Economic Development

 I. Poverty, Human Development and Growth

Sept. 9     The Development Challenge

    -> CD, ch. 1 "The development imperative."

    -> Visual Presentation of Development and Underdevelopment around the Globe:

        The World by Income World Bank (2002)

        Global Disparities in Income UNDP (2002)

        A Global View of HIV Infection (UNAIDS)

        Global Estimates of HIV/AIDs epidemic as of end 2001 (UNAIDS)

        Income Poverty around the World, 1987, 1990, 1998 (World Bank)

        Interactive map with access to 2001 World Bank Atlas

        For details on other indicators, check the World Development Indicators On-line of the World Bank (2002)


Sept 11-18 Growth and Human Development

    a) The meaning and measures of well-being and growth

    -> CD, ch. 2 "Measuring growth and development"

    -> World Bank Country Classification in 2001

    -> "Human Development Indicators," UNDP (2001) Human Development Report 2002

    -> Human Development Index UNDP (2002)

    -> Impact of AIDs on Life Expectancy in Selected African Countries  (UNAIDS)

    -> The Impact of AIDs on Industry (UNAIDS)

    ->  Income Poverty around the World, 1987, 1990, 1998

     -> How Big is Our Ecological Footprint?

    -> Indicators of Environmental Sustainability World Bank World Development Report 2003 Box 2.1

    -> National Income accounting for environmental sustainability World Bank World Development Report 2003 Box 2.2

    b) Fighting poverty

    -> Poverty indicators UNDP (2002)

    -> Poverty Index UNDP (2002)

     -> Easterlin, Richard (2000) "The Globalization of Human Development," Annals of the American Academy of Political and Social Science No. 570 (July), pp. 32-48.

     -> World Bank (2000), "Causes of Poverty and a Framework for Action," ch. 2 in the World Development Report 2000

     -> InterAmerican Development Bank (2001) "Is Growth Enough?" Latin American Policy Newsletter Vol. 14, 2nd quarter

    -> UNDP (2002) "Democratic Governance for Human Development," ch. 2 in the UNDP Human Development Report 2002

    c) Inequality and economic growth

    ->  Birdsall, Ross and Sabott (1995) "Inequality and growth reconsidered: lessons from East Asia," The World Bank Economic Review Vol. 9 (September), pp. 477-508 [CR]


    ->  Explore the portraits of women in Ethiopia and India from Faith D'Alusio and Peter Menzel (1996) Women in the Material World San Francisco: Sierra Club Books.

    -> UNDP (1998) "Progress against poverty in Africa"

II. Economic Growth: Capital, Human Capital and Technology 

Sept 23    Old Growth Models: Solow and Harrod-Domar

    -> CD, ch. 4, pp. 125-129

Sept 25    New Growth Models: Externalities and Technological Change

    -> CD, ch. 8 "Endogenous growth theories and new strategies for development"
    -> CD, ch. 13 "Technology and development"

    -> Grossman, Gene and Elhanan Helpman (1994) "Endogenous Innovation in the Theory of Growth," Journal of Economic Perspectives Vol. 8, No.1 (Winter), pp. 23-44.

    -> UNDP (2001) "Technology achievement index" Appendix A2 in Human Development Report 2001

 Sept 30, Oct 2     Population Growth and Human Capital

    -> CD, ch. 12 "Population, education, and human capital"
    -> Sen, Amartya (1990) "More than 100 Million Women Missing," The New York Review of Books Dec 20, [CR] 

    -> Sen, Amartya (1994) "Population: Delusion and Reality," The New York Review of Books Dec 22, pp. 62-71. [CR]

    -> World Population Counter

    -> UNDP (2001) "Unleashing Human Creativity: National Strategies," ch. 4 in Human Development Report 2001


III. Explanations for Underdevelopment and Policies for Development

Oct 7    Modernization theory and dependency theory

    -> CD, ch. 5 "Developmentalist theories of economic development"

    -> CD, ch. 6 "Dependency theory and economic development"

    -> Map of the Colonial History of Africa

Oct 9    Institutions, Market Failures and State Intervention

    -> CD, ch. 7 "The state as a potential agent of transformation: from neoliberalism to embedded autonomy."

    -> The Governance Map of the World Bank

    -> Governance Indicators 1 UNDP (2002), Governance Indicators 2 ; Governance Indicators 3

    -> Arndt, Heinz (1988), "Market Failure and Underdevelopment," World Development Vol. 16, No.2, 219-229

    -> Burki, Shahid Javed and Guillermo Perry (1998) "Institutions Matter for Development," ch. 1 in Beyond the Washington Consensus: Institutions Matter Washington: The World Bank, pp.11-24.     

    ->  "Market Failure and State Intervention", Stern's summary of arguments

Oct 11    First part of research paper due in my office  by 3 pm.

