Amartya Sen, "Creating Capabilities: Sources and Consequences for Law and Social Policy"

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- It's almost impossible to introduce someone who's really a heroic figure in intellectual life-- in economics, in philosophy, and just the pursuit of social justice in the world. I think I'll start by talking about Sen's upbringing in Santiniketan, where he grew up with a father who was an expert in Hindu religion-- who wrote the Penguin Introduction to Hinduism-- to which Amartya has contributed an introduction and an editing job. His mother was one of Tagore's leading dancers in his musical extravaganzas in his experimental school. And in fact, the name Amartya was coined by Tagore, who thought that "immortal one" is a good name for a young boy to have. And so growing up in this very rich, nurturing-- but also humanistic and arts-filled-- environment, I think, was a very important thing to draw attention to. Because that kind of education that that school provides this increasingly in short supply in the world. He went from there to Presidency College in Calcutta, and then on to Cambridge University, where he had the famous Joan Robinson as his thesis advisor. And his thesis was monograph Choice of Techniques-- his first book. After that, he taught at both Jadavpur University in Calcutta and the Dehli School of Economics, but then went on various visits to the US-- at both MIT and Stanford-- but then taught for a long period as a Professor of Economics at Oxford University, and then moved to Harvard University, where he still the Lamont University Professor. However, in the middle he was also a Master of Trinity College Cambridge, between 1998 and 2004. And then, also in '98-- and the program is wrong about this. I think the program awarded you the Nobel Prize 10 years earlier than you actually got it. Also in '98, he was awarded the Nobel Prize in economics. And the following year-- an equally important award-- the Bharat Ratna Award, the highest civilian award awarded by the Indian government. He's still passionate citizen of India as well as living in the US and being very involved in British affairs as well. There are just three features of Amartya's work that I want to mention, which you have all seen in reading his work-- and which you'll see today. First, its technical brilliance. That's just beyond question. And I think is a large part of what made it possible for him to address these foundational issues of justice, and get the hearing of the economics profession. But the second is it's a determination to pursue foundational questions, and to do that in a way that-- one might say-- is interdisciplinary. Although, as he's always stressed, the economics used to have that as an internal part of itself, and that is to address the foundational philosophical questions about justice that are so crucial to thinking about economic problems. And then, finally, just the passionate concern for how people live, and for just in real human lives. You see this especially in his new book on justice. But I think that's what motivates and informs really everything else about his work. And it's what really motivates the pursuit of the capabilities approach, which really does say that the central question for development should be what is each person actually able to do and to be. So he's going to speak to us today on capabilities and justice. So please welcome Professor Amartya Sen. [APPLAUSE] - Thank you. Well, I'm delighted to be back here. And I'd like to thank the organizers of the meeting, Jim and Martha, for their kindness of inviting me, and Martha for the very kind-- over generous, but I won't complain about that-- introduction. Actually, even though I read that my name is meant to be immortal-- mean immortal-- I recognize that the need for replacement has come. And I'm gradually trying to replace, bit by bit. I've got metal knees, and I've just replaced my lenses in the eye. So at the moment, there's nothing here, because that's still recovering. But I don't think-- reading is not always easy, but I think it may be slightly better with the middle distance, for reasons that may or may not be clear. I tried to argue in a recent book, The Idea of Justice, that our understanding of the idea of justice-- as it's conceptualized with it's practical implications-- demands some clearly radical departures from the mainstream theories of justice that are dominant at the present time. The ongoing philosophy of justice is too strongly dependent on the particular way of thinking that was largely initiated by Thomas Hobbes in the 17th century, and which concentrates on identifying perfectly just social arrangement, and "taking the characterization of just institutions," quote unquote, "to be the principle-- and often the only identified-- task of the theory of justice." This way of seeing justice is woven, in different ways, around the idea of a hypothetical social contract-- an imagined contact that the population of a sovereign state are supposed to be a party to. Major contributions were made in this line of thinking by Hobbes in the 17th century-- as I mentioned-- and later by John Locke, Jean-Jacques Rousseau, and Immanuel Kant, among others. The contactarian approach has become the dominant influence in contemporary political philosophy, led by the most prominent-- and I believe the finest-- political philosopher of our time, John Rawls, whose classic book-- A Theory of Justice, published in 1971-- presents a definitive statement on the social contract to pursue justice. But it also applies to other theories of justice that are quite popularly presented in these days-- in the modern political philosophy-- Ronald Dworkin, Robert Nozick, David Gautiere, and so on-- even though they disagree with each other, they shared that feature. Some of these points I did try to say in the morning, in the class. And I recognize this is a larger group than at that-- I said the class, but I didn't mean class, of course-- that was going on. So I will-- some people might be slightly bored, since for the first three minutes there is a lot of overlap with what I said before, in the morning. In contrast, a number of other Enlightenment theorists-- Adam Smith, the Marquis de Condorcet, Mary Wollstonecraft-- in the 18th century-- Karl Marx, John Stuart Mill-- in the 19th, and others, took a variety of approaches that deferred in many ways from each other, but shared the common interest in making comparisons between different ways in which people's lives may go. Jointly influenced by the working of institutions-- but not just institutions-- people's actual behavior, their social interactions, and other factors that significantly impact on what actually happens. The analytical and rather mathematical discipline of social choice theory-- which had its origin in the same period, in the works of the French mathematicians in the 18th century, in particular Condorcet, but also others like both Borda-- offers, I argue in the book, a richer-- and I think in some ways more useful-- approach to thinking about the idea of justice. In the book, I've discussed how the approach of social choice theory can help the pursuit of public reasoning aimed at the removal of diagnosable injustice in the actual world in which we live. And by social choice theory, I don't mean only social choice theory. In the narrow sense, also what they call public choice theory-- particularly the work of James Buchanan-- is a major part, I think, of that heritage. The task of the theory of justice in this approach is not that of speculating and dreaming about a perfectly just world-- or even about perfectly just institutions-- but using public scrutiny to arrive at an agreed diagnosis of manifest injustices, on the elimination of which a reasoned agreement could emerge. If our concentration has to be on the actual lives of people, the question that immediately arises is how to understand the richness and poverty of human life. The capability approach, which is part of the theme of this conference, focuses on the freedom that people actually enjoy. It's