The capability approach argues that development should be assessed by what people are actually able to *do* and *be*—their capabilities—rather than by income or resources alone . For Sen, poverty is 'capability deprivation,' meaning a lack of freedom to achieve valuable functionings, like being well-nourished or participating in community life. This framework shifted the focus of economics and development policy from measuring wealth to measuring human well-being and freedom .

Sen sees democracy as more than just elections; he defines it fundamentally as a system of public reasoning . He identifies three distinct values of democracy: its intrinsic value in respecting human agency, its instrumental value in enabling citizens to defend their interests, and its constructive role in forming public values and priorities through open debate . This model connects democratic practice directly to social justice and the prevention of disasters.

Sen famously argued that 'no famine has ever taken place in the history of the world in a functioning democracy' . He demonstrated that famines are rarely caused by a lack of food, but by a breakdown in people's 'entitlements' to buy or produce it . Democratic systems, with their free press and electoral accountability, provide the political incentives and information mechanisms to prevent such crises, as governments are forced to respond to public suffering .

Sen criticized Rawls's theory of justice for being 'transcendental institutionalism'—defining a perfectly just society, rather than comparing and ranking real, imperfect situations . He proposed a comparative, realization-focused approach that asks: 'How can justice be advanced?' rather than 'What is a perfectly just society?' . This involves open impartiality and public reasoning to identify and remedy manifest injustices, a process he contrasts with Rawls's reliance on a hypothetical 'original position' .

Drawing on the concept of 'adaptive preference,' where people adjust their expectations to their circumstances, Sen highlights the 'capability to aspire' as a meta-capability . This is the ability to imagine and hope for a better life, which is itself a crucial freedom. It is a counter to the way social norms and deprivation can narrow a person's sense of what is possible, ensuring that development empowers people to not just cope but to demand change .