Human potential: optics of economics

Abstract

The work is devoted to the genesis of the concept of human potential in economics. It is shown how the modern economy came to the concept of human potential and the related concept of human development and modern interpretation. It is considered how, thanks to the works of Nobel laureate Amartya Sen, the economy has moved from the theory of utility to the theory of human capabilities. The understanding of human potential in the context of opportunities has long remained dominant and is now considered classical. However, thanks to the work of another Nobel laureate James Heckman, human potential has been associated since the mid-2000s with the development of a person’s «inner abilities», activation of the activity aspects of his personality, agency and independence. This paper also distinguishes between such important concepts for the economy as well-being, happiness, opportunities and abilities.