useful to begin by discussing-- why is this approach distinctive? The focus on freedoms and capabilities differs sharply from many other approaches to assessing the demands of justice-- for example, as with institutional libertarianism, looking for the fulfillment of certain formal rights that people should have, whether or not these rights can be actually exercised in a way that would have an impact on the lives of these people. Many of these rights can, of course, have an important instrumental role in advancing more free social life. That's not denied. But the pursuit of justice cannot stop there. For example, to take an extreme example, it is very nice and reassuring to know that the state-- or any other person-- would not prevent a destitute from going to Capris or Acapulco to have a good holiday. But this society may have to go a bit beyond securing the individual's right to do what they can do on their own, and consider what society or the state can reasonably do to facilitate the freedom of the people to achieve what they have reason to value. It's important not to be restricted by the reading of freedom within institutional libertarianism. If that is important-- I go on to argue-- then the need to go beyond the mental metrics of utilities, in the form of pleasure and desired fulfillment, is surely another important issue. The evaluative exercise of taking note of people's actual freedoms cannot be avoided by concentrating, instead, on some features of mental reaction-- whether pleasure or happiness, on the other side, desire fulfillment-- as the utilitarians of various kinds from Jeremy Bentham onwards-- Henry Thidwick, Edward deGaulle, to Ramsey-- have proposed. John Stuart Mill was the exception to this utilitarian tradition, in the sense that he describes himself as utilitarian, but questioned it deeply-- mainly because he was much more, in fact, than a utilitarian. I learned from Richard Reeves' excellent biography of John Stuart Mill that Mill was tempted by the narrowly utilitarian view-- ignoring everything else-- when he was 15. And 15 does seem like a good age to be a dedicated utilitarian. Even if chronically deprived persons-- for example, the hopelessly poor or the long term unemployed or subjugated housewives-- learn to come to terms with and accept cheerfully their deprived lifestyles-- underprivileged people without hope of liberation often try to do just that, to cope with the inescapability of the deprivation involved-- that cultivated cheerfulness will not eliminate the real deprivation from which they will continue to suffer. In pursuing the perfect rule of freedom, there are of course many difficulties to be addressed and problems to be resolved. That is part of the exercise. Freedom has many aspects and many faces, and it is necessary both to distinguish between them and to the focus of analysis depending on the nature of the problem that is being addressed-- for example, in dealing with the issue of torture and its unacceptability as a means to other, allegedly more important, ends, pursued in the contemporary world-- as it happens-- by many world powers, including some leaders of the global establishment. What would be particularly important is to see the relevance here of the classical libertarian perspective on freedom-- like that pursued by John Stuart Mill and, in this respect, Frederick Hayek-- arguing for the immunity of every human being from forcible infliction of pain and humiliation by others, including the state. This can be partly fitted into the capability perspective, but it greatly predates the modern development of the capability approach. And its concerns go go well beyond checking who has which capability into the causal influences that leads to capability deprivation in each particular case, giving some special importance to the tyranny of others. The need for-- and the possibility of-- integrating liberties in this sense with other social priorities have received a good deal of analytical attention in contemporary social choice theory as well-- pointing to feasibilities as well as barriers which have to be overcome. And I think, well, beyond I was trying to do something with a capability approach in 1971. I published a short paper in the Journal of Political Economy arguing why you may have to go not only against aggregate utilitarianism, but even against the parental principle, if you really took liberty seriously. This is in many ways a mistake. Even though it was a four page paper, it immediately generated about 250 papers. And I have to defend myself, as well as-- with this extension-- as well as-- various things happened, actually. And they observed a lot of time-- I think probably it was worth it. But what I'm emphasizing here is that there's no conflict because of my interest in the priority of liberty in some issues in the context that would apply even to the theory of justice. And the fact that the capability cannot capture it all doesn't change the story in any way. There's greater relevance of other aspects of freedom when the focus instead on issues of economic and social disadvantage an advantage-- and, in general, on the inequality of the life that different people are able or not able to lead in a society. These aspects of freedom can be captured better by a fuller use of the general capability approach, which concentrates on the actual opportunities a person has to do this or be that-- things that he or she may value doing or being. Obviously, the things we value most are particularly important for us to be able to achieve. And somehow in evaluating the capabilities in the form of the sets of alternative combinations of functionings that we can have-- alternative doings and beings that we can have-- in evaluating how we value them has to remain quite critically important. But the idea of freedom also respects our being free to determine-- to have to go beyond this, and be free to determine what we want, what to value, and ultimately what we decide to choose. It should indicate that the-- it's not a question-- that there is no question asked about preferences and valuation-- the ability to re-examine preferences-- the capability to do that-- to learn from surroundings, to overcome what Marx called false consciousness or objective illusion. That's another terms Marx used, which could be quite relevant, too. It's easily checked. That means that is in-- and anyway, Marx thought it mainly in the context of class, but I've tried to argue elsewhere that it applies much more in the case of gender, because people live in the same family. And a kind of harmonious life requires that you don't talk about conflict, even though you are dealing with a situation of cooperative conflict-- when cooperation generates benefits, but in a differential way. And if the division will deliver benefits, which is really the central issue-- and people often get this quite wrong, in the sense that-- and it's not just in the context of feminism, but also in globalization-- saying that, well, you know, even the poorer countries are benefiting. So what's the grumble about? Well, the grumble isn't about that. As John Nash noted in a revolutionary paper in Econometrica in 1950, in fact [INAUDIBLE] economic, The Bargaining Problem, that's true of many circumstances where everyone benefits. The question is, which of these would you choose? How would you benefit? How would you choose the distribution of benefits? And that applies as much to the issue of globalization as it does to the question of men and women in the family. And indeed, the retort saying that if you don't like-- if you think family-- I once published a book jointly called The Tyranny of the Family. I guess in America I might have been lynched for that, because the family values are so extraordinarily important here. But the retort-- that if women don't like living in families, why don't they live outside? That's not the issue that's being discussed. The question is, living in the family, there are many alternative divisions. And here it really turns of the freedom of being able to understand what's going on, and where the issue