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THE CAPABILITIES APPROACH IN PRACTICE
CASE STUDY OF RURAL INCOME POVERTY IN ALBANIA
Marta Schäferová
Student: 3096262
November 8th, 2009
Utrecht University
Course: Development Themes
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Abstract
The Capabilities Approach developed by Amartya Sen has been widely described and
partly used in contemporary assessments of poverty and development in general. Its
practical use continues to be discussed mainly among scholars and the approach in
its fullness is rarely used in analyzing poverty. The attempt to use the approach
practically is made through the application to case study of rural poverty in Albania.
The approach reveals that not only capabilities and freedoms of people are
important, but also that people’s values of each of such freedoms must be included
in any analysis aimed at multidimensional understanding of poverty.
Key Words: Capability Approach, Development, Multidimensional Poverty, Amartya Sen
ii
Introduction
Amartya Sen’s Capability Approach has become popular in the 1980s, but especially widely known
after Sen received Nobel Prize for Economics for his theory in 19981. As such it has shifted the
focus in economics from the rigid analyses of economic utility and growth to a focus on (not only
economic) freedoms and capabilities of people. The Capability Approach (CA) has been influential in
bringing a new dimension, more precisely bringing multiple dimensions to the analysis of poverty.
He began with the analysis of famines which he then expanded into the present day general CA
theory. His influence is reflected, for example, in innovative measures such as the Human
Development Index used by the United Nations that was developed based on Sen’s Capability
Approach2. His approach is widely discussed. However, the practical use and application of his
approach is rarely to be seen in its full scope. A possible explanation for the lack of use of the
Capability Approach in practice is the fact that the approach is extensive and, some would claim,
hardly applicable to practical situations and studies of poverty. However, a number of scholars have
devoted their time to describing the practicability and ‘operationalization3’ of Sen’s approach among
which Alkire and Comim are the most prominent. The paper thus focuses on the applicability of
Sen’s Capabilty Approach to the practical analysis of rural income poverty. In order to pursue the
application of the approach, Albania was chosen as a case study to highlight the multidimensional
rural income poverty present in the country.
The paper is organized in the following order:
Section 1 describes the capabilities approach in the wider context of (economic) development;
section 2 describes the Capability Approach in detail and its practicability and application to practice;
section 3 further depicts the practical use of the approach, specifically in its use and applicability to
rural income poverty; section 4 is devoted to the case study of rural income poverty in Albania using
the Capabilities Approach and multidimensional poverty; followed by section 5 which highlights the
findings and results; finally summarized and assessed in sections 6&7 where conclusion and
discussion can be found.
1 Sen Autobiography 2 Basu 3 Comim
iii
Acronyms
CA Capability Approach
HDI Human Development Index
IMF The International Monetary Fund
PRSP Poverty Reduction Strategy Paper
UN United Nations
WB The World Bank
WVS World Value Survey
Table of Contents
1. CAPABILITIES APPROACH IN THE WIDE CONTEXT OF DEVELOPMENT. .... 2
2. THE CAPABILITIES APPROACH AND ITS PRACTICABILITY ............................... 3
3. THE APPLICATION OF THE CA THEORY TO RURAL INCOME POVERTY ...... 7
4. CASE STUDY: APPLICATION OF THE CA IN ALBANIA ......................................... 9
4.1. DEFINING RURAL INCOME POVERTY ........................................................................................... 9
4.2. DIMENSION 2: MAKING ASSUMPTIONS & DRAWING ON AN EXISTING LIST THAT WAS
GENERATED BY CONSENSUS ....................................................................................................................... 10
4.3. DIMENSION 1: USING EXISTING DATA: ..................................................................................... 11
4.4. DIMENSION 5: EMPIRICAL STUDIES OF PEOPLE’S VALUES AND BEHAVIOURS: ...................... 11
5. RESULTS ......................................................................................................................... 12
5.1. LINKING THE RESULTS TO SEN’S FUNCTIONINGS, CAPABILITIES, AGENCY AND WELL-
BEING 13
6. CONCLUSION ............................................................................................................... 15
7. DISCUSSION .................................................................................................................. 15
8. BIBLIOGRAPHY ............................................................................................................ 17
9. APPENDICES ................................................................................................................... I
9.1. APPENDIX A: DIMENSION 2: MAKING ASSUMPTIONS & DRAWING ON EXISTING LIST
THAT WAS GENERATED BY CONSENSUS .................................................................................................... II
9.2. APPENDIX B: DIMENSION 1: USING EXISTING DATA & DIMENSION 5: PEOPLE’S VALUES
AND BEHAVIOURS ....................................................................................................................................... III
9.3. APPENDIX C: DIMENSION 3: EMPIRICAL STUDIES OF PEOPLE’S VALUES AND BEHAVIOURS
IX
9.4. APPENDIX D: SUMMARY OF THE PRSP POVERTY PROFILE BY THE WB ...............................XI
2
1. Capabilities Approach in the wide context of development.
Development has undergone major changes in its perspectives transforming itself from the macro-
level of analysis toward the current micro-human oriented development practices. The major views
of development can be said to have been initiated by the success of industrialization and the spread
of modernization theory. The main focus of modernization was the state and the aim was to improve
economic growth based on the experiences and success learnt from western countries and the belief
that other countries could follow such path-dependent development4. There were numerous
reactions to such approaches, one being the Latin American Dependencía school of thought. Its
main proponents (among the most prominent A.G.Frank and I.Wallerstein) attempted to highlight
the negative consequences of modernization theories on developing countries and the less privileged
peoples highlighting the exploitative nature of the world system5.
