Human Capability:

The human capability approach attempts to measure poverty in terms of outcomes or "ends". This approach  defines  poverty  as  the absence of basic human capabilities to  function at  a  minimally acceptable  level within a society. An  emphasis  is placed  on  people's abilities and opportunities to enjoy long healthy lives, to be  literate, and  to participate freely in their society. The capability indicators generally used are: life expectancy, literacy rates, malnutrition, and housing. The capability indicators measure well-being in  terms of final outcomes rather  than  the  proxies (such  as  income,  consumption  and  nutrition) for  those outcomes.

Availability of national level data on several capabilities indicators has  made it possible to estimatk poverty level through capabilities approach. The United Nations Development Programme (UNDP)  regularly brings  out the  Human  Development Report that provides comparative analysis on  global  trends  in  economic and  social development. The Planning Commission of India has also initiated a process to bring out national and state level reports on similar lines. Broadly, the capability indicators used  by  the UNDP  and  the Planning Commission of  India can be grouped  as the capability to meet the basic needs, self-esteem and the ability to choose.