of false consciousness comes in-- to be able to see that there may be some illusion that the requirement of family living has generated, which one has to go beyond in order to pursue justice in this context. Is easily checked that means such as incomes and other resources-- while valuable in the pursuit of capabilities-- and not themselves indicators-- I'm moving to a different subject now-- indicators of the capabilities and freedoms that people actually have. The ability of the person to convert resources into capabilities depends on a variety of contingent circumstances. For example, the person's biological, physical, and mental characteristics, his or her proneness to illness-- the physical, social, and epidemiological environment in which the person lives, and so on. The real opportunities that different persons enjoy are very substantially influenced by variations to individual circumstances, for example-- age, disability, proneness to illness, special talents or the absence thereof, gender, maternity, and so on-- and also by disparities in the natural and social environment in which people live-- epidemiological conditions, the extent of pollution around one, the prevalence of local crime. Under these circumstances, an exclusive concentration on inequalities of income distribution cannot be adequate for an understanding of economic inequality. Valuing human freedom differs thus from focusing on income or wealth, which Aristotle had already noted more than 2,000 years ago. Referring to "wealth is evidently not the good we are seeking, for it is merely useful and for the sake of something else", unquote. If you focus on freedom, we would of course be interested-- deeply interested-- in income and wealth as well, inter alia, that persons respectively have, and in other such means captured within the broad category of what John Rawls called primary goods. But ultimately, we have to go beyond that and examine the freedom that people actually do enjoy. Consider an example. Being disabled has a double effect in reducing the person's ability to earn an income-- what can be called their earning handicap-- and in making the conversion of income into good living that much harder, thanks to the cost of prosthetics and the arranging assistance, and, of course, the impossibility of fully correcting certain types of disadvantages caused by disability. And this can be called a conversion handicap. For example, of a person who happens to be, say, crippled by an accident or by illness may need assistance, or a prosthesis, or both. And even then, the person would, in all probability, not become as able to move around freely as someone without that disability. The conversion handicap refers to the disadvantage that the disabled person had in converting income into good living-- or the freedom of life. A system of poverty removal that concentrates only on the lowness of income-- in particular, whether a person's family income is below the poverty line specified for that society-- will catch the earning handicap fine, but not the conversion handicap at all. And this could make the poverty relief program fundamentally inadequate and ineffective. Let me illustrate the influence of conversion handicap with some results from the poverty study in the United Kingdom-- discussing also for the inadequacy of the poverty redressing arrangements in British society. The results obtained by a brilliant young student at Cambridge, called Wibke Kuklys a German student who, alas, died tragically shortly after completing her PhD from a virulent type of cancer which gave her no chances at all. In that illuminating PhD thesis-- which was published later by the Social Choice and Welfare Society's normal publisher, Springer, as a separate book. But when I tried to write an introduction, since she was no longer there. Well, see, I think she saw the final proof just before she went. Taking a poverty cutoff line of 60% of the British National median income, she was working on the picture in 1996 to '99 in Britain, Kuklys found that 17.9% to 18% of individuals lived in families with below-poverty-line income-- if you take all the families in Britain. Yet now, attention is shifted to individuals and families with a disabled member-- look at only those families-- by the way, it's quite high. People don't even recognize-- one in 10 persons in the world has significant disability. It's about 600 million people in a world of 6 billion. This is the World Bank's statistics. If attention is shifted to that, the percentage of such individuals from disability affected families living in below-poverty-line income is 23.1%-- so let's say 23%. So it goes up from 18% to 23%, a jump of 5 percentage points, reflecting largely the earning handicap associated with disability of their affected members of the family, and the earning disadvantage of others in the family who have to take care of the disabled. It's now conversion handicap is introduced, and note is taken-- and she couldn't, of course, deal directly with the capability space. She did what economists often do-- looked at the income needed-- the indirect utility space it is sometimes called-- what is needed in order to compensate for it. So she looked at the dual, as it were. If that is introduced, note is taken of the need for more income to ameliorate the disadvantages of disability-- to the extent it can be ameliorated-- through prosthesis, through assistance, and other counteracting arrangements. The proportion of individuals in families with disabled members who have thus corrected-- who have family income that is below that corrected income level, taking into account the extra-- that goes up from 23% to 47.4%-- more than 24 percentage points higher than the poverty ratio when note is taken only of earning handicap, but not of conversion handicap. Indeed, the bulk of the poverty-- even in terms of inadequate income, without taking any note of the irremediable aspects of capability disadvantage of the disabled-- turns out to be due to the conversion handicap going well beyond their earning handicap by four or five times, well beyond the earning handicap on which the poverty statistics concentrate. This can make the standard poverty relief programs very inadequate, one-sided, and unfair-- unless we look not just at low incomes earned-- which is the way it all goes-- but also at the insufficiency of income to overcome the capability disadvantage related to the conversion handicap. That is, to bring in the dual state for the extra income needed. And then again, that is an understatement, because it doesn't capture the irremediable feature of the disability that people have. If you were to move beyond identification and relief of poverty to the assessment of social inequality, the enlightenment provided by the perspective of capabilities can take us well beyond the limited domain of income inequality. We have to take an interest in the overall capabilities that any person enjoys to lead the kind of life she has reason to want to lead. And this requires that attention be paid to her personal as well as environmental characteristics, going beyond the income statistics. Indeed, I would argue that the nature of every theory of economic and social problem is significantly influenced-- or should be influenced-- by taking the importance of freedom and capability seriously, moving away from the primary goods space. Let me turn, now, to the relation between the capability perspective and the importance of education, on which there was a certain amount of focus in the conference-- and there are a number of interesting and momentous papers in this conference. Our ability to do things depends on our education. Sorry-- that our ability to do things depend on our education is a point that's not hard to grasp. They are highly important issues that go beyond that fairly straightforward recognition into the complexity of the development of human capability formation-- on which, of course, there is very interesting work going on here under the leadership of Jim Heckman. One issue concerns the question, how much of a difference can