Book SummaryDevelopment as Freedom, by Amartya Sen

1-Page Summary1-Page Book Summary of Development as Freedom

Development as Freedom by Nobel Prizewinning economist Amartya Sen draws on the works of moral philosophers and economists, from Aristotle to Adam Smith, to argue that economic development goes beyond increasing wealth—it’s about expanding freedom.

Redefining Poverty and Economic Development

In redefining development as freedom, Sen takes a holistic view of poverty and characterizes it as impeding people’s ability to lead the lives they want.

Sen contends that income and wealth are only important as a means to something else, not for their own sake. As such, poverty is about more than low income; it’s about a lack of opportunity. Conversely, development is about more than simply increasing wealth; it’s about increasing opportunity.

Sen contends that poverty is harmful and unjust because it deprives people of the ability to lead the lives they want, and development is valuable because it allows people to improve their lives as they see fit.

Sen and the Human Development Index

Sen’s work on redefining poverty, which earned him the Nobel in 1998 and led to the publication of Development as Freedom in 1999, has affected policy-making. With Sen’s help, the United Nations established the Human Development Index, which provides a more comprehensive metric of welfare than just income. The index is composed of three parts:

• Life expectancy at birth

• Years of schooling per adult and expected schooling of children

• Gross National Income (GNI) per capita

Each part is indexed on a scale from 0 to 1; the three scores are then averaged to get a single score from 0 to 1. The UN believes this “capabilities approach” to development offers a more useful metric than GDP or GNI because, in addition to income, health and education affect development as well.

Poverty as “Capability Deprivation”

Sen defines poverty as “capability deprivation”—hindering someone’s chances to improve their station in life. Sen sees two benefits to this definition:

1. It considers the intrinsic importance of freedom, which Sen says all people value.
2. Other factors besides low income contribute to lack of capability, which makes the income approach inadequate.

Sen explains that forms of capability deprivation (which he also refers to as “unfreedoms”) include the processes and opportunities that affect a person’s welfare. For example, violations of human rights are one form, because they disrupt the process of free decision-making; famines are another because they diminish opportunities.

(Shortform note: Sen takes issue with all definitions of poverty that use income as the sole metric, of which there are many. For example, the World Bank defines extreme poverty as living on $1.90 or less per day. For developed nations, the OECD defines poverty as half the median household income. And, the US Census Bureau’s poverty line varies by size of family unit. Sen argues all of these ignore factors that affect a person’s capabilities, such as access to education and health care.)

Development as Freedom

Sen defines development as the process of expanding the freedoms that people can exercise. Sen gives two reasons why defining development as freedom is better than other definitions of economic development: freedom’s value and its efficacy.

Value of Freedom

According to Sen, wealth is merely an instrument for achieving the higher objective of attaining what we want: human flourishing and happiness. Freedom, on the other hand, is essential to achieving our objectives. In fact, enabling freedom is the purpose and value of economic development.

Efficacy of Freedom

Achieving progress individually and as a nation depends on people having the ability to make their own choices. Sen says that having free agency is the most effective way for people to attain the things they value, like happiness.

Milton Friedman on Economic Freedom

Before Sen, economist Milton Friedman also made freedom central to his vision of economics. In his 1964 book Capitalism and Freedom, Friedman argues that only in a nation with economic freedom can citizens have political freedom as well. This is because political freedom and economic freedom are inextricable. In nations lacking economic freedom, governments control the exchange of goods and services, as well as the exchange of political views via the printing press, internet, and other means of expression.

While Sen values other forms of freedom beyond economic, Friedman argues that all other freedoms come from the ability to engage in voluntary transactions. Therefore, capitalism is the only economic system that enables the other forms Sen desires (described in the next section).

Explaining Freedom

Now that we’ve established Sen’s basis for redefining poverty, we’ll examine what specifically he means when he refers to development as “freedom.” Sen’s is a more expansive view of freedom than traditional definitions, including both negative rights (such as freedom from coercion) and positive rights (such as the rights to education and health care).

