Chapter 6 moves from combatting capability shortfalls to expanding people’s capability development through capability gains. In addition to promoting people’s basic capabilities for what they can be and do, we can also promote their potential enhanced capabilities when societies are democratic and reduce social inequality. I argue this calls for envisioning the economy as a capability generation process rather than as income generation process (or preference satisfaction process) as the mainstream sees it. I address the relationship between democracy and capabilities, explain democracy in the social contract tradition as a system of public reason, discuss the nature of collective capabilities in terms of the idea of people forming collective intentions, and argue that this all entails seeing democratic societies as “open political systems” that allow for constant innovation and evolution in how diverse kinds of people settle upon and consent to rules that govern the decision-making practices they find functional to living together. Finally, I close by arguing that this is all inconsistent with the mainstream conception of private subjectivity. I return to the idea of a person’s self-narratives as a personal identity capability and suggest understanding it requires we rethink how subjectivity is socially embodied and socially situated – a topic taken up in Part III.

The Prologue begins with the factors the Nauru Constitutional Review Commission Report of 2007 identified as responsible for the Republic’s contemporary economic and political precarity. In a UNDP-funded constitutional referendum in 2010, the Nauruan community overwhelmingly rejected proposed amendments to Nauru’s 1968 Constitution that were designed to address those factors. The Prologue describes the author’s involvement in the referendum campaign, and introduces the history of Australian, British and German imperial interventions in the Pacific region, and Australia’s use of Nauru as a site for offshore processing of asylum seekers who arrive in Australian waters by sea.