Human Rights in Economic and Social Realms: Exploring the Synergies Between the Capability Approach of Amartya Sen and the Perspective of Original Institutional Economics

As is known, the concept of human rights was promoted in the post-World War II period in particular by the UN and constitutes a milestone of the ethical and political ideals of the contemporary world. This principle has received an ample (although not yet complete) affirmation in political sphere, in particular by promoting the principles of democracy and freedom of thought in the most difficult realities. However, much remains to be done for extending the notion of human rights to economic and social sphere, where poverty, large inequalities and differences in opportunities, precarious and unrewarding work are a tough reality for many people in both developing and developed countries. In this context, the chapter explores, in a pluralistic orientation, a number of relevant contributions provided by economics to these issues. The author considers the Capability Approach of Amartya Sen and the Instrumental Value Theory and other related concepts elaborated by Thorstein Veblen, Clarence Ayres and Marc Tool in the perspective of Original Institutional Economics. He also considers the related social theory of John Dewey and some psychoanalytic contributions on the dynamics of social action. This chapter analyses how the important concepts developed by these theories—for instance, the notion of freedom not only formal but substantial, the importance of improving the process of social valuation, the relevance of an equitable and sustainable economy for promoting the capabilities of the persons and the importance of institutions and policies for realizing these goals—can contribute in theory and policy action to a much-needed extension of human rights to the economic and social sphere.