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Capabilities and Communities: A Perspective from Institutional Economics

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  • Shankaran Nambiar

    (Malaysian Institute of Economic Research)

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.

Suggested Citation

  • Shankaran Nambiar, 2021. "Capabilities and Communities: A Perspective from Institutional Economics," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(6), pages 1973-1996, December.
    • Handle: RePEc:pal:eurjdr:v:33:y:2021:i:6:d:10.1057_s41287-020-00341-5
    DOI: 10.1057/s41287-020-00341-5
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