do what they want to

do if someone is not able to do what

they want to do then they are poor

simple this is how he defined

poverty so for example if I want to go

ahead and I want to

teach but if I am not allowed to teach

though I am also poor in some aspect

okay to Poverty should not be taken as

is conventionally understood is

conventional

understanding okay now see here what

matters for well-being is not just

characteristic of commodity but what the

consumer can or do with the

commodity commodity same commodity I can

give to two different people just a book

I can give book to a literate person and

illiterate person but for an illiterate

person book is of no use

book he will sell those Chas right he

will sell he will just put something in

the paper of the books and just sell it

off that's the maximum use of um maximum

use of you know that thing to that

illiterate person but to a literate

person

book right he will gain more knowledge

out of it right so the same commodity

can be the characteristic of commodity

is same book

character but it can be of different use

to different people similarly he gave

another example just a food now what

happens with food is the same only bet

so if I have suppose one uh bowl of

Dal and I give it to a person who is

healthy and a person who is unhealthy

the person who is unhealthy may not get

that much nourishment from healthy

person right food characteristic is same

but it may happen that the amount that

the body is able to extract nourishment

body May so the same commodity may be of

different usage to different

people now basis am he went ahead and he

defined something which is known as

functioning functioning means what a

person does or can do with commodity of

given

characteristic

cheese for example if you give me 100

rupees and I buy a book and I give you

100 rupees and you watch a

movie 100 rupes both of us had the same

commodity that is 100 rupees of money

but what you will do and what I will do

with that commodity will be different to

what a person

does what a person does or can do with

commodity of given characteristic that

is called as functioning so functioning

is valued being or

doing what you are doing with a

commodity that is called as functioning

now try to see this better so till

now conventional approach poverty was

considered to be lack of income this is

conventional

approach conventional approach May

poverty was considered to be lack of

income but now Amar went ahead and said

that poverty can be associated with

deficiency of capability with lack of

Freedom yeah be poty he and what is

freedom freedom is to

control one's own life

Freedom whether I am able to lead a life

the way I want or

not if I am a woman and I want to go and

work outside am I allowed to work

outside is the society giving me that

freedom to work

outside if not then I am also under the

category of poor because I am being

deprived of the freedom to work

outside right okay

fing what you want to

do your functioning can be that you want

to become healthy that you want to

become well-nourished that you want to

have good clothes you want to be mobile

that means you want the freedom to move

from one place to another you want to

have

self-esteem he functioning functioning

is what a person is able to

do I just want to take you through

different kind of functioning first beta

so if I talk about different kind of

functionings there are two kind of

functionings the first functioning is a

simple

functioning like

nourishment educated these are simple

functionings the second kind of

functioning that I have that is called

as complex functionings so complex

functioning means that I want to maybe

be a part of

community respect my

self-esteem my self resect so these are

called

as you know they are complex in nature

they are difficult to understand these

are not very

simple I can understand whether they are

healthy or not but I cannot understand

whether they have self-respect or not

self-esteem or not right so simple

functioning is like nourishment but

complex functioning is like self-respect

right so these are the two kind of

functionings that we have am I clear

with it so I hope that this is clear to

you beta today I just want to focus on

functioning first and as a homework I

want you to answer

me that if you have income with you

what will be your three p top

functionings that you want to

achieve functions

aieve what will be the three top

functionings you want to achieve with

your income you want to you should go

ahead and tell me that okay Bet thank

you