The Contradictory Relationship between Free Market and Human Development: Possible Solutions from the Concept of Capabilities in Amartya Sen

Abstract

This article aims to address the issue of relationship between free markets and human development, especially in view of the possibilities of such consistent mechanisms, emphasizing the thought of Amartya Sen. The methodology is descriptive-analytic and qualitative. Therefore, it starts with an analysis of the free market, including its concept and practical implications, as well as its vision based on the perspective of development, stressing the responsibility of the market to promote economic development. It demonstrates that the free market is the possibility for the people to make trade freely, without State interference. It is noted that such State interference in the economy often hinders development, because market participants have more expertise to carry out the economic calculations. After, criticism of the free market will be studied, especially their inability to combat social ills alone, especially unemployment, hunger, poverty and other deprivation which people go through. Address the need for consistent free-market and economic growth with human development, provided the human agents involved in the development process participation in economic gains, reversing them in social achievements. Within this perspective, Amartya Sen's analysis of this relationship will be presented, linking the two ends through the concept of capabilities. Finally, the paper will evaluate, by means of the work of the aforementioned author, if the free market is the best means of economic development, concluding that, without the conjunction of State action, the market fails to solve all the problems of the economy. The need for a perspective that can connect free market and human development through the analysis of human capabilities is emphasized.