Download The Capabilities Model and the South West Alberta Community

The Capabilities Model and the
South West Alberta Community
Loan Fund (SWACLF)
Megan Heroux
April 2011
In partial fulfillment of an Applied Study course at the
University of Lethbridge
*Released with student consent to the SWACLF
• Part one- Overview of Microfinance
• Part two- Amartya Sen and the Capability Model
• Part three- Application of Sen’s Capability Model
in the Canadian Context
An Overview of Microfinancing
Concepts
• Microcredit- specific to small loans. Focus on
getting loans to the very poor.
• Microfinance- broader term incorporating
more financial services not just credit.
Microfinance in Canada
• Microcredit in Canada defined as: a loan
given to an entrepreneur of less than $ 25,000
(Horvath, 2001).
• Loans are offered to those who cannot receive
credit through traditional sources.
Microfinance in Canada:
Three types
• 1) Private Organizations- seeking profit.
• 2) Government Organizations- seeking economic
development.
• 3) Non-profit Organizations- seeking to
empower individuals living in poverty.
(Horvath, 2001)
Horvath, S. L. (2001, December). Building community capacity through group loans for minority populations in
Canada. Retrieved from http://https://dspace1.acs.ucalgary.ca/bitstream/1880/39297/1/2001_Horvath.pdf
Microfinancing in Canada:
Community Development
• Participatory
• Bottom-up approach
• Helps individuals take control over their own
lives
• Break the cycle of poverty
•
(Armendariz de Aghion & Morduch, 2005; Littlefield, Murduch & Hashemi, 2003)
Microfinancing in Canada:
Challenges
• Difficult to keep financially stable
• Limited research and best practices.
• Canadian marketplaces are more developed and
competitive.
• Clients may be cut off from government assistance.
•
(Horvath, 2001; Cameron, n.d)
Amartya Sen and the Capability Model
Concepts
• Functionings: Achievement of a person- what
she/he manages to do and values doing.
• Capabilities: A persons ability to achieve and
enjoy different functionings. Reflect a persons
ability to chose between different ways of living.
• A functioning may be thought of as the way a
person chooses to use a capability.
•
(Sen, 1995; Sen, 1990; Sen, 1985)
The Capabilities Model:
Theoretical Underpinnings
• Poverty should be seen as “deprivation of basic
capabilities” –not merely lack of income.
• A lack of capabilities can lead to low income, ill
health, hunger and undernourishment.
• It is inappropriate to make a comprehensive list
of capabilities since they vary so drastically from
person to person.
•
(Sen, 2004; Sen 1999; Sen 1990).
The Capabilities Model:
Theoretical Underpinnings
• Focus less on desire fulfillment and more on
capabilities and functionings.
• Sen relates his theories back to those of
Aristotle, Marx and Smith.
• Aristotle States:
“Wealth is evidently not the good we are seeking;
it is merely useful and for the sake of something
else” (as cited in Sen, 2009, pg 253 )
The Capabilities Model:
Theoretical Underpinnings
• Sen bases his work on giving people the opportunity
to live lives they have reason to value.
• Encourages us to think of people as ends, not
means.
• Freedom:
▫ Intrinsic Importance: Considered important in itself.
▫ Instrumental Importance: Gives people the
opportunity to chose their best option and live the life
they value.
▫
(Sen 2009; Sen 1999; Sen 1990)
The Capabilities Model:
Praise and Critiques
• Furthers the distinction between relative and
absolute needs- human need is based solely on
living a life of value.
• Sen respects the diversity of individuals and
their circumstances.
•
(Dean, 2009)
The Capabilities Model:
Praise and Critiques
• Difficult to implement
• Focus on individual liberty while ignoring the
role of social solidarity.
• Too individualized and liberal- does not account
for our cultures value of interdependence.
•
(Dean, 2009)
Application of Sen’s Capability Model in the Canadian
Context
Applying Sen’s Concepts :
World Bank “Empowerment and
Poverty Reduction”
• Empowerment as “the expansion of freedom of
choice and action”
• Focus on what assets people living in poverty
possess (ex/ social capital and collective capacity)
• Places the burden of responsibility back on the
individual
• Bottom-up and participatory approach
•
(World Bank, 2002)
Applying Sen’s Concepts :
World Bank “Empowerment and
Poverty Reduction”
• Four Key elements lead to empowerment
▫ Access to information
▫ Inclusion/participation
▫ Accountability (from state officials, public
employees and private actors)
▫ Local organizational capacity
▫
(World Bank, 2002)
World Bank. (2002, May 1). Empowerment and poverty reduction: A sourcebook. Retrieved from
http://siteresources.worldbank.org/INTEMPOWERMENT/Resources/486312-1095094954594/draft.pdf
Applying Sen’s Concepts:
Brandon University “Capacity
Framework”
• Recognize the assets that people have available
to them.