education make when the child is handicapped in one way or another? Another question relates to the difference that early education-- for example, preschool education-- can make to what happens later on-- what I think Jim calls it the dynamic aspect. Still another question concerns the exact role of education among other influences, including nutrition, which often influences physical health and cognitive development. A further question-- and by the way, in countries like India, this is a very important issue. Nutritional Deprivation is a huge reason for cognitive underdevelopment. A further question-- and by the way, there too, preschool intervention could make a very big difference-- and not just school meals and so on. A further question great significance relates to the contribution of education to emotional development, and to the growth of social understanding. This is the general area of huge significance, in with the use of capability approach can be potentially extremely important. A big dichotomy in attitudes and belief that can be observed relates to the respective roles of nature and nurture in the development of human capabilities. The division between nature and nurture is, of course, ultimately an empirical question-- at least, empirically informed. But it would be wrong to see it only as an empirical question. Given the complexity-- and often the undecidability-- of determining the exact impact of different factors that influence human capabilities, and since they are very little independent measurements of inborn qualities, you have to guess it as a kind of residual-- there will tend to remain, at least in the foreseeable future, the need for general arguments-- and indeed well-informed general assumptions-- that sort out policy issues, even when the empirical questions are not fully resolved. And here we do observe quite a variety of approaches. I shall take the liberty of commenting here on an approach that Adam Smith followed, and which the form of assuming that there are no difference in natural talents unless they is specific and definitive evidence in the contrary direction. Indeed, armed with this inclination, Smith actually adjusted his attitude to human potentials in what would look like-- today-- as in an extremely radical direction. Smith argued, in short, for an almost complete priority of the impact of nurture over nature. And I'll quote from Smith-- since Smith has such an image, especially in Chicago, as a conservative thinker, it is quite important to recognize how radical he is. I cut out some of his remarks on race and ethnicity, and the pretensions of the white man-- over Africans, in particular-- where he argues that there isn't a-- he's given to exaggeration. He uses the word Negro, of course. And he says there is not a singular Negro anywhere in Africa whose capacity to understand the demands of justice is something so complicated that his sordid master is completely incapable of grasping what is being presented. He absolutely loved these sentences. From Smith-- "The difference of the natural talent in different men is, in reality, much less than we are aware of." This is Smith. "And the very different genus which appears to distinguish men of different professions when grown up to maturity is not, upon many occasions, so much the cause as the effect of the division of labor. The difference within the most dissimilar characters-- between the philosopher and a common street porter, for example-- seems to arise not so much from nature as from habit, custom, and education. When they came into the world, and for the first six or eight years of their existence, they were perhaps very much alike. And neither their parents nor playfellows could perceive any remarkable difference. About that age--", that is six to eight, or soon thereafter, "--they come to be employed in very different occupations. The difference of talents comes then to be taken notice of, and widened by degree, till at last the vanity of the philosopher is willing to acknowledge scarcely any resemblance with the street porter." Unquote. It's easy to see that there can be some real tension here between Smith's firmly articulated view and the existence of genetic differences between one person and another within the same race, or nationality, or in class that modern biology has tended to identify. One doesn't have to got with Charles Meyer to point out that there could be differences here, on which there has been lots of scientific work. This could be stochastic, but it could happen. The important point to note here is not only that this epistemic generalization that I quoted from Smith reflects what Smith, on one side, very much wanted to believe-- since he was deeply radical-- but also what he thought would be the right practical assumption to make when dealing with groups of people without any pre-identified genetic differentiation among people when they are born. It's an argument that will be revisited later in the debate. You can put it in a different context-- in the context utilitarianism between Abba Lerner and Milton Friedman, and I joined the debate also-- that sometimes, when you don't know which way is, that the right assumption would be that of insufficient reason for assuming it stays much the same. I will not pursue this mythological issue further here. But it is important to understand both Smith's emotional inclination, but more importantly his well-reflected research strategy in the way his argument tended to proceed. Last year was quite an interesting year, because it was the 250th anniversary of the theory of moral sentiment, which was published in 1759. And I had the privilege to write a long introduction to the new anniversary edition that Penguin put out of The Theory of Moral Sentiment, where I discussed also the misunderstanding of Smith that we see all around, and the importance of the recognizing how radical a figure he actually was. By the way, this is-- I think it came out in December-- but by the skin of its teeth, like the 31st of December, I managed to capture the year which was the 250th anniversary. Largely it was my fault, of course, as always. I may have been a little late in delivering. But it did just about make it. What is important for Smith's research agenda is not whether the quoted statement about uniformity of talent to all human beings is literally correct-- he often puts in words like perhaps, probably, we can assume, and so on-- but whether group differentiation that we see in actual society-- the vast differences that we see between members of the working class on the one hand, and the more privileged, educated, cultivated people on the other-- with good taste in reading, with music, and several other things-- reflect different of natural talent, as many people are inclined to believe, rather than difference of education and opportunities, to which Smith points, and which informed his whole analysis in both The Theory of Moral Sentiment and in The Wealth of Nations. And the quotation I gave, I think, is in fact from The Wealth of Nations. But it also applies to his posthumously published theory Lectures on Jurisprudence, which were put together from his students' notes. It's not only that quote unquote "common people" have much less opportunity of education and less opportunity, even further, of good education than people of rank and fortune. But Smith points also to the fact-- and it's a very important fact-- that the working life of people itself is a source of cultivation and education. And that differentiates further. As he said in that statement I quoted, what began as a little different becomes wider and wider. Since our lives are themselves forces of education and capability formation, Smith points here to an enormously important line of research that has not been adequately pursued even now, after a quarter of a millennium. Smith's reasoning focused on the following issue. And I quote from Smith again-- "The employment of people of some rank and fortune besides--" he talks about education differences first, and we are beside that-- "are seldom such as harass them from