Sen argues that these freedoms are both the primary purpose of development, as well as the most effective means of development.

Five Types of Freedom

Sen cites five types of freedoms that advance a person’s potential, each of which...

Development as Freedom Summary Shortform Introduction

Development as Freedom by Nobel Prize-winning economist Amartya Sen argues that economic development goes beyond increasing wealth—it’s about expanding freedom.

Sen, an Indian economist and professor, believes the definitions of poverty and development should be broader.

This guide explores the roots of Sen’s reasoning, from what it means to be poor, to his idea of justice and the role that markets play in the process of development. Additionally, we examine different perspectives on the substance and practicality of Sen’s “development as freedom” approach.

About the Author

Amartya Sen is a professor of economics and philosophy at Harvard University. He was born in Santiniketan, India in 1933, and was a child when the Bengal Famine ravaged much of his homeland. Sen went on to earn his Ph.D. from the University of Cambridge in 1959, and he has taught in the United Kingdom at the London School of Economics and Oxford University, in addition to his native India. In 1998, Sen was awarded the Nobel Prize in Economic Sciences for his “[contributions to welfare...

Development as Freedom Summary Part 1: Philosophy | Chapter 1: Redefining Poverty and Economic Development

In Development as Freedom, Nobel Prize-winning economist Amartya Sen draws on the works of moral philosophers and economists, from Aristotle to Adam Smith, to argue that economic development is about more than increasing wealth—it must be about expanding freedom.

In redefining development as freedom, Sen takes a holistic view of poverty and characterizes it as impeding people’s ability to lead the lives they want.

Most definitions of poverty are based only on level of income. However, Sen’s approach to understanding poverty is more nuanced. He believes income alone does not tell the story of well-being.

Sen contends that income and wealth are only important as a means to something else, not for their own sake. As such, poverty is about more than low income; it’s about a lack of opportunity. Conversely, development is about more than simply increasing wealth; it’s about increasing opportunity.

Sen contends that poverty is harmful and unjust because it deprives people of the ability to lead the lives they want, and development is valuable because it allows people to improve their lives as they see fit.

Sen and the Human Development Index

Sen’s work...

Development as Freedom Summary Chapter 2: Explaining Freedom

Now that we’ve established the basis for redefining poverty as deprivation of opportunities and development as freedom, we’ll examine what specifically Sen means when he refers to freedom. Sen’s is a more expansive view of freedom than traditional definitions, including both negative rights (such as freedom from coercion) and positive rights (such as the right to education and health care).

Sen argues that these freedoms are both the primary purpose of development, as well as the most effective means of development.

Five Types of Freedom

Sen cites five types of freedoms that advance a person’s potential:

1. Democratic rights
2. Commercial liberties
3. Public provisions
4. Ethical guardrails
5. Safety nets

We’ll examine these five freedoms individually and examine how each reinforces the others.

(Shortform note: Sen’s list of five freedoms is similar to the four freedoms that Franklin D. Roosevelt laid out in a famous speech in 1941. Roosevelt argued the four fundamental freedoms were: freedom of speech, freedom of worship, freedom from want, and freedom from fear. Like Sen, Roosevelt believed it was the...

Development as Freedom Summary Chapter 3: The Problem With Focusing on Income

Now that we’ve covered why Sen defines development as freedom, and we’ve explained what constitutes freedom, we’ll move on to some of the practical problems of the income-focused approach Sen wants to replace.

Sen contends that focusing on income to assess development doesn't fully reflect people's welfare or well-being and that consideration of freedom provides a more well-rounded picture.

Pitfalls of Income-Centered Development

Sen views income-centered development as inadequate because it overlooks aspects of welfare that people value. Here are three oversights of the income approach:

1. Varying effects of GDP on health
2. Social costs that persist even with income transfers to the poor
3. The possibility that overall welfare may improve without strong GDP growth

We will consider each of these in turn, providing examples Sen uses to support each claim.

