Amartya Sen in the DEVELOPMENT AS FREEDOM

 05.1.25 Page 26-27

Amartya Sen in the DEVELOPMENT AS FREEDOM

“”It is not unusual for couples to discuss the possibility of earning more

money, but a conversation on this subject from around the eighth

century B.C. is of some special interest. As that conversation is recounted

in the Sanskrit text Brihadaranyaka Upanishad, a woman named

Maitreyee and her husband, Yajnavalkya, proceed rapidly to a bigger

issue than the ways and means of becoming more wealthy: How far

would wealth go to help them get what they want?1 Maitreyee wonders

whether it could be the case that if “the whole earth, full of wealth”

were to belong just to her, she could achieve immortality through it.

“No,

” responds Yajnavalkya,

“like the life of rich people will be your life.

But there is no hope of immortality by wealth.

” Maitreyee remarks,

“What should I do with that by which I do not become immortal?”

Maitreyee’s rhetorical question has been cited again and again in

Indian religious philosophy to illustrate both the nature of the human

predicament and the limitations of the material world. I have too much

skepticism of otherworldly matters to be led there by Maitreyee’s

worldly frustration, but there is another aspect of this exchange that is of

rather immediate interest to economics and to understanding the nature

of development. This concerns the relation between incomes and

achievements, between commodities and capabilities, between our

economic wealth and our ability to live as we would like. While there is

a connection between opulence and achievements, the linkage may or

may not be very strong and may well be extremely contingent on other

circumstances. The issue is not the ability to live forever on which

Maitreyee—bless her soul—happened to concentrate, but the capability

to live really long (without being cut off in one’s prime) and to have a

good life while alive (rather than a life of misery and unfreedom)—

things that would be strongly valued and desired by nearly all of us. Thegap between the two perspectives (that is, between an exclusive

concentration on economic wealth and a broader focus on the lives we

can lead) is a major issue in conceptualizing development. As Aristotle

noted at the very beginning of the Nicomachean Ethics (resonating well

with the conversation between Maitreyee and Yajnavalkya three

thousand miles away),

“wealth is evidently not the good we are seeking;

for it is merely useful and for the sake of something else.””

The Relationship Between Wealth and True Well-being: Exploring the Limits of Economic Wealth in Achieving a Fulfilling Life

The conversation between Maitreyee and Yajnavalkya, as recorded in the Brihadaranyaka Upanishad, raises profound questions about the nature of wealth and its limitations in achieving the broader, more existential goals of life. This exchange not only encapsulates ancient Indian philosophical wisdom but also remains relevant to contemporary debates in economics and development studies. The relationship between wealth and true well-being is a nuanced issue that transcends monetary prosperity, inviting a deeper exploration of the human condition.

1. Wealth as a Means, Not an End

The ancient dialogue emphasizes a crucial distinction: wealth is not an ultimate goal but a tool to achieve other ends. In the Upanishadic dialogue, Maitreyee’s question about immortality through wealth reflects a misunderstanding of wealth’s role in fulfilling life’s ultimate aspirations. Yajnavalkya’s response aligns with Aristotle’s view from Nicomachean Ethics, which asserts that wealth is not the “good” we seek, but merely a means to something else. This distinction highlights that economic growth, while important, cannot be equated with the achievement of a good life.

   •   Real-world example: The relationship between wealth and well-being is observable in the “Easterlin Paradox,” which posits that within a country, higher income levels tend to correlate with higher life satisfaction, but beyond a certain threshold, further increases in wealth do not significantly improve happiness. In nations like the U.S., where economic affluence has not led to proportional increases in overall happiness, this paradox underscores that material wealth, on its own, is insufficient for a fulfilling life.

2. Wealth’s Limited Ability to Secure a Good Life

Maitreyee’s frustration—wondering whether wealth could help her achieve immortality—mirrors the contemporary misconception that wealth can solve all of life’s problems. Yajnavalkya’s response points out the limitations of wealth in addressing deeper existential needs. In modern terms, wealth might offer comfort, security, and opportunities, but it cannot guarantee a life of freedom, dignity, or long-lasting happiness.

   •   Real-world example: In affluent societies, we often observe individuals who, despite their vast financial resources, suffer from stress, isolation, or lack of purpose. The increasing prevalence of mental health issues in wealthier nations, such as the U.S. and Japan, reflects the inability of material wealth to address psychological and emotional well-being.

