The document discusses several key issues in determining which capabilities should be developed and how they should be distributed: 1) Capabilities need to recognize human and cultural diversity as well as how needs vary based on environment and traits; 2) Individual autonomy is important but so is connection to community; 3) Policy often focuses on capabilities with broad agreement but education should also include emotional, moral and spiritual domains; 4) Capabilities should aim to benefit those with the least advantages and realistic local conditions. Operationalizing these principles requires attention to interactions across sectors like education, health, and the economy.