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Why GDP is a Lie: The Capabilities Approach to Human Development

Creating Capabilities

Martha Nussbaum

Martha Nussbaum's 'Creating Capabilities' shatters the myth that economic growth equals human progress. This video unpacks her radical alternative: the Capabilities Approach. We start with the story of Vasanti, an Indian woman whose suffering was invisible to GDP statistics. Then, we break down the core concepts—Basic, Internal, and Combined Capabilities—and reveal why governments should guarantee 'capabilities' not 'functionings'. You'll learn the 10 Central Capabilities, including the architectonic roles of Practical Reason and Affiliation. We critique GDP, utilitarianism (exposing adaptive preferences), and resource-based approaches. Finally, we explore how this framework tackles human rights, global justice, cultural diversity, and animal rights. By the end, you'll have a powerful lens to see beyond numbers and measure what truly matters: what people are actually able to do and be.

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