The contemporary approach to development continues to be based on neoliberal agenda where the
state is preferred to maintain only limited regulatory powers and the market should be left free in
order for economic growth to proceed6. Among the most famous contemporary approaches
questioning the nation-wide analyses and focus solely on growth together with economic variables is
Amartya Sen’s Capability Approach (CA):
The economist Amartya Sen introduced the concept of ‘capabilities’ in the 1980s as a way of thinking
about wellbeing that departed from the narrow utilitarian approach which has come to dominate modern
economics7.
Sen’s main thesis is that underdevelopment is not caused by the general lack of resources (such as
food) but due to their unequal distribution8. The CA approach
… proposes that social arrangements should be primarily evaluated according to the extent of freedom
people have to promote or achieve plural functionings they value9.
4 See for example: Cypher, James M. & James L. Dietz, 128-157; Binns, Tony In: Desai, Vandana et.al, 81-86. 5 For examples of dependencia thinkers see: Frank, Andre Gunder; Cardoso, Fernando Henrique Conway; Dennis & Nikolas Heynen. In: Desai, Vandana et.al. (eds.) 92-95.; Klak, Thomas In: Desai, Vandana et.al (eds.)101-107 6 For an exact description see: Rapley, John, 63-86. 7 Deneulin et al. 1 8 See: Gasper, Des. 989-1001.; Sen, Amartya. 1999. 9 Alkire 2
3
Development then needs to be seen as an expansion of people’s capabilities in order for them to be
able to lead the life they value10. The CA approach is thus
… mainly an attempt to see development as a process of expanding the real freedoms that people enjoy.11
The freedoms that A.Sen describes are further specified into12:
1. Political freedoms (voting, criticizing, free press,...)
2. Economic facilities (opportunities to consume, finance)
3. Social opportunities (education, health care,..)
4. Transparency guarantees (guarantee of disclosure and lucidity)
5. Protective security (social safety nets, benefits,...)
His claim is that the increase in capabilities, based on the 5 freedoms, will lead to increase in income,
not the other way around. For Sen, the development of freedoms is not the rejection of markets
because the CA approach is favourable to any development as longs as it provides freedom to people
(freedom of choice)13. The CA approach can be used to analyze poverty in terms of ‘deprivation of
basic capabilities, rather than merely as low income.14 ’
2. The Capabilities Approach and its Practicability
Amartya Sen has introduced his capabilities theory in the 80s for which he received Nobel Prize in
199815. As such he was said to have reconceptualised ‘well-being, poverty, equity, and
development.16’ Sen redefined poverty in terms of socially defined entitlements related to freedom.
Freedom has ‘instrumental importance, as often conducing to the attainment of other desired ends17’ as
well as ‘constructive role, in building views about desired ends and drawing validated moral
conclusions18’ (emphasis in original). Freedom thus has the power to be an instrument in further
10 Sen 1999: 18 11 ibid 36 12 Ibid 38 13 Gasper 992 14 Sen 1999: 20 15 Gasper 989 16 Ibid 990 17 Ibid 992 18 Ibid 993
4
development of wellbeing (instrumental importance) but it can also build views about desired ends
based on moral conclusions (constructive role)19.
Consequently, development is seen as the expansion of ‘real freedoms’, which people enjoy, while
removing un-freedoms and developing substantive freedoms20. The perception of ones’ real freedom
does not depend only on the actual achievement the person has accomplished but also the ‘real
opportunity’ of accomplishing what we value, called the ‘freedom to achieve.21’ As Sen describes:
If we are interested in the freedom of choice, then we have to look at the choices that the person does
in fact have, and we must not assume that the same results would be obtained by looking at the
resources that he or she commands22.
It is thus important to look at bundles of choices that a person has, together with the possible
importance of those choices (values). Values, agency, and sympathy are constitutive of freedoms and
determine substantive freedoms. Sen’s analysis of freedoms and the need for freedom expansion is
summarized under the capability approach (CA) which is described as ‘a normative framework for
assessing alternative policies or states of affairs or options.23 ’
Understanding poverty is crucial for CA analysis, which is defined as ‘capability deprivation’ and is
analyzed multidimensionally24. Sen’s main idea was to broaden the general view of poverty from its
narrow definition based on income, hence the analysis of functionings, capabilities, agency and well-
being:
Functionings are means of freedom which consist of ‘beings and doings’ (based on values)
but ultimately they constitute person’s wellbeing25. It represents the freedom a person has in
leading individually preferred/valued type of life constituting a capability set (the freedom to
choose from a number of possible livings)26.
19 Gasper 992 20 ibid 995 21 Sen 1992: 31 22 ibid 1992: 38 23 Alkire 2 24 ibid 1, described in further detail below 25 Sen 1992: 38 26 ibid 38
5
Capabilities are combinations of functionings which can be described as capabilities to
achieve functionings (functionings a person has chosen together with all the ‘alternative
combinations of functionings a person can choose to have’), which constitute person’s
instrumental freedoms27. It includes the description of all possible varieties of ways in which
lives ‘can be enriched or impoverished.28’ Capabilities represent the reflection of ‘freedoms to
achieve valuable functionings’ and with it a person’s freedom to achieve wellbeing29.
Agency is a ‘realization of goals and values’ a person decides to pursue, regardless of their
connection to wellbeing30. It is thus completely based on individuals’ personal values which
might even lead to the possibility of worsening, rather than improving wellbeing.
Wellbeing is socially constructed and thus dependent on peoples’ social environments
(people are social beings and tend to compare them selves in relation to others, wellbeing is
thus relative and will differ across societies) 31. Wellbeing is comparable to quality of person’s
being, described as ‘set of interrelated functionings’ (comparable to basic needs a person has
such as good health, nourishment, and such)32. It represents the capability to achieve
functionings and as such constitute freedom. Ultimately, they depend on the ‘capability to
function’ which describes the physical, mental or other capability needed to opt for choices
to lead a preferred life, life with choices is thus richer than life without33.
