Methodological and Ideological Options
Flows, funds and the complexity of deprivation: Using concepts from ecological
economics for the study of poverty
Arnim Scheidel ⁎
Institute of Environmental Science and Technology (ICTA), Universitat Autónoma de Barcelona (UAB), 08193 Bellaterra, Barcelona, Spain
abstract article info
Article history:
Received 22 April 2011
Received in revised form 20 October 2012
Accepted 23 October 2012
Available online xxxx
JEL classification:
I 32
R11
R14
Q18
Keywords:
Multidimensional poverty
Complexity
Incommensurability
Flow-fund framework
Capability approach
Poverty has been increasingly conceptualized as being multidimensional, involving deprivation in many dimen-
sions of life. This paper discusses issues and implications of multidimensional poverty by adopting concepts com-
monly used in ecological economics. In particular, poverty is approached as an irreducible, complex phenomenon
for which many legitimate, but non-equivalent descriptions exist. Issues of social and technical incommensurabil-
ity are illustrated for different meanings and measurement types of poverty. Georgescu-Roegen's flow/fund
framework is interpreted, informed by the capability approach of Amartya Sen. The paper argues that a
predominant focus on flows as a proxy to analyze poverty represents rather a short-term perspective on access
to satisfiers to fulfill particular needs. Contrary to that, focusing on valued funds may provide useful information
for the analysis of capabilities that persons and societies might pursue in the long term. Furthermore, it is argued
that strong poverty alleviation needs to adopt analytical tools that can deal with non-trade-off cases: improve-
ments in one poverty dimension cannot always compensate for the deterioration of other poverties. This implies
to rethink the usefulness of aggregate multidimensional poverty indices, as well as the predominant use of in-
come measures.
© 2012 Elsevier B.V. All rights reserved.
1. Introduction
During the last century, the understanding of poverty has experi-
enced profound changes. While decades ago, poverty was mainly con-
ceptualized from a conventional economics perspective, based on
income measures such as dollars-a-day, currently a variety of different
approaches to poverty exist (Laderchi et al., 2003) as well as
multidimensional poverty concepts, such as offered by the capability
approach of Amartya Sen (1999b). Multidimensional poverty concepts
acknowledge that poverty does not only involve deprivation in the eco-
nomic dimension, but rather that poverty consists of deprivations in a
variety of dimensions, such as health, education, living a meaningful
live and others. This shift in the conceptualization of poverty has been
related with a subsequent involvement of a variety of scientific disci-
plines for the study of poverty.
1
Within ecological economics, poverty has been mainly studied in rela-
tion to the environmental dimension and resource use issues (e.g.,
Goodland and Daly, 1993; Martinez-Alier, 2002; Moseley, 2001; Narain
et al., 2008), but some contributions also explicitly address the
multidimensional aspects of poverty. Examples are Cohen and Sullivan's
(2010) toolkit for the evaluation of the multiple dimension of poverty
in relation to water use, or Max-Neef et al. (1989) theory of fundamental
human needs, which underlines the necessity to deal with different ‘pov-
erties’, rather than just with poverty.
In this paper, I aim to further integrate on a conceptual level the no-
tion of multidimensional poverty – as largely discussed within develop-
ment studies – into an ecological economics framework. To do so, I
particularly aim to bridge different concepts from both development
studies and ecological economics in order to connect both fields of
study as well as to address further implications for research and policy.
To do so, the paper discusses some poverty concepts from development
studies with the following four theoretical frameworks commonly used
in ecological economics:
First, the paper uses a complexity perspective (Giampietro, 2003)
to approach the notion of multidimensionality. Poverty is conceptual-
ized as complex phenomenon for which various legitimate but non-
equivalent descriptions are possible. Such an approach shifts the em-
phasis from the need to find a universally agreed definition of poverty
to rather finding an adequate definition regarding a certain social
group and context.
Second, the paper addresses issues of incommensurability
(Martinez-Alier et al., 1998) of different poverty concepts. Incommen-
surability means that there is no common measure. The paper argues
Ecological Economics 86 (2013) 28–36
⁎ Tel.: +34 93 586 81 02.
E-mail addresses: arnim.scheidel@gmail.com, arnim.scheidel@uab.es.
1
It is necessary to mention that while the shift from a one-dimensional monetary
poverty concept to a multidimensional approach has been successfully made in theory
and the study of poverty; monetary income measures still dominate development
practice. See Sumner (2007) for a discussion on this issue.
0921-8009/$ – see front matter © 2012 Elsevier B.V. All rights reserved.
http://dx.doi.org/10.1016/j.ecolecon.2012.10.019
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Ecological Economics
journal homepage: www.elsevier.com/locate/ecolecon