Amartya Sen, the winner of the 1998 Nobel Prize for Economics, has been called a "student of the world's miserable." In contrast to other recent Nobel winners who have explored the conditions that affect the industrialized world, Sen's research has concentrated on the economic problems that affect the world's poorest citizens: chronic hunger, famine, illiteracy, infant mortality, and disease. For the past 35 years, he has devoted his considerable research talent to solving the problems of economic development in poor countries.

In his latest book, "Development as Freedom," Sen defines development as "the enhancement of freedoms that allow people to lead lives that they have reason to value." He believes that economists have put a misplaced emphasis on GDP as the golden measure of development, and thus his definition goes far beyond that of simply maximizing per capita income. To the extent that higher incomes allow people to lead more fulfilling lives, GDP growth is rightly to be pursued. However, if increasing incomes in a country are not accompanied by the other factors that define a high standard of living (such as the freedom of political process, availability of social opportunities including education and health care for all citizens, and protection from hunger and premature death) then the country is only getting richer. It is not "developing" in the truest sense.

Though many economists assume that a high per capita income is a necessary prerequisite for these other forms of progress, Sen cites several examples that refute this assumption. One such exception is the Indian state of Kerala which has a high life expectancy, low fertility, and low illiteracy compared to countries such as Brazil, South Africa or Gabon which are much richer economically. (Indeed the life expectancy of the citizens of Kerala exceeds that of African Americans in the United States despite a 20-fold difference in average incomes.)

In many circumstances, political, economic, and social freedoms are complementary goods. For example, expanding social freedoms by providing educational opportunities (especially among women) tends increase income and reduce infant mortality. Similarly, economic freedom leads to faster income growth which in turn provides the resources necessary to provide social freedoms such as education and health care.

Perhaps the most interesting complementarity of freedoms addressed by Sen refers to his well-known work regarding the relationship between famine and democracy. Although famines have occurred throughout history and remain common today, Sen has documented that famine has never occurred in a functioning democracy. He reasons that freely elected governments cannot allow their own people to die en masse and expect to remain in office very long. Thus, a democracy not only provides its citizens the freedom of political process but also provides a degree of economic security and freedom from famine.

Sen's childhood memories of growing up in famine stricken Bengal, India have given him a strong sympathy for the plight of those in "grinding poverty," but he does not generally advocate a systematic transfer of income from rich to poor. Instead Sen focuses on providing the poor with the freedom to live rewarding lives. While this may entail large public expenditures for education, health care or emergency income security, he specifically avoids suggesting that a simple handout provides much that will provide for a fulfilling life. In fact, Sen criticizes policy makers who maintain that the generous benefits available to unemployed workers in Europe largely compensate workers for the high unemployment rates that exist there. Sen insists that a monetary transfer cannot make up for the loss of self respect and self determination that comes from joblessness.

Although Sen is strongly in the camp of free marketeers, he does reserve some criticism for libertarians. He encourages those who insist upon strict adherence to pure free market ideals to consider the plight of the most disadvantaged. Extreme poverty persists even in the midst of free markets, and the invisible hand alone may not be enough to prevent famine.

While Sen advocates government measures that would not generally enjoy the support of libertarians (such as widespread public spending on education and health care), he argues that these measures, in many cases, have proven beneficial to economic development and eventually lead to greater economic, social and political freedoms for all citizens. Any committed free-market thinker will find much to praise in this intelligent and thought-provoking book.