In order to use Sen’s approach a practical method of analysis must be described. Flavio Comim has
operationalized the capability approach. He pointed out that in order to use the capability approach,
an analyst should use what Sen described as functionings (the doings and beings). This includes
weighting the valuable things that people are able (have the freedom) to do34. The functionings must
then be used to create a capability set. A capability set is a table of functioning bundles, each of
27 Sen 1992: 40 28 ibid 41 29 ibid 49 30 ibid 56 31 Deneulin et al. 2 32 Sen 1992: 38 33 ibid 40 34 Comim 4
6
which is assigned a value (to be assigned by a researcher based on previous studies based in turn on
people’s preferences). Each value should be assigned used partial ordering35.
The aim of such assessment should be to discover if a policy, new law, development approach or
any such change, offered any further freedoms. For example, a policy whereby the government
distributes medicines against flu might have an indirect effect on the increase of their freedom to
pursue activity they would not be able to do were they tied to their bed due to the illness. This might
increase their wellbeing due to the increased freedom (including of course, the reduced chance of
death increasing the persons’ wellbeing directly).
Capabilities and functioning bundles are, however, based on values which are socially constructed.
Persons’ values should be included in the analysis if one is to use the capability approach in its
fullness36. A researcher should always try to include a description of data that should be analyzed,
despite the fact that such data might be unavailable37. Data which could be used to discover which
functioning bundles people value could be gathered through ‘market purchase data,… responses to
questionnaires,… [and] non-market observations of personal status.38’ Thus if one was to assess the
capabilities that income creates, it would have to include social functionings of that income (an
answer to the question: how are the money spent?). (For the visual conceptualization of
operationalization of the capability approach, see graph1 on the following page)
35 Partial ordering is a mathematical expression simply stating that objects are to be given a value in an order or sequence following assumptions of reflexivity, antisymmetry, and transitifity. 36 Comim 9 37 Sen 1992: 53 38 Comim 9
7
Graph 1: Conceptualization of the Capabilities Approach: Functionings, Capabilities, Agency, and Well-being.
3. The Application of the CA Theory to Rural Income Poverty
As the graph 1 highlights, there are 4 main dimensions used to measure rural income poverty in
Albania. They are all interlinked and interdependent thus some information might overlap. In order
to identify multidimensional poverty one has to choose and set what the particular dimensions are.
Alkire explains that defining legitimate dimensions is important as it explicitly states what methods
are used to decide ‘what matters’39. In order to select dimensions, the researcher has to identify and
prioritize ‘freedoms that people value’ with attention to people’s present values40. Dimensions have
39 Alkire 1 40 ibid 3
8
instrumental power – they contribute to the ‘reduction of one or more other dimensions of poverty
and inequality’41.
Alkire proposes 5 processes through which different dimensions can be selected42:
1. Use existing data: Existing data are value-less and should be used with combination of
one of the other dimensions. They are not sufficient in describing poverty
multidimensionally. The importance of each of the data variables and reasons for
choosing certain variables must be made explicit (HDI is one example of existing data,
education enrolment, maternity, mortality rate, and such are examples of other);
2. Make assumptions: Based on social, psychological theory, philosophy, religion of what
people value or should value (for example if the researcher chooses primary education,
the assumption is that the population values primary education). Again, assumptions
must be clearly stated in order to initiate public debate regarding their relevance;
3. Draw on an existing list that was generated by consensus: choices based on lists
created through public consent, are for example Universal Human Rights, and the
MDGs. Although such lists are the most universal and stable, a check should be made to
discover whether it is really what the poor at a locality value (as the poorest are more
often then not excluded from public debates);
4. Use an ongoing deliberative participatory process: Through public discussions and
participatory analyses peoples’ values and priorities should be enfolded. Participatory
Rural Appraisal and Rapid Rural Appraisal are examples of such approaches. Use of such
approaches could lead to clashes within conflicting views between and within groups
which are difficult to aggregate ; and
5. Propose dimensions based on empirical studies of people’s values and/or
behaviours: Includes using data from ‘expert analyses of people’s values based on
empirical data on values, or data on consumer preferences and behaviours, or studies of
which values are most conducive to mental health or social benefit.43’ Due to the nature
41 Alkire 2 42 For exact description of each of the 5 dimensions see Alkire 7-14, and table 1 on page 16 43 Alkire 8
9
of such studies, which view humans as objects, this approach should not be the only basis
for the selection of dimensions44.
A researcher must thus choose a combination of at least 2 of the dimensions. A researcher must be
cautious, however, because no list of capabilities will be applicable at all times to all situations and
places45. Each of the choices a researcher makes must be made explicit to be available to public
scrutiny. There are proposed procedures (by Ingrid Robeyns46) as to how identify relevant domains
when studying well-being in the CA, used in the next section.
4. Case Study: Application of the CA in Albania
4.1. Defining Rural Income Poverty
Following Robeyn’s domain identification, the important step in the analysis of rural income poverty
using the capability approach is the formulation of list of chosen domains or capabilities, explaining
the reasons why such domains should be something people value. Next to that, the methodology
created has to be justified - clarified, and defended. Lastly, the description of methodology and
variables should be done in two stages; Ideal and Feasible. In the feasible stage, constraints and
limitations of data collection and measurement will appear. Lastly, exhaustion and non-reduction
principle should be employed through which all dimensions that are important should be used or
stated.
