Which way out of poverty? The Human Capital versus Human Capabilities approaches
DOI:
https://doi.org/10.18537/mskn.06.01.02Keywords:
education, poverty, development, human capital, capabilitiesAbstract
Poverty is a global issue that affects people in different ways. The purpose of this article is to explore the two main theories that address poverty and the potential for overcoming it, which are the human capital and human capabilities approaches. The human capital approach focuses exclusively on the economic facet of poverty; in this perspective, poverty is defined as a lack of money and can be addressed by increasing the financial income of persons living in poverty. The human capabilities approach views poverty as a multidimensional problem that extends beyond economics to areas such as health, education, and freedom. This approach is geared towards social change and helping people in poverty to discover and fulfill their potential. The author finds that the human capabilities approach more accurately encompasses the range of poverty and the individuals affected by it, although its broad range has made it difficult to design and implement effective policies that address all the facets of poverty.
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