morning to night. They generally have a good deal of leisure, during which they may perfect themselves in every want-- either of useful mental knowledge, of which they may have laid the foundation--" a foundation in school-- "or for which they may have acquired some taste in the earlier part of their life--" including their working lives. "It is otherwise with the common people. They have little time to spare for education. Their parents can scarce afford to maintain them, even in infancy. As soon as they're able to walk, they must apply to some trade by which they can earn their subsistence. That trade, too, is generally so simple and uniform as to give little exercise to their understanding, while at the same time their labor is both so constant and so severe that it leaves them little time leisure, and less inclination to apply to-- and even to think or-- anything else." Reasoning in this line, Smith notes that the system of division of labor, which as it happens he definitively analyzed-- and this is the big thing. I mean, his big contribution was that. And indeed, the Nobel that Paul Krugman got two years ago in many ways is a development of this Smithian line of reasoning-- discussing how competitive market equilibrium with [INAUDIBLE] returns to scale may not be the best way of understanding it, and why the mathematical problems-- which are quite considerable-- can be dealt with, which Paul did. But it is very much on the Smithian line. So he is a great champion of division of labor, because it's hugely beneficial in raising productivity and our income, in advancing trade, and enhancing living standards of people. But it goes on to note that on the other hand, the effect of division of labor is to diminish the reach of human talent and freedom for the majority of people-- the working classes. And he's concerned very much about that. And he thinks, of course-- again, that is not often recognized-- that what you have to cultivate market, the state had a huge role to play to negate these inequalities that generate from what is otherwise a productive system. He analyzed this nasty implication of division of labor in considerable detail, eloquently drawing attention to how much a narrowing of the human mind it yields. I'll quote from Smith again-- "I have seen several boys under 20 years of age who have never exercised any other trade but that of making nails." Unquote. A humane public policy has to take note both of the positive and negative features of division of labor, and of course do what it can to expand the reach of education. This argument fits into Smith general advocacy of public education to reverse the neglect of native talent that seemed, to him, to be a uniform feature of all societies-- and with what they urgently in need of remedy. While it's important to understand Smith's inclination-- indeed longing-- to believe in the equal potentials of all human beings, what is crucial to his policy prescription is his pointer to the uniformity of the neglect of human talent-- to the lack of education and the unimaginative nature of the work that many people are forced to do. Class divisions reflect this inequality of opportunity, Smith argued, rather than being a result of differences of inborn talents and abilities, as many of his contemporaries tended-- explicit theory of [INAUDIBLE]-- to believe. I must stop here, since I have run out of the half an hour that was allocated to me. I seem to have done more, but I think we began late. No, no. I think we can come back to it. But I look forward to the Q&A. I hope we have been able to point to some of the huge issues of social understanding and policy making that can be embraced by reasoned and reasonable use of the capability perspective. This is because an adequate understanding of the relevant truth, role, and reach our freedom and capability is central to the assessment of justice and injustice in this society. This is an area of human knowledge on which, I've argued, there is much to do still. Thank you. - Do you want to call on people yourself, or shall I call on them? - Well, I don't know. I think that given my eyesight at the moment, you may be better able. - OK. I'll call on people. - I don't want to-- - We have-- - --catch people. I know bright people-- --would say about 15-20 minutes for discussion. - I don't want to catch people who are scratching their ear, and force them to ask a question. No one seems to be scratching their ears at this moment. I couldn't have been that convincing. - Yes? - During your talk this morning, or during a comment, you said that the operationalization of the capabilities motions chills your bones. - No. - Was the quote right? No. - I said the concentration on that problem-- - Concentration-- - --chills my bones. --on operationalization. OK. - Because, you know, they are paying. - I just want you expand on what-- - Now, but, you ask your question. Why don't you ask your question? Assume that's what I said. But then, what would you have then said? - Well, [LAUGHTER] maybe you could expand why there's too much concentration on the operationalization of the-- - Oh. Why there is, I don't know. That's a causal thing. But why do I think that there is? - Yes, right. - Yeah. Well, because of two different reasons. One is that quite a lot of the importance of the capability thing is to recognize problems-- like Smith's thing-- that much of the inequality in the world that we observe is not connected with inborn talent at all. But it's connected with how people are educated and, indeed, their working life, which is also a source of education. Now, to many people, this was not an operationalized argument. To quote [INAUDIBLE] what percentage can you tell us? What's the impact, et cetera? I think the most important thing is to recognize that that is, indeed, the case. And I think that's making a huge stink. As I tried to say in the morning-- or maybe I'm imagining. I've just given five lectures in Chicago so far, so I'm not sure which one was given where. But you know, it's like saying, if we're reading a book like Mill only with the-- it's like saying, look, come off it, Mill. I mean, you know-- tell us how you're going to measure liberty an operationalize it. But that's not what the book is about. It is for pointing out a very important neglect, which has to be remedied, no matter how. Now, the second issue is that operationalization is inescapably an art of the possible, and the art of what is contextually needed. And that will mean you will not get one operationalized thing. Now, whether there is sufficient uniformity in the world to have a list of capabilities that may be relevant for-- not to discuss it, not inequality in general-- but poverty particularly-- deprivation, I think-- it is a different question. We could debate on that empirically. But I think the issue would vary a lot, depending on what stage of development you're in, what are the priorities at that moment, and so forth. And it also depends on concerns about what is available and what is not. Quite often, I think the kind of work, let's say Wibke's Kuklys did, which I was quoting, didn't take sufficient note of the conversion handicap, since it dealt with the indirect capability space, as it were-- namely, the income space-- to what extent that is needed. But then again, even with all the prosthetics and all the help, you're still not the same, if you're crippled, as an uncrippled person who can walk around freely without that. So that's to say, look, this didn't work. Now, and some day, one hopes that one will get a better way of getting at it. But I think the reason why [INAUDIBLE] is still a hugely important contribution to understanding of capability and poverty in general, and to a particular critique of the British anti-poverty program. On the other hand, I think they recognize that. It doesn't indicate that this is the last word. It is operationalized, somebody could say, I could do a better way of operationalizing. Whether or not it can be done becomes a relevant question there, too. So I think if we recognize the contingency and context-dependence of