1) Dimensions: processes 2 & 3, 1, and 5 were chosen to analyze rural income poverty in
Albania. In practise that means:
a. Making assumptions & Drawing on an existing list that was generated by
consensus: based on the combination of UDHR (which list human rights based
universal values), Rawls’s primary goods (which list philosophical dimensions of
human value) and Hamilton’s needs categories (which list basic needs). This will
allow for the inclusion of universal values based on human rights, human value, and
basic needs. Although this approach will add values to the overall analysis, these will
44 Alkire 14 45 ibid 7 46 In Alkire 15
10
not be country specific. This approach was added due to the lack of data describing
the behaviour and values of poor rural Albanians. The combination of the three
views on universal values is illustrated in table 1, appendix A. Each of the three views
is included in the column Universal Values Combined into three logical clusters:
Rights to security, Social & participatory/democratic rights, and Liberties/freedoms.
The list is by no means complete and includes solely the universally applied and
accepted rights that people have, based on the assumption that these are universally
shared values.
b. Using existing data: using PRSP and HDI by the WB and the UN respectively, in
order to identify rural income poverty specifically in Albania. This analysis will lack
information on local values but will add local information on poverty in economic
and social terms table 2, appendix B.
c. Empirical studies of people’s values and behaviours: this data includes
information on local behaviour and values and is thus added to the local dimension
of values to the rural income poverty CA. The discovered values are represented in
the last column of table 2, appendix B.
4.2. Dimension 2: Making assumptions & Drawing on an existing list that was generated by consensus
The analysis was initiated by making assumptions. This option was chosen in order to identify
universally accepted values from three studies: Rawls’s primary goods categories, Hamilton’s needs
categories, and UDHR list of human rights, which can be found in table 1, appendix A, columns 1, 2,
& 3 respectively. The data were chosen in order to form a baseline of values that should form the
minimum of searched and analyzed variables for rural income poverty in Albania. The last column of
the table includes all of the values merged into a simpler format, further divided into three main
issues: rights to security, social & participatory/democratic rights, and liberties/freedoms. These
values were inserted into table 2, appendix B, column 1. This was done in order to be able to
proceed with the analysis of dimension 1 described below.
11
4.3. Dimension 1: Using Existing Data:
The existing data were acquired from PRSP papers by the WB and HDI indices by the UN as
outlined. Their representation and summary can be seen table 2, appendix B in columns 2 & 3. The
aim of this analysis was to attempt to fill the table at least with values based on universally combined
values selected on the basis of the previous dimension. As can be seen from the table, however, not
all variables were available but nearly at all cases the data from at least one of the sources were
available to answer each of the categories from the assumed universal values.
4.4. Dimension 5: Empirical studies of people’s values and behaviours:
A study conducted to discover the use of remittances, by Arrehag et al. illustrates consumer spending
behaviour among the rural Albanian population. The study concludes that remittances in rural
households are used (in order of importance)47:
1. for daily needs (food and clothing)
2. housing (buying household goods is more important and common than investment in
building or repairing house which is more common than buying a new one)
3. debt reduction, savings, or investment (education and non-farm investment tends to be
small whilst investment in land is more frequent although a ‘great majority’ does not use
remittances to improve their access to land or other improvements of land48 )
Remittances were also used for investment in agriculture. Furthermore, poverty is viewed by the
poor in Albania as a situation in which people are unable to ‘continue traditions such as baptisms,
weddings, funerals, and so forth.49 ’ Another interesting outcome of the survey is the fact that rural
families do not cooperate in agricultural work or other issues explained as a contrasting behaviour to
past communist enforcement of cooperatives, hence their current dislike. In addition, internal
migration towards the capital city Tirana is most common for poor, mountainous areas, from which
people do not usually migrate to international destinations50.
Next to that, in order to add to this dimension and use values and behavioural data of Albanian
population, data from the World Value Survey (WVS) were added to table 2, Appendix B (for exact
description on the choices of the values see table 3 in Appendix C). The values, represented in the
47 Arrehag et al. 36 48 ibid. 31 49 ibid 29 50 Zezza et al. 9
12
last column of table 2, Appendix B, were selected subjectively on their apparent importance (using
partial ordering where 1= lowest and 10= highest value based on the percentage assigned from the
WVS, for example, if a variable received rating ‘very important’: 13% and ‘important’ 27%, the score
in the table2 would be 4). By assigning a value based on the WVS to each of the universal values,
each of the universal values can be related to the importance it has to an Albanian, in effect creating
a capability set described by the theory.
5. Results
In general, Albanian government has managed to ratify numerous international conventions assuring
security, equality, non-discrimination, legal rights, freedoms of expression, though, conscience,
religion, and opinion, protection of rights of migrant workers, and refugees. Albanians seem to value
highly security and non-discrimination, 60% tend to have confidence in the legal system, and only
10% of the population values freedom of speech above order in the nation (all of the assigned values
in table 2, appendix B, are explained and listed in detail in table 3, appendix C). However, from the
analysis it is apparent that although there were improvements in institutional and legal framework,
their implementation remains troublesome as there remains to be limited access to public services
and slow system productivity.
Child rights were also improved legally but their situation remained unsatisfactory especially in the
case of rural poor in terms of their health situation and educational enrolment51. Unfortunately, there
were no data found on values related to child education. Nevertheless, when asked to order a
number of variables in their importance regarding what children should learn, more than half of
Albanians valued thrift and determination, or thrift and obedience as the most important. The low
school attendance in rural areas can be accounted for by the low government expenditure in
education, poor quality of educational facilities, lack of teachers, and irrelevance of the traditional
and vocational education all of which are worse in the rural areas. Next to that, the rural poor tend to
live in poor housing conditions.