• Uncover peoples strengths and assets so that
they may use them to better their lives.
• Networks and social relations are among the
most important assets
•
(Reimer & Tachikawa, 2008).
Annis, R., Racher, F., & Beattie, M. (Eds.). (2009). Rural community health and well-being: A guide
to action .
Retrieved from Brandon University, Rural Development Institute website:
http://www2.brandonu.ca/organizations/rdi/Publications/Health/RuralCommunityHealth_and_Wellbeing_a_Guide_t
o_Action.pdf
South West Alberta Community Loan Fund. (2010, December 8). Addressing poverty in Alberta. PowerPoint
Presentation
Incorporating Sen into the SWACLF
• Business Preparation program, addressing the
root causes of poverty, aligns well with Sen.
• Respect peoples goals and values while assisting
them to create their own pathway out of poverty.
• Referral network and mentorship programexamples of social institutions that can help
increase economic opportunity in Sen’s opinion.
As we move forward…
• In the implementation phase of this project,
reflect on where you see Sen being incorporated.
• After reviewing Sen’s main concepts, do you see
any gaps in the current SWACLF model where
Sen may fit in?
• How could Sen’s model be used for the
SWACLF while still incorporating the social and
interdependent values of our culture?
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References
Access Community Capital Fund. (2010). Annual report. Retrieved from:
http://www.accessccf.com/uploads/File/annualreports/ACCESS-Annual-Report2010.pdf
ACEM. (2010, December). Activity report.
Annis, R., Racher, F., & Beattie, M. (Eds.). (2009). Rural community health and
well-being: A guide to action. Retrieved from Brandon University, Rural
Development Institute website:
http://www2.brandonu.ca/organizations/rdi/Publications/Health/RuralCommunity
Health_and_Wellbeing_a_Guide_to_Action.pdf
Armendariz de Aghion, B., & Morduch, J. (2005). The economics of microfinance.
Cambridge, Massachusetts: MIT press.
Cameron, S. (n.d.). Community investing in Canada. Retrieved from Canadian
Community Investment Network Cooperative Canada website:
http://www.microcreditsummit.org/papers/Workshops/12_Cameron.pdf Cape
Fund. (n.d.). About CAPE fund . Retrieved April, 2011, from
http://www.capefund.ca/en/about-capefund.html
Carpenter, B., Findlay, C.,Blumell, J., Boyer, S., Cruse, J., & Evenson, C. (2010).
University of Lethbridge: Microcredit community health nursing project.
Unpublished raw data.
Community First Development Fund of Saskatoon (Ed.). (2010, May). The Caring
Neighbor,(9). Retrieved from
http://communityfirstsaskatoon.ca/sites/communityfirstsaskatoon.ca/files/May_20
10.pdf
Dean, H. (2009). Critiquing capabilities: The distractions of a beguiling concept .
Critical Social Policy, 29(2), 261-278
• Hariji, K. (2007, May). The Ottawa community loan fund: A research report on
social impact. Community Economic Development Technical Assistance Program.
• Horvath, S. L. (2001, December). Building community capacity through group
loans for minority populations in Canada. Retrieved from
http://https://dspace1.acs.ucalgary.ca/bitstream/1880/39297/1/2001_Horvath.pdf
• Jubilee Fund. (n.d.). The Fund. Retrieved April, 2011, from
http://www.jubileefund.ca/fund/
• Littlefield, E., Morduch, J., & Hashemi, S. (2003, January). Is microfinance an
effective strategy to reach the millennium development goals/. Focus Note, 24.
Retrieved from http://www.cgap.org/gm/document-1.9.2568/FN24.pdf
• Momentum. About Momentum. (2011). Retrieved April, 2011, from
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http://www.momentum.org/sites/default/files/2009%20Annual%20Report%20Spr
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• Ottawa Community Loan Fund. (2010, December). Fuelling innovations, creating
opportunities [Video file]. Retrieved from http://oclf.org/what-is-oclf/
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http://revitalization.brandonu.ca/index.php?pageid=A
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http://www.seedwinnipeg.ca/documents/SEED2010ANNUALREPORTREVISED.pd
f
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n.pdf
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• South West Alberta Community Loan Fund. (2010, December 8).
Addressing poverty in Alberta.
PowerPoint Presentation
• St. John's Community Loan Fund. (2010). Annual report.
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OCLF/Alterna community micro loan program: Carleton Centre for
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http://siteresources.worldbank.org/INTEMPOWERMENT/Resources/4
86312-1095094954594/draft.pdf