operationalization, and the fact that what is captured by operationalization is only part of the thing. I think the basic issue is understanding what's going on. And operationalization-- the demands of operationalization can divert people from asking questions that cannot be-- at an operational level-- answered at that moment. Mill could not have given you a good index of liberty at that time, by which you could say that the government society had more liberty or less liberty than France, and so on. But he was pointing to a very important issue. I don't want to stifle them. So it is the over concentration on operationalization, and the pursuit of context-independent operationalization, about which I was likely grumbling. - In your newest book, can we see your focus on saying we should look less at what makes a justice the perfect, ideal, just institution, and more at deciding what are clearly areas that are unjust, and trying to fix them? Isn't that focusing more on operationalization? So that's one part of the question. But the other one is-- please correct me if I'm wrong-- but I recall that in the book, you actually point to one example of clear injustice today-- the access to medicines issue. - Well, I do many. But that's one of them. - OK. OK. - About 10 or 11, yeah. - OK. Well, I wanted to know, one-- the broader question about-- are you really actually thinking about operationalization in the book-- but, two-- thinking about access to medicines, and here in the context of education-- a very practical question in some sense is-- do you see access to educational textbooks as just as important? And what is your position on that? - Well, I think the issue I'm trying make it about-- that the point I was trying to make, that social choice-- about socials contracts, of course-- I think you can talk in terms of operationalization. But that's a very narrow framework to bring in. And I think in terms of practical reason-- and after all, this is not pure reason, and practical reason-- and the question that arises is that there a decisional conflict-- which, of course, Kant makes quite clear. And this applies to the human rights thing. All the debates about human rights-- can you actually be sure? Will there be enough of an agreement on what are human rights? And therefore, the whole subject is rubbish. We've ended up in a situation where it is very counterproductive. You have to emphasize many things. Border disputes takes up a huge amount of time. It's exactly like an analogy saying, look, you keep talking about China and India. But that is not a well-defined concept, that they haven't yet settled the dispute around the border in McMahon line. We don't know where China begins and India ends. Can you give me a criteria by which you know exactly whether you are in China or in India in an operationalizable way? And if I said, look, I can't-- and I think this will remain an ambiguity. But nevertheless, talking about China and India is not a waste of time. There's a lot of things you can understand with that talk, which you can't otherwise. So I think it's a question of the priority of the concept and understanding. And then, yes, operationalize it. And that's why I go to the examples, too, in the context of today. And I also discuss how it's moot-- the Condorcet and Smith, and Wollstonecraft. They concentrated on slavery, but not the freedom of unionization and collectivity and so on. But then, of course, once slavery is abolished-- at least in parts of the world-- then it becomes relevant to ask further questions. And then the focus of operationalization changes. And I was partly also pointing to the context dependence of the operationalization exercise that would be relevant. But it wouldn't be, if you put operationalization first, rather than the understanding of the problem first. And then the operationalization follows from it, contingently and in terms of the art of the possible. What can be done, and what cannot be done? So I think that's the way I would tend to think of that issue. And then there will be boundaries on which we will not able-- for example, I don't-- I mean, one reason why I believe that we will not all agree on liberty and the relative importance of liberty on one side, and economic inequality on the other. Now I think, again, an operational framework with all of these will want them to be all perfectly weighted out. I don't think we have to do that. And generally, it's not even an absence of operationalization to say that you can deal with a partial ordering, whereby some questions you can resolve, and others you can't. I mean, I attach importance to both. And I do think that Rob Nozick-- my very close friend, and with whom I taught 10 years in a class-- I did think that he put more focus on liberty and none on economic inequality in a way that wasn't justifiable. I thought, in some ways, that was also Herbert Hart's criticism of Rawls. Why should liberty have a complete priority? Now, I think-- as I argued in the morning-- Rawls was not only right, but absolutely visionary to separate out liberty as a part of a requirement of a theory of justice. And he was right to begin there, too. And yet, I think he ends up by giving lexicographic priority, giving more room to that than I would argue it should be given. But then there are economic egalitarians who actually would not see anything in that. And I was also mentioning that even my friend Ronald Dworkin-- with whom I also taught class with for 10 years in Oxford, as it happened. I mean, I don't begin to see how equality of resources by a counter-factual insurance market-- and of course Ronny, like many other non-economists, takes the market very seriously-- as if the equilibria always exist, and they are unique, and they are easily convertible into-- and this insurance market. It's going [INAUDIBLE] of asymmetric information. But there's a certain amount of naivete in assuming that this could do all that. But quite aside from that, what happened to liberty? And I think that's become-- you know, we will continue to disagree on that. But that doesn't matter. It's quite important. I mean, it would be nice if we all agreed exactly on derivative [INAUDIBLE]. But it's very important to recognize that each of these have importance. We may disagree on the extent to it. One of my first papers in Econometrica-- it wasn't really my first paper, there were a couple of papers were in majority decision and domain condition. But then and in 1970, I think, I published a paper on exactly that-- how you could generate partial ordering when the weights are not specified. And you get-- there's some mathematical complexity involved. But you get certain regularity properties which have been part of the standard maths of earlier periods. It I mean one of the big things that was happening then-- and it's very important for us to bear in mind operationalization contexts-- because like a lot of economics, which has been guided by physics and Newtonian mechanics and that, it assumes a level of precision which is not very appropriate for social variables, and not particularly needed either. You have [INAUDIBLE] when Bourbaki's famous book on math and general topology and set theory-- those two books come-- the basic ordering is what we calls pre-ordering, which is an incomplete ordering. That's a basic relation. Then completeness is a special assumption that comes in. I think that's a really much more useful thing-- but similarly, other that mathematicians were also doing, and some economists involved in it too, namely-- fuzzy sets, fuzzy preferences-- social choice theory had quite a bit on that-- Ken Arrow and Suzumura and I wrote, in our Handbook of Social Trust, a whole chapter on these fuzzy relations and the importance of them in the social context. But these are part of the old math of a very different kind. In fact, all the things I've found since I came in clinically with as great mathematician's college, the distinction is between pure and applied math. And applied math is all mainly physics. And it turned out that the thing that is most aptly capable, usually, is the kind of math