Rural poverty also remained considerably high (around 30%) not only in economic terms, but also
through the limited access to water, sewerage, and electricity as compared to urban areas, which
show some improvements over time. Despite the lack of such basic facilities as toilets and piped
water supply, over 70% of questioned Albanians thought their health was very good or good but
51 consult appendices B and D for detailed information
13
over 60% of the population tends to be dissatisfied with their life and their financial situation. Over
70% of Albanians thought that poverty stayed the same (40%) or worsened (32%) compared to the
situation 10 years ago. Next to that, over 60% of the population believes the country’s environmental
problems (linked to quality of water) cannot be solved without international assistance52.
Unemployment remained around 14% but for women the number was much higher (employment of
women was reported to be around 36%). Both of which are high numbers considering the fact that
rural households tend to have higher unemployment rates and tend to be poorer in general53. In
addition, 95% of Albanians values work as very or rather important and over 65% value work over
leisure.
Healthcare can also be said to be insufficient according to the data as there is lack of healthcare
centres, corruption is a common practice, and there is low ratio of doctors per 1000 inhabitants (2.1
in 2003). However, as already mentioned, 70% of questioned Albanians thought their health was
very good or good.
Regarding social needs, a very small number of the population possess telephone- land lines, mobile
phone subscriptions, PCs and internet. Moreover, the population faces issues regarding trafficking,
prostitution, drugs, and social exclusion. The population seems divided (50-50%) over whether there
should be less or more emphasis on money and material possession54.
Politically, the Albanian government has implemented democratic and decentralizing polices.
Nevertheless, 21% of the population continues to prefer to look for job opportunities abroad. Over
93% of Albanians thought it was important or very important that the national goals should be
aimed at giving people more say, thus increasing participatory and inclusionary policies.
5.1. Linking the Results to Sen’s functionings, capabilities, agency and well-being
The analysis of the 3 chosen dimensions created an overview of the multidimensionality of poverty
of the rural Albanians. The analysis succeeded partly in highlighting functionings, which consisted of
two elements: people’s behaviour (consumption) and the value of their choices. As the study by
Arrehag et al. revealed, rural population spends money (in the form of remittances) primarily on daily
52 WVS 53 see appendix D for more information on poverty related to rural areas in Albania 54 WVS
14
needs, household goods, and debt reduction illustrating the general lack of resources for basic needs
and survival among the rural poor. The analysis of spending behaviour was limited, however, due to
the lack of available sources. The analysis revealed that people’s alternative capabilities would for
example entail investment in the improvement of agriculture or the cooperation within farmers
aimed at increasing the economies of scale. Both of the alternative capabilities do not occur due to
resistance to previous, communist enforced behaviour (cooperatives) and due to either lack of
resources or trust in investments:
A consequence of this mentality, together with the small pieces of land that each family owns, is that
neither economies of scale nor the gains from specialisation in production are achieved 55
The analysis succeeded in highlighting values and goals (agency) of Albanians briefly through the
inclusion of WVS data with findings described in the results section. Next to that, the analysis also
revealed partly the well-being linked to each of the functionings and capabilities outlined. Well-being
can be described as the capability to function, to attain the functionings and capabilities one has
reason to value. It is thus directly linked to the quality of life one has. The analysis revealed that for
example, although the healthcare system is considered by the international community (UN and the
WB) as insufficient and in need of improvement, majority of Albanians reported their health to be in
a good condition. The dissatisfaction of 60% of Albanians with their life and financial situation,
together with the view of 70% of the population that poverty has not changed or worsened
compared to 10 years ago illustrates, however, that the changes in legislations, creation of
institutions, and other political/bureaucratic structural changes have had little if no impact on the
satisfaction and poverty level or ordinary (rural) Albanians.
55 Arrehag et al. 31
15
6. Conclusion
The capability approach can be used to discover the multidimensionality of poverty, rather than
purely showing poverty in economic terms, as it is focused on people’s freedoms and capabilities to
lead the life they choose to value. The CA was extensively described in order to discover its practical
use in poverty analysis. Specifically, Albania was chosen as a case study to put the CA into practise in
rural income poverty analysis. Although not all the data needed for the analysis were available, all the
data needed were explicitly stated. In CA it is immensely important to state all choices the researcher
has made regarding the variables included together with their description (despite the fact that they
might be unavailable), creating the 2 stage process; Ideal and Feasible. As such the CA analysis offers
something additional to other approaches, namely, it attempts to highlight what kind of information
is important when analyzing multidimensional poverty even when it is not available. It might hence
help researchers in seeing poverty in terms of freedoms people have or do not have and the necessity
for future research in this respect and in the values chosen.
7. Discussion
Other researchers might explain the values used in table 3, appendix C in terms of other chosen
analyses. However, for the scope of this paper, the chosen values were used as a form of an
illustration of at least some of the values that can be possibly included in CA analysis. Nevertheless,
in future, such values should be chosen based on additional material such as market surveys,
purchase behaviour surveys, satisfaction surveys, and other value surveys in order to complement or
alter the researcher’s subjective choices with supportive data. Such studies, particularly for the
analysis of rural poor Albanians, are, however, not available at the moment (such analyses are,
however, available for sale and can be used in extensive and subsidised study).
Next to that, for such analysis to be complete, values from the WVS and other value-informing
surveys should be used in order to determine the poverty of the rural Albanians, rather then first
determining the universal values as was done in the current analysis. Such analysis would reveal, to
name just a few56;
56 WVS 1998 & 2002 data
16
to 96.2% of Albanians, family is very important,
friends are rather important or very important to over 80% of Albanians,
leisure is very and rather important to nearly 50% of Albanians,
politics is not very and not at all important to over 73% of the population,
work is very and rather important to over 95% of the population,
religion is very and rather important to over 60% of the population,
service to others is very and rather important to over 60% of the population
that children should learn thrift, determination, religious faith, and obedience (in order of importance)
64% of Albanians think high technology should be more emphasized than tradition
A good income and safe job are the most important determinants when looking for a job,
Nearly 90% thinks jobs should be given to nationals rather than non-nationals,
48% thinks men should have more right to a job than women
Making parents proud is very and rather important to over 85% of the population
And 86% thinks the country should aim towards higher economic growth.