3. The Capability Approach: Beyond Wealth to Well-being

Yajnavalkya and Maitreyee’s conversation implicitly touches upon what modern economists, particularly Amartya Sen, would later conceptualize as the “capability approach.” Sen argues that true development lies not in the accumulation of wealth but in expanding individuals’ capabilities—what they can do and be in life. This includes freedom from want, access to opportunities, and the capacity to lead a life they have reason to value.

   •   Real-world example: In India, while the country has experienced significant economic growth, disparities in wealth remain stark, particularly in rural and marginalized areas. The lack of access to quality healthcare, education, and sanitation limits the capabilities of many individuals, even though the country’s GDP per capita has risen. The challenge of development, therefore, lies in translating economic growth into enhanced capabilities for all citizens.

4. The Connection Between Incomes and Achievements

While the dialogue between Maitreyee and Yajnavalkya dismisses wealth as a means to immortality, it does not ignore its role in achieving certain goals. Economic wealth can improve living conditions, enhance access to resources, and increase social mobility. However, the linkage between wealth and achievements—such as a long, healthy life, or the ability to live without fear or want—depends on how wealth is distributed and utilized.

   •   Real-world example: Countries that have invested in public goods and social safety nets, such as Scandinavian nations, demonstrate a strong connection between wealth (measured as GDP) and quality of life indicators, such as life expectancy, education, and general happiness. However, in countries where wealth is concentrated in the hands of a few, such as in Brazil or India, the link between wealth and overall social achievement remains tenuous, with large sections of society still trapped in poverty and deprivation.

5. Material Wealth and Human Fulfillment: The Need for Balance

Ultimately, the conversation raises a central question: how should we balance the pursuit of material wealth with the search for true human fulfillment? While economic growth is necessary for meeting basic needs and securing material well-being, it must be accompanied by efforts to enhance the broader human experience—education, personal freedom, social justice, and emotional well-being.

   •   Real-world example: Bhutan’s Gross National Happiness (GNH) index is an innovative measure that goes beyond GDP to include factors such as environmental sustainability, cultural preservation, and mental well-being. This holistic approach reflects an understanding that material wealth alone cannot guarantee happiness or societal well-being.

Detailed Summary

1. Wealth as a Means: The philosophical perspective from both the Upanishads and Aristotle highlights that wealth is merely a tool for achieving broader life goals, not an end in itself.

2. Limited Role of Wealth: Wealth alone cannot secure a good life. While it can provide comfort and security, it does not address existential needs like freedom, dignity, or emotional fulfillment.

3. Capability Approach: Sen’s capability approach argues that true development involves expanding individuals’ capabilities—what they can do and be—not just accumulating wealth.

4. Incomes and Achievements: Economic wealth can contribute to achievement, but it depends on how it is distributed and used. Unequal wealth distribution often limits the potential for societal advancement.

5. Balance Between Wealth and Fulfillment: True well-being requires a balance between material wealth and other aspects of life, such as education, freedom, and emotional well-being. Bhutan’s GNH provides an example of a holistic approach to development.

This nuanced understanding of wealth, capabilities, and human fulfillment encourages us to reconsider our assumptions about development and the nature of a good life.

The Contingent Role of Wealth in Achieving True Freedom: Understanding Development Beyond Economic Growth

The question of why we desire more wealth often leads us to a deeper exploration of the purposes for which we want to use that wealth. It is not wealth itself that is desirable, but the opportunities and freedoms it can provide. This perspective, rooted in philosophical and economic thought, challenges the assumption that wealth accumulation is inherently valuable. Instead, it emphasizes the role of wealth in achieving substantive freedoms, which are essential for living lives we have reason to value. In understanding development, it is crucial to go beyond mere economic growth and consider how wealth can enhance the quality of life and personal freedoms.

1. Wealth as a Means to Enhance Freedom

Wealth, in itself, is not inherently valuable. What is valuable is the freedom that wealth can provide—freedom to make choices, access opportunities, and lead a life in accordance with one’s desires and values. As Amartya Sen suggests, wealth is a “general-purpose means” to achieve the kinds of lives we want. It allows individuals to access better living conditions, education, healthcare, and opportunities for personal development, all of which contribute to the overall quality of life.

   •   Real-world example: In countries like Sweden or Norway, the combination of wealth and strong social safety nets has expanded the freedoms of individuals. People in these countries enjoy access to free education, universal healthcare, and a high standard of living. This wealth, however, is not merely for its own sake—it enables people to lead fuller, freer lives.

