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The capability approach is a broad normative framework for the evaluation of individual well-being and social arrangements, the design of policies and proposals about social change in society. The capability approach is used in a wide range of fields, most prominently in development thinking, welfare economics, social policy and political philosophy. It can be used to evaluate a wide variety of aspects of people's well-being, such as individual well-being, inequality and poverty. It can also be used as an alternative evaluative tool for social cost-benefit analysis, or to design and evaluate policies, ranging from welfare state design in affluent societies, to development policies by governments and non-governmental organisations (NGOs) in developing countries. In academia, it is being discussed in quite abstract and philosophical terms, but also used for applied and empirical studies. In development policy circles, it has provided the foundations of the human development paradigm. The core characteristic of the capability approach is its focus on what people are effectively able to do and to be, that is, on their capabilities. This contrasts with philosophical approaches that concentrate on people's happiness or desire-fulfilment, or on theoretical and practical approaches that concentrate on income, expenditures, consumption or basic needs fulfilment. A focus on people's capabilities in the choice of development policies makes a profound theoretical difference, and leads to quite different policies compared to neo-liberalism and utilitarian policy prescriptions. Some aspects of the capability approach can be traced back to, among others, Aristotle, Adam Smith, John Stuart Mill and Karl Marx, but the approach in its present form has been pioneered by the economist and philosopher Amartya Sen, and more recently also been significantly developed by the philosopher Martha. Sen argued that in social evaluations and policy design, the focus should be on what people are able to do and be, on the quality of their life, and on removing obstacles in their lives so that they have more freedom to live the kind of life which, upon reflection, they find valuable: "The capability approach to a person's advantage is concerned with evaluating it in terms of his or her actual ability to achieve various valuable functionings as a part of living. The corresponding approach to social advantage -for aggregative appraisal as well as for the choice of institutions and policy - takes the set of individual capabilities as constituting an indispensable and central part of the relevant informational base of such evaluation"
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