Oct 14  Mid-semester Break

Oct 16     Tutorial on the Balance of Payments and Open Economy Macro

    -> CD, ch. 16 "Macroeconomic equilibrium"

Oct 18, 21: Oral mid-term

Oct 23, 28    Import-substituting industrialization

    -> CD, ch. 3 "Development in historical perspective"

    -> CD, ch. 9 "The initial structural transformation: the industrialization process"

     -> Growth Performance of the Economy under ISI 

     -> Trade Performance under ISI

     -> Bruton, Henry (1998) "A reconsideration of import substitution,"  Journal of Economic Literature Vol. 35 (June), pp. 903-936 [CR]

 Oct 30, Nov 4    EOI, the Asian Miracle, and the Washington Consensus, 

       -> CD, ch. 10 "Strategy switching and industrial transformation"
    -> Cline, William (1982) "Can the East Asian model of development be generalized? " World Development Vol.  10, No. 2, reprinted in Wilber 1988 pp. 282-297 [CR]
    -> Ranis, Gustav "Can the East Asian miracle be generalized? A Comment " World Development Vol. 13, No. 4, pp. 543-548 (including reply by Cline) [CR]

The Washington Consensus: 

    -> World Development Report 1991 "Overview," pp. 1-11 [CR}

    -> Williamson, John (1990) "What Washington Means by Policy Reform," in John Williamson, ed. Latin American Adjustment: How Much Has Happened? Washington, D.C.: Institute for International Economics.[CR]
    -> IMF documentary: 'One World, One Economy" [in class]
    -> Agarwala, Rampagal (1984) "Price distortions and growth," Finance and Development (March) pp. 33-37 [CR]

Nov 6, 11 From the Washington to the Post-Washington Consensus

    ->  Stallings, Barbara and Wilson Peres (2000) Growth, Employment and Equity: The Impact of the Economic Reforms in Latin America and the Caribbean Summary, ECLAC.[CR]

    -> UNCTAD (2001) Economic Development in Africa  [CR]

    -> Stiglitz, Joseph (1998) "More Instruments and Broader Goals: Moving Towards the Post-Washington Consensus," 1998 WIDER Annual Lecture

    -> "Openness, market-friendly institutions, and flexibility are important ingredients for growth," interview with Xavier Sala-i-Martin in IMF Survey Aug 13, 2001, pp. 267-269.

    -> Amsden, Alice (2001) "Industrializing Late," ch. 1 in Amsden The Rise of the Rest. Challenges to the West from Late-Industrializing Economies. Oxford, New York, et.als.: Oxford University Press, pp. 1-28[CR]

    -> Rodrik, Dani "The Global Governance of Trade as if Development Really Mattered," mimeo, May 2001.

    -> Press, Eyal (2002) "Rebel with a Cause: The Re-education of Joseph Stiglitz," The Nation June 10, 2002, pp. 11-16.

Nov 13, 18 Agriculture and Development

    -> Labor Force and Value Added in Agriculture: An Overview

    -> CD, ch. 11 "The role of agriculture in development"
    -> Jain, Pankaj S (1995) "Managing credit for the rural poor: lessons from the Grameen Bank," World Development Vol. 24, No. 1, pp. 79-89 [CR]

Microcredit Summit Campaign

 IV. Foreign Capital and Economic Development

Nov 20, Dec 2  Foreign Financing: changing Trends

       -> CD, ch. 17 "The debt problem and development"

    -> Net official development assistance as a share of GDP, 2000 (UNAIDS)

   -> Dijkstra, Geske and Niels Hermes (2001) "Debt relief and economic recovery in Latin America: Lessons for HIPCs," paper presented at the XXIII International Congress of the Latin American Studies Association, Washington, D.C., Sept 6-8, 2001.

     -> Debt Initiative for Heavily Indebted Poor Countries (HIPC)

    -> Jubilee 2000 Initiative

Nov 25     No class.

                  Second part of research paper is due in my office by 3 pm. 

Nov 27    Thanksgiving

Dec 4      Portfolio Financing and Risks: the Asia Meltdown

    -> UNCTAD (1998) Trade and Development Report 1998 [TDR] New York: United Nations, "International Financial Instability and the East Asian Crisis," pp. 53-82. [CR]

    -> IMF Staff (1998) "The Asian Crisis: Causes and Cures," Finance and Development (June), pp. 18-21. [CR]

    ->  Jose Antonio Ocampo (1999) "International Financial Reform: The Broad Agenda," Temas de Coyuntura 6, ECLAC, Chile.

     Asia Crisis Homepage

Dec 9      Multinational corporations and economic development

    Global Direct Foreign Investment in 1998 (UNCTAD Press Release)

    -> CD, ch. 14 "Transnational corporations and economic development."

    -> UNCTAD (2001) World Investment Report 2001 ch. 1 

    -> Movassaghi, Hormoz and Fahri Unsal (1993) "American Companies' Responses to the Promotion Programs of Host Countries: A Statistical Analysis of LDCs," in Mordechai E. Kreinin, ed. International Commercial Policy: Issues for the 1990s Washington: Taylor & Francis, pp. 191-201.

    -> Interview with the head of Intel about its investment in Costa Rica 

    -> Leslie Kaufman and David Gonzalez (2001) "Labor Standards Clash with Global Reality," NYT, April 24.

Dec 11     Roundtable discussion - what can we learn from a comparison of the country studies.

Dec 13 Written final paper is due by 5 pm.