The extract from Sen’s book, Development as Freedom, touches on many of the ideasdiscussed in the...

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The extract from Sen’s book, Development as Freedom, touches on many of the ideasdiscussed in the lecture. One additional ‘failure’ of profit maximising markets mentioned bySen is their inability to supply ‘public goods’, goods or services that are highly valued insociety but will not be supplied by private firms.Task for students.Once you have read the extract by Sen, attempt the review and discussion questions1-3 and 5 (ignore 4) on p.165, and be prepared to discuss your answers with your colleaguesin your tutorial.

Robert · Accepted Answer

Chapter 3 
The Nature of Capitalism
Sen believes that the market is valuable both for the freedom it provides and for the 
results it delivers. Give examples of each. Which is the more important rationale for 
capitalism: freedom or efficiency? 
Encouragement to the free economy is healthy for the society as well as for the Economy; 
any developing nation needs market liberalization for the promotion of economic growth. 
Freedom should be in designing the goal and also the way to develop them; it demands a new 
understanding of old ideas. 
Example of “Freedom of women to seek employment.. “ lightens the fact that the 
discouragement of women to work in many countries lead to the bad health of the economic 
conditions as it reduces the number of people who could be employed or could be a resource for 
productivity. But Capitalism efficiency is considered important when we want to increase 
productivity; here stability in price is also more compare to other economy. So in cases where 
regulation is required like child labor and women empowerment freedom becomes an important 
factor but if incentives and growth of the economic system needs to be at the highest level 
Capitalism efficiency plays a greater role.

The extract from Sen’s book, Development as Freedom, touches on many of the ideasdiscussed in the lecture. One additional ‘failure’ of profit maximising markets mentioned bySen is their inability to...

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