1. When Increased Wealth Doesn’t Improve Health

Often, income alone doesn’t tell the full story of well-being. For example, Sen notes that African Americans have per capita incomes much higher than the average person living in developing countries like Sri Lanka, Costa Rica, or Jamaica. However, African...

Development as Freedom Summary Chapter 4: Competing Notions of Justice

Having laid out new definitions of poverty and development, Sen turns to analyzing the competing theories of justice prevalent in economics: utilitarianism, libertarianism, and Rawlsian justice. Sen incorporates their positive aspects, such as the importance of valuing both freedom and its consequences, into his own view of justice. Justice is integral to his broader case for freedom-centered development, because “just” or equitable opportunity is essential to increasing the five types of freedom discussed earlier for all people.

Utilitarianism

Articulated by British philosopher Jeremy Bentham in the 19th century, utilitarianism is an ethical theory that prioritizes doing the greatest good for the most people. It became the predominant theory of ethics throughout the late 19th and 20th centuries, and was adopted, in different variations, by prominent economists such as John Stuart Mill and William Stanley Jevons.

(Shortform note: In this context, “utility” refers to a measure of happiness or satisfaction. The theory is based on the idea that rational people seek to increase their utility or happiness, and that public policy should seek to do the...

Development as Freedom Summary Chapter 5: The Role of the Market in Development

Markets are integral to Sen's theory of development because they afford basic freedoms and spur economic growth. Sen argues that markets have both intrinsic and instrumental value, but also shortcomings. He explores both benefits and flaws in this chapter.

Sen identifies two reasons why free markets are integral to his view of development:

1. As a means to economic growth and progress: Sen acknowledges that free markets can increase economic growth and overall economic progress. However, Sen says free markets are much more than just a means to improve prosperity.

2. As a fundamental freedom that people have reason to value: Independent of its impact on economic growth, the freedom to exchange goods and services is a basic part of social interaction and is valuable as its own kind of freedom.

Nonetheless, Sen takes care to enter into his calculus the aspects of free markets, such as income and gender inequality, that may contribute to the systematic exclusion of some marginalized groups. He also favors government intervention like social support and regulation when they can improve overall welfare.

Adam Smith on the Role of the Market

Sen relies heavily...

Shortform Exercise: Assess the Development as Freedom Approach

Sen argues that current definitions of poverty and economic development are inadequate. He chooses to view poverty as “capability deprivation” and economic development as expanding freedom.

After reading this section, what do you consider to be the benefits of these new definitions for poverty and development?

Development as Freedom Summary Part 2: Development as Freedom in Practice | Chapter 6: Democracy’s Role

Now that we’ve explained Sen’s philosophical case for freedom-centered development, we’ll analyze some of the most urgent issues plaguing underdeveloped nations and discuss how a development as freedom model would mitigate them.

First, we’ll look at how democracy influences development and how authoritarianism holds economies back. Next, we’ll look at gender bias and how empowering women can spur growth. Finally, we’ll discuss food scarcity and how to ensure that there’s enough to eat in a world of 7 billion people.

Does Democracy Help Development More Than Authoritarianism?

The role that democracy plays in development has divided policymakers around the globe. First, we’ll examine the arguments against establishing democracy in nations that are comparatively underdeveloped. Then, we’ll explain Sen’s argument for why democracy is a fundamental freedom that ought to be pursued by all nations.

Sen identifies two common arguments against democracy in poor nations, which he considers to be misconceptions:

1. Democracy gets in the way of economic development.
2. People in poor nations don’t desire a democratic form of government.

The Lee Thesis

Some...

Development as Freedom Summary Chapter 7: Women and Development

Sen identifies bias against women as a major obstacle to growth in developing countries. This bias deprives women of basic rights in areas such as political participation and family planning. It also harms economic development by failing to tap into the productive capacity of women by excluding them from education and the workforce. By empowering women, Sen argues, not only are women better off, but their communities become safer and more prosperous.