Another point of concern is the fact that the data from the WVS are collected and reported for the
whole Albania, not specifically for the rural and/or the poor causing a possible distortion in the
analysis of the situation of rural poor. Overall, however, except for the description of ‘full extent of
freedom to choose between different functioning bundles57’ the analysis encompassed all desired
information and its aim at illustrating what data should be used even when they are not accessible,
was fulfilled.
57 Comim 9
17
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I
9. Appendices
9.1. APPENDIX A: DIMENSION 2 & 3: MAKING ASSUMPTIONS & DRAWING ON EXISTING LIST
THAT WAS GENERATED BY CONSENSUS ................................................................................. II
9.2. APPENDIX B: DIMENSION 1: USING EXISTING DATA & DIMENSION 5: PEOPLE’S VALUES
AND BEHAVIOURS ................................................................................................................. III
9.3. APPENDIX C: DIMENSION 3: EMPIRICAL STUDIES OF PEOPLE’S VALUES AND BEHAVIOURS
IX
9.4. APPENDIX D: SUMMARY OF THE PRSP POVERTY PROFILE BY THE WB .................... XI
II
9.1. Appendix A: Dimension 2: Making Assumptions & Drawing on Existing List that was Generated by Consensus
Alkire summarized Rawls’ Primary Goods (or ‘things that every rational man is presumed to
want’), Hamilton’s needs categories, and UDHR articles as follows:
Table 1: Capability Set Rawls58 Hamilton59 UDHR - index of articles60 Universal Values Combined
- rights - liberties - opportunities - income and wealth - freedom of movement & - choice of occupation - social bases of self respect - powers and prerogatives of offices and positions of responsibility
Vital needs Adequate shelter Sufficient clothing Required daily caloric intake Periodic rest Exercise Social entertainment
Particular social needs Bald need-claims, i.e. the need for an efficient train service Provision, i.e. the need for a television Consumption and production, i.e. the need for a car
Agency Needs Autonomy Intersubjective recognition Active and creative expression
1-2 Human dignity, equality and non-discrimination 3 Life, Liberty and Security 4 Slavery and Slave Trade 5 Torture and Cruel/Inhuman/Degrading Treatment or Punishment 6-11 Legal Rights 12 Arbitrary Interference 13 Freedom of Movement and Residence 14 Asylum 15 Nationality 16 Marriage 17 Property 18-19 Freedom of Thought/ Conscience/ Religion/ Opinion/ Expression 20 Peaceful Assembly and Association 21 Political Rights 22 Social security and general recogntion of socioeconomic rights 23-24 Employment, Trade Union and Rest 25 Adequate standard of living 26 Education 27 Cultural Life 28 International order 29 Limitations (Morality/public order/general welfare)
Rights to Security: - security (including freedom from slavery, torture, degrading punishment – UDHR 4 + 5) - legal rights (UDHR 6-12) - civic rights (nationality, marriage, property UDHR 15-17) - employment, trade union (UDHR 23-24) - education (UDHR 26) - international order (UDHR 28) - general welfare (UDHR 29) : adequate shelter, - sufficient clothing, daily caloric intake, periodic rest (UDHR 23-24), exercise Social & participatory/democratic rights: - life and liberty (UDHR 3) - human dignity, equality and non-discrimination (UDHR 1-2) - Assembly and Association, political rights (UDHR 20-21) - social security& socio-economic rights (UDHR 22) - social entertainment + culture (UDHR 27) - social needs (efficient infrastructure, television, consumption, production, car, based on social-local comparison) + standard of living (UDHR 25) Liberties/freedoms: - autonomy - intersubjective recognition and social bases of self respect - active and creative expression, freedom of though, conscience, religion, opinion, (UDHR 18-19) - movement and residence, asylum (UDHR 13 -14)
58 Alkire 21, based on: Rawls 1971 p. 60-5, Rawls 1982 p. 162, Rawls 1988 p. 256-7 59 Alkire 19, based on Hamilton 2003 p.23-4 60 Alkire 18, based on www.unhchr.ch/udhr
III
9.2. Appendix B: Dimension 1: Using Existing Data & Dimension 5: People’s Values and Behaviours
Table 2: Capability Set Universal Values Combined
Measured Indicators PRSP - rural poor **
Measured Indicators HDI Albania - rural poor ***
Values 61 (0= not important, 10 = very important
Rights to Security:
security (including freedom from slavery, torture, degrading punishment UDHR 4 + 5) & human dignity, equality and non-discrimination (UDHR 1-2)
ratified *Protocol to Prevent, Suppress and Punish Trafficking in Persons, Especially Women and Children, supplementing the United Nations Convention against Transnational Organized Crime (2002) * Convention on the Elimination of All Forms of Discrimination against Women (1994) * International Convention on the Elimination of All Forms of Racial Discrimination (1994) * Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment (1994)
Security: 9 Non-discrimination: 8
legal rights (UDHR 6-12) limited access to public services initiated institutional reforms, strengthened the rule of law low ability of institutions to implement law improvements in judicial system/productivity but slow increase in public administration increase in decentralizatoin improvement of anti-corruption laws
ratified Convention on the Rights of the Child (1992)
Legal rights: 6
improved child rights through: National Strategy for Children approved in June 2005
