Lecture Notes: Amartya Sen on Development as Freedom

Introduction

• Amartya Sen: Winner of the 1998 Nobel Prize in Economics.
• Focus of Work: Restoring ethical dimensions to economics, emphasizing freedom over wealth.
• Book: "Development as Freedom" - explores how economics relates to individual well-being.

Key Concepts

Freedom and Development

• Individual Freedom: Essential for social change and progress.
  • Requires social, political, and economic opportunities.
  • Different types of freedom complement each other.
• Political Freedom:
  • Provides voice through democracy, civil rights, open media, and public discussion.
  • Democracies can prevent famines through public pressure and accountability.

Democracy vs. Totalitarianism

• Famines: Never occurred in democratic countries due to accountability.
  • Examples: India, Zimbabwe, Botswana have had no famines post-independence.
  • Totalitarian states like North Korea, Sudan have experienced famines.
• Economic Incentives in Democracies:
  • Governments have a political incentive to prevent famines to avoid criticism and electoral losses.

Economic Growth and Political Systems

• Economic Growth:
  • No direct correlation with democracy according to studies by Barrow and others.
  • More related to economic climate rather than political climate.
• Human Security:
  • Democracy plays a significant role in ensuring it.
  • Example: Economic crises in Southeast Asia led to democratic movements due to lack of voice for the underprivileged.

Economic Disparities

• Income Inequality in the U.S.:
  • Despite wealth creation, there is growing disparity.
  • Real issue: Inequality of basic freedoms (health, education, peaceful living conditions).

Health Care and Social Issues

• U.S. Health Care:
  • Lack of insurance leads to disparities in life expectancy.
  • African Americans face lower life expectancy than people in poorer countries.
  • Political discussions (Gore, Bradley) starting to address these issues.
• Comparison with Europe:
  • Health care more politicized in Europe, leading to better systems.
  • Unique political tolerance in different regions (e.g., high unemployment in Europe, gender inequality in India).

Markets and Freedom

• Free Markets vs. Freedom:
  • Markets are important for development but not synonymous with freedom.
  • Need to be supplemented by democracy, public expenditure, and education.
  • Historical insights from Karl Marx and Adam Smith on the necessity of multi-institutional approaches.

Conclusion

• Sen's Best Idea:
  • Expanding informational input in economic and social analysis.
  • Importance of considering various aspects like health, education, and overall life quality, not just income.
• Overall Message:
  • The centrality of public discussion in identifying and addressing various forms of unfreedom.

Reference

• Sen, Amartya. "Development as Freedom." Nobel Prize in Economics, 1998.