Capabilities, human capital and education

Using recent advancements in the Capability Approach, we firstly characterize capabilities as fuzzy entities, and then propose a closed loop, where investments in human capital, capabilities and modes of economic production are combined. We argue that, given the complex relations between human capital accumulation and capability enlargements, educational policies have to be designed to include their direct and indirect effects on human development. In doing this, the United Nations Development Program's capacity development principles can be a useful reference point. These principles are consistent with the Capability Approach view of education as an empowerment process, in which not only job-oriented, but also life-oriented skills are provided. Moreover, the capacity development principles suggest how to organize educational policies operatively in order to give people crucial capabilities. Finally, we argue that network organizations are possible environments in which educational policies can be implemented.