Economic Development

"The challenges to the adoption of industrial policies are primarily political, not technical. One of the reasons why governments have not focused on policies to enhance indigenous manufacturing capabilities in specific areas has been the prevalence of the Washington Consensus policies during the last twenty years. Industrial policies under ISI were often not successful, when they only provided incentives -- like subsidies or protection without a clear date of termination -- but no enforceable accountability. But they were very successful when they included both, as evidenced by the experience of the Asian Tigers."

Eva Paus, from Foreign Investment, Development, and Globalization: Can Costa Rica Become Ireland?

"Development requires the removal of major sources of unfreedom: poverty as well as tyranny, poor economic opportunities as well as systematic social deprivation, neglect of public facilities as well as intolerance or overactivity of repressive states. Despite unprecedented increases in overall opulence, the contemporary world denies elementary freedoms to vast numbers -- perhaps even the majority -- of people. Sometimes the lack of substantive freedoms relates directly to economic poverty, which robs people of the freedom to satisfy hunger, or to achieve sufficient nutritio, or to obtain remedies for treatable illnesses, or the opportunity to be adequately clothed or sheltered, or to enjoy clean water or sanitary facilities. In other cases, the unfreedom links closely to the lack of public facilities and social care, such as the absence of epidemiological programs, or of organized arrangments for health care or educational facilities, or of effective institutions for the maintenance of local peace and order. In still other cases, the violation of freedom results directly from denial of political and civil liberties by authoritarian regimes and from imposed restrictions on the freedom to participate in the social, political and economic life of the community."

Amartya Sen, from Development as Freedom

 
Economics 213    Spring 2017 Monday and Wednesday 11:00-12:15 AM in Skinner 216

     
Course Description
Dr. Satya J. Gabriel
Professor of Economics
Course Calendar   e-mail: sgabriel@mtholyoke.edu
Course Objectives
FAX: 413-538-2323
Course Forum
Office Hours:  MW 8:30-10:30am
3 Projects
 

 
 
 

Course Description:

This is a course in economic development. 

Text:  Todaro and Smith's Economic Development (henceforth referred to as simply "Todaro") is available through the Odyssey Book Shop.  Further readings will be made available on Moodle.

Grading:

The course grade will be based on three sources:
1. Class participation, particularly your country reports -- 35%
2. Five (5) quizzes -- 35%
3. Final Exam (unless exempt) -- 30%

NB: If you earn an "A" on 1 & 2 above, then you are exempt from the final exam. Otherwise, the final is required and valued at 30% of the course grade.


 

Requirements: This course has as a prerequisite one course in economics.
 
 


Course calendar
Jan. 25 Course introduction, assignments, & clarifications
Read chapter 1 "Introducing Economic Development: A Global Perspective" in Todaro and Smith, Economic Development 11th edition.
"Development: The process of improving the quality of all human lives and capabilities by raising people's levels of living, self-esteem, and freedom."
Todaro and Smith, Economic Development

Comparative Economic Development and the Human Development Index

Jan. 30

Special Excel Functions

GINI coefficients by country

Cumulative share of people from lowest to highest incomes 100% Cumulative share of income earned 100% Line of Equality (45 Degree) A Lorenz Curve B Commons Source for Gini Coefficient Graph
Todaro, chapter 2

Assignment: Students will form teams of 2-3 members (not less than 2 or more than 3). Each team will select a country from a hat and then choose 1 or 2 additional countries for comparative analysis. The first general assignment is for each team to construct a quality of life or human development Index. Your index can begin wth a pre-existing index or can be constructed from scratch. Each team will present their index and use it to analyze select differences between the countries for which they have taken responsibility.

The random selection process will take place on January 30 during class. The due date for the index is Feb. 6, 2017. Each team will have ten minutes to discuss their index and its application to their countries during class. All EC 213 students will write evaluations of presentations for which they were not members of the teams presenting. This rule will apply for all presentations. Print your evaluation (no more than one typed page and hand it in at the beginning of the next class meeting.

Gabriel, Globalization (online)
"Among the more compelling metaphors for society is the market. States are viewed as bartering protection and justice for tax revenues, social interactions are termed exchanges, society is considered a social compact, and even such intimate institutions as marriage are deemed contractual. Perhaps the popularity of this metaphor is due to the impressive reach of markets in daily life. For whatever reason, society is represented as a set of consensual contractual obligations, bound together by a minimal legal structure and such conventional symbolic forms as language, money, and dress."

"This view admirably captures the intentional aspect of human activities reflected in the act of choice, but it ignores structural determination; the systematic way in which the rules of the game produce social outcomes independently of the wills of the actors themselves."
Samuel Bowles and Herbert Gintis, Democracy & Capitalism

Classic Theories of Economic Growth and Development

Feb. 1 & 6 Todaro, chapter 3

Evolutionary Economics

Gustav von Schmoller

"Individuals need not make the right tradeoffs. And whereas in the past we thought the implication was that the economy would be slightly distorted, we now understand that the interaction of these slightly distorted behaviors may produce very large distortions. The consequence is that there may be multiple equilibria and that each may be inefficient."
Karla Hoff and Joseph E. Stiglitz, Frontiers in Development Economics

Contemporary Models of Development & Underdevelopment
February 8 & 13
Todaro, chapter 4

First Quiz: Last fifteen minutes of class on Feb. 8

Gabriel, China Essay Series (online).

Poverty, Inequality, and Development
February 15 & 20

Todaro, chapter 5

Kwame Adom, "Recognizing the Contribution of Female Entrepreneurs in Economic Development in Sub-Saharan Africa: Some Evidence from Ghana," in the Journal of Developmental Entrepreneurship, March 2015, v. 20, issue 1, pp. 1-24

Michael Adusei, "Does Stock Market Development Promote Economic Growth in Ghana?," in the International Journal of Economics and Finance, June 2014, v. 6, issue 6, pp. 119-26

Population Growth and Economic Development
February 22 Todaro, chapter 6

Urbanization and Rural-Urban Migration
February 27 Todaro, chapter 7
Human Resources: Productivity and Creativity Potentials
March 1 & 8

Todaro, chapter 8


Case Study:  Belize Rural Women's Association:
Gabriel, Belize Rural Women's Association, Revolving Loan Fund, & Women's Cooperatives
Agricultural Transformation and Rural Development
March 20-22 Todaro, chapter 9
The Environment and Development
March 27-March 29 Todaro, chapter 10
Development Policymaking and the Roles of the Market, State, and Civil Society
April 3-5 Todaro, chapter 11
International Trade Theory and Development Strategy
April 10-12 Todaro, chapter 12
Balance of Payments, Debt, Financial Crises, and Stabilization Policies
April 17-19 Todaro, chapter 13
Foreign finance, Investment, and Aid
April 24 Todaro, chapter 14
Finance and Fiscal Policy for Development
April 26-May 1 Todaro, chapter 15


Library of Congress Country Studies

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Copyright © 2017, Satya Gabriel, Economics Department, Mount Holyoke College.