which is not that of physics, but which was put on the film-- film math like topology and so forth. And that of course with the big change that was happening in economics, also, beginning with the work of Ken Arrow, Gerard Deveaux, and so on. So it's that, and operationalization, as it stands, is really pretty captured by the predominance of the physics-related math. I might say, by the way, [INAUDIBLE] seems that it's pure math, applied math, and applicable math. That's a huge compromise, but we've always believed on that compromise-- that kind of thing. - I wish you would-- I wanted you to clarify something. - [INAUDIBLE] - It came up a bit this morning. - Yeah - And I it's a question that many people have about the capabilities. It's a very basic question. I understand your desire to go away from a pure utilitarian criteria. So you don't want to rely on preferences. And your example of somebody who gets used to a bad way of life is a very good example. But I worry that the capability set itself is generated by an implicit set of preferences, and that out there we're sort of trading one set of preferences for another that's less explicit. So I'm sure that you've encountered this question. I'm repeating [INAUDIBLE] but in some sense, defining what's a good and what's a bad-- what should be considered a capability or not-- involves some kind of implicit valuation. Maybe not for the agent himself or herself, but from some third party. So the question is, where does that-- so there's not a uniqueness question. It's not a unique agreement on what a capability set would be-- especially when we trade off components, like liberty versus economic freedom and various kinds of other things. So I wonder how you would respond to that comment? - I think there's three things to say on that. It's a very interesting question. One is that part of the problem arises from the use of the word preference to mean very many different things. And when I did a paper called Rational Fools, which was published a long time ago-- difficult to think now. It's like 35 years ago or something like that. The complaint was that the preference is used in so many different things. They're not the same. And if you use the same word-- by definition, by construction-- you make them the same. But that's an empirical assumption. There's your concept of your own well being, your concept of your interest, your concept of your goals, your concept of your values-- which may go beyond goals. You might give room to others in the pursuit of their goals, even though it requires you to go beyond your own goals, because you accept some need for restraint in living a society. Now all of these could be called preferences, if you'd like. But they're not the same. And the Italians tended to use one in particular-- they used the word preference. Whenever you raised the question, they'd say, oh, you can put it into the preference. That's no problem. But the only thing is, by the time you've done that, you don't have the pre-chosen meaning of preference, in terms of the Pareto optimality. That is about the individual well-being. And that meaning has gone, if the priority is not about that. And it is a very relevant question. I mean, in the-- - But do you change the [INAUDIBLE] they're independent preferences of a very general nature? - No, it's not that. But they-- - [INAUDIBLE] - That's not the only issue. By the way, this is only my first of three points. And I'll come to the others. But the preference, you can put anything you like in it. But it will be-- then it's changing its meaning. And our values are very important, ultimately. And our goals are different. But goals need not be the same the self-interest. Now, this is a big subject of debate, of course, within law and economics. And, of course, as it happens, one of the oddities that-- I teach a class man with a brilliant legal theorist who was originally trained as an economist, Christine Jones, who is a professor at Yale Law School-- jointly offered in Yale and Harvard-- on rationality and choice. And of course, it's quite clear that rational choice theory is having quite a tough time now, in terms of experimental economics, and behavioral economics. That's that people don't seem to behave like that. And yet, the interpretational issue is not sufficiently engaged, I think, in behavioral economics, yet. And that remains a big thing-- the disinclination to going to the interpretational question, which seems to me as central, is extremely important. There are things we agree to do, which is our preference-- --any interest in news, and they would end up believing that Obama wants to send everyone's grandmother to oblivion-- that he will do otherwise, like he should be the New York Times. And he suggests looking at-- you're saying, you know, I can't play the game very well. Because you know, that light is distracting. You don't mind putting the window shade down. Now, your thought is that you should rather give him the New York Times. But you think, A, he wouldn't like it, and B, you ask yourself-- you happen to have control over the window shade, because you have that fate. On the other hand, you shouldn't do it in a way that goes against what this guy is trying to do. That doesn't mean it's not even part of your goal to make him play the game. It's not the goal at all. It is that you're following a self-imposed constraint-- that you don't impose your own goals on your behavior. Now, of course, in a mathematical form, every constraint can lead to a Lagrangian multiplier [INAUDIBLE] as an as if preference. But that's not the same thing as a real preference. It's just the representational of the [INAUDIBLE]. So I think there are all kinds of ways that there are things we do-- which with preference have to be concerned-- which may not reflect-- not only are not for your self-interest, but not even your old goals, because you accept that in good rules of behavior in dealing with-- living with-- others in a society. So the first issue is the interpretation of preference in utilitarianism is a very narrow one. But then they use this to include everything under preference, and buy what is, after all, a gigantic fund. Cover every factor, because they've already had a term, preference, which is so versatile that it can include everything, and at the same time then you can end up interpreting it as your interest and well-being. And to some extent, that happens, I think. I don't know whether Gary is coming tomorrow, but that's one of our-- he's not, OK-- one of my ongoing arguments with Gary Becker. But the second issue, is this-- that the preference-- somehow all of these problems went away. Preference is not going to give you interpersonal comparisons, except in an exercise of imagination-- as imagined by [? Hasani ?] or [? Vickory. ?] You're not considering being somebody else. So your preference is telling you what you would like yourself. It doesn't tell you how the deprivation of a person-- I mean, there is no question that if I am a subjugated housewife, I'm better off-- and I might prefer, if I see no hope at all of changing that-- to take some pleasure in this, rather than mourning all the time. So as a living strategy, it makes a good deal of sense for me to create some happiness in my life, if I think the situation is hopeless-- which is true of many inequalities in the world. But that-- the relevance of it isn't that that is a bad reflection of your preferences, even though what should count in your capability-- it's in your capability. What it is bad at is comparing your deprivation with that of the other. The preference information gets you nothing at all on that, in terms of actual choices that are observed. That's a completely different territory. Preference has nothing to say on this subject. And I think that is a point which is not often recognized. Because, unlike classical utilitarianism-- which was concerned with comparison of happiness, and I don't have a problem with that-- or in a Randian form, comparison of fulfillment of desires comparing by the strength of their desires-- it's a little [INAUDIBLE] but at least