61 Based on World Values Survey 2002.
IV
civic rights (nationality, marriage, UDHR 15-17)
Civic Rights: 10
employment, trade union (UDHR 23-24)
limited job opportunities, 14% unemployment- 60% men employed, 36% women employed (2001)
GDP/capita: $ 3 405 (2007), GDP/capita PPP: $ 7 041 (2007)
Employment: 7.4
education (UDHR 26)
adult literacy rate (above 15): 99% (2007)
Missing
enrolment early childhood education: 34% (2001), around 17% for poor households (due to low nr. Of kindergartens, falling by 49% (2004)
enrolment basic education: * 87.6% overall (1994) * 75% rural (2002) * 45% poor (2002)
gross enrolment ratio 67.8% (2007)
percentage of adults (25+) with: * low educational attainment levels: 63% * medium educational attainment levels: 29.6% * high educational attainment levels: 7.4%
enrolment secondary education: 29.3% (1994)
student teacher ratio in primary education 18.8 (2004)
student teacher ratio in secondary education 22.0 (2004)
public expenditure on schooling decreased to 2.8% of GDP in 1999, low importance of traditional and vocational education, unqualified teachers in rural areas, increased opportunity cost of attending school, poor quality and facilities of schools
public expenditure on education as a % of total government expenditure: 8.4% (2000-7)
international order (UDHR 28) improved relations with the EU NATO membership
International order: 3
V
general welfare (UDHR 29) : adequate shelter, - sufficient clothing, daily caloric intake, periodic rest (UDHR 23-24), exercise
Piped water: * access in rural areas is considerably lower than in urban areas (80%), * 23% of rural live with no indoor water,compared 12% of urban, * 33% of rural live with water inside the house (2003) compared to 24% in 2002 * supply of water 1 hour/day on average for rural areas, 3h/day on average for urban (2003) * population with access to safe drinking water 75% (2003) Swerage: * no sewerage treatment facility exists in the whole country, it is discarded directly to rivers, lakes, and the sea often contaminating drinking water 38% of rural households have an indoor toilet compared to 86% of urban * Population with access to improved sanitation: 68% (2003) Electricity: * no electricity for 9.5 hours/day for rural household, 7.2h/day for urban
population not using an improved water source: 3% (2006) Children underweight for age (% under age 5): 8% (2000-2006) Average annual inflation: 13% (1990-2007)
Missing
Rural poverty around 30% with 90% of the poor residing in rural areas, incidence of poverty 5x higher than in urban areas,
population living below $2/day: 7.8% (2000-2007)population living below the national poverty line 25.4% (2000-2007)
Children: * 1/3 living below poverty line * 14% moderately underweight * 4.4% significantly underweight * 31.7% minor short Comings in development * 17.3% significant short Comings in dev. * 11% minor short Comings in nourishment * 3.6% significant short
VI
Comings in nourishment * growth of anaemia or iron deficiency
high pollution and deteriorating sanitation leading to child mortality (under-five)
Housing conditions: * 16.5% of rural households living in poor housing conditions * 6% in urban areas living in poor housing conditions * 59% of rural living in good housing conditions self-reported good health, compared to 53% in poor housing conditions
Social & participatory/democratic rights:
life and liberty (UDHR 3) low government spending per person, low concentration of health-care centres, high corruption, malnutrition among the northern rural households
government expenditure on health as a % of total government expenditure: 11.3% (2006)
Life and liberty: health: 7
health condition (self-rated): * 77% perceived very good condition (non-poor) * 22.3% very percieved good condition (poor) *
*life expectancy at birth 75.4 (2004)
life expectancy at birth 76.5 (2007), probability at birth of not surviving 60: 9.7% (2005-10)
proportion of 1 year olds fully immunized against (2003-4) :
* DTP: 97%
* Poliomyelitis: 97%
* Tuberculosis: 95%
Overal immunization rate: 98.6% (1998)
Ratio of doctors per 1000 inhabitants: 2.1 (2003)
Nr. Of deaths in motor vehicle traffic accidents: 260 (2003)
VII
Fertility rate (births per woman): 2.5 1997, Proportion of prenatal visit by first trimester: 50% (2006) , Promotion of births attended by skilled health personnel: 98% (2006) Tuberculosis notification rate per 100,000: 19 (2006) Tuberculosis mortality rate 4% (2006)
Fertility rate (births per woman): 1.9 (2005-10)
Infant mortality rate (per 1000 births) : 20.5 (1998)
Maternal mortality rate (per 100 000 births): 22.1 (1998)
Under five mortality rate: 30.6 in 1996, 15 in 2007
Assembly and Association, political rights (UDHR 20-21)
improved according to international standard but implementation troublesome
Political Rights: 9
social security& socio-economic rights (UDHR 22) social security provided to
the poor
Missing
social entertainment + culture (UDHR 27)
Social Entertainment: 5
social needs (efficient infrastructure, television, consumption, production, car, based on social-local comparison) + standard of living (UDHR 25)
Irrigated land area: 108 thousand hectares (2003), Chemical fertiliser used: 3.1 kg/ha on cultivated land (2004), only 50% of farmers use machinery
Social needs: 6.5
Poor rural infrastructure, fixed telephone lines per 100 inhabitants: 8 (2006) mobilephone subscribers per 100 inhabitants: 27 (2002) PC in use per 100 inhabitants: 4.5 (2003) Internet users per 100 inhabitants: 2.4 (2003) Annual power transmission losses: 2.4% (2006)
Liberties/freedoms:
autonomy Missing
Inter-subjective recognition and social bases of self respect
social problems: exclusion, drugs, trafficking, prostitution
Self-respect: 5
VIII
active and creative expression, freedom of though, conscience, religion, opinion, (UDHR 18-19)
ratification of International Covenant on Civil and Political Rights (1991) ratification of International Covenant on Economic, Social and Cultural Rights (1991)
Freedom: 1
movement and residence, asylum (UDHR 13 -14)