The Phenomenon of “Missing Women”

Sen notes that bias against women has resulted in a troubling trend that highlights the harms of misogyny on public health and development. One manifestation of this bias is a phenomenon of “missing women” in developing countries.

In most of the Western world, South America, and Sub-Saharan Africa, there are slightly more women than men. This is due to factors such as:

• Women are “hardier” than men, meaning they survive better given equivalent treatment and have naturally longer life expectancies.
• Most war casualties are men.
• Men, on average, engage in riskier behavior than women.
• Men are disproportionately the victims of violent crimes.

However,** in some parts of the...

Development as Freedom Summary Chapter 8: Population, Food, and Famine

Another problem that developing countries face is hunger and famine. Sen explains these problems, what's wrong with current approaches, and how his approach to development addresses a rapidly growing population and food supply issues.

The Malthus Model

Sen argues the answer to the pressures of a rapidly growing population lies in expanding freedom, not restricting it. Many poor nations with rapidly growing populations have adopted freedom-restricting policies on the basis of a now-debunked population growth model developed by Thomas Malthus in the 19th century.

According to Malthus, because population grows exponentially while food supply grows linearly, famines are unavoidable. When the population grows too large for the food supply to sustain, he argued, people will starve. In order to prevent this, Malthus thought the only remedy was for the government to adopt policies of population control.

The Malthusian model has been roundly refuted by modern economists for ignoring technological innovations, which have enabled sizable increases in food production. Despite this, there are still concerns about the impact of a rapidly growing population on food...

Shortform Exercise: Evaluate Democracy

Sen says all people deserve the right to elect their leaders democratically, and he argues that democracy facilitates economic development.

Do you think prioritizing democracy in poor nations is the best way for them to develop? Why or why not?

Development as Freedom Summary Part 3: Criticisms and Obstacles | Chapter 9: Western Bias

In the final chapters, Sen rebuts some common criticisms of his freedom-centered approach to development; among them, the claim that freedom and human rights are Western ideas that don’t translate to other cultures. He also tries to refute the idea that devising social policy to promote freedom and achieve progress is impractical.

Sen's critics take issue with his emphasis on the importance of human rights, saying it’s biased toward Western cultures.

The Western Bias Critique

This critique argues that the concept of human rights is a quintessentially Western idea, and that it doesn’t apply to non-Western (especially Asian) cultures. Therefore, “human rights” are simply an invention of Western civilization, which has its roots in ancient Greece and Rome, and they were devised more specifically during the Enlightenment in Western Europe.

In contrast, Eastern cultures have their own ethical frameworks, which prioritize honor and obedience above liberty and individuality. These cultures are better off adhering to their own traditions, and they don’t need Western values foisted upon them.

The United Nations and Human Rights

In 1948, the United Nations...

Development as Freedom Summary Chapter 10: Obstacles to Development as Freedom

Aside from cultural criticisms, Sen acknowledges that his freedom-centered approach presents several challenges because of the nature of democracy and capitalism:

1. Difficulty of consensus: Because of the varied preferences and priorities of factions in a democracy, it’s hard to reach agreements on public policy.
2. Unintended consequences: Governments often adopt well-intentioned policies that result in more harm than good.
3. Issues of self-Interest: The profit motive can encourage behavior at odds with the public interest.

We’ll discuss each criticism in detail.

1. Difficulty of Consensus

Sen advocates a coherent, strategic approach to social policy. However, critics argue that, in a democratic system, one approach isn’t feasible because people have so many different values and preferences.

Because of this variety, they contend that devising a single socially just framework will necessarily violate some people’s versions of justice.

Sen makes two counterarguments:

1. Democracy requires some compromise. Sen says that partial agreements achieved through the democratic process are still valuable and can greatly advance progress.
2. **More social...

Shortform Exercise: Promote Human Rights

Sen argues that all nations can benefit by adopting freedom and human rights.

What do you think is the best way to promote freedom and human rights in developing countries?