I understand what that is. Simple preference, as revealed in market, is not telling you anything at all about interpersonal comparisons. That's a huge thing. Given the amount of time I'm taking, I'll stop at these two points, rather than go on through the third. - OK. I think then we'll just have time for only one-- well, I was going to call on-- Doctor, do you still have your question? No. - Why don't we take two? Yeah. Let's take two. - OK. Well, [? Dasha ?] and [? Atavan. ?] OK, first, Dasha. - Sorry. I said, no, I no longer have my question. - Oh, so that you no longer have it. So you don't want to. OK. Atavan. - I want to return to your beautiful observation this morning about the obligations that might arise from having lots of capabilities-- from having a very large capability set. You suggested-- you had the metaphor of the mother with the child. And the mother has an obligation for the child, because of her capacity to care for the child. We have focused largely, today, on a kind of education within a domestic context-- within a familial context, within the nation state system. But we haven't looked at the possibility of transnational approaches to eduction. Is there a role for countries or people who have great capacity of capabilities to assist in education without being paternalistic in doing so? They'd assist in education elsewhere in places that are greater deprivation. O I think the family is a rather big subject. I don't want to enter into it. And you know, Christine and I spent that one day, I think, for-- we do it Yale and Harvard together-- Yale Law School and Harvard together. And Yale students are bussed in to Harvard. Instead of making them come every week for two hours, we do every fortnight four hours. So it's an all-day exercise for them. So one of the days we spent on things like Katzenstein's [? Nadiem ?] and other things-- about how to be paternalistic without violating liberalism, and so on. I think there's a big lot of problems. And we can discuss that. But I don't enter into that territory, because that's not acting what you're really basically thinking, because your paternalism comes in only very passing. But I'm saying I'm not saying anything on the paternalism issue. It requires much greater engagement. But on the subject what it is owed beyond your border-- one of the differences, you see, between the approach I'm trying to present and that the social contract theory is that it can easily be global. If you take a statement like Martin Luther King's, saying that "injustice anywhere in the world is a threat to justice everywhere in the world." That makes no sense. In fact, Tom Nagel-- you can't think of a smarter and more humane philosopher than Tom-- and one of my closest friends, we published work. I learned a lot. In an incredible paper, he argues against this, actually. I think, Josh has a paper, too, arguing why the idea of global justice is a canard. Why? Because there's no global state. What you're talking about? Now, that, of course, is the way that social contract theory, in that form, does. And it's a question which-- I don't want to go into here-- as to some halfway-hearted like contractualism of Tim Scanlon-- how much can it cover or not cover on that. I'm quite skeptical of that, too, though Tim and I have a lot of points in common, and I've learned a great deal, again, from his work. But the real issue is that a lot of the ethical debates in the world are exactly of the kind that people were raising in the 18th century. Indeed, they were raising that when Mary Wollstonecraft said, surprisingly-- since it's known that she wrote her second book attacking Edmund Burke's attitude to the French Revolution, for not supporting-- that the first book, Vindication of the Rights of Men, which people don't read much-- there's quite a lot in it about slavery. And there, she attacks Edmund Burke for supporting the American Declaration of Independence. And it even had this mysterious statement which, when I first encountered, I found very puzzling-- on what ground Mr. Burke could support the American Declaration of Independence is beyond me to fathom. What is this revolutionary English woman talking about? What she is talking about is slavery-- namely that you cannot make a statement about freedom of some people, not to others. And the time to engage in it was right then and right there. Now, these are all international issues that are being considered. Tom Paine's discussion had a lot of that, too, even though his concentration is national. And [? Garrett ?] [? Steadman's ?] beautiful analogy shows that this very abstract discussion of Tom Paine played a hugely important part in the emergence of poverty-relief programs institutionally in the United States many, many decades-- indeed a century-- later. So I think that plasticity of going beyond borders is present in the alternative approach-- which I'm calling the social choice approach-- to this, broadly, these people fitted in. And the human rights literature is part of that exercise. It's not that human rights are legal rights-- which [? Bentham ?] thought is the only kind of right-- but that's just a conclusion. Nor is it that human rights can be discussed only when they're realizable, as some people like Cranston did. And to some extent, in a brilliant argument otherwise, Onora O'Niell does. Because part of the object of recognizing something as human rights is to agitate-- to make them feasible rights. The fact that they're not feasible already doesn't stop the engagement of human rights. Because part of the invitation of human rights is for first legislation, as well as best practices. And Mary Wollstonecraft discusses that. And, indeed, in a very visionary way-- one of the reasons why I think she's unfortunately the most neglected author of the old 18th century philosophers is where she said that, but you're not going to be able to remedy this by legislation alone. Attitude to women is a matter for public discussion, debate, media criticism, literature-- everything. So it's that generic view which is there. Now, the connection with certainly [? Potter, ?] and [? Wurthe-- ?] and when I quote the fact that [? Wurthe ?] gives an analogy-- this is not so much about many capabilities, except that it's just that there, [? Wurthe ?] is arguing that you don't have to argue from a mutual advantage in cooperation. Which, in a sense, is very deep in the social contract approach. You don't have to argue for it. If you are able to do something which to recognize is good, you have an obligation to do it. There's some kind of a schizophrenia if you recognize it would be better if it's done, and at the same time, you don't have to do anything about it. What do you mean, then, it's better? So that's the question that comes up. And you could debate, obviously, on that too. And the human rights are not-- it's a statement of that kind. These ethical statements, which might have a-- the Declaration of Human Rights by the United Nations in 1944, which Eleanor Roosevelt pioneered, it was very much her hope that that will serve as a model for legislation elsewhere. And, indeed, the European Declaration of Human Rights and the Court of Human Rights would not have come, but for that. So there are all kinds of ways in which to make not-yet-feasible rights feasible, the human rights may be a very important way of thinking about it. And that's not a contract area-- not a mutual advantage thing-- not that we do this for the Sudanese women terrorized by men, but we do this because that is important. And we can do something about it. And it's not the question that we expect Sudanese women to do something for American women are agitating on that, as a part of the global feminist movement. I think it's that kind of question for which the [? Wurthe ?] statement, I think, is very relevant. - Thank you very, very much. [INAUDIBLE] [APPLAUSE]
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Channel: University of Chicago Law School
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Published: Fri Jul 12 2013
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