large external and internal migration causing social problems
migration: 82.7 thousand (2005), emigration rate: 21% in 2000-2002 refugees: 15.3 thousand refugees from Albania, remittances: $1 milliard
Missing
ratified International Convention on the Protection of the Rights of All Migrant Workers and Members of their Families (2007)
ratified Convention relating to the Status of Refugees (1992)
** source: PRSP 2000, 2004
*** source: HDI report 2009
IX
9.3. Appendix C: Dimension 3: Empirical studies of people’s values and behaviours
Data from the World Values Survey: Table 3: Values of Albanians Explored
Value Importance % of total population
Security: Maintaining order in the nation Very important 89.6 % Important 10.2 % Not very important 0.1 % Not at all important 0.1 % Non-discrimination Child qualities: tolerance and respect for other people Important 80.5 % Not mentioned 19.5 % Legal Rights: Confidence: Justice System A great deal 13.9 % Quite a lot 44.6 % Not very much 34.1 % None at all 7.4 % Civic Rights: Future changes: More emphasis on family life Good thing 96.3 % Don´t mind 3.2 % Bad thing 0.5 % Employment: Work compared with Leisure
It´s leisure that makes life worth living, not work 2.4 %
Work is what makes life worth living, not leisure 66.5 %
Work important in life Very important 81.4 % Rather important 14.3 % Not very important 2.7 % at all important 1.5 % International Order: Who should decide: international peacekeeping national governments 9.4 % United Nations 31.0 %
National governments, with UN coordination 59.6 %
Life and Liberty: State of health (subjective) Very good 27.6 % Good 46.0 % Fair 22.7 % Poor 3.6 % Very poor 0.1 % Political Rights: National goals: Giving people more say Very important 33.4 % Important 60.0 % Not very important 5.3 % ot at all important 1.3 % Social Entertainment: Leisure time important in life Very important 13.1 % Rather important 36.4 %
X
Not very important 36.5 % Not at all important 13.9 % Social Needs: Future changes: Less emphasis on money and material possessions Good thing 28.6 % Don´t mind 23.5 % Bad thing 47.9 % Perception of poverty compared to 10 years ago Larger share 32.1 % Same share 39.9 % smaller share 28.0 % Self respect: Important in a job: a respected job Not mentioned 46.9 % Mentioned 53.1 % Freedom: Aims of respondent: first choice Maintaining order in the nation 77.3 % Give people more say 8.1 % Fighting rising prices 10.5 % Protecting freedom of speech 4.0 %
XI
9.4. Appendix D: Summary of the PRSP Poverty Profile by the WB
WB’s PRSP Poverty Profile 200062: Poverty: is ‘defined in terms of low income and/or consumption in Albania63’ Causes of poverty in Albania: Economic:
Limited job opportunities;
Low incomes (especially in agriculture); Social:
Weak social cohesion and traditional and family safety nets (due to shocks and crisis, large external and internal migration causing;
Social exclusion and vulnerability;
HDI: 70th out of 174 countries ranked in 200764
Low living standard
New social problems (prostitution, drugs, trafficking,…) arose due to the migration of adults for work and the life of children with grandparents
Services: Health, education, infrastructure:
Limited Basic Services: limited access to and low quality of: o Education - Enrolment in rural areas has fallen since 1990, expected duration of schooling is
less than 10 years, decline in public expenditure on public education from 3.8% of GDP in 1995 to 2.8% of GDP in 1999, low quality of education, lesser importance of traditional and vocational education, increased opportunity cost of attending education, rising illiteracy, unqualified teachers in rural areas, poor quality of schools;
o healthcare – low government spending per person, low concentration of health-care centres, high corruption, and malnutrition among the northern rural households;
o water - Piped water access in rural areas is considerably lower than in urban areas (80%); o sewerage - no sewerage treatment facility exists in the whole country, it is discarded directly
to rivers, lakes, and the sea often contaminating drinking water.
Under-five mortality rate: Albania ranked 126th of 175 countries in 2007, according to UNICEF65, which decreased from 46 to 15 deaths per 1000 babies under-five from 1990 to 2007.
Based on the 2002 Living Standard Measurement Survey data, 400 000 people have been pulled out of poverty (from 2002-2008), reducing national poverty from 25 to 12%. However, for rural population the situation remained almost unchanged66. That information is alarming as ‘almost 90% of the poor [are] residing in rural areas and 60% of the heads of poor households being self-employed in agriculture. The incidence of rural poverty was found to be five times higher than urban poverty and is highest in the North of Albania, where a large portion of families own less than 0.5 hectare of land each. 67 ’ The rural households share some commonalities68:
o Require subsidized wheat and cash transfers to survive the winter; o Have limited access to public services; o Poor rural infrastructure (especially roads)
62 PRSP 63 PRSP 1 64 Data were updated from UNDP as the PRSP referred to 1997 data. 65 Data were updated from UNICEF as indicator comparison as the PRSP data referred to year 2000 ranks 66 Data were added in order to update the report to current trends from One UN Annual Report. 67 PRSP 2 68 PRSP 2
XII
o 27 % do not sell products to the market o Only 50% use machinery
Child poverty is almost double that for adults 64 and over with the worst situation amongst the poor Profile of the poor:
Young
Less educated
With less remittances
Head of the household: o the younger the household head, the higher the poverty rate – households with heads 16-35
years old tend to live in 10% higher poverty than households with heads of 64+ age o household heads who are illiterate or with basic education are 20-30 times more likely to be
poor (as compared to university graduate heads) o Especially in rural areas, poverty rate is minimal where heads migrated and returned