2. The Contingent Nature of Wealth’s Impact

While wealth is undeniably important in determining living conditions, its impact on individual well-being is not uniform. The effects of wealth vary depending on other social, political, and cultural factors. For instance, wealth can provide opportunities for better living conditions, but if a society is plagued by inequality, those opportunities may not be accessible to everyone. Similarly, a wealthy individual living in a repressive society may not experience the same level of freedom as someone with less wealth in a more open society.

   •   Real-world example: In countries with high economic inequality, such as Brazil or South Africa, wealth does not automatically translate into improved life outcomes for all citizens. While the rich may enjoy the benefits of economic prosperity, the poor are often excluded from access to basic services, leading to stark contrasts in quality of life. In such societies, the relationship between wealth and freedom is contingent upon the distribution of wealth and social justice.

3. Beyond Economic Growth: The True Objective of Development

Economic growth alone, measured by indicators like Gross Domestic Product (GDP), is insufficient as an objective for development. As Aristotle noted, wealth is merely useful for achieving something else. The true goal of development should be to enhance the lives of individuals by expanding their freedoms, opportunities, and abilities to lead fulfilling lives. While economic growth can provide the necessary resources for development, it is the expansion of freedoms that should be the primary focus.

   •   Real-world example: In countries like Bhutan, where the concept of Gross National Happiness (GNH) has been introduced, the focus is not merely on economic growth but on enhancing the well-being and freedoms of individuals. This holistic approach includes factors like mental health, cultural preservation, and environmental sustainability, demonstrating that development is more than just wealth accumulation.

4. The Role of Wealth in Shaping Living Conditions

Wealth is instrumental in shaping the quality of life by improving living conditions—access to nutrition, education, healthcare, housing, and infrastructure. These are all factors that determine an individual’s ability to live a life free from want and deprivation. However, the relationship between wealth and living conditions is influenced by how wealth is distributed, managed, and utilized within a society. Without equitable distribution and wise management, even abundant wealth can fail to improve the lives of many.

   •   Real-world example: In India, the rapid economic growth of recent decades has led to improvements in certain sectors, such as technology and infrastructure. However, this growth has not been evenly distributed. Large segments of the population still live in poverty, with limited access to healthcare, education, and basic amenities. The failure to translate wealth into widespread improvements in living conditions highlights the contingent nature of wealth’s impact.

5. Expanding Freedoms and Capabilities

Ultimately, the purpose of wealth is to expand the freedoms and capabilities of individuals, allowing them to live the lives they have reason to value. This perspective aligns with Amartya Sen’s capability approach, which argues that development should be concerned with increasing people’s abilities to do and be what they value. By focusing on freedoms rather than merely economic growth, societies can foster environments where individuals have the agency to shape their own destinies, engage with the world meaningfully, and contribute to collective well-being.

   •   Real-world example: In Finland, the emphasis on education and social welfare has enabled individuals to pursue diverse paths to personal fulfillment. The country’s commitment to providing quality education for all, regardless of economic background, allows individuals to develop the skills and knowledge necessary to live the lives they value. This focus on capabilities rather than wealth accumulation has led to one of the highest standards of living in the world.

Detailed Summary

1. Wealth as a Means to Freedom: Wealth enables individuals to achieve greater freedom by providing access to opportunities and resources that enhance the quality of life. However, wealth alone is not the end goal; it is the means to a more fulfilling existence.

2. Contingent Impact of Wealth: The relationship between wealth and well-being is not uniform. Other social, political, and cultural factors play a significant role in determining how wealth translates into freedom and quality of life.

3. Beyond Economic Growth: Economic growth, while important, should not be the ultimate objective of development. The primary goal should be to expand freedoms and opportunities, allowing individuals to lead meaningful, fulfilling lives.

4. Wealth and Living Conditions: Wealth is essential in improving living conditions, but its effectiveness depends on how it is distributed and managed. Inequitable wealth distribution can hinder the improvement of living conditions for large segments of society.

5. Expanding Freedoms and Capabilities: The true purpose of development is to expand the capabilities and freedoms of individuals, enabling them to pursue the lives they value. This approach, rooted in Amartya Sen’s capability approach, shifts the focus from economic growth to human flourishing.

In conclusion, while wealth is an important tool in achieving a fulfilling life, its impact is contingent on how it is used and distributed. Development must focus on expanding freedoms and capabilities, not merely on economic growth, in order to create a society where individuals can lead lives they truly value.