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Capabilities and Communities: A Perspective from Institutional Economics

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Abstract

The purpose of this paper is to argue that the capability approach can benefit from thinking in institutional economics. If the locus of the capability approach is moved from the individual to groups or communities, then it is imperative that institutions (conceived as formal and informal rules) be explicitly considered when applying the framework, particularly when social relations matter, as in microcredit or poverty alleviation. Rules underpin transactions and behaviour in society, so it stands to reason that capability improvement, or its lack, be examined from the vantage point of rules as understood by institutional economics. Applying institutional economics to the capability approach will open up different ways of analysing capabilities in communities.

Résumé

Le but de cet article est de faire valoir que l'approche par les capacités peut bénéficier d'une réflexion en économie institutionnelle. Dans le cadre de l'approche par les capacités, si l’on déplace notre attention de l'individu vers les groupes ou les communautés, il est impératif que les institutions (conçues comme des règles formelles et informelles) soient prises en compte de façon explicite lors de l'application du cadre, en particulier lorsque les relations sociales ont une importance, comme dans le cas du microcrédit ou de la lutte contre la pauvreté. Dans la société, les règles sous-tendent les transactions et les comportements, il va donc de soi que l'amélioration des capacités, ou son absence, doit être examinée du point de vue des règles telles qu'elles sont comprises par l'économie institutionnelle. Le fait d’appliquer l'économie institutionnelle à l'approche par les capacités ouvrira des perspectives sur les différentes façons d'analyser les capacités dans les communautés.

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  1. Malaysian Institute of Economic Research, Kuala Lumpur, Malaysia

    Shankaran Nambiar

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Nambiar, S. Capabilities and Communities: A Perspective from Institutional Economics. Eur J Dev Res 33, 1973–1996 (2021). https://doi.org/10.1057/s41287-020-00341-5

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